The purchase has been approved at $1.2 million, with an additional $25,000 allocated for title search and other fees associated with the property transfer. White Light Chiropractic will be allowed to stay in this location according to the terms of a new short-term lease agreement with the City of Santa Clarita until their new location is ready for move-in, as will the other business owners in the area.

This is the third Spruce Street building to be purchased by the City of Santa Clarita this year. The CarQuest building was purchased for $1.715 million and the building that houses Paws for Fun Doggie Daycare was purchased for $725,000.

Still holding on are the buildings that house Just Passing Thru Body Piercing and the old Antique Flower Garden building.

Although the stated plan for these properties is to build a new public library combined with some level of retail and office space, the City Council has left the doors wide open for any type of private development in the area with the following wording on their request for funds for this acquisition:

"the payment of funds for the Project will assist in the elimination of blighting conditions inside the Redevelopment Project Area by providing for adequate parcels and required public improvements to induce new construction and/or rehabilitation by private enterprise; promoting the comprehensive planning, redesign, replanning, reconstruction and/or rehabilitation in such a manner as to achieve a higher and better utilization of the land within the project area, and assisting in attracting new businesses and residential developments to the area."

Will the City of Santa Clarita actually build a new library in Downtown (Old Town) Newhall, or will this land just be sold of to private developers for another glorified strip mall? Hard to say, but so far they have not presented any public studies to show that there is a need for a new library in that location, given that there already are libraries in Newhall and Valencia, and other areas in Santa Clarita are completely without libraries. The Downtown Newhall area does not have a large residential population, and that will be reduced as redevelopment plans continue.

The financial plans for the Old Town Newhall Revitalization Project, or the Retail Opportunities Analysis, had to assume shoppers would travel from as far away as Castaic and the San Fernando Valley in order to accumulate enough potential revenues to justify proceeding with the project. In fact, these outlying areas account for 50% of the total revenues for the Revitalization Project according to the study, completely disregarding the fact that the Valencia Town Center Mall is being expanded and The Avenue at Santa Clarita is on the horizon as well.

So, it would seem that any land acquired for the Old Town Newhall area would need to be converted into higher income generating properties such as retail centers rather than for a public use project such as a new public library in order to justify the overall redevelopment project. Only time will tell what the Santa Clarita City Council will ultimately build in Old Town Newhall.

Customers who visited the Antique Flower Garden around Christmas said they were told that orders could not be filled because "they had no flowers". It seems the next day the doors were closed and locked for good, and the phones were disconnected.

The owners of the Antique Flower Garden store are not the owners of the historic jail building. Manny Santana, the owner of the building, has repeatedly expressed his fears that this unique historical building would be torn down as part of the Newhall Redevelopment project.

Manny feels very strongly that the old jail should be preserved where it stands. "I may be the owner of the old jail or as I like to think of it, the caretaker of it while I’m here on God’s green Earth. This jail is part of our town, our history and each and every one of us should be concerned about preserving Newhall’s history for ourselves as well as our children’s children," says Manny. 

The historic jail building that housed the Antique Flower Garden is just one of several buildings that are slated for "redevelopment" as part of the Old Town Newhall Redevelopment Project. It is expected that most of the other buildings in the Spruce Street area will eventually be torn down and then replaced with either a strip mall or a combined use building with some public uses (a possible library) and some commercial uses (office space and retail).

CarQuest Property Owners Reach Agreement

The owners of the CarQuest building have reportedly reached an agreement with the City of Santa Clarita for the purchase of their property. However, this is a different negotiation than for some of the other Spruce Street businesses, since this is not an owner-occupied building. Thus the negotiations were only for the building itself, and did not include relocation costs or relocation assistance.

Owner-Occupied Buildings Have More Complicated Negotiations

Owner-occupied buildings such as White Light Chiropractic and the Antique Flower Garden have much more complicated negotiations to look forward to, since they’ll be negotiating for both the price of the building and the costs for relocating their businesses. That is, if suitable locations can be found for them to relocate to!

Initially, the City had indicated the possibility of constructing new facilities in the redevelopment area prior to relocating businesses such as White Light Chiropractic, so these businesses could just move into the new building instead of being forced to find space elsewhere. This option seems to have fallen by the wayside, and it remains to be seen whether the City will help in finding new facilities for these businesses or not.

Library? What Library?

Chris Price from the City of Santa Clarita has indicated that the actual redevelopment is expected to take at least 15 years. Chris also repeated a prior statement that the current Spruce Street businesses can stay put for 18 months or more, even after the buy-out is complete, since the supposed library building won’t be started until at least that many months in the future.

