Is Marijuana Saving Adelanto?

Adelanto is in San Bernardino County just outside of Victorville, Ca. It has lost the Georgia Air Force Base in 92 and has not seen good times since. Recently the down was $2.6 million in the hole and they have elected to become a marijuana cultivation zone which is put them in the in the black or should we say green. The population according to the census is 33,000 with 1% in prison. It has been known as a prison city since it has a privately run detention facility as big employer. The city was founded about a 100 years ago by the inventor of the toaster and iron. The current population is about 50% Hispanic and 30% African-American, but almost half live below the poverty line. Around its 100 anniversary it joined Desert Hot Springs in allowing medical marijuana on an industrial scale. Land prices in the cultivation zone have sky rocketed 1000% from $300k to $3 million for parcels in the allowed area. The city has licensed 40 new facilities and it now rests its hopes on a weed. Currently eight states have legalized recreational marijuana and twenty nine approve medical use. Adelanto and other struggling cities in California are banking on a new “green wave”, which is a Federal crime. We will see if this sticks long term. Industrial hemp may have been a better first start as it is clearly a more green for the environment, while marijuana is a smoking drug with many issues that surround it.

Adverse Possession of Lancaster, Palmdale California Land

We ran across this issue as we were trying to sell a property where the owner lived overseas outside the Antelope Valley area. We were attempting to drive by the property and we found an illegal dwelling and a man with a gun defending the property. Now this doesn’t occur everyday, but in parts of the Antelope Valley surrounding the cities of Lancaster and Palmdale, Ca. there is a lot of vacant land with little access or only a dirt road. Now the squatter was on the property but had taken physical possession. He appeared to have been living on the property for some time and making a home of his own, but didn’t complete all the factors of adversely possessing the property. You can acquire a property by adverse possession including a house or vacant land in California, but the action will take at least five years.

The process to make a claim of adverse possession in California by a claimant (the party seeking to gain title to the property) they must successfully demonstrate the following. 1. Possession under a claim of right or color of title, which means ownership of property by a person in possession, without being regular( so not the documented registered owner), Color of title is where the claimed owner has some piece of paper claiming to transfer title to him or herself. This can be done writing a document saying you are the owner. 2. Actual, open, notorious occupation (protected by a substantial enclosure such as a fence, barrier or wall and usually cultivated or improved. 3. Claimant is adverse and in hostile possession. 4. Continuous possession for a period of five years. 5. Payment of all taxes assessed against the property during the five-year period. Most people think you just have to pay the taxes, but in order to fully take the property and defend it in court then you need to have all of the above.

It could be easier to acquire this type of property at a tax sale then doing all of the above unless it is a house where the time and value is more in your favor. Adverse possession of tens or hundreds of acres of land could be more difficult to fence if you are challenged in court. You may have to do more research to find out what is open and notorious in adverse possession of vacant land. We have ran across potential properties that can be taken by adverse possession as the property owner has given up and no longer intends to pay the property taxes, so the other parts of adverse possession can be undertaken.

Illegal Dwellings and Debris Removal has been Stepped Up for Land Owners in Antelope Valley

The mayor of Los Angeles County Michael Antonovich has been on the LA County board of Supervisors for thirty one years. He has organized a Nuisance Abatement Team (NATS) since 2006. The team under city permit and building codes has removed a number of illegal dwellings and the biggest target area has been in Antelope Valley. The NATS group has forced homeowners of makeshift homes to dismantle them, face fines or go to jail. One notorious illegal dwelling was “Phonehenge” (a take off of Stonehenge). It was not sufficiently dismantled by the property owner who was then prosecuted and sent to jail after a dozen other prior misdemeanor convictions.

The Dept of Public Works handles smaller issues from potholes, downed trees, and uncollected trash, bulky item pick up and graffiti issues. Recently, the department has been reduced by approximately a half a million dollars so many areas have are now overlooked.

