In the city of Escondido, one of the most hotly
debated issues of the last few years has been the city's purchase
of the historic Daley Ranch. The controversy centers on what
various individuals believe to be the best use of the 3,030 acre
parcel of land. Some individuals and groups believe that the land
should be purchased by the City of Escondido and be preserved as
a publicpark. There are also many individuals who feel that since
there is a great need for new homes in Escondido the land should
be developed, thus providing an economic boost to the struggling
city. This difficult decision was put before the planned-growth
city council in 1996 after eighteen months of secret
negotiations. During These negotiations, Shea homes offered to
sell the city high interest sewer futures, provided that it also
purchase the historic Daley Ranch. For a total of $21 million,
Escondido purchased 1,700 sewer and water rights that the city
desperately wanted.
The land had originally been utilized for its oak
groves by the Kumayaay and other Indians of the San Diego area.
In 1869, a British immigrant named Robert Daley settled the land
and established a cattle ranch. The ranch stayed in the Daley
family for more than 120 years until it was sold to Rancho
Escondido Incorporated. The purchase took place in 1992 by the
housing company that was a subsidiary of the Mobile Oil
Corporation [1]. Rancho Escondido Incorporated was the original
purchaser of the 1,700 sewer and water bonds that would twelve
years later be the primary reason for the city's acquisition of
the Daley Ranch. Rancho Escondido's intention was to develop the
land into a large housing project. The corporation was not
successful as the city of Escondido took them to court in hopes
of lowering the number of homes to be built. The city was
successful, and it was decided that the number of homes to be
built would be limited to 1,700. The corporation did not develop
the land, but rather sold it to Shea Homes, who then intended to
develop the land. The new development would have encompassed a
shopping center, an eighteen-hole golf course, and schools to
support the new population [2].
In 1994, the Escondido city council sought to
diffuse a financial time bomb that was ticking away toward the
year 2007 [3]. The controversy involved the sewer and water
futures that were sold between 1992 and 1993 [4]. The futures
were sold to individuals or corporations that owned unimproved
land either in the city of Escondido or within its "sphere
of influence" [5]. By purchasing the futures, the owner was
guaranteed a hookup to the city sewer system, as well as given
priority over other individuals that wished to establish service
[6]. Shea homes possessed the majority of these futures as well
as the entire Daley Ranch. The sewer futures were purchased
originally for $1,500 each, while the water futures were bought
for $900 apiece [7]. The bonds were to mature in the year 2007,
accumulating ten percent interest every year. At maturity, the
sewer futures were to be worth $21,872 [8], while the water
futures were to reach a value of $2,482 per future.
If the Shea corporation were to hold onto the bonds
it possessed, the city of Escondido would have owed the
construction company more than $37 million for the sewer futures
alone. The city council of Escondido decided in 1994 that they
would attempt to purchase back the futures, and simply refinance
the debt at a lower interest rate [9]. The 2,132 futures that
were sold back to the city were refinanced by resolution number
96-293, as well as EJPFA 96-91. These resolutions issued debt to
refinance outstanding sewer connection rights and provided nine
million dollars to improve the current sewer system [10]. The
money to purchase the water futures was to come from reserved
funds that the city already possessed [11].
By refinancing the sewer futures alone the city
saved $2.5 million; the cost of the 3,030 acre Daley Ranch. The
$2,500,000 price tag of the pristine Escondido ranch was approximately
$800 per acre. The city of Escondido will be able to sell this land
at various prices that range from $4,000 to $16,000 per acre. The land
can then be sold to individuals or corporations that seek credit from
a "mitigation bank". The purpose of a mitigation bank is
to maintain a quality environment that will last long into the
future. Mitigation banks protect air, water, minerals, plants,
animals, and objects of historical value. These lands are sold to
developers and individuals who wish to build on environmentally
sensitive locations. If, by developing such lands, it is found
that there would be detrimental effects, mitigation may be
required. As regulated by the California Environmental Quality
Act of 1970, the effects of construction have to be determined by
either filing a negative declaration, or a complete Environmental
Impact Report. The reports must show the significant
environmental effects of the proposed construction, as well as
potential measure that can be used to mitigate these effects
[12].
The mitigation bank was a key element in the
acquisition of Daley Ranch by the city of Escondido. The
agreement stipulates that Shea Homes will keep two hundred acres
of the ranch for the sole purpose of mitigation [13]. Since the
value of the mitigation land ranges in value between $4,000 and
$18,000, this places the value of Shea's land in the wide range
between $800,000 and $3,600,000 [14].
Daley ranch has multiple types of environments
that can be purchased for differing amounts. These areas include
Oak woodlands, Sage Scrub, Chaparral, wetlands, grasslands, and
riparian areas [15]. The establishment of a mitigation bank in
Escondido is invaluable in that the land is home to aminimum of
four different animal species that are listed as either endangered,
sensitive, or threatened. There are also thirty-five other animal
species being considered for such classifications [16]. In addition,
there are 22 different plant species on the ranch that are being
considered for listing by the federal government as endangered,
sensitive, or threatened [17].
The different types on environments that exist on
the ranch are worth different values. The city of Escondido
originally held a minimum of 2,800 acres with the least possible
value of more than $11 million. The money raised by the city of
Escondido will be placed into two separate accounts: one account
will provide for maintenance of the property, while the second
will support damaged habitats [18].
To many residents of Escondido the Daley Ranch
acquisition was purely a win-win situation. Susan Cranddall, a
high school biology teacher, points out in a letter to the city
council that by establishing the ranch as a mitigation bank her
science classes would have an opportunity to use the land as an
outdoor laboratory [19]. Yolanda Fleet, another resident of
Escondido, believes that the preservation of the ranch is
important to create a better environment [20]. The citizens of
Escondido, as well as others, will be able to enjoy the natural
habitat by being able to hike, bike, and ride horses on more than
15 miles of roads and trails on the ranch [21].