I say "supposed library", since it doesn’t appear that the library will ever be approved, and thus the project slated for the Spruce Street area will be just a standard commercial (office and/or retail) building instead. Quite a neat trick, really, with proposing a massive library project that’s not likely to get approved by Los Angeles County… Eminent domain rules allow a City much more latitude in ousting current property owners if the project slated is for "public use" rather than for a strip mall.

Regardless of what type of building eventually occupies the Spruce Street area, the City’s Chris Price and Paul Brotzman are doing their "good cop, bad cop" routine with the Spruce Street property owners as the negotiation process continues.

Will the City Offer Friendly Eminent Domain to Ease the Tax Effects of These Sales?

So far, it doesn’t appear that the City of Santa Clarita is offering up the "friendly eminent domain" option that was mentioned in earlier interviews with Price and Brotzman. We’ll see if they decide to play hard-ball with this or not as the negotiations continue.

With "friendly eminent domain", the property owners would be able to defer the tax impact of the "sale" of their properties by using the IRS 1033 Exchange rules to defer the tax impact for up to 2 years, at which time they must purchase a replacement property.

In order to qualify for the 1033 Exchange, the property owner needs to be able to show that the property was subject to an involuntary conversion, which in this case is a taking of the property through condemnation (eminent domain). Thus it’s more of a documentation issue than anything else: The property owner needs to show that the City did not allow them any choice in the matter.

Newhall Redevopment: Pie in the Sky?

So far, there’s been lots of hype and very little action (or apparent interest) in the Old Town Newhall Redevelopment Project. Other than painting new parking stripes (twice), changing some street signs, adding murals (removable) to a few buildings, and changing some traffic patterns, the area remains as ugly and decrepit as before. The biggest difference is that now you have to take a closer look at the ugly buildings as you stop at the additional stop signs on newly-renamed Main Street.

In addition, there’s likely to be stiff competition in luring the more desireable retailers to the area, with the planned expansion of the Valencia Town Center Mall and the planned upscale hotel/retail complex dubbed The Avenue at Santa Clarita on the horizon. With no anchor store in sight for Old Town Newhall, they’ll be hard-pressed to attract the boutique stores that they’ve been banking on.

Library Project Area

The so-called Library Project is the area at Spruce Street and Lyons Avenue where businesses have already been notified that eminent domain proceedings are, well… eminent.

The Santa Clarita City Council is expected to approve the City’s appraisals of these businesses at the August 28th City Council meeting, and then the "negotiations" will begin to "buy" these properties from the current owners. Affected owners include White Light Chiropractic Center, Antique Flower Garden, CarQuest Auto Parts, and the tenants of the building that houses Just Passin’ Thru.

These businesses have already been notified that the eminent domain process will begin if there is no agreement in the negotiation process within 30 days after the appraisals are submitted for their review. This is a forced sale, not an option for these property owners.

Paul Brotzman stated at last night’s meeting that these business owners should look to move in about 24 months, stating that it will take that long to complete the planning process for the new building. The library itself has been cut down from the initial planned 65,000 square feet to a possible 20,000 square feet, although nothing has yet been approved by the Los Angeles County Library system. The remainder of the unused space, or approximately 45,000 square feet, will be used for either retail or office space. Or make that 65,000sf of office/retail space if the library doesn’t happen, which is a definite possibility (or is that probability?).

Now wouldn’t it be a shame to chase away all of these long-standing Newhall businesses for just another strip mall?

Historic Buildings

Both Chris Price and Paul Brotzman stated that the current intent is to keep all historic buildings intact, including the old jail (Antique Flower Garden) and the old theatre (American Legion Hall). However, they also made it clear that it’s up to the City Council to decide the fate of these buildings. The owner of the Antique Flower Garden has expressed concern that the old jail would be moved, so we’ll have to wait and see what really happens here.

Bye-Bye San Fernando Road

According to the City’s plans, San Fernando Road will cease to exist as the Newhall Redevelopment Plan proceeds. What used to be called San Fernando Road will become a schizophrenic conglomerate of confusing name changes.

The area from the 14 Freeway to what is being renamed Main Street will be called Newhall Avenue, and the City will bear the costs of all CalTrans signage changes on the freeways. This will supposedly make people more aware that the freeway exit is for Newhall, theoretically driving more shoppers Newhall-bound to the redeveloped area (HUH???).

To make things worse, the newly-renamed Newhall Avenue will change names to Main Street, and then to Railroad Avenue, and then one more time to Bouquet Canyon at some point (currently slated for the area where Magic Mountain Blvd. crosses San Fernando Road). Talk about confusing! That’s 4 names for one small stretch of road.

