Where do your Property tax expenses go?

There are many taxes associated with a property tax bill, but generally it is 1% of the assessed value of a property. The state of California takes in $43 billion a year in tax revenue as of 2010-2011. Other charges like Mello-Roos, and assessments take in another $12 billion. All of that revenue remains in the county the taxes were collected, which in turn goes to 4000 local governments including School districts (K-14), and county government agencies. Owner occupied residential properties make up 39% of all property tax revenue with 34% coming from investment and vacation home property. While commercial property makes up 28% of the total. Some properties pay no tax like government owned property, religious institutions, charities and hospitals. More revenue in property taxes increases the state budget. If the tax year is high than education budgets are reduced at the state level. If the property tax revenue is low than the state needs to make up the difference. The 2008 real estate crisis hit the state hard since there was many foreclosures causing tax revenue to go down, as well as, property values. Generally according to a recent report property tax revenue is steady, since even in recessions the property tax revenue remains. People tend to pay their mortgage and taxes making them the last to go in personal financial crises. You can learn more about this from the Legislative Analysis office in Sacramento

Building a Custom Home

A lot of property in Lancaster and Palmdale is advertised as build your dream home. It is easier said than done. First you need to budget for it. A custom home can cost from 150k to $450k with the average being $300k. But first you must buy the land, and the land location is tantamount. Many buyers buy land without power, water, or city services. Once you get the permits to build on such a property then you will need propane tanks for power, drill a well for water and use septic for sewage. All doable tasks. But getting the water 1500 feet below the surface is the first real trick. This is typical in Lancaster and LA County. A popular option is a modular home or prefabricated home. They almost look like a normal home, but you will have to disclose that the house is a modular home, and the selling price may be lower to reflect that. If you choose to build it yourself then you may need estimates for the cost to do so in your area. Plans and designs must be submitted to the city or county and then permits and inspections follow once initially approved. A builder will likely have several inspections along the way. Then you need a construction loan, or a construct to perm loan. A construct to perm loan can involve the land purchase as well. There are numerous factors that affect the cost such as square footage, number of stories, roof type, finishing’s, and issues like if power, water and sewage are available. The propane tank is reasonable if you go the lease option. It may cost only a few hundred to install, and the cost of a simple slab. A septic tank can run $1500 to $4000. A well estimate is $5k to $40k, but on average $25 a foot. The average in Lancaster and Palmdale area is $20-$25k for a well . In the end it may takes years to complete.

BYD’s Electric Bus Expansion in Lancaster and Globally

BYD the electric bus manufacturing company in Lancaster will soon have on the road 60 foot long buses that can travel up to 300 miles on a single charge. This doubles the distance from the prior bus. BYD “Build Your Dreams” has launched into Chicago and New York, as well as, Los Angeles. They have been operating in Lancaster since 2013, and they are on track to deliver 300 news buses this year. Their first year they only produced 50 buses. They will build and deliver a variety of all-electric bus models, including 14 60-foot-long articulated buses that can carry 120 people with a range of up to 200 miles on one charge, 30 commuter coaches and 41 40-foot standard buses. The 40-foot buses cost $660,000, compared with $500,000 for a diesel hybrid according to reports. The company employs about 300 workers currently and may increase to 1000 by 2018. The company has expanded beyond is Long Beach initial bus footprint to Gardena, Greater LA, Denver, Canada, Chicago and New York. Additionally, Silicon Valley has requested commuter buses with coffee bars, video games and more luxury interiors. This is one of a number of areas in Antelope Valley where job growth in growing and showing a long term future foot print.

