4 ValleyCrest Employees Die in Early-Morning Car Crash

Their pick-up truck was hit head-on on a winding road near Brentwood; one other employee in vehicle, other driver remain hospitalized in serious condition.

By Paul Napolitano

Armando Villafan Alejandre

Four employees of Calabasas-based ValleyCrest Cos. traveling on Vasco Road between Contra Costa and Alameda counties were killed Sept. 10 when their vehicle was struck head-on by an oncoming car, according to the California Highway Patrol. Another employee is hospitalized with serious injuries.

"It's the most tragic event in our company's 55-year history," Richard A. Sperber, ValleyCrest president, said in a prepared statement. "Our thoughts and prayers go to their families, wives, children and friends."

The four victims were Ignacio Alejandre, 37, of Oakland; Jesus Ventura-Gutierrez, 60, of Oakland; Jose Villagomez, 38, of San Leandro; and Armando Alejandre, 20, of Oakland. They were on the same landscape crew and employed by ValleyCrest Landscape Development in Northern California.

Ignacio Ventura

Ignacio Ventura, 21, of Oakland, remains hospitalized with serious injuries but is expected to survive.

Armando Alejandre was Ignacio Alejandre's nephew. The employees were on their way to a ValleyCrest jobsite, the Lakes at Discovery Bay in Brentwood.

Witnesses told the California Highway Patrol that a Camaro traveling at speeds of up to 70 mph in a 55 mph zone veered out of control, crossed Vasco Road and hit the victims' F-150 Ford truck head-on. The driver of the Camaro, Kevin Lujon, 22, of Brentwood, remains hospitalized in serious condition.

Ignacio "Nacho" Alejandre with wife, Catalina.

California Highway Patrol officers conducting the investigation reported that the driver of the ValleyCrest truck, Ignacio Alejandre, did everything possible to avoid the accident.

"He had no chance to get out of the way," said Sgt. Wayne Ziese of the California Highway Patrol.

Ziese said Lujon could face four counts of manslaughter pending the completion of the investigation and autopsy results. "Investigators were amazed he survived since his car was so crumpled," Ziese added.

Sperber and three other ValleyCrest officials - Thomas C. Donnelly, president of ValleyCrest Landscape Development; Raul Diaz De Leon, director of human resources of ValleyCrest Cos.; and Berenice Campos, a human resources employee relations representative - flew to the Bay Area to meet with the victims' families.

Jesus Ventura-Gutierrez with his wife, Amalia.

The four are working with the management of VCLD Northern California to help families make funeral arrangements and to assist them in other ways.

Ignacio Alejandre had been with ValleyCrest for 10 years. He is survived by his wife, Catalina; a son, Ignacio, 14; and a daughter, Yesenia, 11.

Ventura-Gutierrez is survived by his wife, Amalia, seven children between the ages of 15 and 32, and 11 grandchildren.

Villagomez is survived by his wife, Mercedes; sons Salvador, 13, and Jose Antonio, 1; and two daughters, Elizabeth, 12, and Karina, 8.

No survivors of Armando Alejandre were provided by ValleyCrest Cos.

Jose Villagomez

Established in 1949, ValleyCrest Cos. is the nation's largest provider of landscape development and maintenance services, and a supplier of trees. The firm has five business units: ValleyCrest Landscape Development, ValleyCrest Landscape Maintenance, ValleyCrest Golf Course Maintenance, Valley Crest Tree Co. and U.S. Lawns.

ValleyCrest Cos. is privately held, with a workforce of more than 8,000 people nationwide and annual revenue of approximately $700 million.

One More Hurdle to Clear for Playa Vista

The Village at Playa Vista Plan will advance Wednesday to the full City Council of Los Angeles for final consideration. The plan received a unanimous recommendation last Wednesday from the City Council's Planning and Land Use Management Committee on the Los Angeles City Planning Commission endorsed the plan two months ago.

