Los Gatos Weekly-Times

Open space looks dead as Arlie sells off pieces of land in Lexington Basin

Denevi stalled again on plans for Los Gatos Country Club

Open space deal deadlocks

By Jeff Kearns

An Oregon-based company that bought a large chunk of the Lexington Basin last year has begun selling off the lots piecemeal, a move some say could permanently scuttle longtime hopes to turn the area into a park or preserve.

Arlie Land and Cattle, of Cottage Grove, Ore., paid more than $17 million for the land, about 1,130 acres of hillside to the west of Lexington Reservoir. In January, it began submitting land grants dating from the 19th century to the county planning office. The grants outline lots smaller than currently allowed under the county general plan.

Because the grants predate modern zoning codes, the company's claims for smaller lots were legally recognized.

Talks between Arlie and the Midpenin-sula Open Space District have apparently floundered. General manager Craig Britton says Arlie is asking $28 million to $30 million for the land--too much.

Midpeninsula has been eyeing the property for 20 years, and Britton calls it the most important piece of property in the area, "but at $30 million," he says, "it's overpriced, and it would be very difficult to put together funding for that."

Britton also says that Arlie's director of land acquisition, John Musumeci, told him the company was breaking up the property and selling off pieces so it won't be as prime for development as a park.

Peninsula Open Space Trust has also approached Arlie, but as a rule, POST does not comment on negotiations.

The company refused repeated requests to comment publicly on the matter, but Musumeci did release a letter he sent to Britton on April 17. Arlie was "willing to contribute the vast majority of the property to any of the open space organizations," the letter says. According to Musumeci's letter, Midpeninsula was invited to make a written offer on the land, but Arlie never received any offers, and "decided to pursue other opportunities regarding the property."

Contacted about the letter by the Los Gatos Weekly-Times, Britton sent the newspaper a copy of a letter dated June 5 responding to Musumeci's April 17 letter. In it, Britton said "None of our discussions included enough specificity that would lead me to characterize our talks as negotiations to either acquire or accept a development dedication to all or any portion of the property."

Britton concludes: "If you are seriously interested in the possible sale,gift, and/or development dedication of all or any portion of the property, I would be interested in a specific proposal. I would be especially interested in what portion of the property might be available as a "donation" to the district.

Meanwhile,some of the lots are up for sale. Ads placed in the San Francisco Chronicle advertise "three spectacular buildable view lots on 60-plus acres with giant redwoods, views of San Jose and Lexington Reservoir, five minutes to downtown Los Gatos. $700,000 each." The ads say other lots are available, including some with "Lexington waterfront."

County District 1 Supervisor Don Gage said he wants as much of the area preserved as possible, especially if the golf course becomes a reality, but added that the county recently exhausted much of its allocation for land acquisition.

Big Creek Lumber, a small logging company in Santa Cruz County that is regarded as one of the most environmentally conscious loggers in the state, owns the timber rights to much of the land. Foresters are currently preparing a timber harvest plan for about 160 acres of the property, which the company is expected to submit to Santa Clara County sometime this summer.

Pete Denevi, who has been trying for years to build a country club near Highway 17 and Black Road, has an option to buy 210 acres from Arlie. The option is about to expire, but Denevi's plan has hit more snags, thanks to vehement opposition from environmentalists.

Most recently, the Santa Clara Valley Water District raised concerns about a dormant landslide in the area, and now the county has asked Denevi to fund a $450,000 geotechnical study of the hillside. Rich Robinson, a spokesman for Denevi, says there's no need for the full study, which he says is far beyond the scope of the project.

Denevi will either get an extension on the option from Arlie or close on the land before the deadline, Robinson said. County officials say Denevi hasn't responded to a letter sent on the studies needed.

The state Department of Forestry and Fire Protection, which wants to buy five acres of land currently used as the Alma Fire Station, is also negotiatiating with Arlie. The state has been leasing about five acres for 49 years and has two years left on its lease. State negotiators in Sacramento wouldn't comment on the status of the negotiations, but a CDF official who asked not to be identified said that the negotiations are at a standstill. Arlie, the source said, is willing to sell, but at a price that is higher than the state is willing to pay. The state had set aside $500,000 for the land, the source said, but Arlie wants $750,000.

Steve Woodall, chief of the Santa Clara Ranger Unit, says that the base is incredibly important for providing fire protection for the region because of the helicopter base there, but says he doesn't anticipate that the station will be forced to move. "The state has the ability to enter into condemnation proceedings for that property, but hopefully it won't come to that." The Alma Station played a crucial role in containing the Cats fire in August, he said, and is key to regional fire protection.

The CDF is also in the process of a major statewide infrastructure improvement plan, but because the station still sits on leased property, the CDF won't rebuild the station until it owns the land.

Arlie bought the entire acreage from Hong Kong Metro Realty, which bought it for $12 million in 1989 from the California Province of the Jesuits. The site is the former location of Alma College, a Jesuit school that closed in 1968.

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