"Escrow for Ventura hillside land sale extended"
By Kevin Clerici
Friday, November 9, 2007
Escrow on an estimated $60 million land sale for some 3,800 private hillside acres above Ventura that was to close in October has been extended as the developer works to secure financing.The deal is not in jeopardy and should close in December, developer JK Mondol said today as he appealed to a group of local business leaders to endorse his housing proposal. He was seeking investors willing to commit a minimum of $500,000.
"We don't have enough local support financially," Mondol said as part of a 20-minute presentation to a gathering of the Ventura Chamber of Commerce at the organization's office complex on Victoria Avenue.
In an interview afterward, Mondol said he was confident in the deal. "It (the deal) can close without" the local buy-in, he said, but he didn't disclose how many investors he needs to share the costs of the project. "Right now, we're looking at the middle of December to close."
The delay was due to bank financing, he said, noting lenders have tightened loan standards because of the meltdown in the subprime market.
Such delays are not uncommon, said Realtor Joe Virnig, president of the Ventura County Coastal Association of Realtors.
"Even in good markets, these kinds of complicated deals take a long time to close," Virnig said. "It's not uncommon for there to be extensions."
Investec Real Estate Cos., a Santa Barbara-based investment firm, remains in escrow to purchase more than 3,800 acres in and around north Ventura, as well as a smaller plot near the ocean, Mondol said. The land is owned by three corporations run by heirs of Ventura's Lloyd family.
Investec president Kenneth Slaught could not be reached for comment.
Mondol and his partner Jimmy Mesa, a prominent developer and landlord in downtown, want to build an environment-friendly development of estate homes while opening up much of the land to public recreation.
Their proposal for about 120 homes would be the first since the Lloyd family led a controversial and ultimately unsuccessful effort to develop the hillside area with nearly 1,400 tract-style homes. The Lloyd-backed Measure A overwhelmingly failed at the ballot box in 2002.
The homes would range from quarter-acre to 5-acre estates inside city limits to 160-acre ranches in county jurisdiction — both of which would fall under current zoning rules and not require vote r approval, he said.
VCReporter
"Hillside deal delayed -
Local investors wary of project's complexity"
By Bill Lascher
Thursday, November 8, 2007The newest proposal to build homes in the hillsides above Ventura hit its first major snag before the ambitious plan to transform the city's last major undeveloped landscape could be made public.
The partnership that this Spring made a $60 million bid for 3,800 acres of land owned for the past century by the Lloyd family put “green,” “sustainable,” and “local” at the heart of its vocabulary in an attempt to avoid past controversy connected to hillside development, but now the group has expanded its search for investors to share the costs of the project.
J.K. Mondol, the owner of Pacific Rim Realtors and one of the backers of the proposal, said escrow originally expected to close Oct. 31 had been extended to December.
Mondol partnered last Spring with James Mesa, the developer and landlord behind many recent high-profile Downtown Ventura renovations, to form Mondol Mesa Associates. Together, Mondol and Mesa made their offer for the property with the help of Santa Barbara-based real estate investment group Investec, Inc., which the Reporter first linked to the hillsides purchase six months ago (See “Ventura Hills: Going, going, gone,” News, 5/17/07).
“We are local people running the projects and trying to do the right thing for the city,” Mondol said in a Nov. 6 email. “Because of our involvement in this transaction, because of our proposed use for the property which includes massive areas of open space and trails for public use, we have gained tremendous support from the community in almost every way. The only thing we need now is more local investors.”
Weeks before the deadline was extended, Mondol hosted a group of Ventura real estate figures and others to describe his proposal and help generate interest in the project. In a cordial three hour talk, Mondol described a project that could include a system of hiking trails, green building practices, equestrian land, professional homes, a botanic garden, an ampitheater, a dude ranch and a park at surrounding Two Trees.
But complicated language in the proposal has proven too much for investors to stomach.
“We were offering high returns on our projects, sharing in profit, giving our investors first right to refuse property, and all kinds of other great incentives, but the project just seemed too large and confusing for the investors,” Mondol said.
