Lanterman still operates at $113K loss this year
By Ava Uhlack, December 9, 2025
The Lanterman property, often referred to as Campus South, has settled on two new developers to proceed with development of the land after the California State University system allocated a $750,000 grant to the project this past summer.
The one-time grant will act as the first step toward the development of housing on the 309-acre property not only for staff and faculty but for the greater Pomona community, according to Anthony Orlando, an associate professor of finance, real estate and law and the faculty representative appointed by the Academic Senate for the Lanterman project.
The stewardship of the land that was once a hospital known as the Lanterman Developmental Center was given to CPP by the state in 2015 with the goal to revitalize the property into a “thriving and active live, learn, work and play community.”
“We hope that some of the housing will be devoted to the campus community specifically but not all of the housing,” Orlando said. “We want it to be available to people around the community. We don’t want people to feel that it’s an exclusive community just for Cal Poly. We want it to benefit the whole region.”
Orlando spoke with the mayor of Pomona, who asked that the development not be a private, walled-off community. The mayor wants the greater Pomona community to be more connected to CPP, Orlando said.
The amount of housing CPP hopes to set aside for faculty and staff would depend on the results of its negotiations with new developers Keyser Martson Associates and Michael Baker International, according to Orlando.
“Nothing will get built if it’s not financially feasible,” Orlando said. “Legally, we can control what gets built, but we have to take into account what the developer is willing to build.”
Both Michael Baker International and Keyser Marston Associates have worked on other projects for the CSU system. Both are pre-approved firms the CSU has had good experiences working with in the past, Orlando said.
The Poly Post previously reported CPP has had issues finding a consistent developer. Before Michael Baker International and Keyser Marston Associates’ involvement, there were two other developers on the project.
Five Point Holdings LLC was the first developer selected in 2018, but it withdrew from the project in April 2020 after leadership changes within the company. Edgewood Realty & Greystar was the second developer chosen in August 2021, but the financial market conditions resulting from the COVID-19 pandemic paused further project development in December 2023.
With development on hold, CPP rented out the Lanterman property as a filming location to bring in revenue. Filming brought in more than $10 million in profits between 2015 and 2023, but the operating costs associated ultimately exceeded profits. CPP and CPP Foundation Inc. had to contribute almost $7 million to cover contractor expenses associated with filming, The Poly Post reported.
Orlando shared an update on the development in a presentation to the Academic Senate Oct. 15, where senators used the Q&A session to express concerns about the costs associated with Lanterman.
“It seems that the benefit to us might be outweighed by the work we have to do to actually get it here,” said Dennis Quinn, a College of Education and Integrative Studies senator and a professor and chair of the Interdisciplinary General Education Department. “Has there been any discussion about just cutting our losses and turning it over to the CSU, so we don’t have to put so many resources into it?”
Quinn wasn’t alone in his concerns about the financial drain Lanterman might cause CPP. Senators even cited Poly Post coverage reporting $7 million in losses since the acquisition of the property in 2015 to 2023.
“I would like to know, what do we get out of this,” said Faye Wachs, a senator from the College of Letters, Arts, and Social Sciences and professor of sociology. “As far as I can tell, it’s a loss of things we need with no guarantee of any payoff.”
Orlando responded his personal feeling was there was still an opportunity at Lanterman to generate tremendous revenue for CPP. While he stated there was nothing to gain out of it right now, he believes the process will be a long-term payoff.
“A lot of the losses came during the early years before we got the film production ramped up,” Orlando said. “The loss on the site this year was about $113,500. That’s not nothing, but it’s not a million. I’m optimistic that that’s more what we should expect over the years to come.”
Keyser Marston will begin working on new market analysis, new development concepts and new financial feasibility analysis to establish the best use of land for development, how much to charge in rent for different buildings, what the demand in the area is and what people want to lease out, according to Orlando.
Michael Baker will be conducting a phase one environmental assessment, an assessment of the historical significance of existing buildings and will consult with the State Historical Preservation Office. Michael Baker will visit the property over the course of a couple of days, Orlando said, and then the assessment process will likely take a few more months.
“Michael Baker International will make their own recommendations about what they think is historically significant and what needs to be preserved,” Orlando said. “They also make a determination about how any development that happens on the site might impact historically significant sites.”
After its assessment, Michael Baker International will report its findings to the state, and the state will decide whether it agrees with the findings, according to Orlando.
CPP has issued a request for proposals from possibly interested firms to sign on as the third developer whose role would be to oversee conceptual land-use plans, utility infrastructure improvement assessment and cost estimation.
Interested firms had a submission deadline of Dec. 3, and Orlando said he hopes a third developer will be chosen by summer 2026.
Feature image courtesy of Bryan Doan