Hearst Corp., Conservationists Reach Deal

By: Tim Molloy, Associated Press Writer (AP) The Hearst Corp. has reached a deal with conservationists to preserve a scenic stretch of ranchland the Hearst family has owned for generations, allowing the company to receive $80 million cash and $15 million in state tax credits.

In a deal brokered by the American Land Conservancy, public and private money would buy 1.75 square miles of coastal land, while the rest of the 128-square mile Hearst Ranch would be protected under an easement strictly limiting development.

The tract of beach, grassland and forest about 200 miles north of Los Angeles surrounds Hearst Castle, the never-completed dream home of publishing magnate William Randolph Hearst that draws tourists from around the world.

The conservancy and the company have been in talks about preserving the land for a year, but the agreed upon price is only now being officially confirmed by the company and conservancy. Past estimates of the cost have ranged from $100 million to $150 million.

Most of the money would come from the state, including bond measures, but private money could also be raised, said company Vice President Stephen Hearst.

Conservancy President Harriet Burgess said in a statement that the difference between the fair market price of the land and the amount agreed upon in the deal would be covered by "a very large charitable donation by the Hearst Corp." The amount was not disclosed.

The agreement would need the approval of several state agencies to take effect, and the process would include several opportunities for public comment, Burgess said.

The Hearst Corp. had considered developing the property for decades, including a plan for a luxury golf resort, 650-room hotel and dude ranch. The proposal provoked a public outcry and was shot down by the regulatory California Coastal Commission in 1998.

The company has agreed to give up its right to build an estimated 400 homes on the land, but wants to retain its option to develop on 27 lots. The agreement also allows for a small inn and for continued cattle grazing.