Chino Hills & Diamond Bar Sue Over Tres Hermanos Ranch Sale

It's hot off the (electronic) press, being posted just about 20 minutes ago, but the San Gabriel Valley Tribune has an article detailing the lawsuits filed on Friday the 20th by the cities of Chino Hills and Diamond Bar against the sale of the 2,450-acre Tres Hermanos Ranch, which is within their borders, to the City of Industry.

Mark Hensley, city attorney for Chino Hills, wrote in his filing that Industry "deceived the Oversight Board [for the former Industry redevelopment agency] and the public by consistently making false statements that the property would be used for open space and recreational purposes" while spending millions of dollars in studies for a solar farm that would cover about 40% of the land.  Hensley argued that "as a result of this deception the affected taxing agencies have been harmed."

Tres Hermanos Ranch from the south, March 2016.

Industry secured a 4-3 vote by the oversight board because of an offer to use Tres Hermanos land for public access and for the preservation of open space and has, it's been reported, contacted the Los Angeles County Department of Parks and Recreation about ways this could be done, presumably on the remaining 60% of the ranch, or about 1,550 acres.

Statutes require the oversight boards of former redevelopment agencies to secure the "best and highest value" for former redevelopment property, like Tres Hermanos.  A question would be whether this is solely measured in dollars lost to cities like Chino Hills and Diamond Bar, because the appraised value of the ranch was up to approximately $120 million and the agreed-upon purchase price was just south of $42 million.  The suits claim the ranch should be sold to the highest bidder

Notably, these suits challenge the sale as their major focus, though there are expressed concerns about the proposed solar project violating state environmental laws and local planning ordinances.  Interestingly, the Chino Hills filing includes letters from the Chino Valley Fire District and the County of San Bernardino supporting the city's allegations.

Here is the full article, which will appear in tomorrow's print edition.

State Launches Review of Tres Hermanos Ranch Sale

As explained in this San Gabriel Valley Tribune article today, the State of Calfornia's Department of Finance will review the recent sale of Tres Hermanos Ranch to the City of Industry, the agreement of which calls for approval of the deal by the department.

The department's staff who deal with redevelopment issues have 40 days to complete the review, though it is not expected to take that long.

As noted here recently, the cities of Diamond Bar and Chino Hills, in whose jurisdictions the ranch is located, have called for a state review and/or rejection of the sale as undercutting their tax receipts for the sale.  The City of Industry has stated that its purchase will yield open space, public access, and public uses--the latter meaning a planned solar farm on a substantial portion of the ranch.

While the article quotes state law requiring redevelopment land sales to "maximize value," the fundamental question with that word of "value," seems to be whether it is to be taken as meaning "dollar value" or some other qualifiable "value," such as open space, public access and so on.

The purchase price of $41.5 million agreed upon in a 4-3 vote by the City of Industry Successor Agency to the Urban Development Agency was contingent on a perpetual use of the 2,450 acres for public access and public uses.  However, a property management plan pegged the monetary value as roughly $86 to $122 million.

Interestingly, Chino Hills City Manager Rad Bartlam, who talked before of housing limits in general plans for the city, is now taking a different tack on the ranch by suggesting that his city and Diamond Bar could have bid $41.6 million ($100,000 more than the approved deal) and turned Tres Hermanos into parkland if the cities could have been allowed to bid.  He stated, "I would think the community would be better off having the cities of Chino Hills and Diamond Bar own it, than the City of Industry."

Chino Hills to Sue City of Industry Over Tres Hermanos Ranch Sale

The Chino/Chino Hills Champion reported in its edition yesterday that the City of Chino Hills intends to file a lawsuit challenging the late August sale of the 2,450-acre Tres Hermanos Ranch, immediately north of Carbon Canyon, to the City of Industry, which has been planning for a large solar farm on the ranch.

This development came after a closed door session of the Chino Hills city council meeting last Tuesday night. City Attorney Mark Hensley cited a "number of issues" including Industry's not presenting the proposed solar farm to the Chino Hills Planning Commission, which determines appropriate use to the city's general plan.

City Manager Rad Bartlam decried a lack of transparency in the process, telling the council that the city had to file public records requests for thousands of documents in order to learn of the plans for the ranch. Mayor Ray Marquez observed that the farm would cover most, if not all, the property and be visible from Grand Avenue.

