Business
'Where does it stop?' Warehouse advance in Riverside County threatens rural lifestyle
Seen from above, the industrial-scale warehouses straddling Interstate 215 where it intersects Mead Valley shimmer like a sprawling lake of white concrete boxes.
In this unincorporated Riverside County community, the big-box distribution hubs responsible for fulfilling online shopping orders have long been contained to a substantial strip west of the freeway. Burlington, Living Spaces and FedEx are among nearly 50 warehouse properties located here, capitalizing on Mead Valley’s easy access to rail and freeway corridors.
Beyond this strip, though, Mead Valley residents embrace a rural lifestyle. People here raise horses and livestock; most streets are lined with gravel trails, rather than sidewalks, to accommodate riders on horseback. Besides the new Farmer Boys restaurant near the freeway, the community has few local businesses other than gas stations, feed stores and plant nurseries.
As e-commerce exploded during the COVID pandemic, more distribution centers rose along the freeway, bringing more trucks to local roadways. Still, there was an understanding that, beyond the clearly delineated industrial zone, Mead Valley residents could maintain their solitude and sweeping views, in exchange for shouldering a disproportionate share of an industry critical to America’s online shopping habit.
But that sacred line in the dirt — where warehouse development ends and rural living begins — could soon be blurred.
Riverside County leaders are reviewing a dozen requests that would rezone portions of rural residential land in Mead Valley to create more space for industrial warehouses.
(Brian van der Brug / Los Angeles Times)
County leaders are reviewing a dozen requests that would rezone portions of rural residential land in Mead Valley to create more space for industrial use. Developers are seeking to expand warehouse development beyond the established industrial zone; at least one proposal would result in the demolition of dozens of homes as well as dedicated open space. Others would pierce the existing boundary, bringing the potential for warehouses and their 24/7 noise and exhaust to the outskirts of existing neighborhoods, fundamentally altering residents’ lifestyles.
County Supervisor Kevin Jeffries, who represents the district that includes Mead Valley, said he has “deep concerns” about the proposed changes. He described drawing a “big red rectangle” over Mead Valley’s industrial zone, indicating where he believed the boundaries of warehouse development should remain.
“All the low-hanging easy parcels for warehousing are pretty much all spoken for. And so the really big, deep-pockets developers now see opportunities to try and propose to go beyond the boundaries that have been put in place for decades,” said Jeffries, who is retiring after 12 years on the board.
“It’s going to be a challenge if they cross that line and start marching into what you might call Mead Valley proper. You start moving up that way — when or where does it stop?”
Resident Karla Cervantes expressed similar concerns. Cervantes and her husband, Franco Pacheco, raise their children and sheep on two acres in Mead Valley. She worries neighborhoods will start falling like dominoes as more rural residential land is rezoned for industrial use.
“Once one neighborhood is surrounded by warehouses, then the investors will come, buy them out, and then it creeps up more and more and more,” Cervantes said.
The county’s general plan amendment process, a largely bureaucratic zoning review the county undertakes every eight years, could prove pivotal for residents of Mead Valley this year: Will leaders green-light the proposed zoning changes, paving the way for more warehouses — and with them more jobs and revenue flowing into county coffers? Or is this the moment that the rapid-fire proliferation of distribution centers stretching for miles in each direction along the 215 corridor finally slows?
Riverside County’s unique rezoning process is the result of a more than two-decade-old settlement with the conservation group Endangered Habitats League, which sued the county in 2003 over concerns about sprawling development.
The settlement “resulted in a way to slow-roll development in the rural areas of the county,” said county planning director John Hildebrand.
Under terms of the settlement, developers who want to request zoning changes for swaths of land from one of five major uses to another — agriculture, open space, rural, rural community or community development — are able to request that change only every eight years, during the county’s Foundation General Plan Amendment cycle.
The process was designed to provide county leaders with the opportunity to take a comprehensive look at rezoning proposals, and “look at the bigger picture instead of piecemealing it,” said Dan Silver, executive director of the Endangered Habitats League.
Mead Valley, a majority Latino community of about 20,500 people, already has 2,000 square feet of warehouses per person, including existing and approved warehouses and those under environmental review, according to a data analysis by Susan Phillips, director of the Robert Redford Conservancy for Southern California Sustainability at Pitzer College, and Mike McCarthy, an adjunct professor and data scientist at the college.
That’s one of the highest warehouse-per-resident ratios in the Inland Empire, according to their analysis. And the rezoning applications that developers have submitted would add more than 1,000 additional acres of warehouse projects.
