Eminent domain, redevelopment debt are topics

Two topics—eminent domain and the city’s inherited debt obligations as the successor agency to the dissolved Redevelopment Agency—merit a bit of printer’s ink this week.

First, let’s look at eminent domain, the government’s authority to seize private property. Eminent domain for economic purposes, such as taking land to resell to developers with the city collecting higher property and/or sales taxes, is illegal in Yorba Linda.

This limitation on the use of eminent domain was added to the city’s ordinances through Measure BB on the November 2008 ballot, which was supported by 79 percent of voters.

However, eminent domain for public purposes, such as taking land for street widening or other improvements benefitting the citizenry, remains legal, although the law hasn’t been used locally since the brouhaha over a failed 2004-05 Old Town redevelopment plan.

Now, City Council has authorized using eminent domain to seize a narrow strip of property, 130 feet long by 10 feet deep, fronting 4352 Lakeview Ave as part of the Lakeview Avenue widening and improvement project.

The city also seeks a 3,627-square-foot “temporary construction easement” to facilitate work on the portion of the project approaching the intersection with Bastanchury Road.

For both title to the 1,300 square feet of frontage and the easement, the city offered the property owner $100,860, which the city stated was based on an independent appraisal, but owner Newport Equity Capital Corporation asked $440,000.

The land the city wants contains concrete paving and block walls, lawn area, mailbox and landscaping. Nancy Rikel, who opposes the widening project due to lower property values, noise and traffic and changing the city’s appearance, cast the lone “no” vote.

Of course, eminent domain still can be used in Town Center to acquire property for new streets, public buildings or other improvements. The city owns 49 parcels (with 682,148 square feet) purchased 1975-2007, but at least as many remain privately owned.

Second, the council has assumed $614 million in outstanding debts or obligations from the disbanded Redevelopment Agency, with $16 million due February through June, as the agency’s successor body.

Presumably, agency assets and income from project-area property taxes will cover debts, with details determined by a seven-member oversight board to represent the city, county, Placentia-Yorba Linda schools, county schools, community colleges, agency employees and the general public, all to be named by a May 1 deadline.

According to a council-adopted “enforceable obligation payment schedule,” $163 million of the outstanding debt is for Town Center infrastructure and other bonds, personnel and overhead cost, fees, loans, Savi Ranch signage, affordable housing, mortgage assistance, contract services and maintenance and operations.

Pass-through payments due 14 agencies that would have collected some of the increased property taxes from project areas are $451 million, with close to $9 million due by June 30. The largest obligation is $297 million for the Placentia-Yorba Linda school district, with about $2.3 million payable this month and again in June.