California High Speed Rail Litigation: Support for the Project in the Form of a Recent Federal Ruling

A ruling came down on December 15^th, which has further eased the way for High Speed Rail to move forward in California. The United States Surface Transportation Board ruled in favor of the High Speed Rail Authority when it decided that the federal government’s actions override the state law invoked in lawsuits against the project.  Specifically, opponents filed suit in several jurisdictions on the basis of the Environmental law known as CEQA, a set of state regulations, which has had the effect of delaying construction on the Fresno-Bakersfield leg of the project.

The High Speed Rail Authority, as agent of the Surface Transportation Board, is empowered by the federal agency to proceed with construction of the HSR in California. The Board ruled that CEQA, as a state law, cannot be used to impose restrictions on the High Speed Rail that result in significant delays in it’s progress. This is because the federal government trumps state laws and regulations. This ruling may set a precedent that can be applied to any future lawsuits against the HSR based on CEQA, thereby speeding up High Speed Rail construction even more.

Any action on the part of the court that eases the pressure of time constraints will be a boost for the High Speed Rail Authority.  As the Authority seeks contractors for the first few legs of Rail Construction, it’s also facing the difficult process of property acquisition, with only 1/5 of the land parcels needed for construction of the Fresno-Madera portion of the project ready for contractors as of November.

There are also cases still pending in the California Supreme Court, both attempting to overturn appellate decisions concerning Proposition 1A, the bond measure funding the High Speed Rail that voters approved in 2008. The original lawsuits claim that the High Speed Rail Authority is in violation of Proposition 1A, because the costs estimates as well as timing concerns for the project have been amended significantly since passage of the law.

Metro Gold Line Update: Testing Starts on Foothill Extension, Eastside Extension Still Awaits Route Decision

The Gold Line, which is a Metro light-rail line that horseshoes from Pasadena at one end to East Los Angeles on the other, has been in the news a lot lately. On December 9th, testing began on the tracks of the first phase of the Foothill Extension, from Pasadena to Azusa, and which will continue in the second phase to Montclair. This phase has less than a year left until completion. Testing on the project checks that a train can pass safely on the newly constructed tracks.

Recently a study was conducted at the behest of the San Bernardino Associated Governments, which assessed possible public transportation routes that would bring travelers to the struggling Ontario Airport. The study found 6 potential routes to the airport, only one of which included bus service, and one of the rail routes suggested would be a continuation of the Gold Line. The estimated costs however are extremely high, and the study does point out that to warrant building a light rail connecting to the airport, the number of annual passengers at the Ontario Airport would have to more than triple.

Finally, the big news on the Gold Line is the hearing in front of the LA County MTA  on the Draft EIR concerning Phase 2 of the Eastside Gold Line Extension. The report set forth two possible routes extending the Gold Line either to Whittier or El Monte, and the board was expected to pick one or the other. Instead, the board asked for a further study to be done that explores the possibility of constructing both routes. The new “technical study” will most likely be done in a few years, and upon its submission to the Board a decision will be made on which of the two routes will be chosen, or if both, which one will be built first. The anticipated completion of the Eastside Gold Line extension is in 20 years.

California High Speed Rail Update

California’s High Speed rail project is steadily moving forward thanks to the state Supreme Court’s refusal to hear an appeal in October from the project’s opponents, and eminent domain proceedings are underway. 

The Sacramento Business Journal reports that eminent domain cases concerning 36 land parcels are pending in the state superior court. These cases have been brought by the state to negotiate with property owners whose land is necessary for construction of the first leg to begin: 

“Owners of six of those parcels have since settled with the state. Of the 30 that remain, 10 are now pending in courthouses in Fresno and Madera counties. None have gone to trial yet.”

This October the California Supreme Court sided with the High Speed Rail Authority when it rejected a request by project opponents to hear their case.  The significance of this move by the state’s highest court is that the Appeal court’s decision to allow the project to proceed will endure. The California High Speed Rail Authority has taken the Supreme Court’s decision to not hear the case as a gesture of support, while opponents feel that the project proceeding in its current form creates a dangerous precedent. This speaks to the crux of the case against the High Speed Rail, which was based on allegations that the project had veered too far from the initial bond measure approved by California voters. Although there are still lawsuits pending, construction on the first leg of the high speed rail is slated for the beginning of the year, and will be able to continue as planned. The head of the Rail Authority, Jeff Morales, was quoted as saying that construction on the Fresno-Bakersfield stretch will quicken considerably as a result of the high court’s stance. 

Meanwhile, residents of San Diego are frustrated about the lack of information and concrete plans surrounding construction of the southernmost portion of the project.