Mondol said that the deal was altered to make smaller, more tangible deals and that now he and his partners are close to securing enough money to close the purchase.
“I am sure most would agree that it is by far one of the more important transactions to occur in our city,” Mondol said. “It is a transaction that can give our city something very positive that will benefit future generations. It has also come along at an opportune time for people in Ventura to invest in themselves, to better their own personal economy, the city's economy and structure.”
The development would include a number of pieces designed to avoid conflicts generated by a vote under Ventura County's Save Open-Space & Agricultural Resources (SOAR) law. Those rules govern how open space in county land can be converted for real-estate development.
A 215-acre site that is part of the proposed purchase, as well as a 70-acre plot already owned by Mondol, are already within Ventura city limits. Voter approval is not needed to build on that land, and Mondol Mesa Associates originally said it would work to use sustainable methods to build homes and avoid obscuring views of the hills from Ventura. It is unclear how the delays may have changed the proposal.
The remaining land is located in unincorporated portions of the county. It would be divided into 160-acre “ranchettes” that would meet SOAR guidelines and not require voter approval. A portion of that land would then be donated to the Ventura Hillsides Conservancy, a group that seeks to acquire hillside land to preserve natural habits and build an extensive trail system on land that has long been illegal for hikers to enter.
The conservancy has not signed any deal regarding the hills, but in an Oct. 24 interview Executive Director Barbara Harison said the group has discussed the group's mission with Mondol Mesa and other landowners.
“We're not really in a position to support any specific development proposal,” Harison said. “We have not endorsed or agreed with anything. We've had many conversations and they've been all over the place.”
Meanwhile, another organization, Ventura Citizens for Hillside Preservation has been paying close attention to the land's future, but will not take a position on any proposal until escrow is closed on a sale.
“Ventura Citizens for Hillside Preservation continue to be committed to 100 percent preservation of Ventura's hills and have broad community support for our mission,” said Diane Underhill, the organization's president. “VCHP is very active and is poised to advocate for hillside preservation.”
Ventura County Star
"Disputed Ventura hillside land purchased, development planned"
By Kevin Clerici ( Contact )
Thursday, October 11, 2007Ventura County Star article online
click image for larger view
A vast swath of the disputed hillside area above Ventura is being sold to a partnership that wants to build an environment-friendly development of estate homes while opening up much of the land to public recreation.
The homes would range from 2-acre estates inside city limits to 160-acre ranches in county jurisdiction — both of which would meet current zoning rules and not require voter approval.
Investec Real Estate Cos., a Santa Barbara-based investment firm, is in escrow to purchase more than 3,800 acres in and around north Ventura, as well as a smaller plot near the ocean, said JK Mondol, a Ventura resident whose local firm would work with Investec to develop the various properties.
The buyers were among a dozen quietly competing for months to purchase the properties from three corporations run by heirs of Ventura's Lloyd family.
"The Lloyd family has given us a once-in-a-lifetime opportunity to do what's right for our community," Mondol said this week.
The complicated land deal is scheduled to close escrow at the end of this month. Confidentiality agreements prevent the parties from discussing details of the transaction, those involved said. The public listing price was $60 million.
Their proposal for about 120 homes would be the first since the Lloyd family led a controversial and ultimately unsuccessful effort to develop the hillside area with nearly 1,400 tract-style homes. The Lloyd-backed Measure A overwhelmingly failed at the ballot box in 2002. The property owners have kept a relatively low profile since.
"Everything I have heard is encouraging," said Ventura Councilman Bill Fulton. He said the housing totals were "in the ballpark" of what the community has felt was reasonable for the hillside area.
Members of Ventura Citizens for Hillside Preservation, whose stated mission is to preserve 100 percent of Ventura's untouched hills, declined to comment until they had a chance to review the proposal.
Mondol, a resident for 27 years and former youth baseball and football coach, said he and his partners are sensitive to community desires and will work within existing land-use regulations. If so, voter approval would not be needed under Ventura's growth-control laws.
Promoted as "Mariano Estates," the group's primary development would feature roughly 90 2-acre estates on 285 acres inside city limits and zoned for single-family homes.