Los Angeles Orders Quake Retrofit for Many Older Buildings

This is not necessarily regarding land, but it projects that capital in Los Angeles County will focus on developed Real Estate. Recent Associated Press Article Thousands of older wood and concrete apartment buildings vulnerable to collapse in a major earthquake would get costly upgrades under sweeping retrofitting rules passed Friday by the Los Angeles City Council. The mandate would affect as many as 13,500 so-called soft-first-story buildings, which are typically wood-frame structures with large spaces such as parking lots on the ground floor. As many as 1,500 brittle concrete buildings would also require upgrades. The measure passed on a 12-0 vote. "There's no question that we're going to have an earthquake. The question is, when?" Councilman Gil Cedillo said. "In here we've laid out the groundwork for the seismic retrofitting that needs to be done." Before the vote, representatives for residential landlords and commercial building owners signaled their approval of the plan — while expressing concerns about potential costs. City leaders will now have to agree on how the estimated $5,000-per-unit retrofitting would be split between tenants and landlords. The law currently allows owners to increase rents up to $75 per month to pay for a required earthquake retrofit, but both sides say such a hike is too steep. One proposal is to divide the costs 50-50 and cap possible monthly rent increases at $38. To help pay for the upgrades, apartment groups are looking for certain financial support, such as breaks on property and state income taxes and business license and building permit fees for owners who retrofit. The proposed quake retrofitting mandate is part of an effort by Mayor Eric Garcetti to make the city resilient to major earthquakes. His plan released in December focuses on rapidly identifying and retrofitting at-risk residential and commercial buildings, fortifying major water systems that would be severed by a huge quake and keeping telecommunications systems operating. The goal of the mayor's broad plan is to keep the region sufficiently functional to avoid a long-term economic collapse despite what seismologists say is an inevitable jolt on the order of a magnitude-7.8 quake caused by a 200-mile-long rupture of the mighty San Andreas Fault. Wood apartments will be given seven years to complete construction once an owner is ordered by the Department of Building and Safety to retrofit the building. Owners of brittle concrete buildings will have 25 years to do the work. Estimates for upgrades for soft-first-story structures range from $60,000 to $130,000 per apartment building. Taller concrete buildings can cost millions of dollars to strengthen. Studies estimate that a massive earthquake in the Los Angeles area could kill up to 18,000 people and cause some $250 billion in damage. Sixteen people were killed in the collapse of a soft-first-story building during the Jan. 17, 1994, Northridge earthquake. The magnitude-6.7 jolt was the last significant seismic disaster in the Los Angeles region. U.S. Geological Survey seismologist Lucy Jones, the mayor's earthquake science adviser who was a consultant for the council, was on hand for the vote. She pushed for passage of the plan, saying lives would be saved. "It's not every day we have the opportunity to save lives," Council President Herb Wesson said after the vote. "Today we had that opportunity."

BYD Increases Bus Sales In Washington State

AVPress LANCASTER - BYD's electric bus factory got a boost with Washington state transportation officials' selection of BYD for 10 of 12 types of electric buses expected to be ordered by Washington transit agencies and other entities. The selection does not constitute orders for bus production, but it sets price agreements for buses that Washington transit agencies, colleges, cities, Indian nations and nonprofit organizations can order over the next five years, Washington officials said. "It's huge news, huge news," Mayor R. Rex Parris said. "We've always been very confident the world was going to wake up, that this is the new form of bus transportation. There's not any serious competition anywhere in the world." The Washington State Department of Transportation Heavy Duty Bus Request for Proposal is intended to allow agencies to buy new buses without having to perform their own solicitation, analysis and awards, said David Chenaur, a business analyst with the department's public transportation division. In all, the department approved 26 categories of buses of varying lengths and engines - clean diesel, hybrid, compressed natural gas, plug-in electric and on-route charging electric - for a potential total purchase of 800 buses, Chenaur said. Link Transit in Wenatchee, Washington, has already ordered five BYD buses, he said. "These orders put us into a great position for expansion," said Micheal Austin, BYD America vice president.The company employs more than 300 people at the Lancaster plant and elsewhere in Southern California, he said. BYD's buses were the only ones with wireless on-routing charging approved by Washington officials, the company said."Electric buses are no longer a science fair project. With BYD now producing a long-range bus in nearly every category we have proven the technology is here to stay," Macy Meshati, BYD Coach & Bus vice president of sales, said in the company's announcement. BYD has a contract with the Los Angeles County Metropolitan Transportation Authority for up to 25 buses, and a 10-bus contract with Long Beach Transit. The first five Metro buses were delivered in May.The Antelope Valley Transit Authority also plans to buy 29 electric buses beyond the two BYD buses it already has. BYD officials in May 2013 dedicated the Lancaster plant, which is the first Chinese-owned vehicle plant in the United States. BYD officials are talking with city officials about doubling the plant's size, not only to accommodate increased bus production but to build electric delivery trucks as well, Parris said. More expansion could follow that, he said. Parris said the firm's local employment is expected to reach 700 in two years. "BYD is going to be bigger than aircraft (employment) has ever been," Parris said. In January, GO-Biz, the state's economic development office, allocated $3 million in tax credits to BYD. The credits will be given provided the company meets certain employment and investment milestones. Under the tax credit agreement, BYD must ramp up its workforce to at least 243 workers in 2016, to 388 in 2017 and to 625 in 2018. BYD must pay a minimum annual salary of $27,040 and an average annual salary of $44,110 by 2018, under the agreement, and is required to make investments of $51 million by 2018.

