Lost Hills services district clears first hurdle

The community of Lost Hills moved toward greater self-determination Wednesday with initial approval of a revised plan to create a community services district — at 226,369 acres, Kern's largest — focused on parks and recreation in the county's unincorporated northwest corner.

Wednesday's unanimous vote, 7-0, by the Kern Local Agency Formation Commission followed a series of compromises by applicant The Wonderful Co., Lost Hills' leading employer and benefactor. Seven months ago the Los Angeles-based ag giant withdrew an earlier version of the district's boundaries in response to opposition by ranchers and others who wanted no part of an entity they said would cost them money without benefiting them.

Wonderful ended up revising the district's proposed boundaries, removing grazing lands to the west and adding company-owned farmland to the northeast and south. Although the resulting map was 37,400 acres smaller, the higher value of the additional ag property means its projected annual revenues were unchanged.

Additional steps lie ahead: Before the district can collect an estimated $1 million per year, it would need to survive a protest vote tentatively set for next month, followed by two additional votes come November. One requires the support of a simple majority of Lost Hills residents and another needs two-thirds approval by property owners within the proposed boundaries.

Supporters said that if the district wins final approval, it will give voice to a mostly farmworker community of 2,668 residents that has benefited from some $90 million in investments funded by Wonderful over about the past two decades. Some hope it will eventually lead to the incorporation of Lost Hills as a city.

"I think it's time for us to have a change in our community," said Rosario "Chayo" Velasquez, president of a community advisory board that has worked with Wonderful to advance the proposal. She added that the Lost Hills Community Services District, as it is called, could "bring new life" to the community and help provide a safe place for local children to gather.

Only three members of the public spoke during Wednesday's hearing on the proposal. Two were in favor of it, including property owner Ann Reynolds, who said that although she doesn't like seeing her taxes increase, she "thinks it's great that Lost Hills wants to develop."

The single opponent, local property owner Ernest Antongiovanni, objected to having to pay into the district. He got his wish: Under a motion by Commissioner David Couch, who is also a county supervisor, Antongiovanni's property was excluded from the district, incurring what Executive Officer Blair Knox called a negligible effect on its finances.

The plan is for owners of residential property within the district's boundaries to pay $60 per parcel per year to help fund park maintenance, recreational programing, streetscape upkeep and street lights. Non-residential property owners within the approved boundaries would pay $150 per parcel per year, regardless of their property's size.

County government is expected to contribute $630,000 per year through a tax-sharing agreement.

Wonderful has agreed to a one-time, upfront contribution of about $1 million, plus $250,000 per year for the district's first five years. As the district's single largest property owner, the company would pay taxes indefinitely to help fund the district.

Even as he recommended approval of the proposal Wednesday, Knox expressed concerns about the district's financial viability. He noted most of the properties included in the plan serve agricultural purposes and oil and ag production, both of which face stiff regulatory challenges in Sacramento that could lower their assessed values.

Knox said he believes that after Wonderful's bonus contributions run out after five years, the district will struggle to maintain the level of services proposed. He recommended a comprehensive review of services at the end of that period, with a focus on whether the district remains financially sustainable and whether changes may be needed.

The bulk of the property within the district is either agricultural or used for mining or oil and gas production. Only 3,314 acres serve industrial uses, 354 are commercial and 160 residential, with the remaining 25,286 classified as "other."

Speaking at Wednesday's meeting, Chief Operating Officer Andy Anzaldo of Wonderful's corporate social responsibility division estimated the company will end up paying about 30% of the revenues of the proposed special parcel tax.

He said the company will ultimately be doing "much more on top of that," but that it needs the community "to pay a reasonable fee" toward the proposal.