Sustainable Prefabricated Custom Home Builder to Expand Operations to Tejon Ranch

TEJON RANCH, Calif., Dec. 16, 2021 (GLOBE NEWSWIRE) — Tejon Ranch Co. (NYSE: TRC) announced today it has closed on the sale of 17.1 acres of land on the east side of the Tejon Ranch Commerce Center to Scannell Properties, a privately-held real estate development and investment company that focuses on build-to-suit and speculative development of industrial, office and multifamily facilities throughout the U.S., Canada and Europe. There, Scannell will build an approximately 270,000-square-foot manufacturing facility for Rialto, CA-based Plant Prefab.

This new factory – Plant Prefab’s third – will serve as the company’s first automated facility and regional production hub, and will be purpose-built to efficiently manufacture custom-prefabricated panelized and modular building components. The hub facility will allow for the full industrialization of Plant Prefab’s patented Plant Building System™️, which combines advanced engineering with specialized Plant Panels™️ and Plant Modules™️ to build custom housing 20 to 50 percent faster than traditional building methods with up to 30 percent less waste at a 10 to 25 percent cost savings in labor-constrained markets. “The Tejon Ranch Commerce Center is an outstanding location – with its efficient access to the interstate and strategic location between Los Angeles and the Bay Area, combined with the efficiencies that will be driven by the state-of-the-art facility, Plant Prefab will be able to expand its reach to the entire Western U.S.,” said Jacob Holdeman with Scannell Properties. “They are establishing their flagship facility in a location that represents a strong value proposition when compared to the Inland Empire and joining an area that is expected to continue growing for decades.”

Steve Glenn, Founder and CEO of Plant Prefab, stated, “Opening the hub facility will be a critical milestone that will move Plant Prefab into the next phase of our evolution, enabling us to construct architectural, sustainable housing more time and cost efficiently, and at higher volumes than we could previously. It will also allow us to expand into larger dwelling formats including large-scale student, affordable and market-rate housing to serve a wider universe of clients including real estate, hospitality, and corporate developers. This represents a significant step toward our ultimate goal of helping to address critical housing issues in supply- and labor-constrained markets.” Plant Prefab’s design and estimating teams are now engaging projects for the new facility, which expects to begin production in January 2023. The launch of the hub will be well timed to help Plant Prefab accommodate rising demand from a growing list of clients, as production contracts have grown by more than 175 percent in the past year alone. Looking ahead, Plant Prefab expects to replicate its hub-and-spoke production model, allowing it to scale efficiently to meet demand across urban infill markets in other regions across the country – including the East Coast – that are similarly well located and primed to serve large populations.

Joseph N. Rentfro, Tejon Ranch Co.’s Executive Vice President of Real Estate, added, “Along with the County of Kern, which awarded Plant Prefab an incentive under the Advance Kern Initiative, we look forward to welcoming this innovative company to Tejon Ranch, as we share their commitment to helping address California’s housing crisis in an efficient, sustainable way. This investment by Scannell Properties, which can – and does – invest all over the world, is further evidence of the strength and appeal of our location. All of our existing industrial space is 100% leased and 100% occupied, and we’re making good progress on a +/- 630,000-square-foot speculative industrial facility we’re building in partnership with Majestic Realty Co., as we look to meet the demand we’re seeing out of Southern California and elsewhere for warehouse, distribution, and now, advanced manufacturing facilities, with Plant Prefab’s new manufacturing hub serving as an example of the type of business identified as a targeted sector for business development in Kern County by the B3K endeavor.” Tejon Ranch Co. is a participant in B3K Prosperity, a collaboration among business, government and civic stakeholders in Bakersfield and Kern County, whose purpose is to create and deliver a joint strategy and investment plan for regional economic growth and opportunity. JLL’s Mac Hewett and Mike McCrary represented all parties in the transaction.

https://www.globenewswire.com/en/news-release/2021/12/16/2353954/0/en/Sustainable-Prefabricated-Custom-Home-Builder-to-Expand-Operations-to-Tejon-Ranch.html

Rail expansion at Castle expected to reduce supply chain issues, Merced County leaders say

At a time of shipping bottlenecks and supply chain shortages, Merced County leaders say expanded rail service at Castle Commerce Center will put Merced County in an advantageous economic position. The Merced County Board of Supervisors on Tuesday approved a deal with Patriot Rail, a short line and regional freight railroad operator, which will lease 6,500 feet of track and related property and pay $1.2 million to increase rail capacity fluidity of shippers in the Castle rail district, according to a county news release. “This agreement is the culmination of years of market analysis and strategic planning,” said Lloyd Pereira, Board of Supervisors chairman, in the release. “Coupled with the autonomous vehicle testing happening at Castle, this is an exciting time for Merced County. We’re on the front end of job creation and economic development.”

