Newhall Ranch EIR Approved
L.A. County supervisors unanimously approved the environmental impact report for the 12,000-acre Newhall Ranch project, the largest single housing development plan in county history.
The approval clears the way for Newhall Land and Farming Co. to begin work in 2002 on a total of 21,615 new homes after specific tract maps and other details are reviewed by county planners.
The development could attract 70,000 people to the Santa Clarita Valley. The Board of Supervisors also gave preliminary approval to the developer for a neighboring project involving another 1,711 homes and an 18-hole golf course.
Ventura County officials and environmental groups have challenged development in the area, claiming there isn’t enough water to support so many more residents. But the plan requires the developer to prove that an adequate water supply exists before each phase of the project can begin.
Comcast Acquiring MediaOne
In the biggest cable television-industry merger ever, Comcast Corp. agreed to buy MediaOne Group in a deal that would form one of the largest cable providers in Southern California.
If the deal is approved by shareholders and regulators, Philadelphia-based Comcast would have 800,000 subscribers in Los Angeles and Orange counties and a total of 11 million throughout the nation.
Comcast agreed to acquire MediaOne for stock valued at $47 billion while also assuming $6 billion in debt. The deal is the latest in a series of major mergers in the cable industry, as operators prepare to roll out new services in competition with phone giants and satellite services.
Earlier this month, Adelphia Communications announced plans to buy L.A.’s largest cable provider, Century Communications Inc., for $3.6 billion in cash and stock, plus $1.6 billion in debt.
Edison Buys Power Plants
Edison International agreed to pay $5 billion for a group of power plants being sold by Chicago-based Unicom Corp.
Unicom is selling six coal-fired plants and more than a dozen oil and natural gas-fired plants throughout the Midwest. The acquisition would give Rosemead-based Edison a huge stake in the Midwest market, where prices for electricity hit an all-time high during a heat wave last summer.
The acquisition, which is being handled by Edison’s unregulated unit, Edison Mission Energy, would be subject to federal and state regulatory approval.
In another deal last week, Edison agreed to invest $625 million for a 40 percent stake in Contact Energy Ltd., a power plant company owned by the New Zealand government.
Pro-Union Pact Approved
The Los Angeles Board of Education unanimously adopted a labor agreement that requires contractors receiving work under a $2.4 billion bond measure to employ only union members and to provide them with health benefits.
The agreement negotiated with building trade unions also gives preference to workers living within the school district or who graduated from one of its schools. School board members believe requiring contractors to pay higher wages will attract more skilled labor and result in construction that requires fewer long-term repairs.
Union representatives said the agreement was necessary to avoid rampant violation of state wage laws by many non-union contractors.
Eastside Project Passed
The L.A. City Council approved a $158.7 million redevelopment plan to revive business and industry in Boyle Heights and El Sereno.
The effort would redirect a portion of local property taxes to the Adelante Eastside project. The Community Redevelopment Agency would use the funds over 30 years to attract new investment and make infrastructure improvements in the 2,200-acre area. The effort, which is being pushed by Councilman Richard Alatorre, has been in the works for at least five years. Opponents fear it will displace families and businesses.
But city officials said eminent domain would be used sparingly, even in non-residential areas. And a project amendment requires City Council approval before people are forced to move.
Cleaner Fuel Developed
Atlantic Richfield Co. said its scientists have developed a new experimental diesel fuel that could dramatically reduce air pollutants from buses, trucks and cars.
Arco said its EC Diesel resulted in a 15 percent reduction in particulates and a 5 percent decrease in nitrogen oxide emissions two key components in smog without a reduction in fuel economy.
Arco now plans to test the diesel fuel in 200 fleet vehicles such as buses and trucks to verify the results. If the tests go well, EC Diesel could be available within several years.
Mattel Buys Game Maker
Mattel Inc. has agreed to acquire Purple Moon, a pioneer in the market for interactive games for girls.
The acquisition will give El Segundo-based Mattel, which is in the process of restructuring, a line of interactive games that appeals to older girls.
Mattel launched the girls game market three years ago with its successful Barbie Designer Fashion title. That game is geared for girls 5 to 10 years old, while Purple Moon titles such as “Rockett’s New School” are designed for girls 11 to 14 years old.
Terms of the deal were not disclosed, but Purple Moon officials said it was in the works before the Mountain View, Calif. company ceased operating on Feb. 19 because of poor sales.
Port Activity Increases
The number of cargo containers handled last month by the Port of Long Beach increased 17.4 percent over February 1998 and exceeded the total for all but one month in 1997.
Long Beach handled the equivalent of 324,129 inbound and outbound containers last month. The number of inbound containers (each measuring 20 feet long) increased to 172,482 a 30.6 percent increase over the like period a year earlier.
“The import numbers represent continued confidence on the part of retailers in the American buying public,” said Hal Hilliard, the port’s marketing manager. “Retailers are expecting some very big spring sales.”
Officials said March got off to a slow start because of the Chinese New Year celebration in Asia, but activity has increased in recent weeks.
Geothermal Venture Sold
Unocal Corp., which has spent more than 30 years developing alternative energy sources, sold its only geothermal steam venture in this country for $101 million.
The El Segundo-based oil giant sold its 75 percent interest in The Geysers in Northern California to Calpine Corp. Unocal officials said The Geysers was a profitable operation but also indicated that competition in the geothermal energy field made it difficult to manage the resource as effectively as possible.
Unocal plans to reinvest proceeds from the sale in oil and gas exploration and production activities around the world, including the Gulf of Mexico, Latin America and Southeast Asia.
Irish Bank Opens
Allied Irish Bank, the largest financial services group in Ireland, opened its first office in Los Angeles to handle operations on the West Coast.
The bank serves as a lender for the non-profit sector. The new office is located at 777 S. Figueroa St. in downtown L.A. Tom Mulcahy, group chief executive, said 34 percent of the bank’s asset base is invested in the United States.
“Los Angeles will undoubtedly be one of the key world cities as we enter the next millennium,” Mulcahy said. “So this is a very exciting time for us to open here.”