North Newhall Area

The North Newhall area, where many park for the annual Cowboy Festival on the other side of the railroad tracks, is still in limbo. The needed upgrades to the railroad crossings have not been approved, nor does it look like they will be approved unless the City finds a way to build a bridge over the tracks. Expansion of the existing railroad crossing and moving that crossing to the Lyons Avenue area instead have also been denied.

Assuming that the railroad crossing situation is resolved at some point, the Lyons/Dockweiler extension through The Masters College area would also have to be worked out with a revision to The Masters College’s master plan and a relocation of their main entrance to the Dockweiler side in place of their current entrance on Placerita Canyon.

There is also a potential hotel site in the North Newhall area, although no potential hotel operator has been identified.

Back-In Parking

Comments were solicited on the controversial back-in parking issue, with some for and most against this plan. Brotzman stated that the City Council wanted to do a 6-month trial of the back-in parking plan, but that the time period could possibly be shortened. One of the most viable complaints, other than the fact that nobody quite understands this scheme, was that people attempting to enjoy dining at the outdoor cafe’s planned for the area will be forced to choke on car exhaust with back-in parking in place.

Passing the Buck

The City staff (Brotzman and Price) were quick to point out that all decisions are ultimately made by the Santa Clarita City Council. However, since the City Council relies on the City’s staff (i.e. Brotzman and Price) for recommendations, it would seem that both are somewhat intertwined. It’s hard to say who’s really running the show here, with many present at the meeting complaining that the City Council ignores their comments, complaints and requests on a regular and ongoing basis.

All of the businesses on this Spruce Street corner, with the exception of the American Legion Hall (at least for now), have been given notices that their properties will be taken by the City of Santa Clarita via eminent domain if these owners don’t "voluntarily" sell their properties to the City in the very near future. Eminent domain lawsuits will be filed in 30 days, to be exact, after the current owners receive the City’s "appraisals" for their properties.

Manny provides some very interesting history of the old jail building that I think is worthy of sharing here. Per Manny:

Through the years, it not only served as the jail, but was used as an attorney’s office, a used car lot, a tire shop, a storage area and presently houses the Antique Flower Garden.

The concept of the jail goes back to 1888 with proposals to construct a wooden two-cell jailhouse measuring 12′x20′ for $236.25 with iron bars or a slightly larger structure 13′x22′ for $248.00 There is some confusion as to whether the wooden jail was ever built at all.

Throughout the years, some additions have been made to the front of the building; a restroom and storage cages were added and a large office area was also added to the rear of the building. Never was the original structure compromised. Its 14 ½" thick concrete walls and concrete roof seem to have withstood the test of time.

Behind the front door lies an open area once divided by bars from its high ceilings down to the floor with its associated doors each heading into the cells. To the right are three small barred windows that allowed sunlight to enter. Across from the steel door on the opposite side of the room is another large barred window designed to provide light and ventilation. Below this window is where the Constable’s desk once stood and near the desk was a potbelly stove that provided heat. A vent through the wall and roof were part of the original design and are clearly visible.

Once in the cells, you can see etchings on the walls from prisoners past; what is not considered modern day graffiti. Two concrete benches lined each cell to accommodate overnight stays; one still exists in its entirety. A drain in the middle of the floor is a reminder that, yes, it was once a working jail and it was used for wash-down. This building was a predecessor to today’s modern jails. It is believed that William S. Hart, Amelia Earhart, Tom Mix and W.C. Fields would spend rainy days playing cards in the jail with the constable.

In April of this year, Manny and the other Spruce Street property owners received two letters: One from Valentine Appraisal stating that they wanted to appraise the properties (cc’d to Barbara Stoll, Acquisition Specialist for the Santa Clarita Redevelopment Agency); and one from the City of Santa Clarita that was a "Notice of Decision to Appraise" and "Notice of Land Acquisition Procedures" (cc’d to Robert Newman, Director of Public Works; Paul Brotzman, Director of Community Development; Chris Price, Assistant City Engineer and Sarona Vivanco, Senior Management Analyst).

This second letter outlined Section 6184 of California Relocation Assistance and Real Property Acquisition Guidelines, and Section 6188 of a Notice of Decision to Appraise and Notice of Land Use Acquisition Procedures. Or, in plain English, the City’s right to force the current owners to "sell" their properties to the City of Santa Clarita. In Manny’s words, "Bottom line is that this historic site is now in the first stages of Condemnation Eminent Domain."

One of Manny’s biggest concerns is that it appears that the City of Santa Clarita is considering relocating this historical building, rather than keeping it in place. "Is this our will that we erase our history or heritage? Keep in mind that the jail has certainly earned the right to stay where it was built, but if it does survive the move, it will be just another old building in a County Park. If left where it’s at, it can become a historical site, never to be moved."