A City of Industry spokesperson responded that going to the Chino Hills planning commission before a purchase "would have been premature" and added that Industry was committed to following all applicable laws and regulations from the local jurisdictions up to the federal level.

A view from the south of Tres Hermanos Ranch, March 2016.

Jim Gallagher, a Chino Hills resident and member of the grass roots organization Save Tres Hermanos Ranch, told the city council during the open portion of the meeting that people [most, presumably] in Chino Hills are against housing and the traffic it would bring to the area if these were built. Chino Hills and Diamond Bar together allow nearly 1,100 units (meaning a few thousands new residents) on their respective portions of the ranch.

Gallagher went on to say that "Tres Hermanos is a critical natural area with a natural waterway. Our residents say yes to open space and green infrastructure." This latter refers to the publicly stated intention of Industry to build a large solar farm on the ranch and Gallagher told the council that it was too big, noting he mentioned this to Industry officials. He then observed that there are misperceptions in the public mind about what solar farms are.

Chino Hills council member Cynthia Moran stated that the idea of the sale was "not necessarily a good one" and that she would like to see a public meeting to explain how the decision to sell the ranch will affect the city. She also said that while "people are quick to say they don't want houses," there is also the matter of residents comprehending "the reality of the situation."

Stay tuned as this issue ramps up!

Chino Hills & Diamond Bar Seek State Rejection of Tres Hermanos Sale

A new twist to the ongoing saga of the City of Industry re-acquisition of Tres Hermanos Ranch, as the cities of Chino Hills and Diamond Bar are petitioning the State of California to reject the sale or undertake a review to determine if the purchase meets legal criteria.  The stated harm to the cities involves the loss of tax revenue from the lower price ($41.5 million rather than in excess of $100 million) paid by the terms of the 24 August sale.

Read more in this San Gabriel Valley Tribune article.

City of Industry Reacquires Tres Hermanos Ranch

In a 4-3 vote last Thursday, the Successor Agency to the City of Industry's Urban Development Agency approved the sale of the 2,500-acre Tres Hermanos Ranch, originally acquired by the UDA forty years ago, to the City for $41.5 million.

Tres Hermanos Ranch from the south, March 2016.

Although there had been offers by the City and an Irvine developer of $100 million or more, the lower amount was approved on condition of guarantees by the City for public access to portions of the ranch, in addition to a proposed solar farm intended for the area.

Read more in this San Gabriel Valley Tribune article about the purchase.

Tres Hermanos Ranch Updates

In recent days, a pair of news items have come out in the San Gabriel Valley Tribune regarding the City of Industry's attempt to reacquire the Tres Hermanos Ranch, which the city's redevelopment agency purchased in 1978 and which then went to a successor agency when RDAs were eliminated.

Industry's city manager Paul Phillips wrote an open letter advertisement a few weeks ago stating the city's intention, if able to buy the ranch, to use it for public purposes, including open space and recreation.

That was followed by this article by the Tribune on the 3rd in which Phillips confirmed in a meeting with State Senator Josh Newman and officials from Brea, Chino Hills, Diamond Bar and Walnut that Industry is looking to establish a solar farm on the ranch.

The Tribune then followed yesterday with this article on Industry's expenditures so far in its early work on the proposed solar array.

New News on Tres Hermanos Ranch

This morning's San Gabriel Valley Tribune has another front-page piece on Tres Hermanos Ranch and negotiations over its potential use.

To read about these developments, read the article here.

The Latest Tres Hermanos Update

With the City of Industry's $100 million offer for the Tres Hermanos Ranch, in Tonner Canyon just north of Carbon Canyon, still on the table, but with an uncertain future, here is a new article from the San Gabriel Valley Tribune about a lull in the situation.

Tres Hermanos Ranch Decision Postponed

The successor agency to the City of Industry's former redevelopment agency has delayed a decision on the city's $100 million offer for Tres Hermanos Ranch.

Tres Hermanos Ranch, March 2016.

The bottom line is the agency wants to know more from the city about its specific plans for the 2,500-acre property, aside from its recent general statements about preserving open space and providing public access.

Read more here.

City of industry To Offer $100 Million for Tres Hermanos Ranch

According to yesterday's Pasadena Star-News, the City of Industry has upped its offer to purchase the 2,500-acre Tres Hermanos Ranch, which the city acquired forty years ago through its now-defunct redevelopment agency, to $100 million.

This was done after the regular council meeting Thursday included a closed session discussion after which the matter was to be resumed in two weeks.  However, a special meeting was called for yesterday afternoon, at which the decision was made to make the offer.