Did a Union Just kill hundreds of Jobs and Economic Growth for Palmdale, California?

The city of Palmdale was ready to complete a deal with Kinkisharyo International a Japanese company who agreed to build a $60 million factory on a city owned property. Kinkisharyo has a $890 million contract to build potentially hundreds of light rail cars for the Los Angeles County Metropolitan Transportation Authority. But now the company is taking its project to another state and many indicate a union is to blame. The plant would have employed 300 at a 400k square foot plant. The plant known as Site 9 was a warehouse space used in numerous movies like “Pirates of the Caribbean”, and “Terminal”. This would have been a big economic opportunity for the City of Palmdale as Kinkisharyo International recently moved its U.S. headquarters from Boston to El Segundo, Calif. Palmdale Mayor Ledford was recently quoted this summer as saying "I believe this is just the beginning of a manufacturing renaissance here in the Antelope Valley,”. An environmental group backed by the International Brotherhood Workers Union Local 11 challenged the company. They produced an appeal claiming that construction of the proposed factory would violate state environmental laws. The union wanted to organize the plant without any interference from the company, but the company said no. So the Union backed the environmental group which turned the project into a potential environmental hazard. “They are using California’s environmental laws as a pretense to put leverage on the company to get what they want,” Kinkisharyo spokesman Coby King told FoxNews.com. Thus the Unions demands were not met so they used environmental laws of water rights to reduce “dust spores” which killed the deal. Initially the Union push the card check agreement. Which is a plan also approved by the Obama administration? Card check is where a company must accept a union if the majority of workers accepts the union. A union spokesperson said they didn’t kill the deal, and that it was the environmental laws, but Kinkisharyo is now looking to build their plant in another state. Kinkisharyo paid $2 million to fight to build the plant in Palmdale. It looks like it is too expensive to do manufacturing business in California.

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.

US Topco Energy Inc. of Taiwan Furthers Solar Relationship with the City of Lancaster

The city of Lancaster press release earlier this summer regarding the Topco partnership where Mayor R. Rex Parris remarked “Great partnerships such as these are vital as Lancaster strives to further our goal of becoming the solar energy capital of the world.”

According the city of Lancaster press releases and AVPress earlier this year, Lancaster residents consume an estimated 200 million kilowatt-hours of electrical power a year. City Council members approved an original memorandum of understanding with TopCo Energy for a photovoltaic solar power plant on April 12. That original agreement was aimed at developing one or more photovoltaic solar power plants "capable of generating at least 50 megawatts of electrical power," city officials reported.
The amended agreement signed in July increases the size from 50 megawatts "to a total aggregate of up to 200 megawatts of electrical power." The goal of Lancaster is to become a net-zero energy city, so partnerships like this with Topco will further enable that goal. Through agreements like this the city of Lancaster will generate more power than they need and so can resell excess power to Southern California Edison for regional consumption.

According to Us Topco Energy Inc. website they produce a line of service that includes the planning and establishment of solar power plants ranging from 500kW to 50mW to various new and retrofit commercial and residential constructions. Topco is at least one of twelve solar companies that are using the power of the sun in Lancaster and Antelope Valley to establish solar facilities for the production of energy for the region and state.

In our opinion this is all good news to the land investor as the cities of Lancaster and Palmdale will not only grow with urban growth with the continual population explosion in this region. They can also continue to grow economically with the power of the sun and wind in the region. The city of Lancaster should be commended for taking advantage of new solar technology and the large amount of vacant land and open space. Investors should take advantage of this growth and invest in Antelope Valley land as its future is on the rise, while the stock market is on the wane. Contact VacantLandDeals.com today and invest if low risk land banking.

