1,709.5 acres of undeveloped ranchland along three miles of the Estrella River, proposed for permanent protection and offering compensatory mitigation credits for listed species and for wetlands and waters.
Rancho Estrellita Mitigation Bank is proposed as a privately owned commercial mitigation bank on an approximately 1,749.5-acre working cattle ranch owned by Rancho Estrellita LLC and partners.
The Bank will offer credits as compensatory mitigation for wetlands and waters under the Clean Water Act (sections 404 and 401) and Fish and Game Code 1600, and for federal and state listed species under the federal and California Endangered Species Acts. The Bank Lands would be preserved in perpetuity under a Conservation Easement.
Presently there are no mitigation banks in San Luis Obispo County providing credits for CWA wetlands and waters or FGC 1600 habitats. The closest mitigation bank with wetland credits is located 215 miles north, and there are no banks with credits for vernal pool fairy shrimp in the Carrizo vernal pool region.
The Estrella River is a 28.5-mile tributary to the Salinas River draining a 950-square-mile watershed. It is listed as an impaired waterway under CWA section 303(d). Restoring about 10 percent of its length is a central Bank objective.
A complex of 32 natural vernal pools sits on ancient flood terraces of the Estrella River. The property may contain the most intact remnant of the Paso Robles vernal pool region.
River access provides a safe wildlife movement corridor under the Highway 46 bridge, linking the Bank Lands to large undeveloped ranchlands and connecting open space to the north and south.
The Bank proposes credits for six listed species and five aquatic habitat types. Overlapping habitat is offered as bundled combination credits so that each creditable acre is transferred only once.
| Listed species | Status | Authority |
|---|---|---|
| California Tiger Salamander, Central California DPS Ambystoma californiense | FESA Threatened CESA Threatened | USFWS CDFW |
| Western Spadefoot Spea hammondii | FESA Proposed Threatened | USFWS |
| Vernal Pool Fairy Shrimp* Branchinecta lynchi | FESA Threatened | USFWS |
| Southwestern Pond Turtle Actinemys pallida | FESA Proposed Threatened | USFWS |
| Swainson’s Hawk Buteo swainsoni | CESA Threatened | CDFW |
| Crotch’s Bumble Bee Bombus crotchii | CESA Candidate | CDFW |
| Aquatic habitat | Jurisdiction | Authority |
|---|---|---|
| Intermittent Stream | CWA Sect. 404 CWA Sect. 401 FGC 1600 | USACE RWQCB CDFW |
| Riparian Forest | CWA Sect. 401 FGC 1600 | RWQCB CDFW |
| Seasonal Pond | CWA Sect. 401 FGC 1600 | RWQCB CDFW |
| Vernal Pool | CWA Sect. 401 FGC 1600 | RWQCB CDFW |
| Ephemeral Stream | CWA Sect. 401 FGC 1600 | RWQCB CDFW |
*Vernal pool fairy shrimp credits will only be included in the Bank if the species is confirmed on site prior to Bank establishment and incorporated into the Bank Enabling Instrument. Swainson’s hawk has not been confirmed on site, but known nests are located nearby and the Bank Lands provide suitable foraging habitat.
A debit for one credit type will often require a corresponding debit in one or more of the other credit types. For example, the 76.4 acres of bundled Intermittent Stream-Southwestern Pond Turtle credits may be sold as federal CWA, state CWA or FGC 1600, or federal species credits up to the maximum for each type, without exceeding 76.4 acres in total.
