Another milestone in the Newhall Ranch development, and we all know what’s next: another legal challenge. This sort of volleying will continue until both sides run out of options. As a former OC resident, I find myself wondering why development, even today, seems to roll along so smoothly for our neighbors 80 miles south, the greater Irvine Ranch.
It’s hard to overstate the number of parallels between the greater Newhall Ranch and the Irvine Ranch. The similarities go beyond stucco boxes and manicured streets… here’s a partial listing:
| Irvine Valley / TIC | Santa Clarita Valley / NLF | |
|---|---|---|
| Primary Land Owner | The Irvine Company | Newhall Land nee Newhall Land and Farming |
| Logo |  |
 |
| Incorporated | 1894 | 1883 |
| Major asset | Irvine Ranch | Newhall Ranch |
| Past | Family owned agricultural | Family owned agricultural |
| Transition | Sold to Donald Bren | Sold to Lennar |
| Present | Developer; Commercial, Resort & Apartment operator | Developer; Commercial operator |
| Eco-treasures | Cleveland National Forest, Laguna Canyon | Santa Susanas, Santa Clara River |
| Master plan | Irvine | Valencia |
| Planner | William Periera, 1963 | Victor Gruen, 1965 |
| Plan Concept | Villages; high density homes with generous common area | Villages; high density homes with generous common area |
| Historic area | Tustin | Newhall |
| Modern development | Tustin Ranch | Newhall Ranch |
| Cross Valley Connector | Tustin Ranch Rd. (recently extended, 5 fwy -> 405) | Newhall Ranch Rd. (recently extended, 5 fwy -> 14 ) |
| Close Competitor | Mission Viejo Company | Tejon Ranch |
| Exurban Aspirants | The IE | The AV |
| Blighted Neighbor (former gem) | Santa Ana | San Fernando |
| Day trip | San Diego | Santa Barbara |
| Jobs per home | 3.3 : 1 | 1 : 1 |
| Net Population Change due to Commuting | +73.8% | -16.1% |
For all the cute coincidences I’ve cherry-picked above, there are coveted differences – jobs and serious environmental credibility. To obtain both, The Irvine Company committed the cardinal landowner sin: they gave it away.
Our UC isn’t a UC
In 1959, The Irvine Company sold 1,000 acres of premium ocean-breeze land to the Regents of the State of California for the tidy sum of $1; that dirt became UC Irvine. The campus opened in 1965, and the bustling new town of Irvine sprang up in the early 70′s. The research and activity that surrounded the University gave rise to some of the most innovative companies in southern California. The 3.3:1 job:house ratio and one of the lowest commute times of any suburb in the southland (22.5 minute average) speak for themselves.
Cal Arts, Masters College, College of the Canyons – now the University Center. None are research institutions. Despite some prominent companies headquartered in our valley, there remains an imbalance of jobs to homes. This is a bedroom community that has attracted (some rather impressive) companies based on its pro-business stance. Lacking a research institution, our valley will continue to have this imbalance.
Growth Without Challenge
In 1992 The Irvine Company–even then, a “big, bad developer”– pivoted its environmental stance 180 degrees. It partnered with the Nature Conservancy to designate 50,000 of its 90,000 acres of the Irvine Ranch public land. Most of it would be managed by the Nature Conservancy, who, along with the Irvine Ranch Conservancy, cares for this environmental treasure (40k of the acres are a state & federal designated Natural Landmark). A sort of truce was formed, with both sides compromising beautifully. That truce is now a very strong collaboration; for many years, a sign stood off highway 133 in Laguna Canyon that read “Thank You Irvine Company” – a sort of love note from the Nature Conservancy. Beyond positive PR and green cred, the move also made the dirt that was left that much more valuable. Brilliant.
TIC’s Great Give-away of 1992 obviously wasn’t a half step. It was a seed planted early on to win over the environmentalists before any more significant development occurred.
