Gift Transforms Educational and Environmental Landscape of the San Joaquin Valley

• 5,780-Acres of Vernal Pool Habitat to be Protected
• Virginia Smith Trust to Bolster Educational Endowment

Merced, CA – Education, the environment, and student access to funding for higher education are bolstered as a result of an historic agreement announced today by the David and Lucile Packard Foundation and the University of California.

With a grant in excess of $11 million from the Packard Foundation, the University of California will acquire the 7,030-acre Virginia Smith Trust [VST] parcel northeast of the City of Merced, Packard Foundation President Richard T. Schlosberg, III and UC Merced Chancellor Carol Tomlinson-Keasey announced today.

Schlosberg and Tomlinson-Keasey said that the Packard Foundation’s grant provides the means to achieve several important goals, including:

• Securing the proposed site for the new 2,000-acre UC Merced campus;
• Enhancing access to the UC system for the children of the San Joaquin Valley;
• Supporting the regional planning approach including the University, the County and City of Merced, and the public, and setting a new standard for large-project and growth management in the San Joaquin Valley;
• Creating a 5,030-acre preserve of sensitive vernal pool habitat and facilitating creation of a 750-acre UC natural reserve for scientific study in rolling ranchland northeast of the City of Merced;
• Providing a direct contribution to the VST’s educational endowment that benefits college-going students from Merced County;
• Supplying the means for the VST to invest in the planned University Community nearby the proposed campus; and
• Triggering the release of $15 million in state-approved habitat acquisition funds from the Wildlife Conservation Board to ensure the conservation of key wetland and vernal pool resources in the surrounding area.
  

Under the terms of the agreement, the University of California will use funds from the grant to acquire the entire VST parcel, including the Merced Hills Golf Course, which is owned and operated by the VST, and make a contribution of several million dollars to the VST’s endowment. The final total of the gift will be dependent upon a coming valuation of the land transaction.

After acquisition, the University plans to set aside 5,030 acres as a conservation preserve that would protect vernal pool habitat in perpetuity. The remaining 2,000 acres would be used for the proposed new UC Merced campus on the southwest portion of the VST lands; the campus portion would include a 750-acre natural reserve of vernal pool habitat protected from development.

The VST will use proceeds from the acquisition to add to its scholarship endowment, invest in the future proposed University Community, and pay off long-term loans on the golf course property.

Schlosberg called the grant a landmark in the University's creation of the 10th UC campus in Merced. "We see this as a major opportunity for the Packard Foundation to assist the University in enhancing access to the children of the San Joaquin Valley to the UC system. At the same time, it’s a chance to foster responsible development and environmental stewardship.

"On a highly visible project like this one, it is important to find ways to conserve valuable landscapes while also supporting economic development. We needn't choose between the two, and this project can be proof of that fact."

Tomlinson-Keasey added: "David Packard was known for his vision in technology, in conservation, and in building a global enterprise. This marvelous support from the Foundation’s Trustees is similarly visionary. We are deeply appreciative of this gift from the Packard Foundation, which has a special commitment to the environment and to preserving California’s natural heritage. The funds from this grant will allow for us to create a world-class research university in Merced at the same time that we protect unique natural habitats of eastern Merced County."

In the current decade, the UC system must absorb more than 60,000 additional students. The new UC Merced campus, scheduled to open in fall 2004, will have an important role in assisting this effort. In addition, the San Joaquin Valley has been under-represented in the UC system; currently, students from the region matriculate on UC campuses at less than half the statewide average of 7.8 percent.

Comprehensive Planning Hailed by Packard

Packard's Schlosberg said the new proposal for location of the campus and the associated community help provide a regional approach to land use and development planning.

"Bringing UC to the San Joaquin Valley is an urgent goal. But combining the creation of the Merced campus with a unique package of environmental conservation measures is especially noteworthy. We think those who work to conserve open space, farmland and natural areas should also be willing to constructively engage in decisions about the best ways to accommodate our growing population," said Schlosberg. "In this case The Nature Conservancy was a key partner in working with us and UC, and the end result will be a much better campus development."

Schlosberg said the planned development and natural preserve created by the Packard gift would augment the efforts taken last year by Governor Davis and the state legislature to create a $30 million fund for purchase of conservation easements in eastern Merced County. Packard’s grant is conditioned upon several milestones being met, including the release of $15 million of these funds for immediate acquisition opportunities.

"The University and the County have made a firm commitment to embracing a thoughtful, long-term planning process. We want to see the City of Merced included in this planning and will encourage the Great Valley Center to assist on key design and land use issues. All of these groups are considering the campus and new town as one development, putting it all in the context of a regional conservation planning process, including the state-funded conservation plan that ultimately could protect as many as 60,000 acres of vernal pool habitat. This fits with the Packard Foundation’s notion that the Valley and its rich open lands cannot be protected piecemeal."

He added: "We should have the highest of standards. Every new development in the Valley, large or small, should bolster the local economy, make for more livable communities, and protect or restore natural landscapes. If that sounds ambitious, it is. And why shouldn't it be? We should be especially ambitious when it comes to a project associated with the University of California."

The Packard Foundation has played a leading role in helping local organizations conserve lands in the Central Valley. Its five-year, $175 million Conserving California Landscapes Initiative has supported the Great Valley Center, the San Joaquin River Parkway Trust, the California Waterfowl Association and others.

"With this latest grant to the University, the Packard Foundation is once again showing its leadership role in environmental stewardship," said Tomlinson-Keasey. "The Foundation has become pre-eminent in its support for preservation in the San Joaquin Valley and beyond."

Environmental Groups Respond Positively

Prominent environmental groups welcomed news of the Packard Foundation gift. The Nature Conservancy of California played an important role in assisting the Packard Foundation and the University in coming to the agreement.

Graham Chisholm, Director of The Nature Conservancy: "Kudos to the Packard Foundation for leading the way to protect endangered wetlands. By their actions, some of California's most important vernal pool habitats will be preserved. If these wetlands disappeared so would some of the state's rarest species. That's why this project is a high priority for us all." Dan Taylor, Executive Director of Audubon-California, the official state program of the National Audubon Society in California, said: "The Packard Foundation has made another spectacular gift to California. Through this bold move we have our best chance ever to arrive at a siting solution for the UC Merced campus that serves California's two greatest treasures, our kids and our environment."

The David and Lucile Packard Foundation was created in 1964 by David Packard (1912-1996) and Lucile Salter Packard (1914-1987). David and Lucile Packard shared a deep and abiding interest in philanthropy.

The Foundation provides grants to nonprofit organizations in the following broad program areas: conservation; population; science; children, families, and communities; arts; and organizational effectiveness and philanthropy. The Foundation provides national and international grants, and also has a special focus on the Northern California Counties of San Mateo, Santa Clara, Santa Cruz, and Monterey.

The Foundation's assets were $9.8 billion as of December 31, 2000. Grant awards totaled approximately $600 million in 2000. UC Merced currently employs almost 65 educators and professionals. The University's main campus in Merced is expected to open in fall 2004 to serve 1,000 students. The campus will grow over coming decades to serve 25,000 students. UC Merced contributes to educational access through the entire San Joaquin region via special educational and outreach centers in Fresno and Bakersfield. A new UC Merced center will open in Modesto later this year.

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