Illegal dwelling will not fall under Public Works issues as that is now a NATS target. They also enforce dumping on property. Lots of debris is dumped on vacant land parcels in the valley. Instead of residents going to the dump and paying to have the county recycle and burry their unwanted goods, they unload it on vacant unused land parcels. Often several to hundreds of tires have been found on unsuspecting land owners. It costs nine to fifteen dollars or more to recycle a tire. Some unscrupulous tire installers don’t like to transport and pay that fee even though they charge the customer. So when they get a sufficient load they hall it and dump it off the road behind a hill in the valley.
Code Enforcement
Each city (Lancaster, Palmdale, Ca.) and the LA County have several ordinances that are designed to maintain a healthy, safe and clean environment. They carry out land use policy and preserve the quality of life standards for residents and businesses.

The Uniform Building Codes, Housing maintenance codes, various health and safety codes are the codes that target illegal dwellings and dumping. Part of the illegal dwelling issues and weed abatement is the prevention of fires. Every summer fires seriously impact Los Angles County costing local government and businesses, insurance companies and home owners millions annually.
If a City or County staff member observes that code violation exists then typically a general notice of violation is issued to the owner/tenant to correct the code violation in a timely manner. The City may also issue citations or take court action if the situation poses a significant risk to the community or if the individual has ignored the notice of violation.
In most cases, the individual responsible for the code violation is given the opportunity to voluntarily correct the situation and comply with current codes without a penalty. If the correction is not made, then the individual may be subject to fines and civil injunctions or other penalties. In many cases the code violator is not the property owner so the property owner initially gets a notice in the mail. If the violation is not taken care of in a timely manner then the city or county will remove the debris. In such a case a lien will be recorded for the expense to remove the debris. If LA County clears the debris then it will likely cost much much more then if you do it. It is the land owner’s responsibility to ensure their property meets the codes set out by the city and county. We recommend you take any notice seriously.

The Southern California Water Solution Maybe in the Desert, Which Could Increase the Price of your Investment Land

>The original article was reported by Noaki Schwartz and Garance Burke of the Associated Press.

In the Mojave Desert east of Needles, Ca. in San Bernardino County is a place called Cadiz, Ca. It seems more like a location for a Clint Eastwood western as it is a desolate dry hot desert, but there maybe an oasis of water here just south of route 66. According to reports this oasis has tall green trees with lemons, and grape vines awaiting harvest.

A private water company indicates beneath the 35,000 acres Cadiz ranch is an aquifer with enough water for 400,000 homes. They indicate that this water comes originally from springs above in the Desert Mountains and settles in Cadiz and eventually resurfaces in dusty lake beds dozens of miles away where it evaporates in the hot desert.
A proposal to tap this water supply was rejected several years ago, but their new plan is to drill thirty four wells, and then pipe the water along the railroad line that currently exits.

Environmentalists say that this will impact the desert tortoise, bighorn sheep, Joshua trees and other plants and animals. Conversationalists say the aquifer is not as large as the company indicates, and even others say removing so much water annually will not allow the aquifer to recharge itself with limited annual rainfall. The debate will continue, but to us if the water is simply evaporating then a balance between man and nature maybe able to be made. Former Gov. Arnold Schwarzenegger has called the proposal "a path-breaking, new, sustainable groundwater conservation and storage project," when the prior proposal was made years ago.

According to the Associated Press, since 2010, the Santa Margarita Water District, Three Valleys Water District, Golden State Water Company, Suburban Water Systems and Jurupa Community Services District entered into agreements with Cadiz to receive water. These agencies supply water to parts of Los Angeles County, Orange County, Riverside County and eastern San Gabriel Valley.

Now 400,000 homes will only serve a fraction of the water needs of Southern California, but it is enough to serve Lancaster and Palmdale, Ca. or Victorville’s current populations. We will see if the recent proposal will gather enough steam to flow water down to the Antelope Valley and onto farmland and homes instead of evaporating into dry air. Certainly, a future water solution will allow the High Desert areas to grow much like Arizona has.

