SAN JUAN CAPISTRANO

Businessmen to Fight Eviction

Owners of at least two of four businesses left in downtown’s El Peon Plaza say they plan to fight eviction, and one contends that the city’s sale of the property earlier this year, along with the way he has been treated, bode financial ruin for him.

“I’m losing everything,” said Musa Sharaf, who runs Cynthia’s Tea Room & Bakery. “I always paid rent on time. The city should be trying to help small businesses, not put them out on the street.”

On Friday, the city gave Sharaf a three-day notice to move out, contending that his sublease was no longer valid. The City Council has voted to end its lease with Mike Darnold, from whom Sharaf sublets the building where his business is located. City Atty. Richard K. Denhalter said Darnold “abandoned” his lease with the city.

The three remaining businesses in the complex have month-to-month agreements with the city, and at least one does not plan to go quietly.

Escrow could close in seven to 10 days on the El Peon Plaza property, which occupies a block across from Mission San Juan Capistrano. The area will undergo a $2-million renovation.

“They’re trying to force us out, put pressure on us.” said Al Whelchel, who owns Cafe Capistrano in the El Peon Plaza. But Whelchel said he intends to stay “until they throw us out.”

Denhalter denied the city is trying to toss remaining tenants out before the sale closes escrow.

Steve Nordeck, one of the project’s partners, said the three tenants with city rental agreements will probably receive 30-day notices from him when escrow closes. Nordeck said the evictions are necessary because work will be done to strengthen the buildings to comply with earthquake codes.

The tenants may reapply for new leases once the property is finished, although prices will probably be higher, Nordeck said.

Nordeck said he hopes to complete work on the complex in time for St. Joseph’s Day, March 19, when the swallows make their annual return to the mission.