Land Bill OKd by Assembly

Overcoming an intense lobbying effort by the Hearst Corp. and real estate interests, the Assembly on Monday passed a measure that would close a loophole speculators have used to earn millions by threatening to build on scenic property.

Called a solution to a practice characterized by critics as “environmental terrorism,” the measure obtained the minimum 41 votes needed for approval. It now goes back to the Senate for a final vote.

“They were lobbying big time, big time, big time,” said an excited Assemblywoman Patricia Wiggins (D-Santa Rosa), a chief backer. When the measure passed, she let out a scream and jumped up and down on the Assembly floor.

The measure is designed to prevent land speculators from resurrecting long-forgotten land parcels and shuffling those parcels like puzzle pieces to increase their value by tens of millions of dollars.

The vote came at the end of a day of hard lobbying by land preservationists on one side and real estate interests on the other. Supporters included Lt. Gov. Cruz Bustamante, who said the measure by Sen. Byron Sher (D-Stanford) would “prevent the unfair gouging of public agencies and private foundations that are trying to preserve open space along our coast.”

Strong opposition came from the lobbying firm Platinum Advisors, headed by former Davis campaign fund-raiser Darius Anderson, representing the Hearst Corp. Hearst owns an 83,000-acre ranch in San Luis Obispo County that environmentalists fear would come under threat of development unless the loophole is closed.

Other opponents included the California Assn. of Realtors, which called the legislation “anti-housing and overkill.”

Coming under especially intense pressure was Assemblyman Abel Maldonado (R-Santa Maria), who represents the Hearst ranch area. Many in his district want to see the Hearst ranch preserved.

Though the textbook case for the loophole is “in the heart of my district, I am worried about unintended consequences,” Maldonado, a Republican, said. In the end, he voted for the legislation.

The fight now moves to the Senate, where prospects are unclear.

The measure would change portions of land use law that have made it difficult for coastal communities to control development. Using ancient maps and deeds, speculators up and down the state have gotten “certificates of compliance” that allow them to circumvent traditional zoning rules. In some high-profile cases, the developers never build anything, but use the threat of building to increase the value of their property when they sell it to the public.

Hearst Corp. recently obtained 143 certificates for its ranch. Company officials deny plans to develop the ranch, saying they only want to learn its value and the certificates will help them do that.

Attempts to contact attorneys for Hearst were unsuccessful. Experts have predicted it could cost as much as $300 million to buy development rights on the ranch.