Americana becomes a federal case

Josh Kleinbaum

A property owner on the proposed Americana at Brand site filed a

federal lawsuit against Glendale and its Redevelopment Agency,

claiming that the agency does not have the authority to use eminent

domain to purchase its land because the property is not blighted.

With agency hearings scheduled for Tuesday to condemn the land,

beginning the eminent domain process, Better Foods Land Investment

Co. requested a temporary and a permanent injunction from the U.S.

District Court. The injunction hearing could take place as soon as

Monday.

At Tuesday’s hearing, the agency will consider condemning the nine

properties on the 15.5-acre site that it does not own. The land,

bordered by the Glendale Galleria to the north, Central Avenue to the

west, Colorado Street to the south and Brand Boulevard to the east,

will be used for a $264.2-million retail and residential project in

downtown Glendale.

Better Foods Land Investment Co., which owns the 126-130 block of South Central Avenue, claimed that the agency is violating the 5th

Amendment, which gives government agencies the right to purchase

privately owned land through eminent domain.

A Rite Aid pharmacy and a Big 5 Sporting Goods store are on the

land owned by Better Foods.

“An agency with the power of eminent domain that is taking

property to take care of the blight can only do so if the property

that’s being taken is blighted,” said Art Fine, an attorney

representing Better Foods. “This property is not blighted. This

property is the antithesis of blighted property. This has been

developed for over 25 years.”

But city officials and a real-estate law expert disputed Fine’s

assertion that property must be blighted for eminent domain to be

used.

“The concept of blight, it does not necessarily have to apply to a

particular property, so long as the conditions of blight dominate and

affect the entire project area,” Assistant City Atty. Gillian van

Muyden said.

Better Foods’ lawsuit is the fourth filed against the city

relating to the Americana. The company also challenged the project’s

environmental approvals in the county’s Superior Court, as did Big 5

and General Growth Properties, which owns the Glendale Galleria.

General Growth also requested an injunction preventing developer

Rick Caruso or the city from demolishing two buildings on the project

site, Fire Station 21 and the Pacific Bell building. Three of the

project’s zoning-related approvals will be subject to a citywide

election Sept. 14, triggered by referendum petitions circulated by

General Growth.

Of the legal challenges to the Americana, Better Foods’ federal

lawsuit might be the weakest.

“This is an easy one,” said George Lefcoe, a real-estate law

professor at USC. “The rule is very simple. The property does not

have to be blighted -- there’s never been a requirement like that.

What matters is if the property is reasonably necessary for the

completion of the project.”

Fine said that Lefcoe and van Muyden are wrong.

“They should read our [complaint],” Fine said. “Maybe that would

help educate them a little. Suffice to say, we disagree.”