$1.4-Million Fight Heads to Court

The owner of a closed Garden Grove Boulevard auto repair shop and car rental agency is seeking $1.4 million in compensation from the city after her businesses were seized and bulldozed last year to make way for a Redevelopment Agency housing project.

In the first eminent domain case to go to jury trial in Garden Grove, property owner Daniela Goia claims that the value of her closed businesses has been ignored by city appraisers and offers for the property are too low.

The owner’s appraiser, Steve Zamucen of the CPA firm Zamucen & Close, said he placed the value of the closed businesses at $450,000. The city claims the operations had no value.

“That’s a big difference,” said Deputy City Manager Catherine Standiford. “Our experts came up with a different conclusion than their experts. They are both credible so we decided the best course is to run this through the court process.”

John C. Murphy, the owner’s attorney, said it is rare for eminent domain cases to make it to trial. The cases are traditionally settled through negotiation.

“In this case the city is adopting a very hard line and an inexplicable position,” Murphy said.

Goia purchased the Garden Grove Boulevard property for $790,000 in 1990 and added about $95,000 in improvements to the building. The city has offered $607,000 for the property and $37,700 for the fixtures, Murphy said, with no offer for the loss of the businesses.

Goia hasn’t relocated the business because a suitable location couldn’t be found, Murphy said. She looked at more than 40 possible sites and made offers on four, he added.

Standiford said the properties that interested Goia weren’t comparable to the Garden Grove Boulevard location.

The trial is scheduled to begin Monday.