Conaway Ranch's sale is a surprise. Yolo County leaders are still pursuing
the water-rich property.
Sacramento Bee - December 20, 2004
By Pamala Martineau
The water-rich Conaway Ranch, which Yolo County leaders have been working to buy
through eminent domain, was purchased last week by a private business
partnership with possible ties to a Sacramento developer.
The sale took county leaders by surprise and raised concern among local
environmentalists who fear the new landowners will develop portions of the
sprawling ranch or sell its water to out-of-state buyers.
"The purchase of this property by a mysterious company with links to developers
is of major concern," said Bob Schneider, co-conservation chair of the Sierra
Club Yolano Group. "The protection of agriculture and the natural environment
and water resources (on this property) is best accomplished through a county
purchase."
Yolo County officials said they would continue to pursue the purchase of the
17,244-acre ranch in the Yolo Bypass, despite its having a new owner.
"The county remains steadfast and committed to protecting these valuable
resources and features," said Mike McGowan, chairman of the Yolo County Board of
Supervisors.
The Conaway Preservation Group LLC closed escrow on the property last week. A
statement released by a public relations firm described the group as a coalition
of "local landowners, farmers, nonprofit, charitable organizations and other
interested parties."
McGowan said the address listed for the group on county records matches the
business address of Sacramento developer Steve Gidaro. Gidaro's employees
referred all questions about the purchase to Wilson-Miller Communications, a
public relations firm.
Marty Wilson, co-owner of the company, confirmed the group's address matches
Gidaro's, but declined to name him or anyone else as a member of the
partnership. He said the partners eventually would come forward.
A news release from Wilson-Miller described the group as previous owners of the
ranch and others who have been "waterfowl enthusiasts for decades on the ranch."
"The Group plans to maintain the existing management of Conaway Ranch and
protect the property's water resources, agricultural land, wildlife, and flood
control benefits," the statement read.
County leaders have said they hope to acquire the land because it is rich with
environmental and agricultural resources. The property holds rights to 50,000
acre-feet of water. The land also plays a key role in Sacramento-area flood
control and provides opportunities for area wetlands expansion.
The land also contains a producing natural gas field and 2,100 acres of
developable land near Woodland. Nearly 16,000 acres of the property is farmed.
McGowan estimated the Conaway Preservation Group purchased the land for $60
million, based on the tax the group paid the county.
Yolo County Supervisor Mariko Yamada said the high sale price made her question
whether the new owners intended to keep the land in its current uses.
"A developer is not going to plunk down $60 million and leave it in its current
use," she said. "A developer is going to want to develop it."
The Yolo County Board of Supervisors voted this summer to purchase the property
through eminent domain, saying the county needed to acquire the property to
preserve it. The county estimated the value of the land to be $50 million.
County leaders said they hoped to use bond money to purchase the property.
In 1990, PG&E Properties purchased the land for $35 million. The Conaway
Conservancy Group, a subsidiary of Natural Energy and Gas Transmission Inc.,
bought the property from PG&E in bankruptcy proceedings.
If the county is successful in purchasing the land, a coalition of public
agencies, including the four cities in Yolo, the University of California,
Davis, and the Yolo County Flood Control and Water Conservation District,
eventually would own and manage the property.
In order for the county to acquire the land through eminent domain, a judge must
determine that the county can condemn the land. If the owners and the county
cannot agree on a sale price, a jury would determine the value of the land.#