Huntington Beach : Eminent Domain Plan Approved by Agency

Members of the city redevelopment agency have voted to use eminent domain, if necessary, to buy property at fair market value if holdout landowners don’t lower their asking prices for property in the downtown redevelopment area.

When the city began the redevelopment project in 1984, the agency voted to exercise its power of eminent domain at the site only if developers acquired two-thirds of the property and a commitment from two-thirds of the property owners for the project.

The agency decided to take action Monday because some property owners have been holding out for more money, City Atty. Gail Hutton said.

“Some of the property owners have a very high evaluation of their property. They are so high that the developer does not want to spend that type of money,” she said. “If we have holdout property owners . . . no developer can go forward with its plans.”

The downtown project area includes about two blocks bounded by Main and Second streets, Walnut Avenue and Pacific Coast Highway. Mike Adams, the city’s principal redevelopment planner, said the northeast portion of the project area, not included in the project at the request of property owners there, would not be affected by Monday’s 4-1 vote.

Plans for the $50-million project include a 300-room hotel, 15,000 square feet of retail and commercial space, a 20,000-square-foot public plaza and a pedestrian overpass at Pacific Coast Highway.

Adams said construction will begin in August.