DISTRICT SET TO STAY NEUTRAL\Builder hopes to annex Castaic site to Newhall.

Byline: James J. Rodriguez Daily News Staff Writer

Newhall School District officials hope to stay out of the tug-of-war sparked by the Newhall Land and Farming Co., which wants the district to take over land now under the Castaic schools' jurisdiction.

In fact, the Newhall school board was advised by its attorney Tuesday night to remain neutral, as Newhall Land and the Castaic Union School District duke it out over 2,400 acres in the developer's proposed 12,000-acre Newhall Ranch project.

"We want to avoid a fight with Castaic," Newhall Superintendent J. Michael McGrath said Wednesday. "We have no desire, one way or the other, to have that territory."

Last week, Newhall Land asked the Los Angeles County Office of Education to consider annexing undeveloped land in Castaic's jurisdiction into the Newhall district. The request was designed to ensure that all of the proposed 25,000-unit Newhall Ranch project is in one district. The proposal will be reviewed in a series of public hearings and could eventually go to voters.

This week, Castaic Union School District officials promised to do battle with Newhall Land over the estimated 2,400 acres in question. Castaic officials said the loss of so much land could mean a loss of millions of dollars in property taxes for the small district, which hopes someday to build a high school.

Newhall's hands-off approach bothered Castaic school officials, who said Wednesday their attorneys were looking into Newhall Land's annexation proposal.

"I'm a little discouraged by the Newhall School District," Castaic Superintendent Allen Nishino said. "I can't understand why they would do that. They are not remaining neutral."

Castaic school district officials were hoping that the Newhall schools would fight the proposal.

At issue is an agreement between the Newhall district and Newhall Land. As part of the $60 million pact, the developer has agreed to finance construction of at least six Newhall schools in Newhall Ranch.

A clause in the agreement called for Newhall schools to "use its best efforts to annex portions . . . within the boundaries of the Castaic Union School District."

Newhall School District trustees met Tuesday night with their attorney to see what "best efforts" meant.

"The advice of our attorney was that any action may or may not have to be taken" pertaining to that matter, McGrath said. "At this time (the developer) has not asked us to do anything."

But, McGrath cautioned, "We have agreed to a contract . . . I don't think we can oppose" the annexation.

And as far as Newhall schools attorneys are concerned, Newhall Land has already taken action to annex the land, and the district will do nothing to challenge that, McGrath said.

Castaic's current boundaries follow the Santa Clara River west of the Golden State Freeway. Newhall Land wants to extend that boundary north, and include acreage slated for expensive estate homes.

Newhall Land officials said they want to annex the land into the Newhall School District boundary so that students living in the community will attend Newhall elementary schools before transferring to the William S. Hart Union High School District.

Castaic currently educates youngsters from kindergarten through eighth grade; Newhall from kindergarten through sixth grade; and the Hart district provides classes from seventh through 12th grades.

Newhall Land officials said they want families living in their development to experience uniformity in education.

Once the developer files all the necessary paperwork, the county Office of Education's committee on school district organization will decide whether the proposal should go before the voters.

Marc Forgy, secretary to the county committee, said it's unclear which areas would be included to vote on the annexation. Forgy said it could include voters in all three school districts' boundaries.