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COPIES SENT TO ALL COUNCIL MEMBERS STRADLING
YOCCACARLSON A PROFESSIONAl ATTORNEYS
660 NEWPORT CENTER ORIVEI SUITE 1600
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NEWPORT BEACH. CA g2t56o-e.22
FACSIMILE (949) 725-<1100
SAN FAANC!SCO OFFICE .... MONTOOMtlRY aTAftT, SUITt .2(1) SAN FRANCISCO, CAUFOANIA !fHI),4 TELEPHONI! (415) 2$~.%.1"O I'ACSJMILf (415) 2U'U6S
SANTA BAR.BARA OFFICE JO:Z OLIVe STREET SANTA I!lAR9,t.IVI. CALIFORNIA 9~HOt TEI./!PHOl'le (&06} 5e4-o0~5 FAUIM!LE (tI(ll!') 5,4-'044
February 10, 2009
City Council of the City of Los Angeles 200 N. Spring Street, Rrn 410 Los Angeles, CA 90012
February l l, 2009 Council Meeting -Agenda Item No. 27
Dear Councilmembers: This office represents Kramer Metals and Stanley Kramer (collectively, "Kramer"), the owner of the real property (the "Property") that the Community Redevelopment Agency of the City of Los Angeles ("eRA") seeks to take by eminent domain in Superior Court Case No. BC318563 (the "Action"). Agenda item no. 27 on YOUf February 11, 2009 agenda seeks your authorization to allocate $405,910 in interest earnings from the eminent domain deposit in the Action to the CD9RP A budgeted line item category "Commercial and Industrial;" however, pursuant to Code of Civil Procedure section J 268.31 0 et seq., interest on funds deposited in an eminent domain action belong to the property owner. Accordingly, Kramer objects to the proposed allocation of funds belonging to Kramer to support the CRA' s ongoing efforts to forcibly take the Property from its rightful owner, who has operated his business thereon for more than thirty (30) years. Kramer notes that since 2004, the CRA has spent millions of dollars and thousands of hours attempting to forcibly take the Property from its rightful owner, who has operated his business thereon for more than thirty (30) years. What has the CRA achieved by this massive expenditure of time and resources? Nothing. No shopping center has been built and you are now being asked to authorize further expenditures to subsidize this project. Rather than continue to pursue expensive and time consuming eminent domain proceedings, which proceedings have already been dismissed once, we urge the City Council to reject the allocation and instead allow the property owners the opportunity the CRA was legally required to give them long ago - to develop the Property themselves.
Kramer has and continues to challenges the CRA' 5 legal authority to undertake the Project as proposed and forcibly take the Property based on numerous procedural and analytical flaws in the CRA's proceedings regarding the Project that have already once and will again result in the unnecessary expenditure of funds in these futile efforts. Rather than allow Kramer and his neighbor M&A Gabaee ("Gabaee") to proceed with their approved site plans and develop the Property at 110
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City Council of the City of Los Angeles February 10,2009 Page Two
cost to the taxpayers, the CRA seeks yet another public subsidy to take the Kramer Property to convey it to a private third party for construction of a retail shopping center at a stated cost of $21,395,041 in public tax dollars (the "Project"). illegal and improper because:
The CRA's efforts to take the Kramer Property are
The public interest and necessity do not require the Project proposed by the CRA because any alleged blight On the Property will be eliminated by Kramer/Gabaee' 5 plans to develop precisely the same uses on the Kramer and Gabaee properties, which development has been fully entitled by the City of Los Angeles.
The CRA violated Kramer's owner participation rights under both the eRA's Owner Participation Rules ("OP Rules") and California law by pre-determining to award the Project to Concerned Citizens of South Central Los Angeles ("CCSCLA"); compliance with the OP Rules is a mandatory pre-requisite to the commencement of any eminent domain proceedings.
The CRA failed to provide Kramer with a pre-condemnation offer pursuant to Government Code Section 7267.2 prior to the May 5, 2005 hearing on the Amended Resolution of Necessity and the only offer provided to Kramer was legally insufficient to satisfy Section 7267 et seq. at the time of the July 15, 2004 Resolution of Necessity hearing.
The eRA pre-determined the outcome of the hearing on the first resolution of necessity for the Kramer Property when, three months earlier, it passed a separate resolution of necessity to acquire the Gabaee Property for the Project, which property could not be developed without the Kramer Property. Kramer urges you to vote against the proposed allocation. Very truly yours, STRADLING YOCCA CARLSON & RAUTH
I I ,
DOCSOCll32970 1v 11024646·000 I \ i
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STRADLING YOCCA CARLSON & RAUTH A PROFESSIONAL CORPORATION ATTORNEYS AT LAw
Ilb~=~=~=_FA=C=S_IM=I=LE=-C~O=VE=R_S=HE=E"..;T~~=~=~=,~ 660 Newport Center Drive, Suite 1600 Newport Beach, California 92660-6422 Date:
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February 10, 2009
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Kramer v. Comm. Redevelopment Agency of City of Los Angeles, et al.
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