What public benefit would come of Caruso's quest?

Jan. 18, 2011 12 AM PT

I have never met or spoken to Rick Caruso, developer of the Americana at Brand, or Ray Patel, owner of the Golden Key Hotel, which Caruso covets in his quest to expand his business.

I read in the Glendale News-Press in the form of news, and in full-page adverts signed by Caruso, that the latter “increased the amount of his offer to buy the hotel by 20% above the assessed value” (whatever this means), to $6 million. Patel still does not want to sell.

This presumably caused Caruso to enlist the help of the Glendale City Council/Redevelopment Agency to essentially force Patel to either redevelop his site or sell his hotel, setting a 45-day deadline for response.

The question in my mind is, in our present capitalist, free enterprise system, is not the price of a commodity determined by supply and demand, and a negotiated agreement between a seller and buyer? If the seller does not agree to sell, for any reason, be it the price or anything else, should he/she be forced to sell to another business person by the city?

Also, isn’t the use of eminent domain by the government limited to results benefiting the community at large, such as the construction of schools, roads, public buildings, libraries, parks, etc.? How does all this fit in this case, and what moral, ethical and practical bases exist for our City Council to potentially take property from a business owner unwilling to sell and give it to another larger business?

What public benefit would come of Caruso’s quest?