A ruling this month by the California Supreme Court will not only further delay plans for a mammoth Newhall Ranch project, but experts say it might also have a far larger impact on development across the state. The court threw out an environmental impact report prepared for the Newhall Ranch project by the Army Corps of Engineers and the state’s Department of Fish and Wildlife, ruling that it was inadequate in its assessment of the project’s greenhouse gas emissions and its mitigation measures for a protected fish species. The requirement to include measurement of potential greenhouse gas emissions in EIRs came about after passage of AB32, California’s landmark 2006 climate change legislation, said land-use attorney Fred Gaines, a name partner at Encino law firm Gaines & Stacey. A methodology for that measurement was subsequently developed and has been used in environmental assessments ever since. That methodology passed muster with the state court of appeals, which approved the Newhall Ranch’s EIR last year. But the high court has now determined that methodology is not adequate – which means the plan by Valencia’s Newhall Land & Farming Co. to build 20,000 residences and 5 million square feet of office space across 2,500 acres in the Santa Clarita Valley will go back to the drawing board. Many other projects might also have to be rethought. “We’re pulling some of the EIRs we have in process for our clients and redoing the section on climate change impacts,” said Gaines, who added that it is not entirely clear what additional details the court is looking for in these reports. The Newhall Ranch project was approved by Los Angeles County more than a decade ago. But the project has been beset by legal challenges filed by environmental and American Indian groups at the state and federal level, with the state high court delivering the latest legal setback. Still, the developer plans to pursue the project and will work with the Department of Fish and Wildlife on the next steps in the legal process. “We remain committed to realizing the vision of Newhall Ranch and the significant benefits it promises for the economy and future of Los Angeles County,” Newhall Land & Farming said in a statement. Floor Model The rapid expansion of national flooring manufacturer and distributor Naturally Aged Flooring has kept Colliers International’s Encino-based Team DeGrinis busy lately. Last month, the group facilitated a pair of transactions valued at $11.9 million for the flooring company, helping it sell one building and buy a larger facility. It was the second time in two years that the company had outgrown its headquarters. Colliers negotiated the $5.1 million sale of the company’s existing 38,700-square-foot building at 2175 Agate Court in Simi Valley to packaging manufacturer T. Flexo Corp., which was relocating from a leased space in Chatsworth. Roy Belson of ReMax Estates represented the buyer. Colliers also negotiated the flooring firm’s acquisition of a 54,000-square-foot manufacturing and distribution facility at 5155 Goldman Ave. in Moorpark for $6.7 million from R5 Investments. The company’s new building features 22-foot ceilings, parking for 116 automobiles and a fenced yard. The seller was represented by Martin Agnew and Jessica Kel of Marcus & Millichap. “This move to a larger manufacturing and distribution facility will allow the company to operate more efficiently under one roof, accommodating its exceptional growth as one of the nation’s premier makers and distributors of high-quality flooring,” said Colliers Vice President Patrick DuRoss, who worked on the deal with John DeGrinis, Colliers’ senior executive vice president, and Jeff Abraham, associate vice president. “It was one of the trickier deals I’ve worked on in some time, but it has been very satisfying to see this company growing so quickly,” DuRoss said. “And at the end of the day, everybody’s going to be happy.” Denver Acquisition Tarzana real estate investment firm Gelt Inc. has ventured into Colorado for the first time with its largest apartment purchase to date. The 3300 Tamarac, a 15-building, 564-unit Denver multifamily community, was acquired for $74 million from TruAmerica Multifamily in Los Angeles. Built in 1977 and situated on just over 25 acres, 3300 Tamarac offers studio, one- and two-bedroom units ranging from 450 to 1,035 square feet. They feature balconies, patios, fireplaces and extra storage with amenities including three outdoor swimming pools, a clubhouse and barbecue grills. “We like the Denver region for investment as it has diverse economic drivers, impeccable migration statistics as a result of job growth, great quality of life and a growing population of millennials,” said Keith Wasserman, a partner at Gelt. “All of these key fundamentals are driving a healthy apartment market.” Staff reporter Karen E. Klein can be reached at (818) 316-3123 or at [email protected].