The lease is part of the creation of a new rail district, according to county officials, and the lease to Patriot Rail is expected to make Merced County an even more prominent hub for freight rail movement. The deal enhances the ability of agricultural producers, manufacturers, and other businesses in the San Joaquin Valley to ship and receive products via the Burlington-Northern Santa Fe (BNSF) railroad mainline. The BNSF mainline runs adjacent to the rail district, which is located on the southeast corner of the Castle Commerce Center.

A rail spur connects Castle to the BNSF lines and Patriot Rail will build more infrastructure to expand rail service there, the release said. The 20-year lease between Patriot Rail and Merced County has the potential for continued renewals at the discretion of company and county officials, the press release went on to say, and Patriot Rail will maintain the track. “Patriot Rail is pleased to advance and help drive Merced County’s vision of economic growth,” said John E. Fenton, CEO of Patriot Rail. “We are committed to providing service and safety excellence as a premier rail solutions provider, and to partnering with Merced County customers to ensure exciting new competitive options for shipments by rail to build business and grow jobs.” The expansion of rail service at Castle has not gone unnoticed in other economic hubs across the state. Officials at some of the busiest ports in the country herald this development as an opportunity not just for Merced County, but industry partners across the shipping industry. “This agreement will help make Central California a focal point to accelerate goods movement across our state and nation,” said Gene Seroka, executive director at the Port of Los Angeles.

https://www.mercedsunstar.com/news/business/article258218498.html

Work starts on 100-megawatt solar project in eastern Kern

Construction has begun five miles west of Rosamond on a 100-megawatt photovoltaic solar project called Rabbitbrush Solar, which will come with a battery component storing 50 megawatt-hours of electricity. As the latest large-scale renewable energy project in eastern Kern, the Canadian-backed development is expected to create 300 union construction jobs at its peak. After that it is expected to generate enough power to run 40,000 homes, essentially removing 48,000 metric tons of carbon dioxide per year — the equivalent of taking 10,500 gasoline-powered cars off the road. Two companies have signed 15-year agreements to buy energy from the project: Central Coast Community Energy and Silicon Valley Clean Energy. Both are community-choice aggregation providers that sell clean energy to individual customers.

Developer Leeward Renewable Energy said it chose to build in Kern because of the area’s consistent sunlight and flat land. It also credited the availability of electrical transmission lines and other infrastructure nearby, as well as the area’s experienced workforce and the county’s leadership in renewable-energy development. Work began in October at the site near Willow Springs. Construction is scheduled to finish in July and operations are set to begin in August.

Kern’s top planner and lead energy permitting official, Lorelei Oviatt, on Friday described Rabbitbrush as an infill project in an area that’s already home to extensive solar and wind development. She said the county conducted an environmental review of the project and found nothing particularly controversial about it. At least half the jobs generated during construction must be local hires, Oviatt said. She noted the project makes good sense in that battery storage works best near the source of power generation. She also made reference to a simmering conflict between Kern and state government over energy permitting. Gov. Gavin Newsom’s administration has clamped down on oil permitting — a significant source of local jobs and government revenue — even as Sacramento has extended an exemption that denies Kern millions of dollars per year in property tax receipts. “Once again this (Rabbitbrush project) is Kern County’s contribution to California, and we believe that we have a solution for local revenues for right now, but we still continue to advocate for an adjustment to the solar tax exclusion,” Oviatt said.

Leeward reports having 21 renewable energy facilities in nine states with generation capacity totaling about 2,000 megawatts. It says it is working on more than 100 new wind, solar and energy storage projects offering 17 gigawatts of power. Leeward is owned by Canadian pension company OMERS Infrastructure, which reports having $114 billion in net assets.

https://www.bakersfield.com/news/work-starts-on-100-megawatt-solar-project-in-eastern-kern/article_e135ea22-700f-11ec-8fcc-e7aa8f3d631f.html

Environmental group and Tejon Ranch agree on plan to build 19,300 zero-emission homes

One of Southern California’s longest running development battles ended after two decades Wednesday when an environmental group agreed to the construction of a massive “net-zero” greenhouse gas community of 19,300 homes just off Interstate 5 on the southern flanks of the Tehachapi Mountains. The pact between the Tejon Ranch Co. and the nonprofit Climate Resolve comes amid a severe housing crunch across California and removes perhaps the largest roadblock remaining for the 6,700-acre Centennial project bordering Kern County, about 70 miles north of Los Angeles. The project had been stalled repeatedly by environmental and economic challenges, even as other large developments won approval in one of the last undeveloped sections of Los Angeles County. The proposal had won final certification two years ago from the L.A. County Board of Supervisors, and the company declared that it had been vindicated. But earlier this year, Superior Court Judge Mitchell Beckloff rejected the county’s approval of the developer’s environmental impact report, effectively blocking construction.