Mondol and his wife, Janet, already own 70 of those acres, north of Ventura High School and above the Hobson Heights neighborhood near Hall Canyon. Much of the area includes steep slopes, and complicated city slope-density rules likely would restrict the number of homes — being billed as executive estates — to fewer than 100. The development also would have several access roads, in contrast to the Lloyd proposal, which upset some neighbors with a system that would have funneled traffic to a single road.
Most of the land being purchased — about 3,500 acres — is in an unincorporated area under county jurisdiction and currently being used for cattle ranching, oil extraction and orchard crops. That land would be developed sparingly, Mondol said, likely with about 23 ranches of 160 acres each.
A grazing corridor would be maintained. Other ideas include an equestrian center and botanical garden.
Large portions of that land could be opened for the first time to the public — including a path to Ventura's most dominant hillside landmark, a towering pair of blue gum eucalyptus trees known as "Two Trees."
"People should not have to trespass to reach our beautiful landmark," Mondol said.
The Ventura Hillsides Conservancy is a possible partner to manage hundreds of acres of donated land. The land trust was created to preserve the hillsides and has designed an intricate public trail system for the area.
"We intend to implement their full (trails) plan," said Mondol, a frequent hiker and outdoor enthusiast. "We feel that even more trails need to go through the land than what they are asking for."
Barbara Harison, the conservancy's executive director, said that so far, the dialogue has been positive.
The spacious hillside lots with their panoramic views could provide much-needed executive housing and help lure business, said Steve Doll, a local commercial real estate broker.
"Corporations locate close to where the president is," Doll said. "Ventura has lost businesses to other communities that could provide executive housing."
Phil Ranger, whose great-grandfather was Ventura pioneer and philanthropist E.P. Foster and whose great-uncle Joseph Sexton planted trees at the Two Trees site, said he was pleased by the group's willingness to increase public recreation spaces.
"We all sneak onto our hills, but we don't really have access to our hills," he said. "Ventura would greatly benefit by something that is done right."
Gary Storer, broker for the Lloyd-controlled corporations, said Mondol and Investec's group emerged as the buyers because of their financial security and commitment to be good stewards of the land.
Mondol said the development would be "eco-friendly," with houses built to "green standards."
Once the sale is finalized, his group plans to work quickly to address remaining infrastructure and environmental issues and refine the conceptual site plan to be submitted to the city. The exact number of homes won't be known until needed environmental studies are completed.
"This is not about cramming as many homes in there as possible," said Mondol, owner of Pacific Rim Realtors.
Developers and proponents of downtown revival have long eyed the land deal's third component: the 11-acre Beach Ranch, a triangle-shaped parcel bordered by Highway 101, Sanjon Road and Front Street. The property, commonly referred to as the "triangle site" because of its shape, represents the largest undeveloped area downtown. The property includes the land where Joe's Crab Shack sits.
City leaders have studied the site as a possible location for a transit center. With its ocean views and proximity to downtown and the freeway, it is zoned for everything from a hotel to residential and commercial uses. Plans for the site are still being developed, and any proposal would need Coastal Commission approval.
Sale of Hillside Land for Development Pending
The sale of 3,800 hillside acres to a real estate investment company is pending and expected to close by the end of October. According to the Ventura County Star, conceptual plans call for about 120 estates which could include 90 houses on two-area lots within the City of Ventura and 23 ranches of 160 acres each on County land. Such a proposal would likely conform with existing zoning and would not require voter approval. Under the scenario described in the article, some of the land could also be opened for public use, including access to the Two Trees hilltop.To read the Ventura County Star article for more details about the sale of the property and potential proposal, click here
The VCHP Board will follow the transaction, and as we learn more of the details, we will communicate with our supporters. Thank you for your continued interest.
"Ventura Hills: Going, going, gone?" - Property sale could spark changes to iconic landscape"What are the differences between Ventura Citizens for Hillside Preservation & Ventura Hillsides Conservancy?
VCHP Letter to Ventura's City Manager - RE: The General Plan
June 12, 2005
Update From the President of VCHP
April 18, 2005
