Aug 27, 2009

HIGHDESERT: Economy, water supply stall plans for north Apple Valley

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By: Brooke Edwards, Victorville Daily Press

APPLE VALLEY • It’s been a staple of the State of Town Address and council candidate platforms for years.
 

With plans for 40 million square feet of industrial space and 45,000 jobs within 25 years, the North Apple Valley Industrial Specific Plan has tremendous potential to be a boon for the town.
 

But now access to the needed water supply and the current economy are stalling the area’s development.
 

The North Apple Valley Industrial Specific Plan includes 5,100 acres east of Dale Evans Parkway, around Apple Valley Airport, that have been pre-zoned for industrial development. The idea is for the northern zone to be “shovel ready,” allowing industrial projects that fit the approved use to move from submittal to construction within 120 days.

“In other jurisdictions,” town spokeswoman Kathie Martin said, “the same process can take up to two years.”
 

The town has invested $800,000 into developing the area, mainly to prepare the area’s extensive environmental impact report.
 

But currently there is only a small, domestic water supply flowing to north Apple Valley. An estimated $8 million of infrastructure is needed to meet fire codes and the number of sprinklers required for the large industrial buildings, Martin said
 

More than a year ago, town staff and council discussed meeting with the local fire department and brainstorming solutions to this problem.
 

When asked where those plans are at now, Martin said in an e-mailed response, “The current economy has greatly reduced the ability, but also the need, to move forward on resolving the water issue.”
 

Though Martin said the town hopes to facilitate future development by carrying some of the burden for infrastructure costs, she said the incoming businesses will carry the major share of these costs. She said the area’s pre-zoning helps keep upfront costs for incoming businesses low, giving them more flexibility to help invest in infrastructure they require.
 

The town is listed as a potential client on the Web site for CMB Exports — the company now suing Victorville over the city’s EB-5 or foreign-investment-for-visas program. But  Martin said the town never considered using the foreign investment plan to help fund the needed infrastructure.
 

She said Economic Development Director Ken Henderson “has no knowledge of any Town representative ever speaking to anyone from the EB-5 program, and does not know why they would have that information posted on their Web site.”
 

There are three industrial operations (along with a number of smaller businesses) currently open for business in the north Apple Valley zone.
 

The largest is Wal-Mart's 1.34 million-square-foot distribution center, which came to the area in 2004.

Fresenius Medical Care opened nearly two years ago, developing a 10-acre site and employing 40 people to distribute kidney dialysis equipment.
 

The newest business is Reid Products on Waalew Road. The company employs 50 people and manufactures specialty parts for the aircraft and aerospace industries.
 

Watson Land Company and First Industrial Realty Trust have also claimed more than 900 acres in the northern zone for future development.
 

Martin said Watson Land Company alone expects to build up to 15 million square feet on their site.
 

When asked whether there are any other businesses in the works for the area at this time, Martin said, “None to report.”
 

 “The implementation of this plan was never expected to be quick,” she said. “While a developer can move quickly through our process once they decide to locate here, to get to that decision can take years.
 

“As an example,” Martin continued, “the first contact from a representative looking to locate an unnamed distribution center in excess of one million square feet resulted in the opening of the Wal-Mart Distribution Center 4 years and 4 months later.”
 

In spite of the current delays, Martin said they still believe 25 years is a realistic time frame for build-out — of course, “always depending upon the state of the economy.”