State, Hearst Ranch Are in Talks

Negotiations to preserve the Hearst Ranch at San Simeon are moving again as Gov. Arnold Schwarzenegger’s administration is pursuing the project and focusing on turning the most visible part of the ranch -- 18 miles of coastline -- into state parkland.

Although the Hearst Corp. has long floated the idea of preserving its historic family ranch for a price, only this week have details begun to emerge. Through a conservation group, Hearst disclosed Tuesday that it would be willing to sell 1,100 acres of oceanfront property and give up some development rights in exchange for $80 million, plus $15 million in state tax credits.

“It’s a good deal for the state,” said Harriet Burgess, president of the American Land Conservancy, which has been trying to broker a deal. “The Hearst Corp. is giving us an extraordinary price.”

State officials have hired an appraiser to determine the value of the land and the development rights that Hearst has proposed to forfeit. The new administration appears committed to trying to preserve one of the most scenic, undeveloped stretches of the state’s coastline.

“The whole ranch is really a treasure,” said Mike Chrisman, California’s natural resources secretary who recently toured the ranch. “We are about to engage in the real negotiations and hopefully reach some sort of deal.”

Still, Chrisman and other state negotiators cautioned that any deal faces many hurdles, especially in securing public access to the entire stretch of coastline and justifying whether the state can afford such a purchase.

Under the terms worked out with the American Land Conservancy, Hearst is willing to sell most of its oceanfront property west of California 1. But it wants to retain ownership of three areas that would provide the family primary access to oceanfront property. Hearst would donate an easement over these areas that would prohibit development and limit public access to docent-led tours.

“That’s probably not going to be acceptable to us,” said Sam Schuchat, executive director of the state Coastal Conservancy and a top negotiator. “I’m not big into docent-led tours. To me, public access is: You’re driving up the coast. You see a nice beach. You get out of the car and have a picnic.”

Hearst also wants to retain ownership of San Simeon Village, an enclave of historic buildings across California 1 from the entrance to Hearst Castle. Burgess said the Hearst Corp. wants to complete the vision laid out by castle architect Julia Morgan for that area.

“She designed a village, with a town square and a hotel not to exceed 100 rooms,” Burgess said.

The development would not be visible from California 1.

The Hearst Corp. would be willing to give up rights to build on 244 home sites but wants to retain the right to build 27 homes, each on a five-acre parcel.

Al Wright, executive director of the state’s Wildlife Conservation Board, said the state has enough bond money left from Propositions 40 and 50 to make a major acquisition. But he noted that the idea to buy Hearst Ranch has competition from many other worthwhile projects.

Susan Jordan, director of the California Coastal Protection Network, said that although her group supports preserving Hearst Ranch, it needs to know more details before rallying behind any deal.

“Until we know exactly what’s on the table,” she said, “we cannot determine if it’s a good deal for the public.”