Land Banking with a California Land Contract

Land Banking is a term used by land investors. It essentially means to buy land and hold it for a period of time for a long term gain. It is the same as holding a stock or security for a long period of time. Simply buy land, hold and wait to see what future growth patterns do to its market value.
A land contract is a simple contract between a buyer and seller to purchase real property. It doesn’t even have to be land. It can also be known as an installment sale agreement. It is an agreement between a seller and buyer whereby the seller provides financing to sell the property for an agreed purchase price and the buyer repays the loan in monthly installments. It is much like a typical mortgage agreement, but there isn’t a financial institution involved and there are only two parties in this transaction. Under a land contract, the seller retains the legal title to the property, yet allowing the buyer to take possession of it other than legal ownership. As an example, if a buyer pays $9,000 for a parcel with 10% down payment of $900 and then finances $8200 at 7% interest approximately $228.02 in installment payments a month over 3 years. The seller is providing a short term loan to the buyer. The seller holds legal title to the land until the loan is paid in full. After the full purchase price has been paid including interest, the seller will convey title to the property to the buyer, and record the deed with the recorder's office. If the buyer defaults on their installment payments then typically the land contract would consider this a failure to pay, and the buyer would be in breach of contract. In a failure to pay any equity earned by the buyer would return to the seller. The seller would retain all of the buyer’s payments and interest.
Land contracts are different than the typical real estate contracts, because in a land contract the seller is providing a loan to the buyer (short term seller financing). In a standard real estate contract, if there is a loan then the loan is handled by the third party lender who administers the payments after escrow closes. If a third party lender is involved then a lien (mortgage) or trust deed would be recorded on the property.
This is an easy way for a buyer to limit their risk in buying land if they don’t have the full cash amount in order to buy a property. It is also more cost effective and offers security to the seller as they will not have to foreclose on the property. We are offering land contracts on our smaller parcels, so it allows land buyers to invest in real estate with less capital and risk for tomorrow’s reward. We also think banking on your future with real estate still remains one of the best means to secure your retirement, or long term needs. With today’s low bank interest rates investing in land is a far better alternative.


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The City of Lancaster California is Proposing Land Development Changes to Establish Three Separate Mixed Use Zones

The city of Lancaster, Ca. Planning Department is forwarding new recommendations in conjunction with their 2030 General Plan. The focal point of their recent meeting is to draft new zoning changes for the city, and to incorporate several mixed use proposals. The city of Lancaster, Ca. currently doesn’t have mixed use development, while cohabitating residential and commercial zoning has been implemented in numerous cities across America. A typical mixed use would be street level retail shops on main streets with single family and multiple family dwellings above. Most of Lancaster Ca. has been single family dwellings in proximity to commercial buildings. It has been a typical small town growing without the future planning of the needs of the community. It has been a sort of plan as you grow, instead of planning growth. The mixed use proposal will make Lancaster look more like Orange County’s growth and development, which has been the new normal.

The three proposed mixed use zonings are Mixed Use-Neighborhood (MU-N), Mixed Use-Commercial (MU-C), and Mixed Use-Employment (MU-E). The mixed used neighborhood zone would build residential housing in close proximity to commercial, office uses and services. It would include multi-family uses, such as apartments and condominiums, small-lot single-family subdivisions, and smaller commercial and office uses. The streets patterns would allow better traffic flow, and it would offer pedestrian connections, community space with trails and neighborhood parks.

The mixed use commercial would integrate residential and commercial space together. The commercial space would most likely be along major artery streets, with modern landscaping. It will also have multi-storied buildings which must contribute to the areas landscape. The third zoning change proposal is mixed used employment. This zone is intended to provide an area for non-retail employment uses in close proximity to residential housing. It would likely include multi-family residential uses with office professional, business park-type, and some light industrial uses. This zone is not intended for heavier industrial uses.

The two major target areas for this new zoning will be south of Ave H from 20th to 40th Street West, and also along Sierra Hwy and Division south of Ave I. As the city grows so does the opportunity for land investors. We think this is a very positive step toward the future for land buyers in Antelope Valley. Most of these areas are currently vacant land parcels, but it will be a future location for a developer. Many large chain stores wish to locate their business near residential neighborhoods as it has been part of their business model. Land prices today are far less then they were just three years ago, so this is a good time to look at vacant land deals in Antelope Valley.

Los Angeles County Rural land Soon to become a Race Track?

