This is the fourth in a series of articles that features the 2008 SLDI Visionary Award finalists announced in May.

For 75 years, silica sand was mined and separated inside two massive water pits that commanded 60 acres of land on the outskirts of Corona, California, in Riverside County, southeast of Los Angeles. That ended 30 years ago, and the long-abandoned site devolved into a dilapidated dumping ground for everything from asbestos to garbage, all poised to send pollutants through the two, fast-track gateways to the aquifer below.

SE Corporation reversed this condition, and reclaimed the site with an ­innovative design that restored safety to the aquifer and brought balance back to previously destroyed habitat areas. In place of the pits, the company ­established two surface lakes which became the “Heart” of a 543-acre, mixed-used community it called Dos Lagos – a development created in sustainable ­fashion.

“We believe that sustainability is not only good for the community and the environment, it is also a profitable proposition for our development industry,” said Ali Sahabi, president and CEO of SE Corporation.

Since 1996, SE Corporation has worked with the city and agencies at every level of government to reclaim the site and create a point-of-pride for the entire community.

“From the very beginning, we took a proactive approach to public-private collaboration,” Sahabi said. “Rather than get into situations that put us in conflict, we try to figure out what works and what can be beneficial to everyone.”

The result is a project that boasts successful habitat restoration blended with a range of residential options, from single-family homes to condos, in a walkable development integrated with restaurants, shopping, LEED^®-certified office buildings and a golf course.

Testament to the project’s success is its rise in valuation. In 1996, the assessed value of the site was $5 million. At full build-out, the figure is projected to skyrocket to approximately $1 billion.

Challenging Potential
Sahabi saw promise in the site when it drew his attention in the mid 1990s. Its location along a major highway, the I-15 corridor, was attractive.

But there were some significant obstacles.

Mining operations had left their mark. Not only did the two huge pits pose a threat to groundwater, but the ­refuse from the mining operation—consisting of clay soils and mine tailings—were piled around the site and dumped into Temescal Wash, a once-teaming waterway that coursed through the area. Additionally, crumbling buildings and industrial infrastructure covered in graffiti dotted the landscape.

Like much of Riverside County, the site was environmentally sensitive. An ecological review revealed that the area around Temescal Wash was found to be a natural habitat for wildlife, in particular two endangered bird species: the California Gnatcatcher and Bell’s Least Vireo.

Begin at the Bottom
After clearing away the refuse, which included professional removal of the asbestos that had been piled in one location, work began to convert the two mining pits to better use. Designers came up with an innovative plan.

First they cleaned out the silt material at the bottom of the pits and constructed a type of sub-drain.

“Basically we rebuilt the natural aquifer on the bottom of the pit, then back-filled the area and the two lakes are now on top of the old pits,” Sahabi said. “Over time, the sub-drain system under the fill area is going to act as agent to rebuild the aquifer in this whole region.”

The developer set aside 135 acres for habitat and worked to revitalize Temescal Wash, which was nearly choked off with mine tailings and trash. Previous developers who attempted to build on the site planned to re-channel the stream through a concrete course. SE Corporation restored the creek to its natural condition, stabilized the banks and revived the flow-way habitat.

“That is one of our proudest initiatives on this project,” Sahabi said. “It is a terribly important part of the ecosystem, especially here in Southern California where we have shortages of water.”

The Built Environment
The two lakes and the natural landscape around them became what the developer called the “Heart” of the development. The total of nine acres includes public space around the bodies of water for social gatherings. The lakes are set at different elevations. A uniquely designed pedestrian bridge appears to dive into the lower of the two lakes, past a waterfall, and connects the north and south parts of the project.

Besides creating a place to sit and reflect, amenities include an amphitheater and a series of historic references to remind residents and visitors of the area’s past.

Corona is known as the “Circle City” because one of its historic primary roadways, Grand Avenue, encircles the community. At one time, the community also laid claim to the title of “Lemon Capital of the World” for its production of the citrus fruit. For those reasons, designers encircled the Heart with a pedestrian path landscaped with California pepper trees and palms to echo Grand Avenue, and planted a grove of 52 lemon trees to commemorate the city’s historic past.