Specifically, the judge cited aspects of the environmental review concerning wildfire risk and additional greenhouse gases generated by vehicles. Under terms of the deal expected to be presented to Beckloff later Wednesday, Climate Resolve has agreed to dismiss its legal claim that L.A. County violated the California Environmental Quality Act when it approved Centennial in 2019. The new development, which will not include natural gas hookups, would be designed specifically to combat global warming, the parties said. The agreement calls for the installation of nearly 30,000 electric vehicle chargers at residences and commercial businesses. In addition, the plan will include other incentives to support the purchase of 10,500 electric vehicles, school buses and trucks.

https://www.latimes.com/california/story/2021-12-01/tejon-ranch-will-build-19-300-zero-emission-homes

CBRE Global Investors, Trammell Crow to Develop 606,343 SF Logistics Facility in Northern California

CBRE Global Investors has purchased a 29.3-acre site located at 1205 E. Grant Line Road in Tracy for the development of a logistics center. The investment firm will partner with Trammell Crow Co. to develop the 606,343-square-foot facility. Construction is slated to begin in early 2022, with completion scheduled for first quarter 2023.

The distribution facility will feature 40-foot clear heights, 185-foot truck courts, 56-foot by 60-foot column spacing, LED and sky lighting and an ESFR sprinkler system. HPA is serving as architect of record and Big-D Construction is the general contractor.

https://rebusinessonline.com/cbre-global-investors-trammell-crow-to-develop-606343-sf-logistics-facility-in-northern-california/

Merced County kicks off $2.1M expansion on research and test site for autonomous vehicles

Construction kicked off this month on a planned $2.1 million expansion of an autonomous vehicle research and testing site at at Castle Commerce Center. The new expansion will allow vehicle manufacturers, suppliers and innovators to utilize test areas that mimic real-world highway, rural and urban landscapes, according to a Merced County news release.

County officials have touted Castle’s proximity to Silicon Valley and expansive open space as a boon for tech companies like Google that have used the facility to test self-driving vehicles for some years. “This site embodies the future of transportation, and these technology developments are taking place right in our backyards,” Merced County Supervisor Daron McDaniel, whose district encompasses Castle Commerce Center, said in the release. “This project represents real-time job growth and economic development, with enormous potential as it continues to grow.”

Formerly called the California AutoTech Testing and Development Center, the 225-acre site has been renamed to TRC California for Transportation Research Center Inc., for the Ohio-based corporation that assumed facility operations earlier this year. A long-term goal for county officials was to pass facility management to a private third party expert that would take operations to the cutting edge of the developing autonomous vehicle industry. TRC is a leader in automotive testing and innovation that has led the facility’s design improvements, according to the release. “We are building out TRC California to offer a comprehensive, one-stop shop where automotive technology and mobility innovators can test and affirm the performance, safety, quality and competitiveness of new technologies that are changing the face of transportation worldwide,” Brett Roubinek, president and CEO of TRC Inc., said in the release. “TRC is proud to partner with Merced County in this transformation.”

A 2 mile high-speed test track is the subject of the current construction phase by Central Valley-based Avision Construction. Installation of privacy fencing along the perimeter, vehicle barriers and security improvements for confidentiality purposes are also in progress. Work on this protect phase is anticipated to wrap up by Nov. 1. Central Valley-based Precision Civil Engineering is overseeing project engineering and construction management. “We are excited to begin this dramatic new chapter in Merced County’s progress as a focal point for testing and research by the West Coast’s technology-based industries, start-ups and independent innovators,” Mark Hendrickson, Merced County Director of Community and Economic Development, said in the release. “Advances developed here at TRC California will help make transportation safer, more efficient and more environmentally responsible.”

