Local group buys Conaway Ranch

By Cory Golden/Enterprise staff writer

Yolo County officials said today they will continue pursuing, through eminent domain, the acquisition of Conaway Ranch, despite its purchase last week by a business partnership.

In a sudden swing of events, the Conaway Preservation Group LLC closed escrow on the 17,244-acre property last week. The group's Sacramento address matches that of developer Steve Gidaro.

The purchasing group, through the Sacramento public relations firm Wilson-Miller Communications, issued a statement describing itself as a coalition of "local landowners, farmers, charitable organizations and other interested parties," some of whom have been "waterfowl enthusiasts for decades on the ranch" and are "uniquely and intimately familiar with the existing agricultural, flood control and recreational uses of the property."

"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 said.

Yolo County Supervisor Mariko Yamada said local officials were surprised by the sale, but that "it only reinforces our decision."

"The fact that it's gone in the development direction has made us more resolute to go forward with eminent domain proceedings," Yamada said today.

While the names of the purchasing group's members have not been released, in 1992 Gidaro was part of the similarly named Conaway Conservancy Group, with PG&E and three other area businessmen - Andy Efstratis, Tony Smernes and John Reynen - which proposed a 3,000-acre mixed-use development near Woodland.

Based on the tax the group paid to the county last week, Supervisor Mike McGowan estimated the purchase price at about $60 million.

"I don't want to say it doesn't make any difference (who owns the property), because it does change some things," McGowan said, "but I believe the county's position is the same - we are committed to protecting these resources."

After it became clear earlier this year that the land may be up for sale, the county, Davis, Woodland, Winters, West Sacramento, UC Davis and the Yolo County Flood Control & Water Conservation District formed the Conaway Ranch Joint Powers Authority with the goal of acquiring and preserving the property's 16,000 acres of rented farmland and open space.

Just as important: rights to 50,000 acre-feet of water in a county that has been unable to allocate its full share of water in three of the last 10 years. The land is also seen as vital to flood control, has a producing natural gas field and portions have been showcased as wildlife habitat.

On June 28, having determined zoning and other regulations to keep the land in agriculture impractical, the county offered to buy the land for $50 million from a subsidiary of Natural Energy and Gas Transmission Inc., which bought the property from PG&E Properties in bankruptcy proceedings. PG&E bought the land in 1990 for $36 million (portions were later sold to the city of Davis).

NEGT rejected the county's offer and request to negotiate.

When NEGT decided to sell the property through a secret bid process last summer, the county could not participate under California law. So the Board of Supervisors began eminent domain proceedings.

If a judge determines the county can condemn the land, a Yolo County Superior Court jury would be asked to determine how much the county should pay for it.

If the land is acquired by the county, the Conaway JPA would manage it.

Some have questioned the board's move to condemn ag land to maintain the status quo, and farmers leasing land there have expressed concern that water would be used by the cities. The Yolo County Farm Bureau ultimately chose to support the move.

Ted Costa of the Sacramento lobbying organization People's Advocate has sent out fliers and spoken against the county using taxpayer money for what he believes amounts to a land grab, charges McGowan has said are distorted.

Gidaro is among a group of people who already controlled hunting rights on the land. Speaking on that group's behalf, attorney Gary Livaich argued in June against the Board of Supervisors pursuing eminent domain proceedings.

McGowan said he didn't know if the purchasing group was made up of "one person or 100."

"The true owner remains mysterious, and I believe the owner's intent for the property's ultimate use remains somewhat a mystery as well," he said.

Supervisor Helen Thomson said she didn't buy the notion that a developer would preserve the land. She called the purchase of land the county is condemning "a very chancy thing to do."

"They must be big speculators," she said. "Somebody's who's hunting ducks isn't going to come up with $60 million."

Still, Thomson took an optimistic tack.

"I'm fascinated. I'm very excited about it," she said. "Because now I know it will cost $60 million, not $100 (million) or $150 (million). And we'll be dealing with local people, rather than some company in Delaware."

Gidaro's name is quickly becoming well-known to Davis residents. In June, he and a Carmichael land-use attorney presented a plan to develop a mixed-use neighborhood near the Mace Boulevard curve north and east of Mace Ranch.

In March, Gidaro drew the ire of a number of elected officials, including Thomson and Assemblywoman Lois Wolk, and sparked local outrage by spending more than $21,000 on consultants, polling and phone banking for the campaigns of City Council candidates Mike Harrington, Stan Forbes and Don Saylor just before the March 2 election.

If Gidaro is part of the purchasing group, it will only serve to enhance his reputation for controversy, Thomson said.

"It certainly doesn't shine his halo in my eyes," she said.

Bob Schneider, co-conservation chair, said the Sierra Club Yolano Group supported the supervisors' efforts and said the best way to preserve opportunities for tenant farmers, continue environmental programs on the property and ensure needed water is not shipped elsewhere is for the county to purchase the land.

"It's difficult to ensure those things with a developer who has his eye on bottom-line dollars," Schneider said.

- Reach Cory Golden at cgolden@davisenterprise.net or 747-8046.

Monday, December 20, 2004