Kinkisharyo’s Plant is Showing Growth

Kinkisharyo's is a light rail car assembly facility at Plant 42. It recently celebrated in its production of its 78th rail car for the Los Angeles Metro Authority. This completes their first contract with LA Metro and moves them onto a new beginning. All the manufacturing is done at the Plant 42 plant in Palmdale with about four hundred workers. It is part of an almost billion dollar contract to deliver over 200 rail cars. The recent completion triggers a new phase and new agreement with LA Metro to produce more cars, and to expand the plant. If you recall several years ago there was a big legal disagreement. The unions accused Kinkisharyo of violating environmental acts. This forced the company to consider a move to Phoenix Arizona where other manufacturing is done. The disagreement would have killed jobs in Palmdale, which the city desperately needed. The company felt the union move was ruse by the union to force the company to use its workers. The company decided to drop their factory expansion, but they later won an agreement to use an existing building once operated to make the B-1B bomber. A swords to plowshares change. Additionally the company agreed to not fight unionization. The Palmdale workers are now represented by the International Brotherhood of Electrical workers. This success provides security and jobs in the valley, and it is not just as airplane bomber producing area, but an environmentally conscious area as it is combined with the BYD electric bus manufacturing in Lancaster. This keeps workers in the area, which busts the local economy and areas growth.

California Marijuana Law may save Insolvent Cities. Lancaster Approves Marijuana Cultivation in City Limits

The city of Lancaster has given the final approval March 2017 in allowing commercial cultivation of marijuana for medical purposes, but it banned commercial growing or selling it for recreational use. They approved five as the limit on businesses allowed to grow within the city limits. This will be allowed on Lancaster industrial zoned land according to reports. Places like Desert Hot Springs in the Coachella Valley has been inundated by marijuana growers and developers. Buyers are buying land without utilities or even roads. Some brokers are getting calls from all over the world. The Mayor is all for it. He wants parks, roads, sidewalks and he is looking for the tax revenue to do it. The medium household income is under $35k, and the city declared a financial emergency a few years ago. They have since pushed for dispensaries and cultivation. It seems the city planner will be open to new farmers. Growers in California will be able to apply for state licenses by 2018. The catch is these growers will need to get a local license before the state offers the permit. Will this frenzy also be a growth opportunity to farm land in Antelope Valley? The valley has a long history of farming, so it would be a likely target area and it is closer to customers in Los Angeles than Desert Springs. The city of Lancaster says no currently to recreational use farming, but not sure what LA County approves. There are other issues as some utility firms indicate that the power needs may not be enough in some rural areas, and water is a big issue in southern California. Some of these issues may require an infrastructure study. Perhaps larger operations could use brown water as the water source. There has been a push to use the expansive Antelope Valley as a brown water aquifer. Let nature clean the water and maybe water the buds along the way. Other cities like Cathedral City, and Adelanto have recently accepted applications for growers. The competition for land and permits may spur growth, but first you have to get that permit and then talk to land sellers. Adelanto was also almost insolvent. This seems to be the push for some California cities in desperate need for revenue then they will be lenient with permits. The penalties for cultivating marijuana or operating a grow house illegally (a property used primarily for the cultivation of marijuana) can vary depending on the specific circumstances of the case. Usually the penalties can include heavy fines and incarceration in prison for up to 3 years.

Low Priced Lancaster, Ca. Property for Sale

We have been posting news about Lancaster and Palmdale developments since 2007. Not only do we try to inform our readers about developments in the Antelope Valley we also promote some property with investors we work with. Here are a couple of properties we are happy to submit for prospective investors. These parcels are priced at the low end of the market at recently sold price ranges. This property is located at 40th Street East at H-8. It is zoned RR-1 allowing 2 homes on this 2.5 acre parcel. Asking $50,000 which is commensurate with recent sales. Contact sales@vacantlanddeals.com for more information. Images are available The second property is located at 43rd street East at Ave H. It is just under 2 acres fronting on H which is paved with power. The city limits of Lancaster ends at 40th street. There is also a home across the road. Ideal parcel to buy and hold. They are asking only $15,000 which again is similar to recent sales in this area. Contact sales@vacantlanddeals.com for more details. Property images are available If you know someone who is interested in promoting on our blog please let us know.