BYD Ltd Electric’s Technology for Los Angeles County and Lancaster California’s Jobs Future

The city of Lancaster and BYD Ltd. (Build Your Dreams) has been in discussion since early last year for a potential electric car manufacturing plant in Lancaster Ca. The city sent a delegation to China for that purpose in 2010. BYD manufactures an electric crossover vehicle called the e6 electric and said it expected to start selling the car in the U.S. The city of Lancaster would like BYD to manufacture and assemble this vehicle and others in Antelope Valley. Also, during the Schwarzenegger administration there was talk of the city of Los Angeles pledging to buy BYD manufactured electric buses if the plant was based in LA County. BYD has yet to make any formal announcements regarding their plans. Although, they have established a US headquarters in the city of Los Angeles, and expect up to 2000 employees over time to administer their US operations in their downtown Los Angeles location.
They further set up roots by establishing a collaborative partnership to develop a grid-scale battery project for renewable energy storage with the Los Angeles Department of Water and Power (LADWP) last year. Also, about a year ago the City of Lancaster, BYD and KB Home announced the completion of a new earth-friendly prototype home utilizing BYD’s solar, battery and LED Lighting systems. The plan is to potentially lead to more affordable solar electricity and energy storage options for homeowners. The city accelerated the development process through the planning process, so KB and BYD could construct the prototype home immediately. The manufacturing and assembly of electric cars and buses would certainly be a boom for the city of Lancaster and Los Angeles County; as such a move would create jobs and future growth to a city that was damaged by the housing crisis.
BYD was founded by Wang Chuan-Fu in 1995 in Shenzhen, China. He is a chemist and part of the Chinese Dream as he raised $300,000 from relatives to manufacture rechargeable batteries. Since then BYD has become one of the world’s largest manufacturers of cell-phone batteries. They have also raised $250 million from Warren Buffet toward their e6 vehicle. They plan on manufacturing 800,000 e6 cars powered by lithium-ion batteries, where they indicate they intend to start selling the e6 in the US at a price of about $40,000.
In addition they have established a solar cell and solar panel technology, where they would like to establish their solar systems in combination with large energy storage systems that they currently develop. Based on news reports they plan on moving rapidly in developing and expanding in the solar panel arena. This relationship with the city of Lancaster works well as solar is expanding in the valley and Mayor Parrish projects that Lancaster will produce more energy than it consumes with its solar expansion.

We will wait and see if BYD expands manufacturing in the Antelope Valley, but the prospect looks promising for real estate and land values if the projects develop here.

Wind Turbines and Solar Projects Moving Forward West of Lancaster, Ca. in Los Angeles County areas of Neenach and Fairmont Butte

According to the Los Angeles Times recent article, Element Power of Portland Oregon is planning to erect a 230-megawatt green energy facility with solar and wind generation abilities. The planned installation is very prettily and non-threateningly named “Wildflower” and is set for 2,200 private acres of former grazing land where the current property owner operates a horse ranch. Healy Ranch runs west of Fairmount Butte south of Ave E along 160th Street West. Most of the ranch is south of Ave F between 160 to 170th street West to the aqueduct at approximately Ave H. It also runs south of Ave G to 130th west in a u shaped form.
The company will have to tread carefully wind energy and solar power projects proposed in California often attract opposition from residents worried about encroachment, or animal rights groups concerns with endangered species and others with a host of complaints. A number of solar projects have been given the green light such as AVSolarRanchOne a close neighbor, Tuusso Energy at 100th West at H, and E-solar, Sunlight Partners closer to down in Lancaster. Wind projects are abundant in Kern County primarily in Tehachapi. Previously a wind project was proposed by Scottish Power near Fairmount Butte but that was rejected. Element Power US LLC has an uphill climb on its wind proposal, but Solar projects have been successful in the valley.
Element has filed an application for the project with the Los Angeles County Department of Regional Planning. The company is gearing up for environmental studies and research on how much local property tax revenue will be linked to the proposed facility.
The wind and solar farm, to be located on Antelope Valley’s west side and it is expected to create more than 300 jobs during construction in an area currently suffering a 17% unemployment rate. The site will produce enough power for more than 70,000 California homes, which will be sold to a utility through a power purchase agreement.