The Village, which is the second phase for the Playa Vista master-planned community located between Los Angeles International Airport and Marine del Rey, will add 2,600 new homes and a long-awaited neighborhood retail center--with restaurants, a grocery store, bank branch and other community-serving uses. The Village will connect the homes now under construction on Playa Vista's west side with the office campus area on the eastern end of the property.

"In voting to approve The Village in July and again yesterday, city leaders are recognizing that Playa Vista is an urban model, and that this next phase brings valuable benefits not just to the residents of Playa Vista, but to the surrounding communities as well," said Steve Soboroff, Playa Vista's president.

Members of the Planning Commission and City Council praised Playa Vista's plans to bring new housing, a neighborhood retail center, parks and open space to the city.

They also acknowledged the significant reduction in the size and scope from the original master plan. Under the current plan, 70 percent of the original land area is open space.

"With The Village in place, Playa Vista will be a place where people can live, shop, work and play all in one place," said Doug Moreland, Playa Vista's senior vice president for development. "It will also enable improvements to local streets and highways, and provide the opportunity for people to live closer to where they work."

National Association of Realtors Forecasts Improvement in Commercial Real Estate Market

Office markets with low vacancy and high demand include Ventura and Riverside counties

WASHINGTON -- A rebound in economic growth and job gains over the next year, coupled with an expected retreat in oil prices and strong business spending in the second half of this year, is setting the stage for improvements in commercial real estate, according to the National Association of Realtors' "Commercial Real Estate Quarterly."

David Lereah, NAR's chief economist, said there already is a strong flow of capital into commercial real estate.

"This optimism by investors says more about the future of the commercial real estate sector than anything else," he said. "The investment level shows they understand the value of portfolio diversification and the fundamental demand for commercial real estate that occur in a growing economy."

More than $99 billion in commercial sales took place in 57 tracked metropolitan areas during the first eight months of 2004, up from $54.6 billion during the same period in 2003. This includes a 66-percent increase in the purchase of office buildings and a 40- percent rise in multifamily property transactions.

More than 45 percent of overall commercial spending this year has been on acquisition of investment-grade office buildings. Private national and local investors accounted for 47 percent of transaction volume, publicly traded REITs represented just over a quarter of the total and institutions made up 11 percent. Foreign investment totaled 7 percent of commercial transactions and private REITs 5 percent; other categories were less than 4 percent.

NAR President Walt McDonald, broker-owner of Walt McDonald Real Estate in Riverside, said declining vacancy rates are behind the optimism in commercial investment. "Commercial market vacancy rates have been steadily declining due to the growing demand for space," he said. "It looks like we'll see an acceleration in the demand for space over the next year with declining vacancy rates in the office, industrial and multifamily sectors."

The NAR analysis covers a wide range of statistics and market rankings for the major commercial sectors in the 57 markets tracked, including the office, retail, industrial and multifamily markets, as well as market sector forecasts. The report was produced with data provided by Torto Wheaton Research and Real Capital Analytics.

Office and industrial markets on the East and West Coasts are faring the best. Office markets with low vacancy and high demand include Ventura and Riverside counties in the East on Long Island and in New York City. On the industrial side, Los Angeles continues to dominate the market, while Washington, D.C., is strong in most categories and leads in retail rent growth.

Net absorption of office space, which includes leasing of new space coming on the market as well as space in existing properties, should total 45.3 million square feet this year, up from only 20.0 million in 2003. Vacancy rates in the 57 markets tracked are projected to decline 0.3 percentage points to 16.3 percent in 2004, and drop to 15.0 percent next year. Office rents are expected to rise 1.4 percent in 2004 and another 1.9 percent in 2005.

In the retail sector, net absorption is seen at 22.1 million sq. ft. in 2004, compared with 11.8 million last year. The average vacancy rate for retail space in the 57 metro markets is projected to be fairly stable at 8.2 percent this year compared with 8.1 percent in 2003; vacancies are seen at 8.1 percent next year. Retail rents are forecast to rise 3.6 percent this year and another 4.2 percent in 2005.

