Edison Mission Energy Files for Bankruptcy

Edison Mission Energy, an unregulated power-generating unit of Rosemead-based Edison International, indicated in December 2012 that it had filed for bankruptcy and had agreed on a reorganization plan with its parent company and holders of its $3.7 billion in debt. First Solar Inc., a solar power module manufacturer acquired a number of solar power projects in development by Edison Mission Energy, the power generation division of Edison International. This includes photovoltaic projects proposed for the Gray Butte area near Lake Los Angeles and near Mojave. “They purchased the entire development pipeline," said Bob Stiens, public affairs manager for Edison International. The 150-megawatt Gray Butte plant, in the permitting process with Los Angeles County, is proposed for 1,100 acres of agricultural land east of 240th Street East, near Avenue S. Press releases quoted Edison Mission Energy in a statement. “This is an important first step in the process to reduce our debt, enhance our liquidity profile and position EME for continued operation and future success." As part of the deal, Edison Mission Energy will be deconsolidated from Edison International “as of the filing date” and, in the future, will be referred to by the parent company as discontinued operations. Edison International’s stake in the bankrupt generating unit will be transferred to unsecured creditors. Santa Ana-based Edison Mission Energy said it had slightly more than $5.1 billion in assets and just under that amount in liabilities in Chapter 11 papers filed Monday in the U.S. Bankruptcy Court in the Northern District of Illinois. Edison Mission Energy has been struggling on several fronts: depressed energy prices because of the nation’s boom in natural gas production; higher fuel costs affecting its older coal-fired facilities; and pending debt maturities. Despite the challenges, Pizarro sought to strike a positive tone on Edison Mission Energy’s future.

The Positive and Negatives of a Land Contract for Buyers and Sellers

A Land Contract which is also known as “contract for deed”, or “land installment sale”. The buyer makes payments in order to pay down the purchase price. Under this type of arrangement, the seller keeps title to the property and the buyers make monthly payments. When they were able to pay off the balance owed then the seller would then give them the deed to the property, which would then be recorded in their name In can be interpreted like a rent to own agreement. In one example a seller lost out when the buyer stopped making payments and gave the property back to the seller. Properties values had dropped so the buyers decided to move on. The seller finds out later that the buyers applied for a mortgage loan to buy a home. In this case the buyer would lose out on all of their prior payments, but the seller has no recourse, since he held title and keeps the buyers payments. The seller has to find a new buyer. The seller was complaining because the property values decreased, but he would not be complaining if the property values increased. In this case the seller should have taken a mortgage An example where a buyer loses would be when they make monthly payments for years, and If they can’t make any further payments then they are essentially “out of contract” and will lose all their payments and have no claim on the property. Land contacts are similar to an owner will carry (OWC) as the seller is acting as the mortgage holder instead of a bank. The essential difference with a land contract and an owner will carry type loan is the seller keeps title in a land contract but the buyer has title in an OWC. If the buyer fails to pay on an OWC then the seller can foreclose on the buyer for lack of payments. Land Contacts “land installment sale” are not used as much these day, but can be a viable option as banks are less likely to loan for vacant land. It is also a good option in a decreasing real estate market as our example above shows. Also for home buyers who don’t have the down payment a land contract helps them buy a home over time directly from the seller avoiding banks and mortgage companies.