NRG Solar Gets Green Light and Wins Community Backing

Patric Hedlund of the Mountain Enterprise reported, In a surprising move, the Fairmont Town Council voted March 24 to withdraw their appeal to the Los Angeles County Regional Planning Commission against a solar farm given a “fast track” permit. NRG Solar was given a green light to begin building its facility in the Western Antelope Valley without first providing an Environmental Impact Report, which competing renewable energy developers have agreed to perform. The council filed an appeal, then went into private settlement discussions with the company. The appeal was scheduled to be heard on March 30. At the March 24 public meeting held at WeeVill Market, Keith Latham of NRG read the terms of the agreement, which he said will not be public until construction begins in June.
Some of the points: About 40 acres of land for conservation purposes will be “dedicated in perpetuity” to the community. Fences are limited to a height of six feet and no razor wire will be used. Access for wildlife movement through the fenced solar farm will be established.
NRG agreed to plant indigenous trees around the property and “adjacent to the lower fence” to mitigate visual impact. Wildlife movement through the trees will be encouraged. Outside of that “there will be a maintained area, so people can walk and get from one side of the project to the other, without undue problems” in case there are “wall to wall” energy projects.
A parcel of land is allocated for community services. A “small amount of money” will be provided to the community annually for 20 years through a conservancy created by the town council, he said, to benefit the community.
Several of those at the meeting said they are in favor of renewable wind and solar energy, but a regional plan needs to be created— with community involvement— before it is too late.
Members of the Fairmont Town Council said they had talked with “about 80 percent” of the residents within their boundaries, and that there was consensus to accept the plan. Attorneys Pat Murphy and David Jefferies said they had been involved in structuring the deal.
Some at the meeting said that those protesting the vote do not live within the boundaries of the Fairmont Council. In turn, the legalities of a town council forming a conservancy and entering into an agreement with NRG were questioned by some Western Antelope Valley residents after the meeting.
Wendy Reed, executive director of the Antelope Valley Conservancy issued a cease and desist letter immediately, regarding the name chosen for the Fairmont Council’s conservancy. She said it was too similar to her group’s registered service mark. Jefferies is reported to have agreed to use another name. —Reported by Patric Hedund

Tips on Buying California Investment Property, Undeveloped or Pre-Developed Land?

Generally there is only developed land which has some or full development on the parcel, or undeveloped land which would be considered just raw land with limited or no access but with future potential development. Much of the available raw land in the US is agricultural land or just vacant unused land. There is also an in between designation we identify as pre-developed land. The main distinction between Un and Pre developed land is the proximity to current development and the zoning of the parcel, but both are Land Banking options. Undeveloped and Pre-developed land offers the potential of both risk and reward whether it is zoned rural residential agricultural land, or typically better zoned pre-developed land which could be zoned urban residential, industrial or even commercial land use. Undeveloped land is generally less expensive to purchase than pre or developed land. An abundance of undeveloped land in Los Angeles County is designated agricultural use as large amounts of land is needed for farming, but usually this land type also allows limited rural residential uses. Don’t be afraid of the agricultural zoning as much of current developed land was previously agricultural land. Many of today’s farmers are now real estate investors as urban growth has encroached and absorbed their land.

Many parts of the City of Palmdale and Lancaster Ca. include vacant land parcels within the city limits or just outside, but at a distance from development. Much of this pre-developed land is rural residential, industrial (light or heavy) and a lot of multi-family residential zoning. The lowest price per acre would be the rural residential where an owner would be allowed to build one home per 2.5 acres. This type of land is cheaper acreage but high reward as the zoning can change to a more favorable zoning over time as city planning designates. The higher price per acre available vacant parcels would be multi-residential R-7000 or R-10,000 allowing one dwelling per 7000 or 10,000 square feet. You would have to pay a much higher price for this type of parcel zoning, but the return on investment can be in the thousands of percentages since housing developers will pay top dollar for needed property if you held the parcel longer term.

You can look at buying either undeveloped or pre-develop land based on your capital and time horizon. A low capital investment and longer time horizon which may be typical for a 401k, or IRA type of investment would best fit an undeveloped parcel. For example an investor could purchased a 10 acre parcel in LA County for $3000/acre of rural residential and agricultural land zoned and hold it for fifteen to twenty years. It is an ideal buy and hold opportunity where you should target a 200% return in twenty years or less. This would be a buy it and don’t worry about it investment. Undeveloped land should have the higher percentage increase of the three examples of land over time as it is easier to double you money on a $3000/acre investment than a $50,000 per acre investment.

