Tehachapi Report Regarding Property Values

This is a letter of support that Mr. Kevin Harrison obtained from a man involved in real estate in the Tehachapi area in California.

My background includes over 20 years selling, developing and owning real estate in the Tehachapi area. Also I was president of WINDRIDGE, INC. one of the earliest windfarms in California.  Tehachapi leads the world in windfarm development with over 1 billion kilowatts produced annually and the following reflects the change in land values here.

Most of the windfarm property was purchased at tax sales for less than $100 per acre less than 20 years ago. When the value of property with heavy winds became obvious the value jumped to about $10,000 per acre. Wind land does not deflate like oil, gas and gold property where the resource is depleted. Windland 'appreciates' as turbine technology improves and reduces kilowatt costs to the present 3.5 cents. Except for the ENRON purchase it seems the windland owners are holding onto their land.

In Holland their are turbines close to houses and are considered to be an asset! The ability to produce power, and even ‘sell back’ to the utility is appealing to many independent people who will pay a higher real estate price for such an asset. Your neighbor may have ugly trees, cars, dogs, oil wells and barns but if ‘ugliness' is the issue here then I cannot see the courts having reasonable jurisdiction. Would a Texas court force a landowner to remove an 'ugly’ oil well?

Originally many Tehachapi residents argued against the construction of turbines but like the 'Luddites' their fear of machines was unfounded. Now 10 years later the blades sparkle in the sun, the local youth have good jobs and the tax assessor is smiling due to the $150,000,000 purchase of Zonds land and business by ENRON.

Michael G. Mackenzie