The industrial market continues to be impacted by additions to inventory, especially through the build-to-suit process. Net absorption is projected at 97.4 million sq. ft this year, up from 16.5 million in 2003. Because a large volume of new space has come on the market, the national vacancy rate is expected to average 11.7 percent this year, close to the 11.6 percent rate in 2003, and then slip to 11.4 percent next year. Industrial rents should decline 1.3 percent in 2004 and essentially hold flat in 2005.

The apartment rental market - multifamily housing - is expected to see a net absorption of 260,000 units in the 57 markets tracked during 2004, compared with only 159,400 last year. The average vacancy rate is expected to be 6.2 percent this year, down from 6.4 percent in 2003, then eases to 6 percent next year. Average rent is forecast to rise 1.2 percent in 2004 and another 2.2 percent next year.

The National Association of Realtors represents 1 million members involved in all aspects of the residential and commercial real estate industries.

Hearn Construction Starts Building in Healdsburg

Vacaville-based Hearn Construction has broken ground on the Deas Building, a 22,405-sq.-ft. structure in downtown Healdsburg.

The building's first story is for mixed-use/retail, the second story will be business offices and the third story will contain six high-end apartments.
Owned by the Deas Family, the Deas Building is scheduled to be completed in the spring.

Tom Reilly is Hearn's project manager; Simone Battersby is the project administrator. Jon Worden Architect is the architecture firm.

Mungers Donate $43.5 Million for Stanford Construction Project

Charles T. Munger, vice chairman of Berkshire Hathaway, and his wife, Nancy B. Munger, have donated $43.5 million to Stanford University and the Law School. The gift will be used to support construction of a new residence that will house law, business and other graduate students.

The gift is believed to be the largest individual gift ever given outright to an American law school and is the largest gift for student housing in Stanford's history.

"In recent years there have been few more pressing issues at Stanford than the need to construct student housing, especially for graduate students," said Stanford President John Hennessy. "This magnificent gift of Charlie and Nancy Munger is especially meaningful because it will so directly benefit our students.

Although extensive discussions and planning on the housing are under way, final plans have not been developed. The general plans call for a complex of buildings adjacent to the Law School with sufficient capacity to include law, business and other graduate students, as well as common facilities available to the entire graduate student community. Additional fundraising will be required to complete the project as it is currently conceived.

Munger, 80, is founder of the law firm Munger, Tolles & Olson. While he did not attend Stanford, his wife is an alumna and served on the board of trustees. Several of their children and grandchildren have attended Stanford as well. His daughter, Wendy (AB 72), is a current trustee.

Munger has worked closely for the past three years with Stanford Law School Dean Kathleen M. Sullivan and Hennessy to bring the concept to fruition.

"If you build really good housing," Munger told the Stanford Daily earlier this year, "it will be a huge advantage for Stanford. It will form a community that doesn't yet exist in American education. The students will educate each other."

Agricultural Land to Be Preserved in Northeastern Solano County

It takes a village to save a farm.

Two cities, a county, a land trust, a university, the state of California and the federal government have joined forces to preserve agricultural land.

The consortium on Sept. 7 announced a $2.2 million grant from the state Department of Conservation to preserve 300 acres of land between Davis and Dixon. The grant completes a $3.7 million funding package to acquire a permanent agricultural conservation easement on land surrounding the Kidwell Road interchange on Interstate 80 in northeastern Solano County.

The partner agencies include the cities of Davis and Dixon, Solano County, Solano Land Trust, UC Davis, California Department of Conservation and the United States Department of Agriculture.

"This is a legacy decision," said Davis Mayor Ruth Asmundson. "It is the first major step toward creation of a permanent agricultural and open space buffer between the cities of Davis and Dixon."

Dixon Mayor Mary Ann Courville said, "It is important that we maintain the distinctive characters of our respective communities and sharing a buffer allows us to still retain a connection. This funding serves that goal as well as protecting viable agriculture land from urban encroachment."