Newhall Land has also donated portions of its holdings to the public–and plans to do more–but it may be too little, too late. Despite a significant chunk of the proposed Newhall Ranch development being preserved, I’d argue that it still won’t placate Plambeck. SCOPE is the anti-NLF, and nothing except “nothing” will satisfy this crew. If it isn’t Lynne Plambeck’s idea, it won’t be supported – in fact, it will be litigated. Imagine the possibilities if SCOPE sat down with Newhall Land in a sort of “so what is it going to take” conversation… the baggage between these groups would preclude that sort of discussion, which underscores the value of TIC’s 1992 pivot.
The Environment as a Stalking Horse for Inconvenience
Residents of Newhall Ranch will have a lower carbon footprint, use more recycled water, and be in a town with a higher walk score than most reading this blog. I believe that’s true, and if the population of our great bankrupt state will continue to swell over the long run, perhaps a sustainable development is better policy than one that isn’t.
The environmental concerns raised by SCOPE, regardless of legitimacy, are trumpeted by people in this valley who could give two rips about riparian areas and the spineflower. Their issue is traffic and people, plain and simple – but that’s just bitching, so we’ll go with “saving the environment” as a means to stall this puppy.
In fact, if you believe traffic will be more of an issue with Newhall Ranch than without, you are 100% correct. Newhall Land estimates the project will add 20k jobs or so for the 20k homes that are intended over the long term. That means roughly one job per home, or about the same as we have now. The development won’t be accretive to our 1:1 jobs:homes ratio even by Newhall Land’s own estimates. That means those that aren’t slinging coffees or bagging groceries will be hitting the 5 freeway with you and me. Unfortunately, it is much more difficult to litigate inconvenience, so for now, many in the SCV will be cheering on Ms. Plambeck.
Meanwhile, Tejon Ranch just a few miles up the 5 marches on, as does development in our southern neighbor, the Irvine Ranch.
Is there a path forward for Newhall Ranch? Without SCOPE and the average Claritan on side, it’s hard to see it being a smooth one. Especially after reviewing the timeline of the last project in this town.
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Did Irvine bulldoze oaks by klieglights in Westridge in the middle of the night, the eve before an injunction would have stopped them?
Did Irvine secretly destroy a discovered spineflower patch or other endangered plant?
Did Irvine install “Bird-X” hazing machines illegally to prevent nesting of birds, so they could bulldoze the creek?
It’s not just Lynne that doesn’t trust NLF… would YOU trust them after these shenanigans?
Jeff:
One addition to your excellent commentary. The folks slinging coffee and bagging groceries will be also hitting the freeway – because they won’t be able to afford to live in Newhall Ranch. They’ll be taking the cross valley connector to the 14 and on up to the AV or down the 5 to the SFV. So while it may be 1:1 jobs probably 50% of those folks will be coming into and out the SCV daily.
Actually your comments should go to NickelDime, he wrote this piece and did a great job.
NickelDime:
Sorry about crediting Jeff. Getting any sort of high powered employer like a research university is a “home run” and contributes greatly to jobs. I should know – I work at UCLA. While Disney will be a shot in the arm, the jobs are transitory because production will come and go as will the commuters. I’ve yet to see NL&F come up with any real “home run” to date. Perhaps the closest thing existing would be the Mann Biomedical Park but we need about 20 of those to deal with the jobs imbalance. City Staff knows this imbalance is not healthy but continues to be ok with large land parcels being sucked up by residential developers. A perfect example was the property next to Golden Valley High, zoned as commercial industrial and transformed to houses because the Hart Facilities group requested the change.
The mantra at City Hall ought to be Jobs, Jobs, Jobs (not density, density, density).
Princess Cruises was a major score that’s still paying dividends. They have office space all around the SCV.
Spectrum Labs too…but since then, well not much..
The other unmentioned parallel between Irvine and Santa Clarita is ground water contamination affecting drinking water wells.
El Toro air base’s VOC plume has already passed the ineffective Irvine Ranch Water District remediation equipment, and is directly headed for (or if you believe some water consultants has already reached) the concentrated field of ground water wells which supply almost all of Irvine’s drinking water. The Irvine Company’s political tentacles and contributions reach and manipulate both the Irvine Ranch Water District and the Santa Ana Regional Water Quality Control Board, both of which are ignoring the fact that the remediation equipment has failed to stop the VOC plume from moving into the ground water well field, and the strong likelihood that Irvine will not have drinking water for further growth.
