Anaheim : Relocation Firm Hired for Chevy Chase Project

In another step toward renovation of the Chevy Chase neighborhood, the city has approved a relocation agreement for up to $175,000 with a Long Beach-based firm.

Pacific Relocation Consultants--also known as Stadler, Shober & Cline Inc.--will conduct studies and provide a relocation plan for the families that would have to move if redevelopment occurs. If the project is dropped, charges by Pacific are not to exceed $7,000.

While the agreement was made between the city (via its Housing Authority) and Pacific, the city will be reimbursed for its costs by the firm that hopes to redevelop the property, according to Tom Carruthers of the Anaheim Redevelopment Agency.

The development firm of Anaheim-based hamburger magnate Carl Karcher and developer Terrance K. Barry has proposed to buy and renovate the entire neighborhood of nearly 400 units.

Because one of the major issues to be tackled in the renovation project is overcrowding, officials say that at least 200 families would have to be relocated.

Financing the actual purchase and renovation is “not that big a factor” in the project, estimated at more than $25 million, according to Pacific partner David A. Stadler. Instead, much of the Karcher/Barry Co. plan hinges on “actual relocation and at what cost,” he said.

In the proposal, the city agrees to lend its power of eminent domain to acquire 15% of the properties within the one-square-mile neighborhood if the company can acquire 85% of the properties from landlords willing to sell. Relocation costs would be covered mostly by the developer and, to a lesser extent, by the city, Stadler said.

Earlier this month, the city approved a memorandum of understanding with the company and designated up to $500,000 for the project.

Some Latino activists have criticized the project as a plan to convert the area into a more affluent, middle-class neighborhood, resulting in displacement of the poor. The Neighborhood Improvement Program of Anaheim has praised the proposal.