Land Deal Upended by Demise of Redevelopment

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The state Supreme Court’s recent decision upholding the elimination of redevelopment agencies has had some unpredictable consequences on a Monrovia property owner’s fight against the Gold Line.

For months, George Brokate has waged a public battle with the rail line, charging that its offer to buy his key industrial property is a fraction of the deal given to the city of Monrovia for a neighboring site.

The Gold Line Construction Authority offered Brokate $5.6 million to buy his 4.5 acres, compared with a $57 million deal that Monrovia secured for a 12.5-acre property – nearly four times more per acre. Both properties are on the site of a planned maintenance yard crucial to the rail line’s foothill extension to Azusa.

The city property was owned by the Monrovia Redevelopment Agency. And now, the elimination of redevelopment agencies effectively kills the deal between Monrovia’s agency and the Gold Line, not only complicating matters for the rail line but also removing a key part of Brokate’s argument – that he’s getting less than the city. He had said the disparity was proof that private-sector owners are at a disadvantage in their dealings with public projects, and filed an avalanche of lawsuits challenging the Gold Line’s construction.

Its deal with Monrovia dead, the Gold Line has begun eminent domain proceedings to forcibly take the city’s property – even though it’s unclear exactly who owns it now. The Gold Line lowered its offer from $57 million to an appraised value of $17 million. It had previously begun eminent domain proceedings against Brokate’s property.

But Robert P. Silverstein, Brokate’s attorney, shrugged off any suggestion that the demise of Monrovia’s deal weakened his client’s negotiating position.

“We believe that their offer is about 25 percent of the true fair market value of the property, but we’re not interested in negotiating, and we’ll continue to fight,” Silverstein said.

Monrovia may still end up with a favorable deal. Gold Line spokeswoman Lisa Levy Buch said the rail line is interested in negotiating a new deal with the city.

“We want to be able to negotiate outside of court,” she said. “(Brokate’s) issue really wasn’t valid. When you’re dealing with a public entity versus a private entity, there are different variables that go into a purchase price.”

Meanwhile, the Gold Line has been dealt another recent setback stemming from Brokate’s legal challenges.

Last month, a Los Angeles Superior Court judge ruled that Gold Line authorities did not explore reasonable alternatives to the maintenance yard site, which could potentially delay the project by forcing the environmental impact report to be redone.

Gold Line authorities have already challenged that ruling, saying it was based on a factual error. A decision on that challenge is expected in the coming weeks.

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