Resources

Tejon Ranch Conservation and Land Use Agreement
Summary of Key Provisions

The Tejon Ranch Company (TRC) and Audubon California, the Endangered Habitats League, Natural Resources Defense Council, Planning and Conservation League and Sierra Club (the Resource Groups) have reached a Conservation and Land Use Agreement that will provide for permanent conservation of more than 240,000 acres of the 270,000-acre Tejon Ranch — approximately 90% of the entire property. The guiding principles of the agreement are as follows:

• The Resource Groups are assured phased dedication, at no cost, of approximately 178,000 acres of the Ranch in the form of dedicated conservation easements and designated project open spaces.
• The Resource Groups are granted an option expiring December 31, 2010, with defined extensions, to acquire conservation easements over an additional 62,000 acres, at a price established pursuant to an appraisal process conducted by the State, bringing total conserved lands to 240,000 acres.
• TRC is assured that it will have the ability to proceed with the entitlement processes for Centennial, TMV and Grapevine with no opposition from the Resource Groups.
• A governance structure for conserved lands is provided in the form of the Tejon Ranch Conservancy, a non-profit, 501(c)(3) tax-exempt corporation.

A more detailed description of the key provisions of the agreement is as follows:

Conserved Lands

• Management Plan. Upon execution of this agreement, all lands identified for conservation will be managed pursuant to a Ranch-Wide Management Plan developed by TRC and the Conservancy.
• Dedicated Conservation Areas. TRC will permanently protect approximately 178,000 acres through a combination of dedicated conservation easements and designated project open spaces.
  • A conservation easement of up to 10,000 acres will be dedicated to allow for realignment of approximately 37 miles of the Pacific Crest Trail through the Ranch.
  • An additional 33,000 acres of open space areas within the permitted project areas will be designated as part of the project development process.
  • Conservation easements over the remaining 135,000 acres will be dedicated in six (6) phases as TRC receives development approvals, with an outside date of 30 years from final approval of the first project.
  • Prior to these dedications, no unauthorized development will be permitted. Grazing, game management and other existing ranch activities will continue to occur subject to the Ranch-Wide Management Plan.
• Acquired Conservation Areas. TRC will provide separate options for the Resource Groups to purchase development rights through acquisition of conservation easements, or potentially a fee interest, for five (5) separate Acquisition Areas, totaling an additional 62,000 acres.
• The option period expires December 31, 2010, with possible defined extensions if certain criteria are met.
• Each Acquisition Area may be acquired separately and in any order except that Bi-Centennial can be acquired only after Old Headquarters, Tri-Centennial and White Wolf are acquired.
• An appraisal process to establish the acquisition price for each Acquisition Area will be conducted by the State of California pursuant to all applicable laws and regulations. Should the State elect not to appraise one or more of the Acquisition Areas, an independent appraisal process would take place for those areas.
• During the option period, no unauthorized development will be permitted. Grazing, game management and other Ranch activities will continue to occur subject to the Ranch-Wide Management Plan.
• In the event there are unacquired Acquisition Areas at the end of the option period, the Resource Groups and TRC agree to meet and confer with no pre-determined parameters.
• Federal and State Uses. The parties will commit to work with the appropriate stakeholders to provide the opportunity for significant public access and community education programs on the conserved lands.
• State Park. The Resource Groups and TRC commit to work with the Conservancy and the California State Parks Department toward creation of a State Park within the conserved lands.
• Pacific Crest Trail. TRC commits to work with the Conservancy and the US Forestry Service to provide an easement on conserved lands to realign a 37-mile segment of the Pacific Crest Trail through the Ranch.
• University of California Natural Reserve. The Conservancy commits to work with the University of California Natural Reserve System to determine whether certain conserved lands may be viable for a future UC Natural Reserve.