| Credit type | Acres on Bank Lands | Ratio | Federal CWA Enhancement | State CWA/1600 Enhancement | State CWA/1600 Re-Establishment | Species Enhancement |
|---|---|---|---|---|---|---|
| Intermittent Stream-Southwestern Pond Turtle Combination | 76.4 | 1:1 | 34.6 | 41.8 | 0.0 | 76.4 |
| Riparian Forest-Southwestern Pond Turtle Combination | 79.3 | 1:1 | 0.0 | 45.2 | 34.1 | 79.3 |
| Seasonal Pond-CA Tiger Salamander Breeding Combination | 0.6 | 1:1 | 0.0 | 0.6 | 0.0 | 0.6 |
| Vernal Pool-CA Tiger Salamander Breeding-Vernal Pool Fairy Shrimp Combination | 1.7 | 1:1 | 0.0 | 1.7 | 0.0 | 1.7 |
| Vernal Pool-Spadefoot Breeding-Vernal Pool Fairy Shrimp Combination | 0.4 | 1:1 | 0.0 | 0.4 | 0.0 | 0.4 |
| Vernal Pool-Vernal Pool Fairy Shrimp Combination | 4.8 | 1:1 | 0.0 | 4.8 | 0.0 | 4.8 |
| Ephemeral Stream Enhancement | 24.9 | 1:1 | 0.0 | 24.9 | 0.0 | 0.0 |
| CA Tiger Salamander Upland-Swainson’s Hawk Foraging-Crotch’s Bumble Bee Habitat Combination | 1,274.6 | 1:1 | 0.0 | 0.0 | 0.0 | 1,274.6 |
| Swainson’s Hawk Foraging-Crotch’s Bumble Bee Habitat Combination | 246.8 | 1:1 | 0.0 | 0.0 | 0.0 | 246.8 |
| Total acre credits | 1,709.5 | 34.6 | 119.4 | 34.1 | 1,684.6 |
Modeled after the credit release guidance in the Mitigation Bank Instrument Review Workbook and consistent with other approved banks in California. Releases after pre-release are subject to required milestones and approval by the Interagency Review Team (IRT).
Released prior to execution of the Final BEI, on case-by-case approval once the IRT determines approval is imminent.
Upon execution of the Final BEI.
Upon funding of 15% of the endowment principal and IRT approval of restoration as-built plans.
Upon funding a total of 40% of the endowment principal, with restoration meeting performance standards.
Upon funding a total of 70% of the endowment principal, with restoration meeting performance standards.
Remaining credits upon funding 100% of the endowment principal and meeting continued performance standards.
Each covered species and habitat has its own proposed Service Area, developed from recovery units, species ranges, and the watershed approach.
The Bank lies adjacent to the Central Coast Recovery Unit, and the proposed Service Area is the entire recovery unit, modified to include the Bank Lands. It extends from near Santa Cruz, south through Monterey County into the northeastern portion of San Luis Obispo County.
Establishment of the Bank is described as satisfying the three recovery objectives outlined in the species Recovery Plan.
The northern DPS of western spadefoot is found from Santa Barbara County northward through the Central Valley and Sacramento Valley into Shasta County. The proposed Service Area encompasses the entire range of the northern DPS.
The proposed Service Area encompasses recovery units and vernal pool regions primarily in the Central Valley and Coast Ranges of California, extending from the northern end of Los Angeles County north to the southern end of Shasta County. It excludes recovery units in extreme southern and northeastern California.
The range extends from the Mexican border north to Monterey Bay along the coast, including mountain and valley habitats west of the Central Valley and Imperial Valley, plus an inland range along the Mojave River. The proposed Service Area is the entire range of the subspecies.
The proposed Service Area encompasses potential breeding habitat along the Highway 46 corridor, extending south to the San Juan Valley, Bitterwater Valley, and Cuyama Valley, east to western Kern County, and north through the known range of the species in Kings, Tulare, Fresno, and San Benito counties.
Typically 1 to 3 pairs nest along the Highway 46 corridor, west and east of Shandon.
The species is a Candidate for listing under CESA, and at present there are no approved Conservation Banks for Crotch’s bumble bee in California. The proposed Service Area encompasses the entire range of the species in California.
Developed using the watershed approach, the Service Area covers intermittent stream, ephemeral stream, and riparian credits. It includes all HUC 10 units draining to the Estrella River and Huerhuero Creek watersheds, the southern end of the Salinas HUC 8, and HUC 10 units connected with the Salinas River downstream of the Estrella confluence, north to Monterey Bay.
The property lies along the eastern edge of the northwest portion of the Carrizo Vernal Pool Region. Because there are no other Conservation Banks with credits for these species in the region, the proposed Service Area includes the Carrizo Recovery Unit, the Central Coast Recovery Unit, and the southern portion of the San Joaquin Valley Recovery Unit.
The Bank Lands are located approximately 12 miles east of Paso Robles, just south of Whitley Gardens and Highway 46, off Estrella Road and River Grove Drive.
