Deal for new city at Newhall Ranch fuels development boom transforming northern L.A. County

By Louis Sahagun and Nina Agrawal

One of Southern California’s longest-running and ugliest development battles ended in a historic truce Monday when environmental groups agreed to a deal that will allow a new city of 58,000 residents to rise in the Santa Clarita Valley.

The pact clears perhaps the largest remaining hurdle for the Newhall Ranch project, which was proposed during the development boom of the 1980s and has been stalled repeatedly by protests, legal challenges and even criminal investigations.

Newhall Ranch will join other large developments in the works along the Interstate 5 corridor that together are likely to transform one of the last undeveloped sections of Los Angeles County. To the north, developers built a massive outlet mall and are planning a housing and resort project at Tejon Ranch.

The Newhall Ranch project comes amid a severe housing crunch across California that has caused rents to rise dramatically and pushed cities such as Los Angeles to approve denser developments.

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