Hearst Ranch Conservation
Progress Report

Note: This article was printed in the Telegram Tribune on July 5, 2003. It has been reprinted with the permission of Stephen T. Hearst. It is intended to give an update, additional information and discuss the process on which the "Hearst Ranch Conservation Project" must go through before it is completed. Other than providing this news related article for this Web Site Stephen T. Hearst has no connection to the information published on this Web Site.

By Stephen T. Hearst

July 5, 2003

Much has happened in the last several months to bring the conservation of the Hearst Ranch a step closer to reality. For several years, I have spearheaded The Hearst Corporation’s efforts to find a conservation solution for the 82,000 acre ranch that will ensure the protection of resources, benefit the public, and be consistent with our fiduciary obligations. A major milestone of that solution came together with our Conservation Framework that was announced with the American Land Conservancy. In February we announced a one year conservation option period with the American Land Conservancy, and are now busy with all of the normal steps necessary to finalize a successful conservation transaction. The State’s recent announcement of their direct involvement in negotiations is also positive. Let me summarize key steps, which have been informed by the many comments that we have received to date from the community:

Agency Involvement: We are pleased that the State of California is actively engaged in evaluating this conservation opportunity and the potential for Proposition 50 bond proceeds to make conservation of Hearst Ranch into a reality. The California Coastal Conservancy is taking the lead for state agencies, and recently announced they are commencing their own independent appraisal and evaluating the resource values of the ranch. As we have been doing actively for the past two years, the public agencies have been meeting with interested parties to help them understand the balance between what works for the property owner and what best serves the public interest. Before funding for any conservation transaction is finalized, agencies will hold public hearings and provide opportunity for public review and comment.

Conservation Easement: A detailed conservation easement is being prepared, consistent with the Conservation Framework, which will govern the use of the ranch in perpetuity. The easement, which must also be approved by funding agencies, will include legally enforceable provisions to ensure permanent protection of the entire ranch and its conservation values. Like many other successful conservation easements, a detailed agricultural management plan will be prepared with requirements for regular monitoring and enforcement, if needed. The easement will contain detailed criteria for locating the 27 owner home sites that would recognize sensitive environmental and cultural resource areas, respect existing public views from Highway 1 and Hearst Castle, and be located near existing roads within the interior of the ranch. It will also contain limitations on location and acreage of cropland uses.

West Side Protections: This transaction originated as a conservation easement and Hearst was not a willing seller of any property in fee. After considerable discussion and negotiations with conservation organizations and potential funding sources, Hearst has agreed to convey most of the land west of Highway 1, with the rest of the west side lands protected in perpetuity by a conservation easement. The west side easement will provide for public access, prohibit all residential development and limit visitor serving uses to Old San Simeon Village, including a small, historically-compatible inn inspired by recently rediscovered Julia Morgan drawings. We believe this represents the longest stretch of California coastline ever protected in a single conservation transaction, allowing for an 18 mile coastal trail.

Baseline Inventory: Independent experts will document the current conditions of the ranch. This information will be incorporated into a report to be used by the easement holder to monitor compliance with the easement terms, including protection of the conservation values. The areas of expertise include botany, wildlife, fisheries, water resources, cultural, and grazing management. These independent experts will also verify that the retained owner homesites meet siting criteria, though additional review will be required when any permits are requested. The baseline inventory will also include state-of-the-art aerial photography that can be updated periodically to assist in monitoring easement compliance.

Appraisals: ALC has retained an independent third-party appraisal team, and the State is in the process of commissioning its own appraisal. The first appraisal phase determines the “before” value. This is the value of the ranch today, including the 271 existing legal lots and the existing resort zoning, unencumbered by the conservation easement and before the sale portions of the ranch on the west side of the highway are conveyed. The second phase of the appraisal will determine the “after” value which is the restricted value of the remaining portions after the easement is in effect—including the elimination of all owner homesite rights other than the 27 retained owner homesites. The value of the conservation transaction is the difference between the “before” value and the “after” value. Funding for the conservation transaction will require approval of appraisals. As part of a successful conservation transaction, Hearst has committed to make significant donations of property value, including in conjunction with the California Natural Heritage Preservation Tax Credit program. All projections to date, which will be confirmed by independent appraisals, show that Hearst’s proposed donations will bring the publicly funded price significantly below the fair market value.

Timing: The option period expires in February 2004 and we are making every effort to meet that deadline.

Many local residents and organizations who opposed previous plans for the ranch are now strongly committed to the Conservation Framework, which we have put forward with the American Land Conservancy. We appreciate their willingness to give our proposal a fair review and their public endorsements of the Framework. We also appreciate their patience with the process and their understanding that something as complex as preservation of 128 square miles takes time. I remain confident that we will succeed.