The Bank includes all or portions of 11 of 12 agriculturally zoned parcels. Gently rolling hills of annual grassland and oak woodland rise from about 840 feet above mean sea level in the north to 1,400 feet in the southeast, with the Estrella River winding along the northern border. The Bank Lands span portions of two large watersheds: the Estrella River flows through the north end, while the southern end connects to the Salinas River via Huerhuero Creek.
Approximately 40 acres containing the existing ranch house and infrastructure are excluded from the Bank Lands to provide space for future ranching infrastructure improvements.
Dry-farmed grain and cattle ranching have been the primary uses since the early 20th century, with farming fading out in the 1980s and 1990s. There has been no new development on the property since the 1940s except for some water infrastructure, ranch roads, and fencing.
Eight general habitat types are mapped on the Bank Lands. Approximately 188.1 acres of aquatic resources are situated within the Bank Lands.
Numerous biological surveys of the Bank Lands were conducted between May 2024 and July 2025 to inventory plant and wildlife species and to describe and map habitat types.
Survey work included aquatic surveys for California tiger salamander and western spadefoot, focused avian surveys, botanical surveys using the Rapid Assessment and Relevé method, CRAM and RipRAM riparian assessments, a wetland delineation of the Estrella River and all ephemeral streams, and Crotch’s bumble bee surveys.
Botanical surveys identified 150 vascular plant taxa, of which about 71 percent are native to California. No federal or state-listed plants were found. Three rare plants were documented: spring lessingia, fragrant-snow bushmallow, and shining navarretia.
Pond 19, shallow, clear water, western spadefoot present. 6 May 2024.
| Selected special status wildlife | Status* | Potential |
|---|---|---|
| California Tiger Salamander, Central CA DPS | FT/CT/WL | Present |
| Crotch’s Bumble Bee | -/CT/- | Present |
| Southwestern Pond Turtle | FPT/-/SSC | Present |
| Western Spadefoot, Northern DPS | FPT/-/SSC | Present |
| Bald Eagle | BGEPA/CE/FP | Present (foraging) |
| Golden Eagle | BGEPA/-/FP | Present (foraging) |
| Mountain Lion, central & southern CA ESU | -/CA Cand./- | Present |
| Vernal Pool Fairy Shrimp | FT/-/- | High |
| Swainson’s Hawk | -/CT/- | High (nesting & foraging) |
| Burrowing Owl | -/CCE/SSC | High (wintering) Moderate (nesting) |
| Longhorn Fairy Shrimp | FE/-/- | Moderate |
| San Joaquin Kit Fox | FE/CT/- | Moderate |
*Federal/State/Other. FE: Federally Endangered; FT: Federally Threatened; FPT: Federally Proposed Threatened; CE: California Endangered; CT: California Threatened; CCE: Candidate California Endangered; CA Cand.: Candidate California; FP: Fully Protected; SSC: California Species of Special Concern; BGEPA: Bald and Golden Eagle Protection Act.
Bank implementation will not require any significant construction. Primary activities include Estrella River habitat restoration, road maintenance, cattle fencing upgrades, water infrastructure upgrades, a site-wide managed rotational grazing program, and invasive species removal.
Intermittent stream habitat will be enhanced primarily through Beaver Dam Analogues, porous structures of natural materials that slow low flows to create ponded areas and expanded wetlands. The Bank Sponsor is working with SLO Beaver Brigade and Natures Engineers on a BDA Plan.
Enhancement and re-establishment along the Estrella River through willow and cottonwood stakes, oak trees, native shrubs, riparian seed mixes, invasive plant removal, and managed cattle grazing.
Native wetland plugs, hand-broadcast native vernal pool seed mix, invasive plant removal, limited riparian plantings at the seasonal pond, and managed pulse-grazing.
Managed rotational grazing guided by annual forage monitoring and Residual Dry Matter targets, plus designated Pollinator Areas with native floral resources for Crotch’s bumble bee.
Decades-old barbed wire will be replaced so cattle access to the river and vernal pools can be limited. New troughs, water lines, and 1 to 2 new agricultural wells are anticipated, developed with NRCS.
Over seven miles of existing unimproved ranch roads will be maintained over the life of the Bank. There are no plans to develop new roads.
