Developer changes mind on farming in Merced, cites drought

A Merced County developer announced his intentions publicly to back off of a plan he made in the last few months to farm land previously designated for new houses in north Merced.

Greg Hostetler, owner of Hostetler Ranches, told the Merced City Council on Monday that he will focus on other projects north of Merced while he steps away – at least momentarily – from his plans to farm Bellevue Ranch West, plans that drew scrutiny from the council in recent months.

He cited a lack of water for Merced Irrigation District customers as the reason for his decision. “We think that at this time it will give our staff and city staff more time for more beneficial and pressing things given the farming climate right now,” he said.

The housing development is partially complete, with homes built on the eastern and southern parts of the roughly 486-acre site. The rest of the land was tentatively approved for farming in March, assuming it passed an environmental impact study and other requirements.

The land is within the Merced Irrigation District’s service area, according to Hostetler. Officials with the water district have said that farmers will get no surface water from Lake McClure this year as a result of the drought.

“We have projects up north that appear to have ample water at this time, so we’ll spend our time there,” Hostetler said.

Hostetler is known to grow almonds, which are among the thirstiest crops in California. Almond trees require about 4 acre-feet of water a year for every acre planted, according to data gathered by David Goldhamer, a water management specialist emeritus with the UC Cooperative Extension. Tomatoes and grapes take about half as much water, as does cotton.

The Bellevue Ranch had been farmed for more than 100 years, according to city records, but the crops were supposed to make way for homes after the site was annexed to the city in 1995. But Merced was hit particularly hard during the real estate market crash in late 2006, and new houses stopped being built in the development.

Mayor Stan Thurston said Hostetler’s announcement came as no surprise given the dire condition of California’s drought. Bellevue Ranch West has been sitting fallow for several years and doesn’t have the infrastructure it would need for farming, Thurston said.

“He doesn’t have any pumps there, and there’s no logical way he could justify doing that (farming),” he said.

Thurston was the most outspoken detractor of the plan to farm the land. He said he was not against the project outright, rather he needed to hear from people living in the development before he could approve farming.

The council and Hostetler have had other run-ins over that development. About a year ago, one of the developer’s firms, Baxter Ranches, agreed to restore areas in the development along Fahrens Creek, where experts said someone did work that increased the threat of flooding.

Along with restoring the east side of Fahrens Creek to the way it was in 2006, Baxter Ranches agreed to pay for an aerial radar assessment that could cost as much as $100,000.

The Sacramento Bee contributed to this report.

This story was originally published April 21, 2015 at 6:54 PM with the headline "Developer changes mind on farming in Merced, cites drought."