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CALIFORNIA EMINENT DOMAIN LAW BLOG

Monterey Park cafe owner sues city over redevelopment; Contra Costa Times, 12/7/08

Relocation assistance disputed

By Amanda Baumfeld

 

MONTEREY PARK – A cafe has filed a lawsuit against the city’s Redevelopment Agency over a project that forces the restaurant to relocate, according to court documents.

City officials want Eight Cafe at 110 Garvey Ave. to move from its location of five years because of city plans to redevelop the corner of Garvey and Garfield avenues into the Monterey Park Towne Center.

Eight Cafe’s attorney, Glenn Block of the California Eminent Domain Law Group, declined to comment about the lawsuit’s specifics.

“We are engaged in settlement negotiations with the city and developer,” Block said. “We are hopeful we can reach a settlement. If we can’t, a trial is scheduled for early next year.”

The City Council working as the Redevelopment Agency approved the mixed-use project in 2005. It includes 109 condominium units and more than 70,000 square feet of retail space and is expected to open in October 2010.

The 11 business owners and 16 families the project displaces have been offered compensation. But an attorney for Eight Cafe said they have not been offered enough money.

They also have not been offered relocation assistance or benefits to move, according to the lawsuit filed in February with Los Angeles Superior Court.

Mayor Frank Venti said these lawsuits are typical in redevelopment projects.

“They (Eight Cafe) want what they think is fair and we want them to have what is fair to them,” Venti said. “If we can
convince each other to what we each think is fair then we have a deal, but it’s never easy.”

All other litigation has been settled with the project, Venti said.

In October 2007, developer Magnus Sunhill Group allegedly gave Eight Cafe a document to sign that would waive any compensation the restaurant would be entitled to, according to the lawsuit. Eight Cafe did not sign the document.

The following month the developer doubled Eight Cafe’s rent.

The lawsuit also claims the agency has not compensated Eight Cafe for damaging its property and loss of goodwill.

Under California’s eminent domain law a business owner may be entitled to any loss of business goodwill caused by the taking of property on which the business is located.

Venti said the city is following all state guidelines and continues to try to negotiate with the restaurant.

Calls to Assistant City Attorney Adrian Guerra were not returned Wednesday or Friday.

Contra Costa Times: http://www.contracostatimes.com

Azusa store owner balks at selling property to city; San Gabriel Valley Tribune, 12/4/08

By Daniel Tedford

Roy Fowler’s Furniture Stationhas been sitting at the corner of Arrow Highway and Azusa Avenue for about 36 years.

It’s a small L-shaped shop, surrounded by vacant land. Across the street are Covina’s AMC Theaters and Outback Restaurant. Fowler’s plan is simple: stay in business and when the time is right, pass it on to his son.

But lately, that plan has become more complicated. Azusa city officials have threatened Fowler with eminent domain in an effort to purchase his property, which is adjacent to the once controversial Corky’s Corner.

Fowler’s land is on the corner where the city of Azusa begins on Azusa Avenue, about a mile from his other Furniture Station on the corner of Arrow Highway and Citrus Avenue in Covina. The city has bought all the land around Fowler’s store, including Corky’s Corner, and now has its eyes on his piece of property.

In an effort to deter the city’s plans, Fowler has a petition at the store asking patrons to take a stand against eminent domain.

“I have enough money for myself, but I promised my son when he was 9years old (he would take over the store) and that is one promise I would like to keep,” Fowler said. “He wants to run the business.”

Azusa has a developer ready and has a plan for the area comparable to what Covina has across the street. The three main elements of the plan are a small grocery store, a drug store and a restaurant; the latter going right where the Furniture Station is now.

“It is the entrance to our city and it has been an area, with the exception of the Furniture Station, that has been a significant code enforcement problem for the city,” said Azusa City Manager Fran Delach. “It has been blighted.”

Azusa’s plans with the developer are contingent on the Furniture Station selling its property to the city.

But Fowler isn’t keen on the city’s plans. Despite business being “terrible,” Fowler’s priority is to keep the business rather than sell it. The city offered him $1.1 million for the property based on land value assessed by the city.

Fowler has asked for $3.3 million in a goodwill offer, based on a land value appraisal of his own at $1.5 million, $1.5million for the value of his business, and $300,000 for a few longtime employees.

“They know they have to compensate for this, they just haven’t gotten to the point where they are willing to do it yet,” Fowler said.

If an appraisal showed the business and property to be worth $3.3 million, the city would be interested, Delach said. But in order to make a deal the city would need to appraise the business value and take a look at Fowler’s books, which he has not allowed.

Instead, Fowler intends to take the matter to court. The city agrees.

Since Fowler has rejected Azusa’s offers and has declined a city appraisal of his business, Azusa has served him notice that the City Council will determine whether or not to pursue eminent domain by no later than Dec. 15, Delach said.

“We are going to take it to court and let them decide if we have to sell that corner or not,” Fowler said.

The city is still open to negotiations and will be even after a decision is made on eminent domain, Delach said. Azusa would rather resolve the issue without going before a judge, he said.

If developed, the city hopes to bring in a national chain restaurant to replace the Furniture Station, Delach said.

“Our goal would be to try to come to an amicable conclusion,” Delach said.

Fowler said he has already received an offer of $2 million from an outside developer for the property and turned it down. He believes the city’s initial offer was low, but he called that “just business.”

In the end, it isn’t about the money for Fowler, he said. He doesn’t want the case to go to court to procure more money, but in hopes he can keep his business, he said.

“There are cases out there where the little guy actually wins,” Fowler said. “We want to continue our lives as we have for the last 36 years.”

San Gabriel Valley Tribune: http://www.sgvtribune.com

COPYRIGHT © 2010 Arthur J. Hazarabedian, Esq.