High Speed Rail Private Property Purchase Right of Way Process

The Cal High Speed Rail has a process regarding how they will buy private property for the planned rail line. Once they target property within their proposed path or alternate path then they begin a property evaluation process. They will put together a design and survey to start the process to prepare a boundary survey with a legal description and appraisal maps. Once this is done they will begin the appraisal, but only after the approval of the approved and alternate routes. Then they will meet with the private property owner and do an appraisal inspection. A surveyor may stake the area and the evaluation may include mitigation to re-establish remainder. Once this is complete they will do an appraisal review with a final approval process. Then an acquisition process begins but after the Notice of Determination (NOD) and (ROD) Record of decision is made. The negotiation initiation is made with the property owner. They may consider new information at this time, and then the final approval process will start. If there is an established farm, home, or business in the path then a relocation process may commence with a 90 day notice. The farm, home or business may get moving expenses paid, or other benefits. If a business can show a loss of business goodwill then that business can file a claim, but they will have to show a burden of proof. This may include tax returns, or other evidence showing income loss due to relocation if applicable. This is all part of their right of way process. If you believe your business or private property is within the path then you should maintain your records of business if you wish to make a claim for a higher value, or a business loss.

Money Is Leaving China

News reports indicated China has tightened capital controls, but it doesn’t seem to be working. Their foreign exchange reserves unexpectedly fell below $3 trillion. There has been a steady drop as it fell by $12.3 billion in January to $2.998 trillion, compared with a drop of $41 billion drop in December. China had lost over $300 billion in 2016, and over $500 billion in 2015. News reports indicate Beijing is concerned at the speed of the outflow. This outflow hurts its ability to defend its own currency. It is possible if the outflow continues then the government will devalue their own currency. The US dollar has been rising and the yuan has dropped by almost 7% since last year. At the same time their gold reserves have increased. What does this mean for the Antelope Valley? Well many Chinese investors are investing in California. There has been a huge influx of Chinese purchases of real estate in San Francisco, Los Angeles and the Antelope Valley. Land is still cheap and it takes no effort to maintain dirt. There has also been interest in farm land to grow traditional agricultural products, as well as, marijuana. Stay tuned. China has lots and lots of money, and California seems to be a nice resting place for their investments.

Many of China’s Elderly are looking to Retire and Invest Abroad

China is facing a looming demographic crisis due to its rapidly aging society according to a UN Study. There soon will be an estimated 360 million Chinese over the age of 60 in 2030. That is 25% of the population, which is also larger than the entire US population. China may not have the resources to care for a large retired population. Their economy has slowed, and affluent Chinese are increasingly investing in retirement properties overseas both for their parents and their own golden years. They have benefited from a property boom at home and they would like to retire somewhere safe, environmentally clean, safe and comfortable. The yuan’s value has decline against the dollar, so they have been pouring money into foreign investment in Europe and the US. Overall Chinese investment in foreign commercial and residential real estate jumped from $5.6 billion in 2012 to $34.4 billion last year, according to recent studies. A recent survey also indicated Chinese who had either emigrated or were considering emigrating, of those 60% said they would buy an overseas property in the next three years, with the US, UK, Canada and Australia as the top destinations. More than half indicated they were concerned about the continuing depreciation of the yuan. Outbound tourism has shot up 200% in 2015 from 2014. Retirees expect to live full lives in their golden years and the west appears to be their desire destination. Chinese also like living with people of their own culture just like others. California has one of the largest Chinese populations in the US. Many also look to vacant land as an investment vehicle, since there is no maintenance on land parcels. They can sell the property later for a profit and then buy a home in California. The investment becomes a safe haven from the yuan and home government. Also what make Antelope Valley a good prospect is the new medical facilities. Retirees like access to safe state of the art medical care. The desert valley may fit the bill. Also China has dense cities with crowded apartments. Antelope Valley and many parts of California are the opposite of that. Additionally, a foreign investment benefits their children and grandchildren. In China property ownership is a leasehold and not fee simple like the US. A leasehold maybe only 70 years in China, so you can’t will the estate to your children which is so common in the US. There are still cultural barriers to Chinese foreign investment, but some of the positives may outweigh the negatives. An investment can be turned into cash when appropriate.

A New Proposed California State law Compels cities: Build more, or we’ll do it for you

Every California city is required to build a certain amount of housing to meet the state goals, and many cities are ignoring it. The new law proposed in Sacramento would force cities to comply, or the state will push the projects forward. It is SB 35 and if passed then each city may be forced to fast track building projects. This takes control from the local level to the state. Most cities don’t like such bullying. It has not been written fully just yet, but it has been proposed by new state senator Scott Wiener. Other similar proposals sank in the senate. Initially the proposed law will allow control locally, but it may be more how a city will comply and not whether they comply. A San Francisco housing initiative pushed for 3,600 new homes every year through 2020. Other San Francisco Bay Area districts will create 160k new homes in the same period. We don’t have the figures for Los Angeles County, but the push from Sacramento is build, build, build regardless of location.