In the early 1980s, land that would later become Stevenson Ranch was acquired by Dale Poe and his real estate company, Dale Poe Development Corp. (DPDC), based in Agoura Hills. Originally from New Mexico, Poe moved to San Diego and married his wife Margaret in 1957. By the mid-1970s, he founded DPDC (formerly D&M Construction) and quickly became one of Southern California's leading developers of master-planned communities.
As detailed by SCVHistory.com, late in 1985, the Los Angeles County Board of Supervisors approved the first phase of what would become Stevenson Ranch, a sprawling project that included 4,378 single-family homes, condominiums, and apartments spread across 3,057 acres. Initially envisioned as a 10,000-home community, construction officially began in 1988. In addition to the development, Poe's company made a significant commitment to the Newhall School District, agreeing to donate 13 acres of land and $2.4 million for a new school. They also pledged to contribute additional funds and land for future phases, with potential donations ultimately totaling as much as $22 million.
This ambitious development came at a time when the Santa Clarita Valley was experiencing rapid growth throughout the 1980s and 1990s. Poe broke ground on the Stevenson Ranch subdivision in 1986, but the project was not without its challenges.
As construction progressed, Poe’s company faced legal issues with homeowners, who sued over faulty construction, incomplete roads, and the failure to build a promised swimming pool. Additionally, in 1990, the city of Santa Clarita filed a lawsuit against DPDC, questioning the adequacy of the environmental impact report prepared for the Stevenson Ranch expansion. Concerns raised by the city included the increased traffic, noise, and air pollution caused by the new development. To resolve the lawsuit, DPDC agreed in April 1991 to pay $675,000 for traffic improvements.
The controversy surrounding the development also led to political conflicts. In fall 1989, the city of Santa Clarita attempted to place Stevenson Ranch within its "sphere of influence", a move that would have made the area eligible for annexation. However, this attempt was rejected by the Local Agency Formation Commission (LAFCO). Around the same time, Jeff Stevenson, vice president of DPDC, spearheaded an effort to incorporate Stevenson Ranch and surrounding neighborhoods into a new city called Sunset Hills. The proposal was also rejected by LAFCO, largely due to concerns about the area’s small tax base. As reported by the Los Angeles Times, Santa Clarita council members, frustrated with the ongoing developments, mockingly referred to the proposed city as "Poe-dunk", claiming that the incorporation push was a move to keep Stevenson Ranch outside the jurisdiction of Santa Clarita.
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