A baseline Riparian Rapid Assessment Method (RipRAM) study compared two locations along the Estrella River on September 3, 2025. The results show that removing cattle from currently grazed areas may provide the greatest functional uplift, supplemented with native plantings and invasive plant control.
Site photographs from technical surveys conducted on the proposed Bank in 2024 and 2025.
The Bank Sponsors primarily consist of entities owned or controlled by three Salas brothers, several business-oriented capital partners, and a team of environmental, eco-asset, and local professionals.
Between them, the Salas brothers have over 140 years of experience in commercial real estate lending, including countless transactions involving the financing of land and land development. They have also developed land and built residential housing for their own investment accounts.
Through relationships with three primary neighbors, the Bank Sponsors negotiated reciprocal license agreements for access and water, and expanded the Bank’s aquatic features to include three contiguous miles of riverbed.
Estrellita was a four-generation farm and cattle ranch. The Bank Sponsors have paid homage to its history with custom signage, by retaining and exhibiting the prior family’s livestock brands, and by displaying decades-old farm implements along the main ranch road.
Rancho Estrellita LLC was validly formed in California on May 8, 2025, and is in good standing with the California Secretary of State.
Paso Robles, California. Contact: Charles J. Salas.
Manages the business and affairs of the Bank Sponsor. Steven L. Salas, Chief Executive Officer; Charles Salas, Chief Portfolio Manager; James Donald Salas, Chief Operating Officer.
Over 20 years working with conservation banks in California and 25 years implementing regional habitat restoration. Established the Palo Prieto Conservation Bank in 2006. Contact: Jason Dart, VP/Principal Scientist.
Atascadero, California. Contact: Lacey Zubak.
San Francisco & South Lake Tahoe, California. Contact: Bill Coleman.
Working with the Bank Sponsor to develop the Beaver Dam Analogue Plan for the Bank Restoration Plan.
The Bank Sponsor is fully committed to establishing the Bank within the Mitigation Rule Timeline. Future dates below are from the Draft Bank Implementation Schedule.
Draft Prospectus submitted to the Interagency Review Team (IRT).
Comments received from the IRT.
Draft Prospectus and agency comments discussed at the IRT meeting.
CDFW formally provides an evaluation of the Draft Prospectus.
Phase I Environmental Site Assessment issued with no Recognized Environmental Conditions identified.
Rancho Estrellita LLC formed (May 8). Draft wetlands and waters crediting map submitted for IRT review (May 14). Central Coast Water Board preliminary comments (May 21).
Proposal further discussed at the IRT meeting.
Final Prospectus submitted.
Prospectus review (90 to 120 days).
Restoration permitting.
Draft ILF Instrument / Bank Agreement Package (90 to 120 days).
Final Instrument (45 days).
Restoration implementation.
A Conservation Easement is anticipated to cover the entire Bank Lands. None of the land has previously been used for mitigation or is currently encumbered by conservation easements.
A Preliminary Title Report dated February 13, 2025 covers lands owned by Rancho Estrellita LLC. MBS Land Surveys is verifying boundaries, easements, and encumbrances, and a Boundary Survey and Record of Survey Map are planned.
Legal review of the 1966 and 1975 deeds found the deeds exclude any right of entry, so there is no conflict with the conservation easement and mitigation bank plans.
Completed by Padre Associates, Inc. in April 2025. No RECs were identified at the subject property or adjacent properties, and no additional assessments were recommended.
Five partial parcels associated with the Estrella River are held by Great Western Vineyards and the Peck Ranch under Memorandum of Agreement, so the Bank Lands encompass a complete three-mile section of river.
One existing 14 gpm well serves the residence and ranch. The Estrella River has no obstructions on the Bank Lands and no known upstream or downstream dams. Restoration permits are expected under FGC 1600 and CWA sections 404 and 401.
The prospectus notes a strong market need for species and habitat credits in the proposed Service Areas, with Caltrans mitigation projections showing need in this area and renewable energy, oil and gas, and commercial projects in the region anticipating credit needs.
Rancho Estrellita LLC, c/o Charles J. Salas
4755 River Grove Drive, Paso Robles, CA 93446
chuck@dieguito-inc.com · (858) 442-2137
Habitats in Perpetuity LLC, Steven L. Salas, CEO
512 Via de la Valle, Suite 200, Solano Beach, CA 92075
steve@mfg.loans · (619) 571-4408