LEBEC, CA-One of the largest developments under way anywhere in California is the Tejon Ranch Commerce Center, a 1,450-acre project of the publicly held Tejon Ranch Co., a development and agribusiness company that owns 270,000 acres approximately 60 miles north of Los Angeles. The executive overseeing the development of the Commerce Center is Hugh McMahon, vice president of commercial and industrial real estate, who is also responsible for future commercial development at the company’s planned 23,000-home Centennial project as well as Tejon’s oil, gas and mineral properties, and all easements on the ranch.
Stocking Up on Tejon Ranch
Tuesday, November 23, 2010
CALIFORNIA AGENCY APPROVES FUNDING OF CONSERVATION EASEMENTS OVER PARTS OF TEJON RANCH
TEJON RANCH, CALIF. (November 18, 2010). Tejon Ranch Co. (NYSE: TRC) announced today the California Wildlife Conservation Board (WCB), has approved the purchase, for $15.8 million, of five conservation easements covering approximately 62,000 acres of land located on various portions of the 270,000 acre Tejon Ranch. This furthers the implementation of the historic Tejon Ranch Conservation and Land Use Agreement signed in 2008. The 62,000 acres is a component of the 240,000 acres designated for protection under the 2008 agreement.
The $15.8 million purchase price represents the conservation easement value for the acreage as determined by an independent appraisal directed by the WCB. The WCB, at its November 18, 2010 Board Meeting, accepted the appraisal and authorized the use of existing bond funds approved by California voters in 2006 under Proposition 84 to acquire the conservation easements. Tejon Ranch Co. will retain fee ownership of the 62,000 acres and continue to operate current revenue generating activities including farming, cattle grazing, filming, oil and gas and other mineral exploration and production on portions of the acreage. The conservation easements will preclude the Company from pursuing any long term development on the 62,000 acres. This transaction allows the Company to realize an immediate value, as opposed to what possibly could have been realized through development of those areas sometime in the distant future.
“The Wildlife Conservation Board’s action gives the Company an opportunity to monetize, in the near term, potential long-term value associated with these remote areas of the Ranch that have little, if any, near-term development potential,” said Michael H. Winer, Portfolio Manager for Third Avenue Management LLC, the Company’s largest shareholder, and member of the Tejon Ranch Co. Board of Directors. “Further, it will preserve in perpetuity the environmentally important values of these lands through the imposition of conservation easements, administered by the independent Tejon Ranch Conservancy.”
The 62,000 acres represents the total acreage of five separate acquisition areas negotiated as part of the 2008 Conservation and Land Use Agreement. In that Agreement, the Resource Groups: Audubon California, Endangered Habitats League, Natural Resources Defense Council, Planning and Conservation League, and the Sierra Club, were given an option to acquire conservation easements over those areas. This action today by the WCB fulfills that option. The remaining balance of the property protected by conservation easements as defined within the landmark Agreement, approximately 178,000 acres, will be dedicated by Tejon Ranch Co. to the Conservancy over the next several decades as the Company achieves entitlement and ultimately develops the communities of Tejon Mountain Village, Centennial and the future 12,400 acre planning area at the base of the Grapevine.
Robert A. Stine, President and CEO of Tejon Ranch Company, stated, “today’s action by the WCB is the culmination of a long process involving many entities who came to the table with a vision and desire to create a new way to resolve the competing interests of land development and environmental preservation. In that regard, I am grateful for the role our partner in Tejon Mountain Village, DMB Associates, and its CEO, Eneas Kane, played in assisting Tejon Ranch in achieving the landmark agreement, which today’s action by the WCB fully embraces. This action is a major positive step forward for our company and its shareholders. It allows us to continue current revenue generating operations; to realize current revenue from the sale of easements on longer term potential land development opportunities; and proceed with Tejon Mountain Village, Centennial and the 12,400 acre development opportunities at the base of the Grapevine. All of these actions will result in greater shareholder value. Further, this is a major milestone in preserving in perpetuity environmentally important property for future generations of Californians to enjoy.” Additional steps are required before the sale of the easements will close, including the filing of various public notices, the completion of title review and the execution of the Grant Agreement between the WCB and the Tejon Ranch Conservancy. ####
Monday, November 08, 2010
BAKERSFIELD, Calif. (November 5, 2010) Tejon Ranch Co. (NYSE:TRC – News) announced today that Kern County Superior Court Judge Kenneth C. Twisselman has ruled in favor of Kern County, Tejon Ranch Company, and its development partner DMB Associates, Inc. when he found that the County had properly analyzed and evaluated the environmental effects of Tejon Mountain Village. The Kern County Board of Supervisors unanimously approved the mountain resort community in October 2009. In his ruling, Judge Twisselman rejected claims made by the Arizona-based Center for Biological Diversity and a small group of local environmental groups that the environmental impact report for Tejon Mountain Village was inadequate.