AV Solar Ranch One’s Progess and Delays

In July of this year the Antelope Valley Solar Ranch One was vandalized by an unknown source. The incident was reported in their monthly meetings to the local community. The damage costs are estimated to be $100,000. The vandal actually cut a transmission line and a water pipe about 2.5 miles from the solar project site. A report was filed with the local Los Angeles County Sheriff’s Department, and a reward of $25000 has been posted by First Solar for information that leads to the prosecution of the vandal. They now have 24 hour security at the site. AV Solar Ranch One (AVSR1) is owned by embattled First Solar, whose stock was over $200 and dropped below $12 but has recovered a little. The project will move on for this 230-Megawatt photovoltaic solar power plant. There were also rumors of a verbal dispute involving the Los Angeles County Inspector and First Solar employees which led to a shutdown for two months. There are 3.7 million cadmium telluride thin film panels that First Solar was preparing to install at the Exelon facility but they are not Underwriters Laboratory-approved. State of California building and safety codes require UL approval of electrical connectors, but it is not the case in other States where First Solar Inc. operates. The issue has since been resolved. There have also been disputes with the local community over debris left by workers, 18 hour work shifts. There are also several individual communities in the area. At one of the community meetings, it was reported that Antelope Acres, some twelve miles from the Solar Ranch One location, was granted $100,000 for its town council, $10,000 for its 4H Club and $10,000 for a community center, among other considerations. First Solar also donated mitigation lands to Antelope Acres’ chosen desert conservancy, yet Fairmont Town Council whose residents live within 500 feet of the site, has been granted nothing. The company indicated that they considered Fairmount to be within the Antelope Acres Community. Well the Fairmont council members didn’t like that either. Also, many local residents complain that the solar panels are an “eye soar” to the landscape among the poppy fields and the distance mountains. The project is approved and it is moving forward despite the small issues for a project of this size. Californians say they want alternative power and jobs and progress yet they do not want them in their own back yard. If the State wants Solar and Wind projects then they have to be built somewhere, and Antelope Valley is a prime location for these projects.

College costs have been increasing dramatically over the past few years with no long term change in site. California has proposition 30 which is a tax hike for California Schools. The proposition is losing in recent polls, so if it fails then the State will have to make further cuts to the education budget. The cuts will be in the billions and will affect all levels of education. An alternative is to invest wisely in real estate like California land. The Antelope Valley is an area of an abundance of available raw land. It is approximately 60 miles or one hour from downtown Los Angeles. Land prices fluctuate over time, but they are at their lows currently. You can buy land in this area for as low as $5000 to $10,000 or more, but with an 8 to 10 year horizon land banking is a low risk investment. If you invested in a parcel of land for say $30,000 at the current low end of the market this should create a viable return in 8 to 10 years. Land and real estate fluctuates in price over a 5 to 10 years timeframe. A parcel bought wisely today should show a 25 to 100% increase in 5 to 10 years as development and the area economy grows. This is what Antelope Valley has done consistently over the past several decades. Fortunes have been made buying low and selling higher in Antelope Valley. We can help you buy an ideal parcel of land based on your budget that has a positive outlook for the future based on it’s current location to city services, such as a paved road, power and proximity to development. So a $30,000 investment with a potential 100% return will more then pay for several years of college for your child. Land is also an inflation hedge as it is increases in value with inflation. It has been recommended by hedge fund managers and the bond king Bill Gross of Pimco that real assets like real estate is a great hedge against a possible future recession or economic slow down. Land is a secure way to plan for the future either as a hedge against economic times or an ideal investment for your child’s future education. Contact us and we can show you how it is done.

Lancaster is Planning Around the Metro-link Station for the Cal High Speed Rail

The City of Lancaster is currently creating a plan to revitalize of the area surrounding the Lancaster Metrolink Station. The funds were provided by a grant from the Southern California Association of Governments (SCAG). The target area to be revitalized is between Sierra Hwy and Division and Lancaster Blvd to Ave J. The regional planning meetings have outlined what they hope to achieve. They look to extend the success of Lancaster Boulevard (The BLVD) to the east side of the railroad tracks, transforming the STVPA into a mixed-use urban neighborhood, well connected to the Downtown area. Use the Metrolink station more as a pedestrian-oriented, multi-modal, urban transit facility at the hub of the Downtown area and the STVPA. They plan to create better pedestrian, bicycle, and bus connections to the Metrolink Station from both sides of the railroad tracks, in addition to convenient access by car. They also plan to make us of the station area for mixed-use zoning that provides transit-convenient housing, employment, and retail uses that complement those on Lancaster Blvd. Mixed Use allows multiple level building of retail at ground level and residential. They also eventually plan to accommodate the California Highs Speed Rail Alignment when and if it passes through Downtown. Does this mean planning knows the direct route of the High Speed Rail through the area? The plans that we have seen are more general and don’t show an exact route. In either case the area around the Metro should see some upgrades and revitalization.

