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Long before Rancho Palos Verdes became the newest city on the Palos Verdes Peninsula, it was part of Rancho de los Palos Verdes, a seemingly worthless patch of oceanfront hill covered in brush fit only for shore whalers, smugglers, and cattle. Through forfeiture and foreclosure, the Bixby family from Maine acquired the peninsula and made the land profitable by diversifying-ranching, sharecropping with American field farmers, and renting land to Japanese flower and vegetable growers. New York financier Frank Vanderlip realized in 1912 the real estate potential of the hill's dramatic vistas and rugged cliffs and canyons. Over the years, three cities were created as tree-covered havens for horses and wildlife-islands of calm. But danger to this lifestyle lay in overdevelopment from the Los Angeles County-owned land encircling them. This, then, is the story of the fourth city, Rancho Palos Verdes, created in 1973 from county land and dedicated to keeping the peninsula green and underdeveloped, as Vanderlip envisioned.

Don Maximo Alanes was awarded a land grant from the king of Spain in 1843 known as El Rancho San Jose de Buenos Aires, stretching east-west from what is now Sawtelle Boulevard to Beverly Hills, and from Sunset to Pico Boulevards. Preserved into the 20th century under state senator John Wolfskill's ownership, the rancho was sold to Broadway Department Store founder Arthur Letts for $100 an acre in 1920 for estates he called Holmby Hills after his British birthplace. His son-in-law Harold Janss developed Westwood Hills in the southern tracts. Letts, a former trustee of the Los Angeles State Normal School, which became UCLA, agreed in 1925 to deed 375 acres of the hilly ranch land north of Wilshire Boulevard to the college. Janss developed a university town-style commercial village of 26 Spanish Revival buildings, some with towers and neon signs that remain icons of today's Westwood Village.