Construction will temporarily impact portions of the facility while other areas remain open for testing, the release said. Also being worked on is a control building and workshop, as well as installation of test equipment. The total project budget is $6.5 million being paid for via funding secured by Assemblyman Adam Gray, D-Merced, through the California State Transportation Agency. TRC California has already attracted a number of companies that are actively testing at the facility. Facilities and staffing will keep expanding, including the addition of more roadway complexes, road surfaces and intersections all designed for testing advanced transportation technologies, the release said.

https://www.mercedsunstar.com/news/local/article253687543.html

New industrial building planned in north Modesto could employ hundreds of workers

A new development proposes a 300,000-square-foot industrial building that could employ hundreds of people on Kiernan Avenue north of Modesto. The building, designed for light industry, is planned for the southeast corner of Tully Road and Kiernan. It will replace an almond orchard on the 17-acre site. Jackrabbit Equipment Inc., which makes equipment for the tree nut industry, has been discussed as a main tenant for the Kiernan facility. The company would use the building for consolidating Jackrabbit’s operations in Ripon and on Dakota Avenue in Modesto. Chief Executive Officer Bob DeMont said Thursday that 90 employees would work at the new building initially, but the number could grow substantially as the company expands.

The Stanislaus County planning commission considered the project earlier this month and recommended that county supervisors approve it. The project is set for the Board of Supervisors meeting Aug. 17. According to a county staff report, Jackrabbit is expected to use half the facility, or 150,000 square feet. Libitzky Holdings of Emeryville, the applicant and developer, has not identified tenants for the other 150,000 square feet. “We would love to be able to accommodate Jackrabbit,” said Kevin Perkins, an associate principal for Libitzky, a real estate investment firm that owns properties in eight states. “We are building 300,000 square feet of Class A space that should be highly in demand,” Perkins said. “Modesto is in a real growth market and the location lends itself to being a prime industrial and distribution location for the state and western United States.”

Libitzky operates the Modesto Industrial Park, which is next door to the Kiernan and Tully property. The new cross-dock building could be built and completed by the second quarter of 2022, Perkins said. According to the plans, businesses leasing space could operate around the clock, seven days a week, three shifts per day, with up to 250 workers on each shift. That estimate includes other prospective operations in addition to Jackrabbit. County staff said Jackrabbit could occupy a larger portion or the entire building, but that has not been determined. The site is designed with 486 parking spaces; an excess amount of parking was included in the plans for flexibility as business tenants are sought.

Companies using the industrial building are expected to serve about 25 customers daily. The center will generate an estimated 1,488 truck and car trips per day. Libitzky applied to the county for approval because the site is in an unincorporated area outside the city limits. Modesto’s general plan designates the project location for business park development. For significant development projects inside a city’s sphere of influence, the county has a policy of first getting preliminary approval from the respective city. The county may approve the project after the city signs off.

Steve Mitchell, planning manager for Modesto, said the city has been in discussions with the county and supported the application because it’s an expansion of an industrial area. There are too many private properties between the city boundary and the Kiernan site for an annexation, he said. One of the city’s conditions for approval was extension of a line to the property and connection to city water service, but a sewer service connection is not available, Mitchell said. “We are working with the county on a tax-sharing agreement,” he added.

https://www.modbee.com/news/local/article252937118.html

New apartments, houses proposed near Stanislaus State

More housing options could soon be on the way for prospective renters and buyers in town as plans to build more apartments and homes have been submitted to the City of Turlock.  In addition to plans already under review for an apartment complex on 20th Century Boulevard and approved blueprints for a gated community on 5th Street, developers are clamoring to take advantage of two more infill properties located on the north side of town. A proposal for an apartment complex on the corner of Monte Vista Avenue and North Walnut Road was received by the City last month, as were plans for a 32-home subdivision at the dead end of Crowell Road.

Florsheim Homes, which is developing the 5th Street gated community and also constructed the Rose Verde subdivision near Monte Vista Crossings, is hoping to subdivide the 6.5-acre parcel located at 4510 Crowell Rd. into 32 lots varying in size from 5,340 to 9,264 square feet.  While the site is currently home to Light of Christ Lutheran Church, which hosted a popular light show this past Christmas, the existing structure and other features of the lot will be demolished to make way for the homes, if approved. The church is still the property owner, according to the application, and a public hearing for the project will be held on Aug. 5.

If Florsheim is able to stick to the proposed construction schedule, the homes will be built beginning in May 2022 and completed by early 2023. The new builds come amid a housing shortage in California, which as recently as 2018 was ranked 49th in the United States when it came to housing per capita. Chris Hawke, who is hoping to develop the 348-unit apartment complex on Monte Vista Avenue, said that Turlock is in need of more housing and is also involved with the Fairbanks Ranch homes being built on Tuolumne Road near Denair.

While Hawke said both student housing and affordable housing models were considered for the proposed apartment complex, the project will consist of market-value apartments which he envisions being rented out by Stanislaus State employees, students and a mix of other community members. “We think it’s an exciting location just because of its proximity to the university,” Hawke said.

