Court rules against Hyundai test track in eminent domain case

Valley Press on ^ | Sunday, January 14, 2007. | ALLISON GATLIN

[BenLurkin]

CALIFORNIA CITY - A state appellate court has decided in favor of several California City property owners fighting the city's use of eminent domain to acquire their land in 2003 for an automotive test track for Hyundai Kia Motors. The Fifth Appellate District decision overturns that of a Kern County Superior Court, which in 2005 found in favor of the city in its acquisition of land for the test track, which occupies seven square miles at the southern edge of the city along Highway 58.

Of the acreage needed by Hyundai Kia, approximately 80% was owned by a railroad firm and purchased by the automobile company. The rest consisted of 211 lots, of which approximately half were purchased for the test track without resistance and the remaining 100 or so were subject to eminent domain if continued negotiations were not fruitful.

The city, through its Redevelopment Agency, deemed the properties "blighted" because they could not be independently developed due to their "irregular form and shape" and "inadequate size." Several landowners challenged the eminent domain decision and filed a lawsuit.

Although Superior Court Judge John Kelly upheld the redevelopment plan in September 2005, the appellate court found the redevelopment agency to have misinterpreted the statute regarding the shape and size of the lots, therefore negating the determination of blight and the redevelopment plan.

"Because Redevelopment Agency's findings were based on an incorrect interpretation of the statute, its approval of the redevelopment plan is invalid," the decision said.

The Hyundai Kia Motors test track opened for operation in 2005.

[stylin19a]

why need the lots if the the test track is already open ?

[BenLurkin]

I'm not clear on the procedural posture of the case. It appears to be an appeal from a final judgment but could also be a writ working its way up.

Under old California law (changed just this year) a condemning agency could utilize a "quick take" procedure and obtain possession before the trial. This enabled entities for instance to build while monies were available or in this case before the developer went elsewhere to build the track perhaps.

If the city obtained pre-judgment possession or even if the final judgment was had but now being reversed, the owners could conceivably bring their own separate action for inverse condemnation and seek attorneys fees both for that suit and maybe even for the 'abandonment" of the first action.

[saganite]

Redevelopment Agency's findings were based on an incorrect interpretation of the statute, its approval of the redevelopment plan is invalid,"


I don't see a victory for property owners here. The denial of the seizure was based on an incorrect interpretation of a statute designed to allow property seizures.

[skinkinthegrass]

why need the lots if the the test track is already open ?

Good Question....I guess, Its' to show, the power of "corrupt "if you scratch my back, I'll scratch yours" politicians"

[FLOutdoorsman]

Because they built the dam track already.

http://www.bakersfield.com/102/story/93780.html

From the above link:
"We thought we were doing the right thing," he said. "We did something with a piece of land out there that had no movement on it for 50 years. No one had developed one piece of it."

This is what kills me. So they didn't build anything on the land. Big deal. Thats the point of ownership. You decide what to do with your OWN land. Either through speculation or keeping it they way it is to pass along to the next generation.

Nice job Gov't.

[BenLurkin]

It may be a temporary victory at best -- still they may be able to get leverage out of it to increase the compensation being paid.

For instance, if the previous action is thrown out, the next suit may mean that the property owners have the benefit of a more recent date of value for the property. Usually this is an advantage for the owners in a rising market or if a particular area is experiencing rapid development.

[BenLurkin]

Good post. I lifted this graphic from there:

By the way -- to be realistic: these properties weren't going undeveloped because the owners simply chose not to. There was no way someone could develop that land and not lose their shirt -- which would be their right I understand -- but Cal City is quite remote from most development in the Antelope Valley.

[Clifford The Big Red Dog]

Why would anyone buy those cheap Korean hunks of tin, anyway?

Never rule in favor of anything for foreign companies over American citizen property owners.

Buy American cars...or walk.

[patton]

Which cars are American - the GMs produced in Mexico, or the Mercedes produced in Kentucky? Just wondering...

[Clifford The Big Red Dog]

Do what I did. Drive a Cadillac.

They're still made in Lansing.

[patton]

Did you look at the %US content on the disclosure sticker?

[jiggyboy]

The city, through its Redevelopment Agency, deemed the properties "blighted" because they could not be independently developed due to their "irregular form and shape" and "inadequate size."

So "blight" is whatever the thief says it is.

Equally troubling is that the court didn't throw out this absurd and arbitrary definition but split hairs over how the properties either did or did not measure up to it.

[Paladin2]

track -118.0539723896193 35.0553101607363 14875.97016111525 1.456239371384945e-010 -0.6457841851816555 root://styleMaps#default+nicon=0x307+hicon=0x317 -118.0539723896193,35.0553101607363,0

[Paladin2]

It's in the middle of the desert.

[Turborules]

The Hyundai Cars are world class autos, with more value for pound than any American Car...they will beat Toyota soon...

the American Cars are being made with the expectation that our government, no in the hands of Dims will protect their poor little small minded management with laws and red tape

Compete, hell we are america, we don't have to compete for the Sales Dollar...we make laws!

[AmeriBrit]

California City is actually 200 sq. miles, but only a very small portion of it has been developed.

Hyundai has had a smaller test track out here for years on the other side of town. This new facility will bring many jobs to our desolate area and be a huge benefit to our town.

These property owners are all out of state investors who were hoping to make a killing when they started to put in all the new freeways, but the cities development has been going in the opposite direction and now that the new roads have cut Mojave off and made it into almost a ghost town, they're about to lose their shirts.

There are no roads or access to any utilities for miles from where their property is located.

[skinkinthegrass]

they will beat Toyota soon...

That's so true....I had worked @ the Toyoda Plant (Georgetown, Ky.) as a Temp....They're (the workers) are very mindful of the quality of those Korean (Designed/built) cars.....@ a much lesser cost

Insofar as the UAW is concerned, forget 'bout it.....their busy organizing (future) government worker unions ($$$$ the pols)....to hell w/ the future of the American Autoworkers.

[quietolong]

>>> These property owners are all out of state investors... <<<

If what you say is true. I would think these people would be glad to unload these lots. I think there’s a lot more to the story.

Anyone check the land for gold lately?
BTW who keep’s the mineral right when land is taken like this?

They built the track so quickly so when they lost the case they would say it’s already there.

I’d be out there with a dozer clearing the “debris” off my land.

read how ED is used to screw the “little” people.

http://www.freerepublic.com/focus/f-news/1431203/posts?page=28#28

[AmeriBrit]

I would think these people would be glad to unload these lots. I think there’s a lot more to the story.

---

None of the investors plan on living here in the city. They're all from out of state and are just in it for every penny they can make out of the deal regardless of what disruption they can cause.

It's so ridiculous. The town of California City is approx 3 sq. miles in size, in the middle of 200 sq. miles of very little but bare desert. The investors have been offered very generous prices for their lots or other lots in exchange but they refuse hoping they will all become rich by holding out.