Now with pre-developed land we have a high profit potential and a lower risk property with usually a higher capital investment and shorter time horizon target. Potentially it has all of the profit potential built in. Ideally, pre-developed land could have a better return on investment based on its zoning. Pre-developed land would be land directly in the path of growth with targeted zoning and in or near current city limits. A past example of pre-developed land would be the San Fernando Valley where decades ago one would pay $10,000 per acre for a vacant land parcel just outside current development. Today that type of parcel would be hundreds of thousands of dollars per acre over several decades. But you don’t have to sell the parcel after holding for decades as the parcel should be profitable in under ten years. We look at pre-developed land as a more favorable profit potential in a shorter time frame as it is the land that has been allocated for near term future development for the cities growth. The urban development alone will drive the price increase of this type of property.

We have both types of properties in our inventory, which fit undeveloped and pre-develop scenarios in Northern Los Angeles County cities of Palmdale and Lancaster Ca.

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 Lands Best Renewable Sustainable Project with a Patented Solar Complex built on Pre-Developed Industrial Land

Power Engineering magazine announced this past December the selection of E-Solar’s Sierra SunTower facility as the winner of "Best Renewable and Sustainable Project" at the 2009 Projects of the Year Awards. This is an annual award where Power Engineering magazine recognizes the world's best projects in the four major categories, gas-fired, coal-fired, nuclear and renewable. The new solar power facility is the first of its kind in California.

E-Solar unveiled Sierra SunTower, which is their 5 MW commercial-scale solar power plant, in August 2009. It is located just 60 miles north of downtown Los Angeles in Lancaster California. The solar complex runs along Avenue G in the northern part of the city. This renewable energy facility captures the suns energy to produce super-heated steam with an average operating temperature of 800°F at a pressure of 900 psi, which it delivers through a turbine generator to Southern California Edison. Their patented technology uses Pre-fabricated modular units that are scalable to fit smaller or larger parcels of land to suit their power client’s requirements. This project was developed on a small parcel of land close to existing transmission lines, and it is the first of several planned in Antelope Valley, California.

This is one part of the City of Lancaster’s 2030 General Plan to create fertile ground for renewable energy projects. The planning department has approved of thousands of additional acres of heavy and light industrial land as a target area for these types of projects. They plan to further expand this area by amending the zoning to absorb rural residential and agricultural zoned land for heavy industrial use. This would be the largest expansion of Los Angeles County land into city zoning in decades. It is also one of the best means for a land investor to get a rapid return on their investment.

It is paramount for land investors and land bankers to buy land near developing areas such as Lancaster and Palmdale California. The closer you are to development the more likely development will reach your parcel. In many cases the initial investment can be more, but the return on investment could be shorter term. We have spoken to vacant land owners who purchased remote desert land far from development and they are unfortunately still holding decades after their initial investment. Don’t let it happen to you, as the real estate slogan goes location, location, location also applies to pre-developed land.

How Mitigation Can Benefit the Vacant land Investor and the Environment

Environmental mitigation describes projects or programs which are intended to offset development impacts to an existing natural resource like wetlands, endangered species, rivers and streams. Environmental mitigation is typically a part of an environmental crediting system established by governing bodies like the BLM (Bureau of Land Management) which allocates debits and credits. It is similar to the government proposed cap and trade system to offset global warming. A debit to the environment would occur when a housing developer, or Wind and Solar Company plans to develop land for commercial purposes. A debit occurs when a natural resource has been destroyed or severely impaired, while a credit is given when a natural resource has been deemed to be improved or preserved. So, when a business or individual has a debit to the environment then they are required to purchase a credit. There is also mitigation banking which is typically created in advance for multiple commercial parties when compensation credits cannot be achieved at the development site. Mitigation is a friendlier alternative to restrictive environmental laws, since development can proceed in exchange for compensation to preserve or repair a natural environment. Mitigation can also be beneficial to land owners, since some land like wash land or mountain land is not developable, but it is more suitable for mitigation. This increases the value of some non-developable land miles from development.
In Northern Los Angeles County and San Bernardino County some renewable energy companies may be required to purchase mitigation land if their projects are on BLM or other undisturbed land, which may encroach within prime desert tortoise and Mojave ground squirrel territories. The desert tortoise roams much of the desert in San Bernardino County, which will curtail any development within their habitat. Much of this land is privately owned, and may be designated as mitigation land by the government. The Solar Farm developers may be forced to buy endangered species land before a building permit is issued. This is another example where land banking is beneficial to the long term investor. Many investors think that their property will primarily increase in value due to urban development upon their property, but in this case virtually worthless desert land becomes a needed commodity to the technological advances of solar energy companies. The new growth in Antelope Valley and San Bernardino Counties is increasingly becoming green energy development, and the wise patient land investor can benefit and preserve the environment at the same time.

