New Tres Hermanos Ranch Lawsuit Filed

As reported Friday by Jason Henry of the San Gabriel Valley Tribune, the City of Industry has filed a new lawsuit against San Gabriel Valley Water and Power, the firm hired by the City's previous administration to develop a solar farm on Tres Hermanos Ranch.

With the ranch recently turned over to a new joint powers authority after Industry sold interests in the nearly 2,500-acre parcel, which is the last large undeveloped property in our area, to the cities of Chino Hills and Diamond Bar, legal battles continue between Industry and SGVWP.

Specifically, Industry is seeking the return of $20 million advanced to SGVWP for the project, alleging the funds were secured through false pretenses and stating that the firm has not forwarded evidence of any efforts expended for the project.

A portion of Tres Hermanos Ranch looking southwest from Chino Hills, 25 March 2019.

The City also claims that the utility company is concealing material that would show money was used for the benefit of the firm and contractors it hired, not for required reports and studies.  It added that invoices were sent to the City, even after the lease was terminated, for work that was actually never done or, if finished, was done so at excessive rates.

Moreover, the suit alleges that SGVWP used funds from the Industry lease on other projects and for personal expenditures of principal William Barkett, who, for instance, owned money to family members and also paid his personal asistant $6,000 a month for filing, bookkeeping and other routine office tasks unrelated to the solar farm project.  The City also claims some of that money is being used by the company in legal fights against it.

It has been about three years since a lease arrangement was made between the two parties for a 450-megawatt solar facility, but the City ended the arrangement and those officials who worked on the deal are no longer working in Industry.  The new partnership with Chino Hills and Diamond Bar included a media event on the ranch to publicly launch the joint powers authority tasked with the management of Tres Hermanos.

More on this issue as it develops and is reported.