Unanimous vote precludes seizing land for private developers
Morgan Hill – The city council avoided a clash with private property owners Wednesday by omitting eminent domain powers from a $330 million plan to extend the redevelopment agency.
The closely watched decision drew applause from the public gallery after the council’s 5-0 vote to forgo powers to seize commercial properties for economic revitalization along a strip of land buffering Monterey Road. In a separate 5-0 vote, the council approved new funding limits for the agency.
“Eminent domain is such a hot button issue all over the country right now … It concerns me that this could be a divisive issue in Morgan Hill,” said Jeanne Gregg, who owns the Morgan Hill Animal Hospital on Monterey Road with her husband. “I just don’t think the potential gain from having this would offset the potential problems if it were used.”
Others said past experiences with eminent domain left them cold.
“The city has an obligation to its taxpayers to spend the least amount of money possible on a piece of property. And the property owner wants to maximize his value. The city’s move last night gives both parties the opportunity to sit down and negotiate and have a positive experience,” said Morgan Hill developer Rocke Garcia, who a decade ago spent two years in court after the city of San Jose seized a 30,000-square-foot office building he owned to build a park near the site of the HP Pavilion.
“It’s a very painful process, going through the courts,” Garcia said, adding it could have been avoided if the city had paid him what the court paid him, a sum he said was twice as much as the first offer.
Robert Pederson, whose family-owned A Equipment Tool Shed Rentals does business in Morgan Hill, said he had to lay off eight employees in 2000 when the city of Campbell’s redevelopment agency seized three parcels for a private developer to put housing there.
“It was very disappointing,” said Pederson, a Los Gatos resident. “They took properties away from the owners and displaced the businesses. I was very happy with the vote (Wednesday).”
City councilman and Mayor-elect Steve Tate said he’d rather side with caution than with controversy.
“There’s so much emotion in it. It’s just not worth the amount of chaos it would cause,” Tate said. “We’ve survived this long without it and I think we can go forward without it.”
City Councilman Greg Sellers struck a similar chord: Assembling blighted parcels to help bring modern shopping centers and hotels to areas along Monterey Road would be better done if the city is not seen as a robber baron – even if popular projects are delayed.
“Even if delays what’s best for the public interest, it is far more important to me that we maintain the public’s trust,” Sellers said.
Council members also considered input from public forums in recent months where residents questioned the need for eminent domain.
“It’s been clear where the public is on this issue,” said Councilman Larry Carr.
City Manager Ed Tewes said recently he’s hard pressed to think of a single time when the city’s redevelopment agency, established 25 years ago, ever used eminent domain. The agency had that authority at the start, but plan amendments in 1994 and 1999 did not include eminent domain.
The new plan adopted Wednesday will add $330 million to the agency through 2024 as the current funding cap is about to be met in January 2008.
The plan also allows the agency to sell up to $150 million in bonds to speed projects along. Proponents of bonds say construction costs are rising more than inflation so it’s cheaper to build now and pay later.
City council members said the first priority for the funds would be to build the city’s economy to support new public facilities such as the Morgan Hill Community and Cultural Center and the Centennial Recreation Center.
The money could be used to promote new businesses, encourage cooperation of private and public agencies and provide for street lighting, under-grounding of overhead utility lines, repairs to sewer systems and building flood control devices.
The redevelopment area covers 1,974 acres in Morgan Hill – roughly one third of the city. Under the new plan, the size of the project area is 575 acres smaller than it previously was.
Tony Burchyns covers Morgan Hill for the Times. Reach him at (408) 779-4106 ext. 201 or tb*******@mo*************.com.
The Morgan Hill Redevelopment Agency
The city’s redevelopment agency was created in 1980 to provide a way to redevelop blighted areas, with an emphasis on downtown. A map of those areas was created, and tax revenue that normally goes to the county, the city and other funds is redirected toward the agency. The agency’s bylaws allow for the construction of projects such as the Morgan Hill Community and Cultural Center, but do not allow for money to be spent on maintenance. It has spent $247 million on those and other projects. The city council acts as agency directors.
Tony Burchyns covers Morgan Hill for The Times. Reach him at (408) 779-4106 ext. 201 or tburchyns@morganhilltimes.
