SAN JUAN CAPISTRANO : Firms Facing Eviction Move Against City

The owners of four businesses that must be moved from historic downtown buildings have filed a claim against the city seeking a minimum of $1 million.

Tenants of the mostly vacant El Peon complex say they should be compensated for losing their location because of the city’s recent sale of the property to investors who plan to renovate the structures.

“Under the law, as I researched it, what the city has done, in effect, is take away their businesses without giving just compensation under the state Constitution and the U.S. Constitution,” said Richard L. Franck, a Los Angeles lawyer representing the owners of Cafe Capistrano, M&M; Jewelers, The Cat’s Meow and Cynthia’s Bakery and Tea Room.

City Atty. Richard K. Denhalter said Wednesday that the city is not obligated to pay the tenants, but that officials are willing to discuss city assistance in finding the merchants other spots.

“We sold the property to a purchaser who purchased it with the tenants in place,” Denhalter said. “They’ve got a giant mountain to climb before they establish a claim.”

The City Council is scheduled to consider the claim Tuesday.

Franck said the new owners have given tenants until Jan. 15 to move so that the businesses, which are across the street from Mission San Juan Capistrano, can remain open through the holidays. He said he will file a lawsuit if the claim is rejected.

The planned $2-million renovation project for the complex has been stalled and will not be finished by St. Joseph’s Day, March 19, traditionally regarded as the day the swallows make their annual return to the mission.

“We have the permits ready to pull,” said Steve Nordeck, one of the project’s partners. “It’s a crying shame.”

Nordeck said he is stuck in the middle.

Al Whelchel, owner of Cafe Capistrano, said that when the city bought the property in the late 1980s, he was assured that he would receive relocation money or be able to negotiate with a new owner if the building were sold.