The Digest

Development Deal Struck Tejon Ranch Co. signed a definitive agreement with three major real estate developers to create a 4,000-acre master-planned community in north Los Angeles County near Interstate 5, State Highway 138, and Quail Lake. Tejon Ranch has agreed to partner with Pardee Construction Co., Lewis Investment Co. LLC and Standard Pacific Corp. to plan and build the as-yet-unnamed community. “With the limited amount of land now available in Los Angeles County, we are very excited to embark on a major residential community development with three of the finest homebuilders and real estate developers in Southern California,” Robert A. Stine, president and CEO of Tejon Ranch Co., said in a statement. Master-planning and predevelopment environmental studies for the project are underway and expected to be completed by the end of the year. In addition to the residential development, Tejon Ranch Co. is currently developing phase one of its Tejon Industrial Complex, a multi-phase project planned for 3.5 million square feet of building space spread across 350 acres. Radio Empire Expanding Camarillo-based Salem Communications Corp. has agreed to pay $185.6 million in cash to expand its radio empire with five new stations, two in Southern California. The religious broadcaster is buying two Anaheim stations, as well as operations in Cleveland, Cincinnati, Dallas and Denver. Selling the stations is Clear Channel Communications Inc., the nation’s largest radio company. Clear Channel must sell 72 of its radio stations as part of its pending merger with AMFM Inc. The additional stations bring the total number operated by Salem to 70. Salem already owns six stations in Southern California, including three in Glendale KLTZ-AM 1390, KLTH-AM 1240 and KKLA-FM 99.5. Insurer Seized The California Department of Insurance seized Calabasas-based Superior National Insurance Group over concerns that the insurer lacked the financial reserves to pay its claims. Centre Insurance Co. of New York will take over Superior’s reinsurance obligations and pay off claims for the insurer if it runs out of money. Insurance Commissioner Chuck Quackenbush was granted indefinite control of Superior and four of its companies by a Sacramento Superior Court judge in early March. The agreement by Centre Insurance to cover Superior’s claims will help in the state’s efforts to rehabilitate the company and make it attractive to a potential buyer, the Department of Insurance says. Superior is California’s largest workers’ compensation insurer. The company had reported assets of $730 million in 1999 and premium income of $240 million. Promotional Hand Allowed In the ongoing saga between a car-wash owner and residents, the L.A. City Council agreed to allow the owner of Studio City Hand Car Wash to keep a giant fiberglass hand in front of the business, so long as it is moved 10 feet away from the street. The Ventura Boulevard car wash has been fighting with homeowners, who claim the hand is a distraction and was put up without a required permit. To win council approval, owner Ben Forat agreed to move the hand 10 feet back from the street and lower it so it takes up 50 square feet rather than 86 square feet. Lights on the sign will be turned off by 11 p.m. And Forat will pay $6,000 into the Ventura Boulevard Beautification Fund. Apartment Proposal Advances A Metropolitan Transportation Authority panel pushed forward a plan by the National Academy of Recording Arts and Sciences to build an apartment complex for retirees across from the North Hollywood subway station. The $20 million Encore Hall would be a six-story apartment complex with a ground floor of retail shops on a plot of land on Lankershim Boulevard now owned by the MTA. More than half the apartments would be reserved for music-industry retirees in need of assisted living and reduced rent. It would be developed by MusiCares, the academy’s charitable division, and for-profit developer Emeritus Assisted Living. The MTA board must still give the project final approval.