This optimistic opinion was not shared by everyone
in the city. Major economic changes had taken place in the city
since the 1980 election of the planned growth city council [22].
As times and economic climates changed in Escondido, so did the
apparent attitudes of the voters. The population in Escondido was
increasing, as would be expected of a North County community, but
the job base in the city was steadily declining. Most new jobs to
the region paid only minimum wage. The median income for
Escondido's citizens since the 1988 election had decreased nearly
twenty percent [23]. Housing had also become a major problem with
a surplus of low and high income housing, yet very little for
those individuals who fell in between. The 1996 election brought
about a drastic change to the Escondido City Council. Two new
probusiness candidates, Keith Beier (an insurance agency owner)
and June Rady (the assistant director of Palomar College's
Escondido campus) joined with incumbent Lori Holt-Pfeiler, as
well as planned growth incumbents Mayor Sid Hollins and
Councilman Jerry Harmon [24].
The deal was approved initially in August of 1996,
after eighteen months of negotiations conducted by a nonprofit
organization called the "Trust for Public Lands" [25].
In December of 1996, the new probusiness faction reopened the
deal to public input [26]. Councilwoman June Rady was the only
individual on the council to vote against the purchase of the
Daley Ranch when the second vote was taken on December 11, 1996.
Rady was not sure if the city should, in fact, purchase the large
expanse of land. She had further concerns about the ranch being
placed into a mitigation bank. Councilman Beier ststaed that he
was not sure if the public understood that once the deal went
through, the land would no longer be available for future
development. Beier also had the concern that the ranch would have
to be closed down eventually due to budget problems [27]. Since
there are more than 30,000 acres of mitigation acres available,
as Beier states, "there is no guarantee that the city could
sell its mitigation credits" [28]. It was decided that a
public meeting should be held on January 2, 1997 to seek public
opinion on the matter [29]. All members agreed to hold such a
meeting [30]. The response from the public indicated that there
was tremendous support for the acquisition of the ranch.
Escrow closed on the Daley Ranch on January 31,
1997. In less than three months, the historic cattle ranch was
open to the public, allowing individuals to roam the beautiful
trails. Had it not been for the city of Escondido issuing sewer
and water bonds in the early eighties, the Daley ranch could
today be the site of seventeen hundred nearly identical houses.
Although there is a middle class housing shortage within
Escondido, as councilman Beier points out, it may be argued that
the near quarter million dollar homes that were to be built would
not be in the affordable range of many middle class families.
What is important is that a parcel of land will remain in its
natural state for an indefinite period of time, allowing
multitudinous animal and plant species to have a permanent home.
While it is clear that Escondido is in need of growth to inject
financial resources into a depressed local economy, one must look
beyond money and instead see an area that was once roamed by
local Kumeyaay Indians and a British cattle rancher.
End Notes:
[1] Redlitz, Barbara (Escondido city planner), telephone
interview, 22 Jun. 1998.
[2] Petrillo, Lisat, All They Need Now is the Theme Song
>From Bonanza, San Diego Union Tribune 06
Sep.1996:B-3:1; B- 4:2,3,4,5.
[3] Escondido City Council, Daley Ranch Information Packet.1.
[4] Ibid.
[5] Ibid.
[6] Ibid.
[7] Ibid.
[8] Escondido City Council, Daley Ranch Information Packet.1.
[9] Escondido City Council Press Release, Aug.21 96: 2.
[10] Escondido City Council Minutes of 23 Oct.1996.
[11] Escondido City Council, Daley Ranch Information Packet.2
[12] County of Ventura Resource Management Agency, The
California Environmental Quality Act (CEQA), January, 1994.
[13] L. Erik Bratt,.Officials Want 2nd Look at Daley Ranch
deal, San Diego Union Tribune 11 Dec. 1996:B-1.
[14] Escondido City Council, Daley Ranch Mitigation Packet.3.
[15] Ibid.
[16] Escondido City Council, Daley Ranch Mitigation Packet.2.
[17] Ibid.
[18] Escondido City Council, Daley Ranch Mitigation Packet.3.
[19] Escondido City Council Minutes of 23 Oct.1996.
[20] Ibid.
[21] Escondido City Council, Daley Ranch Mitigation Packet.3.
[22] Election 1996: North County Views, San Diego
Union Tribune 25 Oct 96: B-13:2; B-15:3,5; B-11:4.
[23] Ibid.
[24] L. Erik Bratt,.Amid Sparring, a New Majority, a Fired
Manager, San Diego Union Tribune 30 Dec. 1997:B-1.
[25] Petrillo, Lisat, All They Need Now is the Theme Song
>From Bonanza, San Diego Union Tribune 06
Sep.1996:B-3:1; B-4:2,3,4,5.
[26] L. Erik Bratt,.Officials Want 2nd Look at Daley Ranch
deal, San Diego Union Tribune 11 Dec. 1996:B-1.
[27] Portillo, Ernest. and Logan Jenkins, Purchase of Daley
Ranch Approved, San Diego Union Tribune 04 Jan.
1997: B-2:5,7; B- 1:2; B-6:4; B-10:6.
[28] Bratt, Erik, Land Deal Back on Escondido
Agenda:reconsiderations Asked For Daley Ranch Plan, San
Diego Union Tribune 18 Dec. 1996: B-10.
[29] Escondido City Council Minutes of 23 Oct.1996.
[30] Ibid.
      Written by: Dan McGrath