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City initiates proceedings to condemn land in downtown
Property intended for Master Development
By Steven Raphael
The city of Campbell has initiated eminent domain proceedings to seize three properties in downtown Campbell. The properties, located on Campbell Avenue and Second Street, are the last remaining parcels needed to make way for a city-backed redevelopment project.
According to redevelopment director Kirk Heinrichs, attorneys hired by the city will petition Santa Clara County Superior Court to issue an immediate order of possession within the next two weeks. This will require the owners of the properties, Stephen and Paul Werthmann, to vacate within 90 days of that order, Heinrichs said. The Werthmanns will be compensated for their land at fair market value, Heinrichs said, which is $1.6 million.
The city has been negotiating with the Werthmanns, as well as four other property owners, for seven months, according to Heinrichs. The other four property owners have all reached agreements with the city.
At its Nov. 6 meeting, the city council, acting as the redevelopment agency, authorized its lawyers to begin the eminent domain process.
In order to condemn property through eminent domain, the city must meet four criteria: the proposed use is necessary and in the public interest; the project offers the greatest public good with the least private injury; the property is necessary for the project; and the property owners have been offered just compensation.
"I hate eminent domain as a process," Councilman Matthew Dean told the Reporter. "The one key reason I support this is that if we don't do it, we'll just continue to negotiate and negotiate and the value of the land will just keep going up."
City Manager Bernie Strojny said, "We have already done two market appraisals, and values have been continuing to go up and up. That costs the public more money."
According to Strojny, using eminent domain will "freeze the value of the property at its current value." Strojny said the city will continue to negotiate with the Werthmanns during the eminent domain process.
Both sides agree that the value of the land is the key issue in the negotiation. Werthmann told council members: "We would like to cooperate. We'd like to be fair, and we'd like to be just," he said. "But, we'd like to be rewarded."
Werthmann said the city has offered him less than what it agreed to pay surrounding property owners for their land.
"At this point, I'm going to give the city an opportunity to step up their offer," he said. "If not, then we'll turn the matter over to our lawyers."
Heinrichs said each property was appraised by Carneghi and Bautovic Partners, certified appraisers. Heinrichs refused to comment on the specific value of the properties, but he said that any differences in value are due to improvements made by the owners.
The city needs the land for its master development, which will be built by Barry Swenson Builders. The mixed-use plan includes 30,000 square feet of retail and office space, plus a three-story parking garage with 300 spaces.
When it's done, the development will cover the entire block bounded by Campbell Avenue, Second Street, Civic Center Drive and Third Street.
The area currently contains residences, offices and a vacant lot.
"The project is a real key component to the revitalization of downtown," Heinrichs said.
The goal for downtown Campbell, according to the city's redevelopment plan, is to restore the area to its historic role as the symbolic, cultural, functional and economic focal point of the city.
In April, the Redevelopment Agency designated approximately 1.5 acres of land in downtown Campbell as the site for this project.
But, for those forced to give up their land, the project may not seem so appealing. "We were not planning to sell our land," said Marilyn Black, who owned land on Third Street. "We were planning to keep it for the future."
Black's land had been rented to three tenants at "reasonable rates," she said. "Let's hope it's for the betterment of Campbell."
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Campbell, California