In preparation for their requests, many developers have already positioned themselves as “property owners” of large parcels by getting enough local homeowners to agree to sell their land, in exchange for sizable payouts, contingent upon the county’s approval of the zoning changes.
The Planning Commission has so far heard three zoning-change requests for District 1, which includes Mead Valley; several were continued to future meetings. If supervisors approve the requests, the developers must return to get approval for specific projects.
“It’s going to be a challenge if they cross that line and start marching into what you might call Mead Valley proper,” Supervisor Kevin Jeffries says of warehouse development.
(Brian van der Brug / Los Angeles Times)
One developer, Hillwood, is seeking a zoning change to build a million-square-foot warehouse, along with a public park, on about 65 acres of land just west of Mead Valley’s industrial corridor.
Currently known as the Cajalco Commerce Center, the proposed development would require the demolition of 26 homes and a commercial building. The developer has promised an estimated 974 jobs, as well as infrastructure improvements and landscaping along a main thoroughfare, according to the project’s draft environmental impact report. It would have a “significant and unavoidable” impact on air quality and transportation, the report said.
Paz Treviño lives on the outskirts of Mead Valley’s industrial corridor, on a two-acre lot where he sells heavy construction equipment. He has agreed to sell his property to Hillwood for $3 million, contingent on county approvals, he said. He has outgrown his current lot, he said, and with the money he stands to make from selling his land, he hopes to buy five or 10 acres elsewhere.
A member of Mead Valley’s Municipal Advisory Committee, he supports allowing more industrial development.
The warehouses, he said, bring jobs to a community where fewer than 8% of residents have a bachelor’s degree. He’s heard concerns about the lack of grocery stores, restaurants and healthcare facilities, and predicted those amenities would come as family incomes rise.
“We’re going to start getting the stores that people want,” he said. “But we’re not going to get those other industries — the food industries, the retail industries — without first having a stabilized middle class.”
He is frustrated with the anti-warehouse advocates trying to stand in the way of rezoning, and believes landowners such as himself should be able to profit handsomely from their investments. “It’s the landowners that have the last say, is what I say,” he said. “And if you’re not within the area, mind your damn business.”
A warehouse development under construction in Mead Valley.
Shanowa De La Cruz could end up on the losing end of that equation.
De La Cruz, her wife and their children moved to a five-bedroom house on one acre in Mead Valley not far from Treviño’s property about three years ago. It was supposed to be their forever home, where they could raise their kids — five of six still live at home — as well as chickens, goats, ducks and a pig.
“We like our solitude. That’s why most of us live over here in Mead Valley,” De La Cruz said.
Six months after buying the property, they learned about the Cajalco Commerce Center proposal — and that some neighbors had already agreed to sell their properties to Hillwood. De La Cruz said she contacted the company and got an offer that barely covered what they paid for the home, presumably because the developer doesn’t need their property for the project.
The situation has left De La Cruz between a warehouse and a hard place: The developer would need to pay a “substantial” amount of money to get her family to move, she said. But if she stays and the proposal is approved, the development would loom nearby, infringing on their privacy and tanking their home value.
“It’s going to be one of those houses that is in between a warehouse” development, she said. “We’ve all seen those houses. No one’s going to buy that. You say, ‘Aw, pobrecito, they left them there.’”
Scott Morse, executive vice president with Hillwood, declined to comment on De La Cruz’s situation. He said the proposal has public support.
“We’re bringing something to the community that is needed and wanted by the community,” he said, “so that’s our compass.”
Mead Valley resident Raymond Torres says it’s “heartbreaking” to imagine the open space near his home converted for industrial development.
Raymond Torres moved away from the “hustle and bustle” of the San Diego area more than 20 years ago and eventually built two homes on a quiet street in Mead Valley.
Standing in his driveway on a clear day, he can see the San Jacinto and San Gabriel ranges, and Big Bear and Palomar mountains. Across the street from his property is open space, where he says he regularly sees owls and kangaroo rats among the grasses and native plants. His neighbors ride horses on the land; he prefers to traverse it on wheels — by dirt bike, quad or go-kart.
The property directly across the street from him is not proposed for rezoning, but a large swath of open land surrounding it is. The real estate and investment firm Deca has proposed rezoning 648.5 gross acres from rural residential to community development, with a mix of residential, commercial and industrial components, according to Travis Duncan, Deca’s vice president of development.
“Additionally, we intend to set aside a substantial portion of the property as open space and are excited about the mix of commerce and conservation that the project offers,” Duncan said.
Torres said it’s “heartbreaking” to imagine the land being used for development.
“It’s our neighborhood,” he said. “We have pride in it.”