“We are elated that the judge struck down this baseless challenge,” said Tejon Mountain Village spokesman David Crowder. “This ruling is a testament to the quality of the plan and the many years of planning, community input, environmental and public review that it was subject to.”
“Tejon Mountain Village is going to be quite an asset for Kern County,” said Robert A. Stine, President and CEO of Tejon Ranch Co. “It sets a new standard for environmental sensitivity, sustainability, good planning, and soon, good living. We’re pleased the judge’s ruling gives us the green light to move forward with our plans.”
“We are very proud of the hard work and planning that has gone into Tejon Mountain Village which is destined to become a remarkable mountain resort community and an essential part of the conservation of the vast majority of Tejon Ranch,” said Eneas Kane, President and CEO of DMB Associates, Inc. “The decision today is yet another step in achieving our vision for Tejon Mountain Village and proof that the development community and environmental community can work together successfully,” he said referring to the historic Tejon Ranch Conservation and Land Use Agreement.
Tejon Mountain Village is part of the historic Tejon Ranch Conservation and Land Use Agreement, executed by Tejon Ranch Company, Natural Resources Defense Council, the Sierra Club, the Planning and Conservation League, the Endangered Habitats League and Audubon California, in which the Ranch agreed to conserve up to 90% of its land and establish the Tejon Ranch Conservancy. The sales of most types of property within Tejon Mountain Village will generate an on-going funding stream for the operation and activities of the independent Tejon Ranch Conservancy.
About Tejon Mountain Village
As a part of the Tejon Ranch Vision of conservation, continued ranching, and limited development, Tejon Ranch and DMB Associates are carefully planning the development of Tejon Mountain Village. With approximately 80 percent of its land preserved as natural open space, Tejon Mountain Village will be a remarkable, environmentally sensitive mountain resort community. www.TejonMountainVillage.com.
About DMB Associates, Inc.
DMB Associates, Inc. is Tejon Ranch Co.’s partner in Tejon Mountain Village. DMB is one of the most respected real estate companies in the West, known for creating sustainable communities that thoughtfully and responsibly address the environment. DMB”s business practices are predicated on creating truly great places and on forging lasting, mutually beneficial partnerships with stakeholders, municipalities, landowners and communities. More information about DMB Associates, Inc. can be found online at www.dmbinc.com.
About Tejon Ranch Co.
Tejon Ranch Co. is listed on the New York Stock Exchange under the symbol TRC. Tejon Ranch is a diversified real estate development and agribusiness company, whose principal asset is its 270,000-acre land holding located approximately 60 miles north of Los Angeles and 30 miles south of Bakersfield. More information about Tejon Ranch Co. can be found online at www.tejonranch.com.
Wednesday, June 16, 2010
TEJON RANCH, Calif.–(BUSINESS WIRE)–Tejon Ranch Co. (NYSE:TRC – News) announced today that it raised $60 million, the maximum gross proceeds possible, through its just concluded rights offering. The rights offering concluded on June 14, 2010 and was extremely well received and oversubscribed to beyond the $60 million. Tejon previously offered transferable rights to purchase 2,173,946 shares of its common stock at a purchase price of $23.00 per share to stockholders of record as of May 21, 2010. In addition, Tejon had the option to issue an additional 434,789 shares to honor over-subscription requests. The $60 million of capital raised included the release of all 434,789 over-allotment shares and, as a result of the offering, the Company has issued 2,608,735 new shares of common stock.
“The Company and the Board of Directors are appreciative of the continued support of our current and new shareholders,” said Robert A. Stine, President and CEO. “Investing the maximum amount possible is evidence of their confidence in Tejon Ranch Co. These new capital proceeds will help us maintain our strong balance sheet as we move forward with the completion of our entitlement and land development activities.”
The net proceeds of the offering will be used to provide additional working capital for general corporate purposes, including to fund entitlement and development activities and to continue our investment into new water assets and water facilities.
About Tejon Ranch Co.
Tejon Ranch Co. is a diversified real estate development and agribusiness company, whose principal asset is its 270,000-acre land holding located approximately 60 miles north of Los Angeles and 30 miles south of Bakersfield. More information about Tejon Ranch Co. can be found online at http://www.tejonranch.com.
Forward Looking Statements
This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These include, without limitation, our statements contained above regarding the proposed rights offering, and other statements that are not historical facts. These statements involve risks and uncertainties that could cause actual results and events to differ materially, including the possibility that the rights offering may be cancelled before it closes. For a discussion of further risks and uncertainties related to Tejon’s business, please refer to our public company reports and the Risk Factors enumerated therein, including our Annual Report on Form 10-K for the year ended December 31, 2009 and subsequent reports, filed with the SEC. Tejon undertakes no duty to update any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statements are based.
Lights, Camera, Action, Tejon! Hollywood captures the beauty of Tejon Ranch on film.