Tejon Ranch Conservancy

• Independent Conservancy. The Conservancy will be created as a non-profit corporation that will qualify as a 501(c)(3) tax-exempt organization.
• A 12-member board will be established consisting of four members appointed by the Resource Groups, four members appointed by TRC and four independent members jointly appointed by the Resource Groups and TRC during the first three years and by the Conservancy Board thereafter.
• It is expected that the Conservancy will hire permanent employees with expertise in land trust administration, conservation biology and open space land management.
• Ranch-Wide Stewardship. The Conservancy will bring together the expertise of leading experts in conservation, natural resource management and business interests to further develop the framework for stewardship of conserved lands.
• Conservancy mission: To preserve, enhance and restore the native biodiversity and ecosystem values of the Tejon Ranch and Tehachapi Range for the benefit of California’s future generations. The Conservancy will work collaboratively with TRC to promote long-term, science-based stewardship of this historic 270,000-acre property to provide for public enjoyment through educational programs and public access.
• The Conservancy will adopt, update, monitor and enforce implementation of the Ranch-Wide Management Plan, which will be applicable to all conserved lands.
• The Conservancy will monitor and maintain natural resource mitigation on conserved lands and will hold all conservation easements, subject to regulatory agency approval, if required.
• The Conservancy will receive and allocate conservation fees and other sources of funding.
• The Conservancy will oversee managed public access to conserved lands and will provide interpretive and environmental education programs for the local communities, focusing in particular on underserved populations.
• Conservancy Funding. Funding of the Conservancy will be assured through a combination of advances from TRC and payment of conservation fees collected at the time of title transfers of residential units within current development areas.
• TRC shall cause a conservation fee covenant to be recorded encumbering the development projects of Centennial, Tejon Mountain Village and Grapevine. The covenant shall provide for a fee, payable in perpetuity, equal to one quarter of one percent (.25%) of the retail sales price of each covered transaction, which generally includes initial sales and resales of custom lots and single-family attached and detached homes and excludes units designated as affordable.
• Prior to the receipt of conservation fees by the Conservancy, TRC will advance amounts necessary to adequately fund the Conservancy, as described below. In future years, conservation fees in excess of amounts required to meet the Conservancy’s core obligations will be used to repay TRC advances, without interest.
• In Year 1, which will be 2008, TRC advances will be $250,000 plus the actual costs of Conservancy formation and start-up.
• In Years 2-7, which may be extended to Years 8-14 if at least four Acquisition Areas are purchased by the Resource Groups, TRC annual advances will be $800,000.
• Two years prior to the date at which the Conservancy will first take responsibility to monitor and maintain natural resource mitigation on the conserved lands, the TRC annual advance will be adjusted to $1,500,000.
• In the year the Conservancy first takes responsibility to monitor and maintain natural resource mitigation, the TRC annual advance will be adjusted to $1,500,000 plus the actual mitigation costs for that year.
• TRC advances will be repaid by the Conservancy in years for which the conservation fees received exceed the obligations described above.

Management of Conserved Lands

• Public Access. Public enjoyment of the conserved lands is a high priority to TRC and the Resource Groups. TRC commits to work with the Conservancy to establish and implement a public access plan to conserved lands that will include encouraging and facilitating public access, including among underserved populations. The Conservancy shall also manage public access to Bear Trap Canyon through the use of docent-led tours consistent with the public access plan.
• Ranch-Wide Management Plan (RWMP). The RWMP will be developed by TRC and the Conservancy to identify and assess natural resource and conservation attributes of the conserved lands in order to develop sustainable stewardship management strategies that provide for protection and enhancement of natural resource values and appropriately managed existing ranch uses.
• Development and Implementation. TRC and the Resource Groups have jointly developed policy-level guiding principles that will be used by TRC and the Conservancy to develop a detailed and comprehensive RWMP. TRC will work with the Conservancy to draft and implement an interim RWMP within one year and the initial RWMP within five years.
• Identification of Conservation Values and Existing Ranch Uses. The RWMP will identify natural resources and conservation values of the conserved lands as well as opportunities to protect, enhance and restore identified resources and values. In addition, the RWMP will establish best management practices for continued use of the conserved lands for existing ranch uses.
• Current Stewardship. During an initial five-year period, the RWMP will focus on preservation of existing conservation values by maintaining baseline conditions.
• Restoration and Enhancement. After the initial period, the RWMP will include programs, funded by the Conservancy, for restoring and enhancing the natural values of the conserved lands.
• Core Activities. TRC will be permitted to continue certain core activities on conserved lands without interference (e.g., comply with obligations pursuant to existing leases and easements, perform natural resource mitigation, comply with applicable laws, etc.).
• Existing Ranch Uses. TRC will be permitted to continue certain existing uses on conserved lands, subject to the stewardship and adaptive management standard in the Ranch-Wide Management Plan.
• Grazing, game management and filming activities will generally be permitted ranch-wide.
• Farming, sand and gravel mining, and oil and gas extraction activities will be permitted within existing areas and defined expansion areas.

Permitted Development

• Permitted Developments. TRC will proceed through the entitlement processes for the planned communities of Centennial and Tejon Mountain Village and its development project at Grapevine on a total of approximately 30,000 acres, exclusive of designated project open spaces, on the southwestern portion of the property, within designated development envelopes and subject to local, state and federal approvals.
• Project Design Measures. Centennial, Tejon Mountain Village and Grapevine will be required to incorporate specific design measures in their entitlement applications to minimize impacts on the environment (e.g., energy reduction requirements in excess of Title 24 standards, construction waste recycling, onsite shuttle bus systems connecting to regional routes, environmental education outreach programs, etc.).
• Non-Opposition. The Resource Groups will refrain from opposing the entitlement and permit applications and approvals for the three development projects.