Industry city attorney Jamie Casso stated that the special meeting was called, with 24 hours notice as required by law, because the city had to make its offer ten days in advance of the next meeting of the successor agency to the city's redevelopment agency.

The article paraphrased Industry city manager Paul Philips' statement that "the City Council wants the land preserved for open space, public uses and public facilities" but did not offer details when contacted by the reporter, saying, "It's a work in progress."

Tres Hermanos Ranch as seen from the south, March 2016.

The land, which became subject to the disposition under the successor agency, was eyed by developers, with an Irvine firm, GH America, making a $101 million offer.  The city had an appraisal done that valued the land at less than half that amount and offered just over $40 million for the ranch, but is obviously willing to match the private offer.

The successor agency will consider Industry's latest offer at its next meeting on the 23rd.

The Star-News pointed out that the $100 million would come from Industry's general fund and that the city has a $264 million budget and some $800 million as surplus, amounts that far exceed what other municipalities have.

Chino Hills' mayor Ray Marquez, who is also a realtor, offered his views on the latest developments with Tres Hermanos, stating that residents prefer preservation of open space to high-density housing, but questioned why Industry would put up that kind of money, noting "there is a reason for it" and asking "what value is it to them?"

For more on this story, click here.

Tres Hermanos and Its "Highest and Best Use"

The latest development in the fate of Tres Hermanos Ranch, which is just north of Carbon Canyon, and situated between Diamond Bar and Chino Hills as one of the last large pieces of undeveloped land in the region, was in the news today.  Click here for an article in today's San Gabriel Valley Tribune.

The successor agency to the former Industry Urban Development Agency, axed when redevelopment agencies were outlawed several years ago, commissioned a report from a consultant to determine what the "highest and best use" of the ranch would be.

This action was taken in light of the City of Industry's recently unveiled bid of just under $42 million for the 2,400-acre ranch, a figure determined by an appraisal from a firm hired by the city and taking into account its current zoning and future use.

The new report, however, presented to the successor agency stated that this figure was far too low and that the land should be sold in conformance with state law which mandates that such properties be disposed of "in a manner aimed at maximizing value."

Naturally, this means "dollar value," not just because of the sale price, but because future residential and commercial development means more tax revenue for the state, county and cities.

Of course, there are other less tangible "values," such as the cost of increased pollution, the lost hours stuck in traffic, the long-term net effect of residential property, which most of the ranch would undoubtedly become, with respect to maintenance and care.

Tonner Canyon and Tres Hermanos Ranch from the south, March 2016.

When the report states "highest and best use," the operative term is not "best," it is "highest."  After all, if the only criteria for determining whether a property has "value" is that it brings top dollar for its sale and development, there would never been a reason for any government--be it local, county, state or federal--to dedicate or purchase property for parks, monuments, open space areas, conservation easements or other passive uses, which are often "best" for the broader public.

The City of Industry's city manager has been quoted as saying the offer of $42 million for Tres Hermanos was to keep the property for public use and not for housing. although past plans have discussed a reservoir and talk lately has also centered around a solar farm.

In any case, anyone who has driven Carbon Canyon Road just in the last several months and seen the very obvious and noticeable increase in volume and the lengthening of commuting hours readily understands the problem, just with this one issue alone, that would come with approximately 2,000 houses as well as commercial development that have been slated for Tres Hermanos if it is sold to developers.

Grand Avenue is the only road through the ranch.  A public roadway, namely Tonner Canyon Road, which exists as a prviate thoroughfare on the ranch, could be built to the 57, but that freeway has also seen a significant increase in volume in recent years with backups for miles in either direction depending on the time of day.

Regional pollution levels are rising precisely as we should be dramatically reducing them as climate change worsens.

If regional leaders addressed the broader issues of greater development, such as the mind-boggling number of homes being built in Eastvale, Corona and other Inland Empire areas, and then square those with the consequences of more pollution and traffic (and other variables) that would be remarkable.

Instead, what is driving the discussion is what this report highlights (lowlights?).  That is, the "highest and best use" of property is that which is handled "in a manner aimed at maximizing value."

What about "best use" for the public good as a whole?

What about "value" being quality of life, rather than chasing short-term revenue gains exceeded by long-term costs?

Can we afford our public policy to be pursued by these outmoded and outdated perceptions of "best use" and "value"?