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Oates to tribe: Clover Valley costs $90M

December 5, 2004

 Thunder Valley owners plan formal proposal to stop ancestral lands' development

By Mark Anderson  Sacramento Business Journal
Updated: 7:00 p.m. ET

The Buzz Oates Group of Companies wants $90 million if it is to sell rather than develop Clover Valley, the last large undeveloped tract of land in Rocklin and known for its wealth of ancient Native American artifacts.

The tribe that owns Thunder Valley Casino wants to buy the 622 acres to preserve its village sites, relics and burial grounds.

In informal discussions this year, the United Auburn Indian Community has repeatedly asked the Oates Group for a price. That price has gone up every time the tribe inquires, sources say, from $20 million at first to $90 million now.

Rick Massie, the general partner in charge of Rocklin 650 Joint Venture -- which includes Buzz Oates Group and partners -- confirmed the $90 million price, but he said the partnership has never had formal discussions with the tribe. The venture wants to build 689 custom homes on the property.

"There have been some informal discussions and certainly they are aware of the tribe's interest in preserving that land," said Howard Dickstein, attorney for the tribe. "Any development in that valley would be tragic. There will be a more formal proposal, and there will be more developments on this front."

Told that Oates wants $90 million, Dickstein said, "We'll see. It's subject to negotiation."

Clover Valley is the last and the largest unspoiled site of Miwok Indian land, Dickstein said, the ancestors of the United Auburn tribe. "It is really a pristine site. It is breathtaking. You just kick the dirt, and you find tools or human remains."

The valley is part of the former pioneer Whitney Ranch, which used to range from Rocklin to Lincoln.

The valley was a Native American center for at least 7,000 years, said Grayson Coney, a local historian and lecturer on Stone Age culture. Miwok people lived on the site for centuries, trading with tribes from all over the state. At least three cultures inhabited the area.

"This is the last best village site in California bar none. It might be the last great site this side of the Rockies," Coney said, adding that archaeological digs in the area are based on excavations 3 feet deep. More work could show a longer history.

"The best thing to do there is to leave it how it is and let some smarter future relatives decide what best could be done out there for education and preservation," Coney said.

Old powers, new powers  The Buzz Oates Group has been working on the development for 18 years and doesn't want to sell.

The Rocklin 650 partnership bought the land in 1986 and worked with the city to get the site annexed in 1997. The partnership also has been working to get permits for development.

The partners include some of Greater Sacramento's longtime power brokers, especially Oates, one of the leading developers of retail, commercial and industrial projects in the area for five decades. His empire includes development companies, banks, construction companies, mortgage companies and property managers. All could be involved in the job of developing Clover Valley's custom home development.

The United Auburn Indian Community has become one of the region's newest power brokers thanks to its Thunder Valley Casino near Lincoln, which opened in 2003 and draws gamblers from across the state. It has made the tribe one of Placer County's largest employers.

Many of the tribe's members were poor until the casino opened. The tribe doesn't discuss its finances, but the casino business has been extremely lucrative. In the casino's first full quarter alone, the tribe pocketed $57.6 million.

That new wealth has put the tribe in a position to keep Clover Valley undeveloped, giving the tribe influence it lacked as recently as two years ago.

Twenty years of work  The development plan for Clover Valley calls for 689 lots for homes, some 350 acres of open space, and two parks with a total of 11 acres. The original plan sought 974 homes.

The latest proposal preserves the creek corridor and retains 80 percent of the oak trees out there now, said Gerry Kamilos, project manager for the developers. The site has 28,600 oaks, and 5,720 would go.

"There have been many millions of dollars spent and 20 years of work to get this land to this point," Kamilos said. "These projects don't happen overnight."

The land is just south of Twelve Bridges in Lincoln and just north of Sunset Whitney. The southern half of the valley was developed decades ago with houses and a golf course.

Kamilos added that he is working to put together a comprehensive cultural resources management plan that protects the archaeological sites.

"We have done more work of this nature on this land than any project in this region," he said.

That won't be enough, Dickstein said. "It is difficult to imagine segregating the valley between sites that are important and sites that are not," he said.

The development agreement protects the rights of landowners to develop the land as long as they follow the state and federal guidelines, Kamilos said. "You cannot cut corners in this process, but you can develop the land if you follow the state and federal guidelines."

Negotiating with environmental interests and agencies is "all part of the EIR process and the California Environmental Quality Act process. The project doesn't go away. It is improved," he said.

One result, he said, is that Clover Valley will cost more to develop than almost any other neighborhood in Greater Sacramento -- maybe more than every other neighborhood.

The site is beautiful, Kamilos said, and more than 300 people have signed up for a crack at homes that would be built there.

Nick Alexander is principal of The Alexander Co. in Roseville, which gets approvals for land development. He estimated that the lots in Clover Valley could easily fetch more than $100,000 each -- that's a ballpark figure, he stressed -- if they can be delivered ready to build and clear of litigation. Many custom-home lots in the area sell for far more than that.

Also, the area is short on land available for developing. That boosts its value too.

'Potential conflict'  For five years, the Sierra Club and the Clover Valley Foundation have been trying to preserve Clover Valley.

The area is a riparian wetland and a woodland, both of which can be protected habitats. They are also habitats that can be developed with mitigation, said Marilyn Jasper, chairwoman of the Placer Group Sierra Club.

"The strongest angle for saving Clover Valley are the prehistoric sites," she said. "What (Oates) wants to find out there is nothing. ... When they do digs, they are supposed to have an archaeologist on site, but the developer hires the archaeologist, and that means the developer pays the archaeologist. That sets up a potential conflict."

An earlier environmental report on the cultural resources was completed two years ago. The information in that draft report will be explored more deeply in an EIR that might start as soon as next month.

The tribe's main goal is to preserve the valley, Dickstein said. It's premature to say what uses the tribe might allow if it owned the property, he said, but it would allow nothing to interfere with the artifacts.

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