The Deca proposal would also bring industrial development much closer to the home of Cervantes and Pacheco. Their two-lane street already has become a truck bypass. They are concerned warehouses will beget warehouses, eventually ending up in their backyard.
Mead Valley is oversaturated with warehouses and semis, they argue, and yet the community itself remains underinvested. Mead Valley would look “amazing” if it was actually benefiting from major portions of the revenue that industrial development is generating for Riverside County, Cervantes jokes. Pacheco notes that the closest Target — on the other side of the freeway — is not a retail store but a massive distribution center.
Earlier this year, Pacheco and Cervantes launched the Mead Valley Coalition for Clean Air to oppose warehouse expansion. They see the rezoning fight as a fight for Mead Valley’s future. For the residents who stay, the question is whether county leaders will rubber-stamp continued expansion of the I-215 industrial corridor, and whether that line in the dirt — between industrial and rural residential — will survive.
But Cervantes said trying to keep Mead Valley from drowning in the shimmering sea of white warehouses often feels like an uphill battle. She worries about a future with worse air quality and decreased property values, and about the limited opportunities for young people growing up amid a mass logistics hub.
“When they look to see the sun rise,” she said, “they’re going to see the sun rise on a bunch of warehouses.”
This article is part of The Times’ equity reporting initiative, funded by the James Irvine Foundation, exploring the challenges facing low-income workers and the efforts being made to address California’s economic divide.
Business
Versant launches, Comcast spins off E!, CNBC and MS NOW
Comcast has officially spun off its cable channels, including CNBC and MS NOW, into a separate company, Versant Media Group.
The transaction was completed late Friday. On Monday, Versant took a major tumble in its stock market debut — providing a key test of investors’ willingness to hold on to legacy cable channels.
The initial outlook wasn’t pretty, providing awkward moments for CNBC anchors reporting the story.
Versant fell 13% to $40.57 a share on its inaugural trading day. The stock opened Monday on Nasdaq at $45.17 per share.
Comcast opted to cast off the still-profitable cable channels, except for the perennially popular Bravo, as Wall Street has soured on the business, which has been contracting amid a consumer shift to streaming.
Versant’s market performance will be closely watched as Warner Bros. Discovery attempts to separate its cable channels, including CNN, TBS and Food Network, from Warner Bros. studios and HBO later this year. Warner Chief Executive David Zaslav’s plan, which is scheduled to take place in the summer, is being contested by the Ellison family’s Paramount, which has launched a hostile bid for all of Warner Bros. Discovery.
Warner Bros. Discovery has agreed to sell itself to Netflix in an $82.7-billion deal.
The market’s distaste for cable channels has been playing out in recent years. Paramount found itself on the auction block two years ago, in part because of the weight of its struggling cable channels, including Nickelodeon, Comedy Central and MTV.
Management of the New York-based Versant, including longtime NBCUniversal sports and television executive Mark Lazarus, has been bullish on the company’s balance sheet and its prospects for growth. Versant also includes USA Network, Golf Channel, Oxygen, E!, Syfy, Fandango, Rotten Tomatoes, GolfNow, GolfPass and SportsEngine.
“As a standalone company, we enter the market with the scale, strategy and leadership to grow and evolve our business model,” Lazarus, who is Versant’s chief executive, said Monday in a statement.
Through the spin-off, Comcast shareholders received one share of Versant Class A common stock or Versant Class B common stock for every 25 shares of Comcast Class A common stock or Comcast Class B common stock, respectively. The Versant shares were distributed after the close of Comcast trading Friday.
Comcast gained about 3% on Monday, trading around $28.50.
Comcast Chairman Brian Roberts holds 33% of Versant’s controlling shares.
Business
Ties between California and Venezuela go back more than a century with Chevron
As a stunned world processes the U.S. government’s sudden intervention in Venezuela — debating its legality, guessing who the ultimate winners and losers will be — a company founded in California with deep ties to the Golden State could be among the prime beneficiaries.
Venezuela has the largest proven oil reserves on the planet. Chevron, the international petroleum conglomerate with a massive refinery in El Segundo and headquartered, until recently, in San Ramon, is the only foreign oil company that has continued operating there through decades of revolution.
Other major oil companies, including ConocoPhillips and Exxon Mobil, pulled out of Venezuela in 2007 when then-President Hugo Chávez required them to surrender majority ownership of their operations to the country’s state-controlled oil company, PDVSA.
But Chevron remained, playing the “long game,” according to industry analysts, hoping to someday resume reaping big profits from the investments the company started making there almost a century ago.
Looks like that bet might finally pay off.