The General Eminent Domain process by a Government Agency on your Property

Typically, when the government wishes to take your property by eminent domain, you can expect them to engage in the following steps in about the following order. This is a straight forward process, but untypical cases do occur. The government may also be forced to pay moving or lease expenses as part of the process, but certainly not required in vacant land eminent domain. There has been and will be a number of eminent domain actions by Los Angeles County in Antelope Valley in the recent past and many proposals for the future.

The government agency will contact you usually by mail to express interest in your property and scheduling an appraisal or environmental assessment of the property.
They will then appraise the property, and any improvements. The appraiser will be by their approval though. You can engage your own appraiser at the government expense also. Once appraised the government agency will make an offer to purchase the property. They will include a summary of the appraisal which they use to make their offer. A subsequent notice of public hearing to adopt "resolution of necessity" to acquire your property by eminent domain will begin. A Public hearing is announced and held to adopt the "resolution of necessity" to acquire your property by eminent domain. The Eminent domain case is filed in the court with jurisdiction and a notice is served to you the property owner. A deposit by agency of the probable amount of just compensation is paid into court and motion by agency for early possession of the property. This would be the appraiser’s figure, which they likely offered you before they took you to court. Then discovery procedure proceeds where any depositions and documents are gathered. This is where you the property owner provide your appraiser documentation. At this point both sides are attempting to get the fair market value. The government attempts to get an agreed settlement on the fair market value before going to trial. You should have a good case for more money before the last step which is the trial date. If settlement cannot be reached, then a trial of the eminent domain takes place before a jury who will determine for both parties the expected fair market value. The jury returns verdict and judgment is disclosed. The government agency then will compensate the property owner the jury’s judgment of the fair market value.

In most cases a settlement is agreed to and completed before a trial. Eminent domain can be desirable and undesirable for the property owner. If you look at real estate as a commodity then getting fair market value for the benefit of public use is a very good exchange. But if you are losing a home that has been a anchor for your family, or a business which you grew from the ground up then eminent domain can be a bitter pill, and anything but fair.

City Of Lancaster to Annex 7000 Acres of Los Angeles County Land

Currently L A County owned land is the target area for the City of Lancaster. The seven thousand acres of land is situated north of the city limits of Lancaster. The new area would border from West to East Hwy 14 to 20th Street East and from South to North from Avenues G and H to Avenue E. Mayor Rex Parris indicated that the land within the current city limits are becoming more developed, so now is the opportunity to continue the city’s growth by incorporating new land into the city.

According to city staff at the city council meeting this past summer the annexation is a twofold benefit. Firstly, it will allow the city to better manage their Waste Management. Currently the landfill lies outside the city limits so this will enable the city to better manage their waste resources. The area will also allow space for current and future solar energy plants. This unincorporated area is mainly flat topography which creates uncontained rain water to be wasted. The proposal enables the city to improve drainage, prevent flooding, and collect the water for recyclable usage. It in turn creates solar energy production interests to work together within the city limits and offer solar and alternative energy solutions for Lancaster.

E-solar could be a main benefactor of the plan, since they require water resources to be heated by their panels, which then produces the electric power. It is a green win win solution since the city will be able to trap the currently uncontained water and provide alternative energy for residents. The city of Lancaster is currently planning a similar project called the Recycle Recharge Project at 60th Street at F in cooperation with E-Solar.
This project will recycle rainwater throughout the city and provide recycled water for E-Solar and residents while the remainder will be recharged through natural aquifers in the area.

The annexation process will need to get environmental impact approval, and then if the city council approves the project then the proposal goes to the County’s Local Agency Formation Commission (LAFCO). LAFCO will evaluate the proposal, review it with residents and decide if it is within the best interest of the area concerned. This process may take six to nine month’s.

The annexation is a major boost for land investors, since you can buy land now at lower prices and benefit with new zoning changes from county agriculture land to industrial and commercial zoning and development of the area. The opportunity provides inside information to get involved in a lower risk speculative land investment. We are taking advantage of the opportunity this annexation projects, and we urge savvy investors to do likewise.

