Anaheim to Condemn Land for Developer

Anaheim officials agreed Tuesday to lend the city’s power of condemnation to a developer planning a $200-million project in an area near the Anaheim Convention Center, a move unprecedented in the city.

Tuesday’s final approval by City Council members sets off a process the city will use to acquire part of a strawberry farm beside Harbor Boulevard if the farmers and developer continue to disagree on a price. An attorney representing the Hong Kong-based developer said construction of a 17-story hotel, two 14-story office complexes and two 180-unit condominium towers could begin as early as next year.

Before construction begins, however, developers from Alexandra Ltd. and Becker Ltd. need to acquire part of the farm Hiroshi Fujishige and his family own. To conform with an environmental impact report, the developers need to create two access roads, which will cut through the 58-acre farm at 1854 S. Harbor Blvd.

Fujishige said Tuesday night, “They’re going to take it one way or another. I just don’t like to fight City Hall.”

Representatives of the city, the developer and the family have been negotiating for more than two years, Traffic Engineer Paul Singer said.

Despite many meetings, however, the Fujishige family, who earlier this summer said they would give the property through a friendly condemnation procedure, rescinded their offer. One reason was the price offered for the land, located across the street from the Hilton, Marriott and other hotels. The Fujishiges want $1 million per acre. The developers say the land is worth about $30,000 per acre.

Floyd Farano, an attorney who represents the developer, said after Tuesday’s meeting that a future offer to the Fujishige family will be in “the same ballpark as before.” If the two parties cannot negotiate an agreement within the next 60 days, the issue will go back to the City Council, which would begin condemnation procedures, City Atty. Jack White said. That would force the Fujishige family to sell the land.

This is the first time Anaheim officials have used the power of eminent domain, or condemnation, for a developer, White said.

The developer will pay for the property needed for the extensions of Convention Way and Clementine Street and the legal costs of the condemnation process. The developer also will pay the full cost of installing storm drains, while the city will share in the cost of constructing the roads. It has not yet been determined what the city share will be, Singer said.

The proposed roads that will cut through the Fujishige farm are necessary as a “relief valve” for development that is expected to increase daily vehicle one-way trips by 26,400, Singer said.

The office towers probably will be built first, Farano said.