Gilroy
– The city may avoid having to invoke eminent domain to seize
land for a proposed arts center, as two of three holdout property
owners are poised to settle on sale prices, according to
officials.
Gilroy – The city may avoid having to invoke eminent domain to seize land for a proposed arts center, as two of three holdout property owners are poised to settle on sale prices, according to officials.
The turnaround comes three months after officials announced they would move forward with eminent domain proceedings against the Dong, Gera, and Oyao families, whose refusal to sell has stalled plans for the Gilroy Center for the Arts on Seventh and Monterey streets, across from the Caltrain Station. Two other property owners settled with the city last year.
“We were hoping to have some kind of closure on legal actions (by March), whether a settlement or eminent domain proceedings,” said Bill Headley, Gilroy’s facilities and parks development manager. “We are hopeful we have arrived at a negotiated settlement with Dong and the Oyao estate.”
The Oyao family had initially turned down the city’s offer of $310,000, plus $50,000 in relocation benefits, for two homes on .2 acres of land along Seventh Street. Their property lies directly on the spot slated for the arts center auditorium.
Property owner Loi Dong had rejected the city’s offer of $97,000 for his boarded up Chinese food restaurant at 7347 Monterey Street. His own appraiser has valued the property, slated for an art gallery and garden, at more than $300,000.
Headley would not disclose the sale amounts in question.
Dong’s attorney did not return calls for comment and James V. Simoni, the lawyer representing the Oyaos, also would not reveal the proposed sale price. He indicated that squabbling amongst the family of Baleriana Oyao, who died last summer, made it difficult to settle the matter earlier.
“They’re eager to finish processing the estate and have it behind them,” he said. “Hopefully, we’re working toward the end.”
The city has yet to reach a settlement with Marko Gera, who owns two storefronts on Monterey Street and the bulk of vacant land along Eigleberry Street, which will provide parking for the center.
“We’ve been notified by the family member that there’s been some deaths in the family,” Headley said. “We are proceeding with the paperwork on eminent domain. However, we are waiting to hear from the family as a result of their losses as to how they want to proceed with these matters.”
Gera could not be reached for comment.
The first two property purchases posed fewer challenges.
The city paid $300,000 in July to purchase Tacos El Grullense restaurant on the corner of Monterey and Seventh streets. The .17-acre property sits on the northwest corner of the intersection. In December, the city settled on a $1.15-million sale price to buy the adjacent Salvation Army thrift store, at 7341 Monterey Street.
In total, the city needs 14 separate parcels making up about 2.33 acres of land between Eigleberry and Monterey streets.
Headley said the extended negotiating process has delayed the arts center plans, but officials have yet to have not pushed back the projected start date of 2008.