"I may be the owner of the old jail or as I like to think of it, the caretaker of it while I’m here on God’s green Earth. This jail is part of our town, our history and each and every one of us should be concerned about preserving Newhall’s history for ourselves as well as our children’s children," says Manny.

So far, the overall public interest in the plight of the downtown Newhall business owners (as well as the owners of residential properties in the area) has been lukewarm at best. Will anyone step forward to help Manny and others preserve the history of the downtown (now dubbed Old Town) Newhall area, or will the jail be moved to join the buffalo at Hart Park instead?

Manny’s wondering whether he should start circulating petitions… seems he should start moving pretty quickly on this, since word is that the appraisal letters are due to be presented to these Spruce Street property owners as soon as the Santa Clarita City Council returns from its break in late August.

Interesting to note is that the designer for the Antique Flower Garden website is "Rising Ashes Productions"… Hopefully Manny will be able to do just that!

Eminent domain, according to Wikipedia, means "the inherent power of the state to seize a citizen’s private property, expropriate private property, or rights in private property, without the owner’s consent". Or, in plain English, the City can seize anyone’s property for any reason, and they don’t have to justify that they have a bona-fide reason to do so. Strong-arming, in other words.

Each property owner received a phone call (some received them at home), then a regular letter indicating that their properties were being appraised for eminent domain, followed by a certified letter a day later threatening legal action if the businesses failed to accept the offered "appraised value" in short order. And all notices were received within a 3-day time frame.

Included in this notification process were businesses along Spruce Street (White Light Chiropractic Center, Antique Flower Garden, and the landlords for Just Passing Through Body Piercing) as well as CarQuest Auto Parts at the corner of San Fernando Road and 11th Street. Prior to this notice, the owners of the Antique Flower Garden had been told that their building would be spared due to its apparent historical status, but it would appear that has now been revoked.

This area is the quadrant targeted for a new 65,000 square foot library building, which according to reliable sources, Los Angeles County cannot afford to staff or stock with books even if it was built at no cost to the County. In light of the recent approval of the much needed library for the Acton / Agua Dulce area, it would seem even less likely now that the proposed Newhall library would be something that Los Angeles County would be able to manage in the forseeable future. Especially since there already is a library nearby in Newhall, as well as one in nearby Valencia.

The new library building is supposed to be the cornerstone of the Old Town Newhall Revitalization Plan, marking off the start of the revitalization area. This whole plan is geared towards increasing retail sales (as in sales tax dollars) in the area, and it clearly revolves around chasing out any non-retail businesses as well as most of the supposedly "locals-only" retail businesses in the Newhall area.

A study of the proposed retail developments for the Newhall area, called the Retail Opportunities Analysis, was completed as of December 2006 and was released to the public recently. More will follow on this highly flawed study in a series of separate posts on this blog.

This first step in strong-arming local businesses to vacate the Downtown Newhall area is a sure sign that the City of Santa Clarita has no concern whatsoever as to how the existing businesses will survive the upheaval they will be creating with the Old Town Newhall Revitalization Project. The business owners are being given no time and no assistance in relocating out of the redevelopment area at this point, and they expect that the "appraised values" of their businesses will be way short of what will be needed to relocate and re-establish themselves elsewhere in Santa Clarita.

Other cities that have gone through a similar redevelopment process (such as Glendale) have done it in a more gradual and planned manner, buying up properties as they became available and then using eminent domain on the few that remained. Santa Clarita has apparently decided that they don’t need to worry about the local economy in the short term, as long as they can push through their hopped-up plans for the redevelopment zone in the long term.

In a March 25 article in The Signal, Paul Brotzman, the City’s Director for Community Development, stated that the City didn’t get the proposals that they expected from potential developers because there "were uncertainties in the redevelopment plan – namely, if the city could guarantee that parcels would be assembled and available for redevelopment projects." So, now that the City is showing that they do indeed intend to exercise their muscles in invoking eminent domain, will they "completely cover the costs of the relocation to comparable facilities" as Brotzman promised?  Although Brotzman has stated that "those costs include not only moving costs, but the cost of acquiring another facility for those businesses", the local business owners are very skeptical that this promise will be carried out. According to the local business owners, the City has been entirely unresponsive to their relocation needs thus far.

Rumors are rampant that the City representatives are so personally vested in this planned development that all they are interested in is their own pocketbooks. Will they prove us wrong by not investing in this redevelopment plan personally, or will they attempt to hide it by using shell corporations to mask their ownership interests?

More to follow on this… stay tuned for a complete review (or is it flaming?) of the Retail Opportunities Analysis.