Then there’s Santa Clarita’s perchlorate plume coming out of Bermite. Two drinking water wells owned by Newhall County Water District were contaminated, and will not be replaced. Three drinking water wells owned by Santa Clarita Water Company/Castaic Lake Water Agency were contaminated. The vaunted remediation equipment for two of those wells isn’t working very well, in that the two wells are not producing as much decontaminated water quantity as they producted prior to being contaminated, i.e. the remediation equipment isn’t working. The third well, which had a huge capacity, is not producing drinking water and nothing is happening in terms of putting remediation equipment on it to return it to service. Valencia Water Company is being very secretive about how many of its ground water wells have been closed because of perchlorate contamination, but it looks like at least 2 so far. Valencia Water Company is also being very secretive about whether it has installed equipment on the contaminated wells to return them to production. Castaic Lake Water Agency’s solution to the problem of “not enough water” is to try to drill more drinking water wells downstream, closer to Magic Mountain. Again, they are being very closed mouthed about how they are going to supply clean water for existing SCWC customers, let alone customers added by new development.
So yes, the Irvine Company and Newhall Land have many things in common, including a huge problem getting clean drinking water for the buyers of homes not yet built.
Nickel, great piece, but you forgot to mention how many top brass of Newhall Land ended up at Irvine Ranch. I believe one even became CEO. In many ways Valencia was a farm club for Irvine when it came to management. Top management at Newhall Land seemed to stay until retirement, so up and coming managers ended up heading to Irvine rather than sitting here waiting for someone to die.
NickleDime:
One key point you midded in your supplemental comment about Newhall Land’s new ownership. Newhall Land is ultimately owned, to the extent of 82% by investment banks, hedge funds and foreign banks. Newhall Land’s management and lawyers are so truculent, they refused to disclose the identity of those new owners to the California Public Utilities Commission. The other 18% of Newhall Land is ultimately owned by a Lennar subsidiary and Mr. Haddad, who also jointly own Five Points Development, which is the manager of the venture with the invcstors. According to the Chapter 11 Plan for Newhall Land, the investors, Lennar and Haddad in July 2009 they recapitalized Newhall Land with approximately 2 years worth of operating money, on the assumption there would be no major land sales during that time. If Newhall Land burns through that cash by July 2011 and the economy hasn’t recovered to the extent we will have seen major land sales by Newhall Land prior to that date, there’s no telling what will happen to the company when the cash runs out.
According to their own “First Day Declaration” in their 2008 Newhall Land bankruptcy, the reason for that bankruptcy was that the company was running out of cash to pay its creditors, in large part because land sales had died.
So NickelDime, don’t get your hopes up that these new 82% owners of Newhall Land are going to be particularly cooperative and generous, when they and their lawyers even refuse to disclose their identities to the California Public Utilities Commission.
This is a great piece. I’d like to add more information:
- Irvine Ranch is 94,000 acres (roughly six times larger than Newhall Ranch). The enormous size of Irvine Ranch permitted the Irvine Company the ability to grant land for UCI and to develop massive commercial and industrial areas (jobs).
- The Irvine Company has maintained ownership of the apartments and commercial/retail centers they developed as long term investments, while Newhall Land has mostly sold theirs off for immediate profit.
- Irvine is not the only city within Irvine Ranch. Newport Beach, most of Tustin, and parts of Anaheim Hills, Laguna Beach and Orange are also part of Irvine Ranch. Folks from these communities would day trip to Del Mar or La Jolla, not San Diego.
- The Irvine Company is privately. Newhall Land became publicly traded prior to being purchased by publicly traded Lennar.
- Canyon Country is the Blighted Neighbor (former gem) of Valencia.
All additional development in Santa Clarita should be approved predicated upon the developer showing how they will provide the water that is estimated the development will use over a pre-determined period. If there were more people standing up for the right of all Californians to enjoy the water that Northern California basks in, we would not even be having this conversation. Rights. Conveyance. Storage.
The Newhall Ranch (Rancho San Francisco) was originally 37,700 acres.
I’m loving all of these people that post with names like spineflower and coastalsage!