Land Zoning Targets for Solar Companies in Los Angeles County

There are at least two solar companies (Nextlight and E-Solar) planning operations of large solar plants in Antelope Valley in Northern Los Angeles County. NextLight is planning a large project at 170th West at Ave D (AV Solar Ranch One).
Most of the area outside of the city limits of Lancaster and Palmdale is zoned rural residential and agricultural land. This allows a single family residence within a parcel of 2 acres or more. It also allows for agricultural uses such as livestock, and crop farming. Agricultural zoning is further broken down into A1 and A2. A1 allows for light agricultural and A2 is heavy agriculture. Heavy agriculture zoning requires at least 5 acres minimum.
So how are these Solar Enterprises rapidly and economically getting around constructing an energy facility on rural agricultural land? Typically there would be an environment impact report needed with permits, community forums and the list goes on. These solar companies have targeted previously disturbed land, or land that has been farmed. Farmers have already tilled the land for years, so any endangered wildlife have found new homes and the land has been partially developed. In Nextlights case they use photovoltaic technology, so they use very little water, and the panels are only a few feet above the ground. In E-Solar’s case they use mirrors to reflect the suns raze on a water tower. E-Solar is attempting to solve their water needs by working an agreement with the City of Lancaster to use recycled water.
Both companies have solved a portion of their environment impact by buying A2 zoned land on the western portion of the valley. There are also two solar projects currently in the city of Lancaster at Division and G and an upcoming one at Sierra Hwy and avenue M.
This scenario is a great example of what we have been saying about landbanking. Rural residential land owned by farmers or investors overtime turns into needed space for a growing metropolis. Landbanking is a long term and sometimes short term investment for wealth. Land if purchased near growth and at a reasonable price can be a low risk investment as a retirement vehicle and diversified investment.

Biden says California is Prime Target for High Speed Rail Project

Although California is in a budget crisis, Vice President Joe Biden said that the state's high-speed rail project is well positioned to compete for a large share of the $8 billion that the Obama administration set aside in the American Recovery and Reinvestment Act for rail lines.

The planned high-speed rail system would commute passengers between Los Angeles and San Francisco in 2 hours and 40 minutes. The train would stop in Palmdale, Ca as a major stop, and it would be a major boost for the local economy, making access to the Antelope Valley even easier. California voters approved $9 billion in bonds for the project in the recent November election. The state hopes federal funding and the private sector will complete the expected $34 billion estimated budget, which is only the first phase, which would connect San Francisco to Anaheim. The second phase would further connect the total 800 miles from Sacramento to San Diego traveling primarily down the center of the State via Fresno and Bakersfield. Construction between Anaheim and San Francisco would take at least a decade, according to planners.

Reports indicate that the portion that initially applies to the Recovery Act criteria for high-speed rail would be the rail line between San Francisco to San Jose and Los Angeles to Anaheim. The administration is looking for “shovel ready” opportunities which entail having contracts awarded by 2012 and work completed by 2017.

The potential real estate impact for the Antelope Valley is years away, but it bodes well for towns just outside of major metropolitan areas. There will be vacant land opportunities up and down the State, and this is another example for buying land within the path of growth, and getting there before development creates the greatest percentage of growth. We will see how this all transpires, but the focus of California and the current administration is mass transit and near term employment opportunities.

The Auction Option

There are a number of ways to buy land, and sell land at a good price range. The MLS (multiple listing services) is the most common means via a broker. A broker can guide the buyer and seller through the process. A new more risky means is buying via an auction. There are many private auctions and county auctions where land is sold. We have found in both private and public auctions the selling prices can be favorable and unfavorable. A buyer needs to be well informed regarding land before potentially losing capital in a bad purchase.

Several years ago during market highs we witnessed a County auction where prices raised twenty to fifty percent above retail. Buyers were overbidding land for greater prices then they could have negotiated from the local MLS. These auctions can create a price frenzy to buy a property that a purchaser feels is the best property on the list. The reality is there are many decent properties available at auctions if you have performed your due diligence. A buyer should have a specific maximum price range and stick to it. We have also found where auctions list parcels which are street easements, ally's, mountain sides, and flood zones. An uninformed buyer will overbid and they are left holding a useless property in many cases.

The professional auction bidders have aerial maps, plat maps, real estate software, and historical information on properties and have viewed the property. The professional investor has typically "walked the property", so they know what they are investing in.

Beware the auction option, since you should know what you are investing in. In many cases you can hire a professional to buy for you at the auction. You pay a small commission and they can do the research and bid for you in you name. You could own a well priced investment, or own an unsellable piece of land. Buyers beware the auction.