The proposed racetrack is approaching the finish line. The Fairmont Butte Motor Sports Park (fairmontbuttemotorsportspark.com) has been proposed on 320 acres of land at 150th Street West at Hwy 138. The property owner and founder is Thomas E. Malloy. The Los Angeles County planning commission recently recommended the project at the September 2009 meeting. There are several more hurdles to jump, but the meeting this coming Saturday February 6th at the Lancaster Regional Library may go a long way to making this project a reality.

The proposed track is situated on privately owned land in Antelope Valley. Most of this area is vacant unused land or farmland in the remote area west of Lancaster, Ca. The track will be open to the public with no memberships required. The plan is not for commercial use, but for private motor car enthusiasts, car clubs, and racing organizations. The track will carve around Fairmont Butte just west of the poppy preserve.

The plans indicate that the racetrack would only use 140 of the available acreage and operate only during the daytime, and there would be no grandstands, allowing for only a few spectators. Racing would only take place on weekends and on occasional Fridays. The main obstructions that may upend the proposal are environmental issues. The few nearby residents could be exposed to excessive noise once it is up and running. It could also affect the area's wildlife, which includes lizards, badgers and burrowing owls, and it will be only a mile from the state protected wildflower poppy preserve. Environmentalists also indicated this area is also home to seasonal wildflowers, California buckwheat scrub and purple needle grass typically grow there. The racetrack group indicates that they will minimized these environmental issues by restricting noise, limiting racing and traffic and independent studies show that while there will be some impact to habitat, there would be no impact to wildlife movement or to the Poppy Reserve. In addition, the Fairmont Butte offers a natural barrier to noise and helps maintain the areas natural beauty.

There are also several Solar power companies forwarding proposals to develop this area, so the terrain will likely change rapidly in the coming years. Most private land owners and investors have looked for development and changes in this primarily rural vacant land. Property prices will likely increase in the coming years due to the coming growth, and we will keep you informed to these developments.

Rural Land as an Alternative Investment in the New Green Energy Economy

There has been a number of development proposals for the vacant land near the Antelope Valley Poppy Reserve. In 2005 there was a proposal from Scottish Power to develop Wind Energy, but the neighborhood disliked the idea of large Wind Towers on the horizon. That enterprise appears to be long dead. In addition, there has been a proposal working its way through LA County Planning Commission for a NASCAR Style Race Track at 150th Street West and Ave D. The neighbors have been fighting that proposal as well due to noise and other issues, but it has been the hottest ticket on the west side until now.

A new plan is shedding light on the poppy reserve. Nextlight Renewable Power of San Francisco is planning a solar sight called AV Solar Ranch One. This proposed development is targeted for 170th West at Ave D. The company uses photovoltaic panels which turn sunlight into electricity. They operate on a track so the panels move with the sun, and the energy produced will connect to Southern California Edison. This consigns with California law which mandates up to 33% of the States Energy to be from alternative sources. Edison is already expanding their power-lines that run through the region, and the proposal appears to be on track with residents as the Antelope Acres Town Council unanimously approved the plan. Nextlight’s news release targets the environment impact studies to be approved by April of next year. They hope for construction to begin by October of 2010 and energy production by 2011. This project will certainly change the landscape of the area, which has been primarily vacant unused land. It shouldn’t affect the poppy reserve though, since the site is north of Fairmount Butte. Also, it is not part of the counties ecological reserve where Joshua Trees and other plant and animal life is protected.

At least two solar energy companies are now taking advantage of the suns consistent output in the Antelope Valley, and the availability of low priced land. We have been telling our clients and prospective investors that they need to buy land near a large metropolitan area in the path of growth,Northern Los Angeles County certainly fits that model. The proposed solar development and the continued focus of the State and Federal governments to support alternative energy sources will create a new economy. Historically, new economies have taken us out of recessions, like the recent Dotcom and Real Estate booms which both eventually went bust. The new “Green Energy Economy” looks like it will be the next boom but with lasting implications. It will change the way we use energy and resources, and the Obama Administration is intent on its implementation with Cap and Trade regulation. The green boom ground zero is in the Antelope Valley, so stay tuned for future developments.