The seeds of the idea were planted in 1999 when the cities of Davis and Dixon adopted a joint resolution declaring the intent to establish an open-space agricultural and natural habitat buffer between the cities. The opportunity to realize this goal came a year later, when UC Davis began the process of updating its Long Range Development Plan, which guides development decisions on the campus. The campus acquired options to purchase several tracts of agricultural land, including property owned by John and Jean McConeghy on either side of I-80 surrounding the Kidwell Road interchange.

With completion of the LRDP in November 2003, the campus determined that it did not need the McConeghy property for university agricultural uses. The university then initiated discussions with the other partner agencies about the possibility of placing an agricultural preservation easement on the property, preventing the land from being developed for urban use.

"We consciously decided to grow in a compact manner near the core campus, but also identified strategic areas where we might be able to either acquire additional land for campus agricultural use, or partner on this type of project," said UC Davis Chancellor Larry Vanderhoef. "We are delighted to facilitate the preservation of this land in partnership with our neighbors."

The farm has been in the McConeghy family for many years.

"I didn't want to sell to commercial developers," said current land-owner Jean Eggert McConeghy. "So we asked the university first and they took the option. My father farmed this land before there was irrigation. The Eggert family is happy it will always be a farm."

Of the $3.7 million cost of the easement, the largest portion will come from the grant of $2.2 million from the California Department of Conservation. The U.S. Department of Agriculture has committed to a grant of $720,000; the city of Davis $500,000; the city of Dixon $150,000, and UC Davis $77,500.

The state and federal support comes from grant programs specifically intended to fund agricultural easements. Funding from the city of Davis comes from agricultural mitigation fees and proceeds of Measure O, a parcel tax approved by city voters in 2000 for the purpose of acquiring agricultural and open-space land within the city's planning area.

Mitigation fees imposed on city development projects that convert agricultural land to urban use will fund the city of Dixon's share. UC Davis' contribution is in the form of option payments made since 2000, portions of which are applicable to the purchase price.

Staff members of the partner agencies will be meeting soon to finalize details of the transaction. The transaction is expected to be completed by the end of this year.

NAHB Study Finds No Link Between Multifamily Construction and School Overcrowding

WASHINGTON -- Concerns that new apartment construction will lead to overcrowded neighborhood schools are baseless, according to a new study by the National Association of Home Builders.

"This new analysis shows that the idea that multifamily housing puts an undue burden on local schools is a myth," said Bobby Rayburn, president of NAHB and a home and apartment builder from Jackson, Miss. "Unfortunately, it is a myth that has led to a lot of opposition to apartment and condominium development in communities across the country."

Using the most recent American Housing Survey data from the U.S. Census Bureau, NAHB's study found an average of only 37 school-aged children per 100 multifamily households. The average for 100 single-family households is 62 school-age children.

"Education is the biggest item in most local government budgets, so it's reasonable for public officials to be concerned about whether new residential construction will result in a big influx of new students," said David Seiders, NAHB's chief economist.

"But this study shows that new multifamily construction has a limited impact on school enrollment."

NAHB's analysis found that the number of school-age children is even lower for larger, high-density apartment buildings. In buildings with more than 20 apartments or condominiums, there are only about 26 school-age children per 100 households.

That number is lower still for people who recently bought or rented. And in buildings with only one- and two-bedroom units, the number drops again, with condominium residents reporting fewer children than renters.

The fewest school-age children are found in recently purchased condominium homes in buildings with more than 20 units - about 10 children for every 100 such households.

"The data make a lot of sense when you also look at the demographic trends of renters and condo buyers," Seiders said. "Multifamily buildings are much more likely to house either younger households of singles or couples, or 'empty-nesters' whose children are already grown."

Seiders added that all new housing construction contributes substantially to a community's tax base, and that this data should make it easier for local governments and planning boards to consider a diverse and affordable housing stock - one that includes apartments and condos - without worrying about overburdening their local schools.

The National Association of Home Builders is a Washington-based trade association representing 215,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction.

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