According to the project application, the apartment complex will consist of 12 three-story buildings with patios on the first floor and balconies on the second and third. Hawke said that the number of units, which is proposed at 348, could change as the process moves along.  Should the apartment complex be approved later this year, he expects construction to be complete on the project by 2023, as long as inflated labor and product shortages don’t interfere. There is not yet a public hearing date scheduled for the project. “I think there has been very little new apartment development in the city of Turlock, so it’s an opportunity for us to bring on a fairly large-sized project of apartments into the community,” Hawke said.

Major affordable housing project coming to Porterville

The Porterville City Council took swift action during its meeting on Tuesday on two matters that should substantially help deal with the issues of homelessness and providing services for the most vulnerable in the community. The council approved $20 million in financing to come through a state agency for an 80-unit affordable housing development to be located at 385 South E. Street. In addition, the council also approved a $175,000 grant for the Central California Family Crisis Center.

The Chicago based real estate company UPholdings is spearheading the affordable housing project. A representative from the company said the project is now fully funded and construction on the project is scheduled to begin in October. The company hopes to have the facility open by the spring of 2022. The Finca Serena Affordable Housing project will be located on 3 acres. The complex will also feature services to help those living in the development such as computers for job searching. Input was sought on what other services needs to be provided at the complex as well.

It’s planned for 40 of the units to be for housing the homeless and the other 40 units to be available to the general public. Those 40 units will be designed to be high quality, low income housing. The project is being termed as an Affordable and Permanent Support Housing Project. The project is the first of its kind in the Central Valley. Financing of the $20 million for the project is being done through the California Municipal Finance Authority which was created to help finance economic, cultural and community development and charitable causes in cities throughout the state.

The CMFA will issue $20 million in tax-exempt bonds for the project, which will be a multi-family rental housing facility for low-income households and to provide permanent, supportive housing for those experiencing homelessness and chronic homelessness. The city staff report stated “the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project.” The $175,000 grant awarded to CCFCC located at 211 N. Main comes a Community Development Block Grant funded by the federal CARES Act.

CCFCC stated as a result of the COVID-19 pandemic, it has had to reduce its in-person services, close its thrift store and has also sustained a reduction in grant funding. CCFCC said without the $175,000 grant it would have to reduce staff and cut additional services. CCFCC offers programs designed to meet the needs of victims of domestic violence, the homeless and their children.

https://www.recorderonline.com/news/major-affordable-housing-project-coming-to-porterville/article_316005e4-cf86-11eb-ab97-c355968f6067.html

A new $350M casino is breaking ground off Highway 99

The Las Vegas company behind bringing a new Native American casino to Madera County is close to breaking ground, according to a high-ranking official close to the project. The California State Supreme Court cleared the way in September for Las Vegas-based Red Rock Resorts to build North Fork Rancheria’s casino off of Highway 99 near Avenue 18 just north of Madera, less than 40 miles east of the Chukchansi Gold Resort & Casino and Table Mountain Casino.

The new casino could take about 18 months to finish once crews break ground, which is expected by the end of June, according to Stephen Cootey, chief financial officer for Red Rock. “As of now, the budget for the full completion of this project excluding any financing costs is expected to be between $350 million and $400 million,” Cootey said May 4 in a call with investors. He went on to say the project is expected to cover 213,000 square feet, including 100,000 square feet in casino space, plus 2,000 slots and 40 table games. There will also be two restaurants and a food hall. Officials with the North Fork Rancheria, home to the Mono Indians, said more on the new casino may be available in the coming month or so but declined to discuss it on Monday, according to Charles Altekruse, spokesman for the North Fork Mono.

ECONOMIC IMPACT

The success of new hospitality destinations in an area not already known to draw a large amount of tourists can be hard to predict, according to economist Jeffrey Michael from the University of the Pacific in Stockton. “That’s the tricky thing with a lot of hospitality, drawing new visitors or just diverting dollars from others nearby,” he said. But, Madera County officials are more confident of the long-term success of the new casino that’s taken nearly two decades to clear legal hurdles.

Madera’s casinos do draw tour buses of people from out of the area looking to play slots and table games, Kahn said. He added that the new casino will likely be a hot commodity when it’s first built, but shouldn’t be a long-term damper on other tourist attractions in the area. “I think it will have some affect, naturally,” he said. “I think in the long-run it will all level out.” The North Fork Rancheria of Mono Indians is a federally recognized Native American nation with more than 2,200 tribal citizens and government offices in Madera County.

https://www.fresnobee.com/news/local/article251299623.html