Vista Redevelopment Agency Acquires Additional Property

We've previously reported on the City of Vista's moving forward with the use of eminent domain to acquire the Riviera Motel and other properties in order to assemble property for an auto mall.  It appears that the eminent domain dispute has now reached a resolution, as the North County Times is reporting that Vista city council approved a settlement with the motel owner and another nearby property owner.

According to the article, "VISTA: City approves $3.2 million in property purchases," the Riviera Motel owner is receiving compensation of $1.65 million for the .71-acre property, plus $345,000 for fixtures and equipment, business goodwill, and relocation (since the owner lived at the motel).  The owner had previously been offered $1.65 million, so it appears he did not receive any additional compensation for the property's value.  He did, however, receive the additional $345,000 for the other items of compensation.  The owner is also being provided an additional $5,000 for the costs of obtaining an independent appraisal, and the redevelopment agency's promise to contribute $155,000 if the owner decides to open up a new hotel in Vista in the future.

Other property appears to still be needed for the redevelopment agency's plans.

Redevelopment in Vista Gets Political

There is an interesting story in today's North County Times about a political dispute brewing between members of a sub-committe of the Vista Redevelopment Agency.  The story by Cigi Ross, titled "VISTA: Member breaks rank with Vista redevelopment panel," explains that one of Vista's project area committee members, Jerome Hymes, has distributed a letter to about 35 downtown businesses warning that the agency may seize their property by eminent domain.  The other members are chastising Hymes, claiming the letter is filled with a "total laundry list of all the urban myths of redevelopment."

Whether Hymes' letter is true or not, the redevelopment agency has not come across in the best light.  For example, Hymes claims that some committee members have an insensitive attitude towards property owners not interested in selling their property, citing a remark by one member about wanting to "bulldoze" a property.  That committee member admits making the statement, but explains that he "didn't really mean it."   Hymes also cites to the agency's authorizing the use of eminent domain to acquire the Vista Riviera Motel and lease the property to a nearby car dealership, a story we have previously reported on.

According to the article, Vista has plans to acquire property on the Paseo Santa Fe Corridor and sell the property to private developers for construction of mixed-use buildings comprised of retail, office, and condos.  The agency sold $36 million in bonds last month to begin purchasing the properties that stretch along South Santa Fe Avenue from Monte Vista Drive to Orange Avenue.  The agency also apparently has plans to borrow an additional $103.5 million over the next five years for the property acquisitions. 

In order to give property and business owners more information about the redevelopment, the agency plans to begin unrolling a communication plan in May or June.  Ultimately, public support plays a significant role in the redevelopment process, and if the Vista Redevelopment Agency intends to go forward with its redevelopment plans, it will need to ensure the community is on board.

City of Vista May File Eminent Domain Action to Assemble Auto Mall

Everyone knows the sad tale of America's automotive industry:  companies operating only through government subsidies and dealerships shutting their doors across the country.  So when the City of Vista came up with a plan to "create a second downtown car dealership and boost sales tax revenue," one would think the public would embrace it. 

But like many bold plans, this one has a wrinkle.  While most of the property needed to facilitate the plan is available for purchase, including the existing North County Ford site, one additional parcel is needed.  

According to North County Times reporter Cigi Ross, in her December 5 article, "VISTA: City plans to buy North County Ford property,"  the plan requires the acquisition of the Riviera Motel, whose owner does not want to sell.  In fact,

[the owner] accused the city of trying to steal his land and give it to the rich.

Last month, we told you the City was seeking to purchase the motel property.  Having apparently failed in those efforts, the City Council plans to vote today on whether to proceed with the purchase of the other properties needed at a cost of around $15 million -- and on "whether to try to seize the motel through eminent domain."  

For anyone who thinks this is just the kind of thing the post-Kelo eminent domain reform was designed to protect against, it is worth noting that California's primary reform act -- 2008's Proposition 99 -- deals only with protecting certain single-family residences.  Assuming the City of Vista demonstrates that the public interest and necessity require the project -- and that the motel property is necessary for that project -- it is unlkely any significant barriers will exist to the City's exercise of eminent domain to acquire the property should the City choose to proceed.

City of Vista Seeking to Acquire Motel Property for Redevelopment Project

 In an October 31 article for the North County Times, "VISTA: City wants to redevelop motel property," reporter Cigi Ross writes about the City of Vista's plans to acquire a motel property as part of a plan to redevelop the area:

The owner of a downtown Vista motel is accusing the city of trying to kick him out of his business and his home.

City officials announced Monday they're trying to purchase the Vista Riviera Motel as part of a redevelopment project along Vista Village Drive and Vista Way that could include a new car dealership. 

While the City's efforts currently involve a voluntary acquisition, the owner has already said that he does not want to sell, raising the possibility that the City could acquire the property through eminent domain.   Though this situation raises the specter of the often criticized Kelo decision, the situation is different, in that Vista's stated motivation in acquiring the property is to eliminate blight, a motivation missing in the Kelo case

Ms. Ross' article explains:

The land is prime real estate because Vista Village Drive is a main thoroughfare that cuts through the center of Vista and is used by an estimated 40,000 motorists every day.

Over the past few years, the city has spent at least $3 million to purchase properties in the downtown corridor as part of a long-term plan to spur economic development. Most recently, the City Council approved spending about $1.25 million on two sites near South Santa Fe Avenue.

Those properties, as well as the Vista Riviera Motel, lie within an expanded redevelopment zone that was created in 2008 when Vista's City Council approved an updated redevelopment plan.

That redevelopment plan says the city can use eminent domain ---- take properties for public use ---- in part to eliminate "blight." The city defines economic blight as properties with high crime rates, high vacancy or low lease rates, stagnant or declining property values or unsafe and unhealthy buildings. 

Tim Sandefur, an attorney with the Pacific Legal Foundation and a well known property rights advocate, was quoted, explaining why the property owner would likely have little success fighting any effort by Vista to condemn his property:

One argument has been that it's wrong to take property from one business owner so another can develop the site. But Proposition 99, a ballot measure passed in 2008, expanded municipalities' power of eminent domain by allowing that kind of redevelopment, Sandefur said.

That measure followed a 2005 Supreme Court ruling that said local governments could force property owners to sell off their land to make way for private economic developments even if the property isn't blighted.

"It was possible until recently to say, 'No, there are limits on that,'" Sandefur said. "Redevelopment is now defined as a public use in the state constitution.

"Unfortunately property owners have virtually no protection against eminent domain in California until the state constitution is amended," he said. 

Only time will tell how badly Vista really wants this property.  If the owner maintains his steadfast refusal to sell, eminent domain will be the only option.  But in the wake of Kelo, the use of eminent domain for redevelopment purposes is subject to considerable -- and generally unfavorable -- public scrutiny.