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WaMu May Bail Out of Ahmanson Ranch

In late June 2003, Washington Mutual (WaMu) said for the first time that it may drop its plans for developing Ahmanson Ranch, one of the last open spaces near Los Angeles. If the banking company follows through, it will mean a victory for conservationists. WaMu inherited the project when it bought California-based Home Savings of America (owned by the ranch’s namesake, Howard Ahmanson) in 1998.

The company said it was in discussions with California officials about selling the 2,800-acre ranch, a stretch of land that is home to rare frogs and wildflowers. The $2-billion project, which would include 3,050 residences, office buildings and two 18-hole golf courses, has been in the throes of litigation, environmental hearings and controversy since its inception well over a decade ago.

In April, six lawsuits were filed in Riverside County Court against the project. The litigants included the Sierra Club, environmental groups, and local governments, including the city of Malibu, the city and county of Los Angeles, and the cities of Agoura Hills and Calabasas. In late-December, following approval by Ventura County commissioners of the project’s first phase – which included a 4,000-page environmental impact statement, environmental groups led by Rally to Save Ahmanson Ranch began the appeal process.

“We’re involved in some very loose discussions with the state of California,” WaMu spokesman Adrian Rodriguez told the Seattle Times on June 24. “There is no agreement at this point.”

California officials began behind-closed-doors discussions with WaMu several weeks ago. “It seemed like time for an overture to see if WaMu is interested,” said Stanley Young, spokesman for California’s Resources Agency. Voters have approved spending $300 million to purchase open space in the area of Ahmanson Ranch, near Hidden Hills. It’s to early to tell if that money will be dedicated to acquiring the ranch property.

But WaMu is still holding its cards close to its corporate vest. “We still believe the best use of the property is for much-needed housing in Southern California,” said Rodriguez. The property’s value is uncertain, but an earlier Los Angeles Times report said the land could fetch upwards of $600 million. But others said the value was much lower due to the legal challenges involved in developing it.

The project has been fought by some high-profile environmentalists, including actor-director Rob Reiner, actors Martin Sheen and Leonardo DiCaprio, and others. The opponents sent a letter to New York City protesting WaMu’s business practices; the Seattle-based company is expanding into New York after acquiring a bank there last year.

Chad Griffin, campaign manager of Rally to Save Ahmanson Ranch, told the Seattle Times, “It’s in WaMu’s best interest to sell this land to a conservancy and preserve it as open space. We applaud Washington Mutual for coming to the table,” Griffin said, adding that no deal has been made.

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