Tejon Signs Partner for 5,000-Acre Project

LEBEC, CA-Tejon Ranch Co. has signed a letter of intent to form a partnership with DMB Associates Inc. of Scottsdale, AZ. The idea behind the JV is to develop the proposed 5,000-acre Tejon Mountain Village resort. The project would include resort hotels, golf courses, hiking and equestrian trails, lakeside cabins, mountain estates and a variety of lakeside amenities.Robert Stine, president and CEO of Tejon Ranch Co., says that DMB will bring capital and expertise to the partnership. DMB, a developer of resort and recreational properties, is working on projects in Arizona, California, Utah and Hawaii.Stine and Drew Brown, managing director and CEO of DMB Associates, both emphasized that sensitivity to the environment will be a key feature of the Tejon Mountain Village project, which will be developed on some of the most pristine terrain in Southern California. The development of the 5,000-acre project will enable some 23,000 acres of Tejon's holdings to be held in a nature reserve.Tejon and DMB expect to sign a binding commitment for the development partnership by the end of the first quarter of 2006. They expect to sign the formal partnership following the completion of a joint venture operating agreement and a due diligence period.The development of the Tejon Mountain Village is part of the Tejon Ranch master plan, which includes a 100,000-acre preserve that the company has established along with the Trust for Public Land. Other elements of the master plan include the expansion of Tejon Industrial Complex and the building of the new town of Centennial, for which it is partnered with Pardee Homes, Standard Pacific Homes and Lewis Investment Co.