In his news conference Saturday, after U.S. Special Forces snatched Venezuelan President Nicolás Maduro and his wife in Caracas and extradited them to face drug-trafficking charges in New York, President Trump said the U.S. would “run” Venezuela and open more of its massive oil reserves to American corporations.
“We’re going to have our very large U.S. oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country,” Trump said during a news conference Saturday.
While oil industry analysts temper expectations by warning it could take years to start extracting significant profits given Venezuela’s long-neglected, dilapidated infrastructure, and everyday Venezuelans worry about the proceeds flowing out of the country and into the pockets of U.S. investors, there’s one group who could be forgiven for jumping with unreserved joy: Chevron insiders who championed the decision to remain in Venezuela all these years.
But the company’s official response to the stunning turn of events has been poker-faced.
“Chevron remains focused on the safety and well-being of our employees, as well as the integrity of our assets,” spokesman Bill Turenne emailed The Times on Sunday, the same statement the company sent to news outlets all weekend. “We continue to operate in full compliance with all relevant laws and regulations.”
Turenne did not respond to questions about the possible financial rewards for the company stemming from this weekend’s U.S. military action.
Chevron, which is a direct descendant of a small oil company founded in Southern California in the 1870s, has grown into a $300-billion global corporation. It was headquartered in San Ramon, just outside of San Francisco, until executives announced in August 2024 that they were fleeing high-cost California for Houston.
Texas’ relatively low taxes and light regulation have been a beacon for many California companies, and most of Chevron’s competitors are based there.
Chevron began exploring in Venezuela in the early 1920s, according to the company’s website, and ramped up operations after discovering the massive Boscan oil field in the 1940s. Over the decades, it grew into Venezuela’s largest foreign investor.
The company held on over the decades as Venezuela’s government moved steadily to the left; it began to nationalize the oil industry by creating a state-owned petroleum company in 1976, and then demanded majority ownership of foreign oil assets in 2007, under then-President Hugo Chávez.
Venezuela has the world’s largest proven crude oil reserves — meaning they’re economical to tap — about 303 billion barrels, according to the U.S. Energy Information Administration.
But even with those massive reserves, Venezuela has been producing less than 1% of the world’s crude oil supply. Production has steadily declined from the 3.5 million barrels per day pumped in 1999 to just over 1 million barrels per day now.
Currently, Chevron’s operations in Venezuela employ about 3,000 people and produce between 250,000 and 300,000 barrels of oil per day, according to published reports.
That’s less than 10% of the roughly 3 million barrels the company produces from holdings scattered across the globe, from the Gulf of Mexico to Kazakhstan and Australia.
But some analysts are optimistic that Venezuela could double or triple its current output relatively quickly — which could lead to a windfall for Chevron.
The Associated Press contributed to this report.
Business
‘Stranger Things’ finale turns box office downside up pulling in an estimated $25 million
The finale of Netflix’s blockbuster series “Stranger Things” gave movie theaters a much needed jolt, generating an estimated $20 to $25 million at the box office, according to multiple reports.
Matt and Ross Duffer’s supernatural thriller debuted simultaneously on the streaming platform and some 600 cinemas on New Year’s Eve and held encore showings all through New Year’s Day.
Owing to the cast’s contractual terms for residuals, theaters could not charge for tickets. Instead, fans reserved seats for performances directly from theaters, paying for mandatory food and beverage vouchers. AMC and Cinemark Theatres charged $20 for the concession vouchers while Regal Cinemas charged $11 — in homage to the show’s lead character, Eleven, played by Millie Bobby Brown.
AMC Theatres, the world’s largest theater chain, played the finale at 231 of its theaters across the U.S. — which accounted for one-third of all theaters that held screenings over the holiday.
The chain said that more than 753,000 viewers attended a performance at one of its cinemas over two days, bringing in more than $15 million.
Expectations for the theater showing was high.
“Our year ends on a high: Netflix’s Strangers Things series finale to show in many AMC theatres this week. Two days only New Year’s Eve and Jan 1.,” tweeted AMC’s CEO Adam Aron on Dec. 30. “Theatres are packed. Many sellouts but seats still available. How many Stranger Things tickets do you think AMC will sell?”
It was a rare win for the lagging domestic box office.
In 2025, revenue in the U.S. and Canada was expected to reach $8.87 billion, which was marginally better than 2024 and only 20% more than pre-pandemic levels, according to movie data firm Comscore.
With few exceptions, moviegoers have stayed home. As of Dec. 25., only an estimated 760 million tickets were sold, according to media and entertainment data firm EntTelligence, compared with 2024, during which total ticket sales exceeded 800 million.
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