CEO BUILDS UPON HIS ROOTS LESSONS LEARNED ON FARM GUIDE NEWHALL LAND'S LEADER.

Byline: Kathleen Sweeney Staff Writer

SANTA CLARITA - The head of Santa Clarita's largest development company is a farmer at heart.

On any given day, Gary Cusumano can be found picking oranges in a grove near Fillmore that he and his wife have owned since 1987. The crop is tart or sweet, depending on the time of year it's picked, but he doesn't consider the harvesting like work he knew as a child growing up on a small farm in Northern California. It's a hobby, a peace of mind.

``What you learn growing up on a small farm is responsibility, work ethic,'' he said. ``You learn a sense of appreciation for natural resources, which plays a role in my job today.''

That appreciation, he said, has helped him in daily decisions as the new chief executive officer of The Newhall Land and Farming Company, a position he took in March after former CEO Tom Lee retired.

Cusumano joined the company in 1969 after it bought two dehydrating plants in the California Delta and another in Colorado, where he was the general manager. A year later, he was transferred to Dixon, where he oversaw all four dehydrating plants. In 1974, he earned an MBA from Stanford University and in 1983, he moved to Valencia as second-in-command of the company's agriculture operations.

As the 118-year-old company's focus shifted from a large agriculture company to a developer, Cusumano's interest and role changed as well. In 1987, he took a position in the real estate division and in 1989 was named president and chief operating officer.

Doug Sink, chief financial officer of Remo Inc. and president of the Santa Clarita Chamber of Commerce, said Cusumano has the experience to head the company as it's been run for decades.

``I think he will do an outstanding job,'' Sink said. ``I think he brings all the experience at Newhall Land that Lee had. He'll do an outstanding job.''

But the job comes with its share of financial challenges and criticism.

Because Newhall Land's owners and board of directors weren't happy with the worth of the company on the stock market, it decided to to reduce the number of shares for sale and redirect its focus back to Valencia.

In May, it sold its option to buy 1,800 acres in Colorado, increasing its second-quarter earnings by nearly $13 million. The sale allowed the company to increase the current pace of its stock repurchase program, which will reduce the number of shares for sale and redirect the money back into the community.

But its largest obstacle in building the community is the plethora of lawsuits regularly filed by environmentalists for one reason or another on any proposed project. They typically claim the company isn't protecting the environment and endangered species, especially as the population and housing projects continue to explode.

``You have to realize growth is inevitable,'' Cusumano said. ``Valencia is an excellent example of continuing to use the land in an environmentally friendly way.''

Stop and look around the community and notice the open space, walking trails and employment opportunities, he said. And experts, including biologists, are working to ensure development isn't harming endangered species. Specialists are currently resurveying land along the Santa Clara River and San Francisquito Creek where other biologists have seen the endangered Southwestern arroyo toad.

While Cusumano said a judge has always ruled in the company's favor because of facts proving development isn't harming the environment, it's still a long process that costs not only the company money, but the residents as well.

``Generally, over time we are able to move forward,'' he said. ``We are in better shape today than when it (Valencia) was built. We are very proud of what we've done.''

That includes the approved site for the massive Newhall Ranch project - a project Cusumano considers a personal goal to achieve before he seeks retirement.

``Newhall Ranch is the key to the future of this community,'' he said. ``It will be something I can look back upon after I retire and feel extremely proud.''

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3 photos

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(1 -- color -- ran in Business section only) Gary Cusumano is CEO of the Newhall Land and Farming Company, Santa Clarita's biggest development firm.

(2 -- ran in Business section only) Gary Cusumano's role at Newhall Land and Farming has changed as the company switched focus to development.

David R. Crane/Staff Photographer

(3 -- ran in SAC edition only) - Gary Cusumano