Five restaurants are located on the lake, along with two hotels and 173 residential units including condominiums. Another 876 residential units are located or planned at the east or south ends of the project near the Dos Lagos Golf Course and Temescal Creek. Main Street connects to the lakes, providing access to shops which enhance the walkability of the community. After the initial phase, approximately 330,000 square feet of promenade shops have been constructed.

Harkening back to traditional main streets of the past, to the north of the lakes are professional offices on the bottom floors of some buildings with residential units on the second and third floors. Nearby, another 17-acre site holds 486,000 square feet of Class-A offices, including the development’s first 160,000-square-foot LEED-certified office building.

“In a way, it is creating a pleasant environment where people can work, live and walk to shops, walk around the lake, and enjoy nature,” Sahabi said.

Wise with Water
Not only had the water aquifer underneath the project site been exposed to contaminants from the old mining pits, Temescal Wash had been impacted by the refuse from silica mining, illegal dumping and evasive non-native plant overgrowth. After protecting the aquifer from further contamination, and restoring the creek, the developer is now making use of the plentiful but clean well water beneath Dos Lagos.

“We use the water to irrigate the golf course and the landscaping around the lake,” Sahabi said.

Meanwhile, the city of Corona’s nearby wastewater treatment plant is recycling its wastewater for use in the Dos Lagos community through a “purple pipe” system, which restricts it to non-potable purposes. The current amount of treated reuse water is already allocated in the community; however, the developer has planned ahead.

“The whole golf course is piped for recycled water with a connection to the wastewater treatment plant,” Sahabi said. “We are hoping that sometime in the future, as the wastewater treatment plant has the capacity to produce more treated water, we will have access to that water for irrigation.”

Public Private Cooperation
The successful reclamation of an environmentally impacted site can be a long and difficult proposition to say the least. For seven years, SE Corporation worked its way through the entitlement process, but with a collaborative mindset.

“From the beginning, we reached out to the public for ideas and input. In all the public hearings, we received unanimous approvals. We never had one single individual that opposed our project,” he said. “We treated our residential neighbors the same as we did our highest governmental officials. We gave everyone respect equally. That was good business.”

The project was accomplished through an Owner Participation Agreement (OPA) with the Corona Redevelopment Agency and the full support of a host of agencies at all levels of government, including the Army Corps of Engineers, U.S. Fish and Wildlife Service, California Fish and Game Department, and the California Regional Water Quality Control Board.

In 2001, the OPA was executed with the Redevelopment Agency, which defined the use of tax increment to support Tax Allocation Bonds to be used to finance the remediation of the mining pits and construction of the Heart.

The OPA and Community Facilities District (CFD) bonds helped finance the extensive water, sewer, flood control, electrical and transportation infrastructure within the project. Additional public financing for the infrastructure improvements was also obtained from the Corona Department of Water and Power, County of Riverside Flood Control and the State of California for acquisition of acreage for flood control improvements.

In total, approximately $30 million has been invested in public funds. However, the developer had to show significant good faith before the agreement was executed, by putting up a considerable amount of money to get the project going.

“Before we saw any public money, we basically financed the project for nine to ten years. From 1996 to around 2005, we put about $150 million into this project before we saw any return,” Sahabi said, pointing out that the development will be valued at $1 billion dollars at full build-out.

“We already have somewhere around a half-billion-dollar valuation,” he said. “That is an incredible return on investment for our region.”

Sustainable Philosophy
“We believe that sustainability is not only good for the community and the environment, but it is also a profitable proposition for our development industry and community,” Sahabi said.

His approach is to base all decisions on three guiding principles:

• Respect for nature.

• Respect for community.

• Respect for public-private collaboration.

“Nature adds value to our built environment,” Sahabi said of the first point. “The houses we have along the creek sold for three-times as were shown in the pro forma. Some of it had to do with the upturn in the economy, but most of it was because of the quality of the environment that we created.”

Respecting the community played a huge part during the lengthy entitlement process. The community was brought in early and their comments carried weight.

Finally, public-private collaboration is critical to the success of such large projects.

“It’s not a job for just the public or the just the private sector,” Sahabi said. “When the two come together, many good things can happen.”

Combined, they contribute to a successful, sustainable project.

“From a businessman’s point of view, to be sustainable, you do not have to give up anything,” Sahabi said, “and you can add to the bottom line with the value gained through sustainability.” SLDT