Some of the Endangered Animals Affected By Development in Los Angeles Counties Antelope Valley

Kangaroo Rate-98% of its habitat gone, the giant kangaroo rat continues to be threatened by agricultural and urban development, and rodenticides. Kangaroo Rats are found only in the more arid regions of the western and southwestern U.S. Several species occur in all four southwestern deserts. Many of the 22 Kangaroo Rats occur only in California. The Ord's Kangaroo Rat is the most wide ranging and occurs between the Sierra Nevada and Rocky mountains from southern Canada to central Mexico. They mainly eat grass and seed and live years in the wild. Burrowing Owl-As of 2011, there remain only an estimated 10,000 breeding pairs of burrowing owls in the world. The Migratory Bird Treaty Act established provisions to protect the remaining populations in Canada, Mexico and the United States. They are active during both day and night, and nest underground in burrows rather than in trees. They mostly dwell in open grassland areas or bare desert ground like Fairmont Butte, relying upon the burrows dug by small rodents like ground squirrels for the spaces they make their homes. Land development has impacted upon burrowing owl owls and their grassland habitats when human expansion erodes their territory. Farmers near the homes of burrowing owls use pesticides to diminish the presence of crop harming pests which the owls rely on to create their habitats. With decreased presence of the rodents they depend on, the species has fewer homes to nest in. Desert Tortoise- It has a life span of 50 to 80 years and weighs 8 to 15 lbs. A desert tortoise's diet may include herbs, grasses, some shrubs and the new growth of cacti and their flowers. The desert tortoise is able to live where ground temperatures may exceed 140 degrees because of its ability to dig underground burrows to escape the heat. It spends up to 95% of its time under ground to escape the heat of the summer and the cold of winter. They live in burrows which they dig that can be 3-6 feet deep. They will spend November through February in a torpid or dormant state in their underground burrows. Ground Squirrel-The Mojave ground squirrel measures about nine inches from nose to tail and feeds on leaves and seeds from February to July. In mid summer they begin a period of estivation which is a prolonged state of inactivity of an animal during hot or dry weather adapting to the desert heat. The squirrel inhabits the western Mojave Desert in portions of Inyo, Kern, Los Angeles, and San Bernardino counties. It lives within Joshua tree woodlands, creosote scrub, saltbush scrub and Mojave mixed woody scrub. Typical forage plants are those that meet nutritional and water content requirements. Mohave ground squirrels emit a high-pitched "peep" as an alarm call, when startled or when young begin to emerge from their natal burrows.

There is a Proposal to Expand the Significant Ecological Areas of the Antelope Valley

Significant Ecological areas are areas where there are endangered species of plants and animals. The main endangered animals of the Antelope Valley are the ground squirrel and desert tortoise, while the Joshua Tree and Poppies are the most prominent plants that are endangered in these areas. But there are a number of lesser know endangered species like the burrowing owl, and smaller plant life. These new areas will include an enormous area on Antelope Valley’s North East side from Redman to High Vista and on the west side most of the area will be Fairmount Butte south of Hwy 138 from 140th West to 170th West and south to the mountains. The largest areas in this new proposal will be on the East side south of Edwards Airforce Base almost covering From Hwy 14 to the San Bernardino border from ave H north to the base. Most of these areas are vacant unused land or farmland with little to no development. The eco zone will also run along the wash areas. The three main wash areas where water runs from the San Gabriel Mountains will be included in this proposal. An area that is considered a significant ecological zone allows for limited development. And in some cases no development. If an area is widely used by the desert tortoise then no development will be acceptable, so only mitigation land use will be approved. Some areas near the Joshua tree forest could be developed but will scattered homes without changing the landscape. We have maps of these proposed changes so you can see if your future parcel or current land parcel is within these zones.