Friday, June 27, 2008

Hillwood ready to do county project should Kamilos plan collapse

By MICHAEL G. MOONEY
mmooney@modbee.com

last updated: September 16, 2007 05:36:46 AM

So, what's ahead for Crows Landing?

Perhaps the return of Hillwood, a Texas-based company -- owned by Ross Perot Jr. -- that would transform the West Side site into a truck-oriented distribution hub serving the valley and the Bay Area.

"We still have an interest in the project," Hillwood representa-tive John Magness said Friday. "We're ready to step in."

Earlier this year, Hillwood's proposal to develop Crows Landing was rejected by the Stanislaus County Board of Supervisors. Instead, the supervisors, on a 3-2 vote, approved the short-haul rail plan by developer Gerry Kamilos.

Officials at the Port of Oakland and the Bay Area's Metropolitan Transportation Commission opened the door Thursday for the possible return of Hillwood.

That's when they told The Bee their agencies had no interest in helping PCCP West Park, led by Kamilos, secure state funding for his short-haul rail plan.

That's significant because the proposed short-haul rail line's sole purpose would be to serve the port.

Given that development, should the county give Kamilos more time to try to work out a deal or simply cut ties with him?

Several county leaders say Kamilos deserves more time.

After all, they point out, the county is in the midst of an exclusive yearlong negotiation with West Park to develop the short-haul hub. That negotiation period doesn't end until April.

But if Kamilos can't pull it off, Magness said, Hillwood is more than ready to put its plan back on the county's table.

"Our plan is much more viable than what West Park presented," said Magness, a Hillwood senior vice president based in Irvine. "We believe in the long-term viability of the airport."

Microjets instead of short-haul railroad line

A key piece of the Hillwood plan for Crows Landing calls for using the airstrip as a home base for "very light jets," also known as microjets. That type of aircraft is smaller and less expensive than conventional business jets.

Hillwood representatives have said the air facility could attract businesses related to very light jets, such as maintenance, pilot training and even manufacturing.

Magness, however, said Friday that the primary focus, at least initially, would be development of the distribution hub that would link the valley and Bay Area.

Kamilos has pushed his idea forward for months under the assumption that port officials would bundle Crows Landing short-haul rail with a package of other needed Northern California rail improvements.

But now that the port has said, in essence, "thanks but no thanks," where does that leave Stanislaus County?

Still standing behind Kamilos, at least for the moment.

On Friday, county officials again said they would stay the course with West Park and Kamilos, who said he's not ready to give up.

"This project has such a compelling benefit," Kamilos said. "We're seeing tremendous support in Stanislaus County and throughout the valley. We see no inhibitors to keep this project from moving forward."

Eventually, said Kamilos, short-haul rail will make it easier to move goods between the valley and the port, while reducing air pollution and traffic congestion by removing trucks from roadways.

But almost from the outset, Kamilos' plan ran into opposition from West Side residents, especially those living in and around Patterson.

Some residents there continue to oppose the plan and, on Friday, asked supervisors to formally cut ties with Kamilos.

In an e-mail sent to The Bee, Patterson resident Claude Delphia called the Kamilos plan a "smoke and mirrors project."

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