In the Works: High Desert Corridor Project

The region in San Bernardino County to the East of Los Angeles County, known as Victor Valley, experienced significant growth in the past decade. As a result of this rapid expansion, The Los Angeles County Metropolitan Transportation Authority (“Metro”) and Caltrans, along with the towns of Palmdale, Lancaster and Victorville, and others, have joined together to execute a study on transportation improvement in this area. The High Desert Corridor (“HDC”) project is currently in the Draft Environmental Impact Report stage, The HDC footprint reflects the proposed span of this project, which would bridge the 14 and 18 freeways.

State transportation authorities believe that the current infrastructure, which moves commercial vehicles as well as provides transportation to local airports, does not support increased traffic volume. The goal of the HDC is to ease congestion along the route between Los Angeles and San Bernardino Counties, but the project has also evolved into a “multipurpose corridor”. This multi-level plan includes toll roads, bicycle lanes and green energy initiatives such as charging stations for electric vehicles.

City of Sacramento Considering Property Condemnation to Build Sports Arena

The City of Sacramento is considering the use of eminent domain to acquire a property necessary to build an arena for the NBA team the Sacramento Kings. Last week, the Sacramento City Council voted to take part in negotiations for the purchase of a property which sits on a portion of the site of the future Kings arena in downtown Sacramento. Currently, a Macy’s menswear store occupies the piece of land subject to possible acquisition.

According to the City Council meeting agenda, the Kings’ owners, Sacramento Basketball Holdings, LLC, had been working towards a deal to buy the property, which fell through, and the owners asked the City to step in. The City’s decision to get involved is incumbent on the owners signing an agreement which would protect the city’s interests. The full August 13, 2013 City Council meeting agenda can be viewed here.

Eminent domain is usually a process reserved for public agencies to acquire land for public improvement projects. According to the CBS affiliate in Sacramento, the arena will be funded by the Kings owners, but its owner will be the City of Sacramento. This could allow the arena to be placed in the category of a “public project”.   However, the Sacramento Bee reports that property condemnation for sports arenas is not unusual.

Eminent Domain Round-Up: Road Improvements in San Diego

A Final EIR (Environmental Impact Report) is expected to be released this summer for Caltrans’ I-5 North Coast HOV/Express Lanes Project in Northern San Diego County. The purpose of this project is to improve traffic conditions on the 5 freeway by adding two HOV lanes both in the north and south direction, between La Jolla Village Drive and Harbor Drive in Oceanside. According to Caltrans District 11, daily traffic along this stretch of the I-5 could reach 300,000 by the year 2030.

A road widening project in the city of Ramona will affect property owners in the area. Settlements for land acquisition consisting of partial takings and temporary construction easements have been reached, except for the owners of two parcels. According to the San Diego Union-Tribune, the widening of San Vicente Road is intended to improve safety conditions on a twisting 2-mile portion of the street where over 20 car accidents have taken place in the past five years.

Read More: http://www.utsandiego.com/news/2013/jul/15/san-vicente-road-widening/

The City of Santee held a Resolution of Necessity hearing on July 10, 2013 to approve eminent domain for approximately 50 parcels of land earmarked for the Prospect Avenue Widening project. Improving traffic conditions, relocating utilities and adding bike lanes along a 1-mile portion of Prospect Avenue are among the project goals.

Regional Connector Project Requires Condemnation of Commercial Property in Little Tokyo

By Jeffrey Horowitz

The Los Angeles Metropolitan Transportation Authority (“Metro”) is expected to file a complaint in eminent domain against the owner of a parcel of land in the Los Angeles neighborhood of Little Tokyo. The property is the site of one of three future stations for Metro’s Regional Connector. The Downtown LA News reports that Metro has made an offer to the owner for the property, which consists of three commercial buildings and a parking lot. The owner’s position according to the news report is that Metro’s appraisal does not take into consideration the “highest and best use of the property”.

Condemnation of Commercial Property by a Public Agency

Eminent Domain or Condemnation is the process by which a government agency acquires private property for public use. The term “eminent domain” is not limited to litigation; it includes all proceedings from the initial offer or notice from the condemnor up until the filing of a lawsuit, and through trial or settlement negotiations. If the owner of a commercial property accepts the first offer made to him or her, or otherwise settles with the condemning agency prior to litigation, this is still part of the eminent domain process. Highest and best use is a major factor that sets apart a traditional real estate transaction arising from eminent domain proceedings. A determination of value based on highest and best use must take into consideration practical issues concerning the property such as zoning and location.  A public agency will have the condemned parcel appraised, but property owners should hire their own licensed real estate appraiser to determine the value of the condemned land.

Source: http://www.ladowntownnews.com/news/metro-to-use-eminent-domain-for-little-tokyo-site/article_a1efa8cc-e43f-11e2-a53d-001a4bcf887a.html