GILROY
– The 83-year-old World War II veteran whose Monterey Street
property stands in the way of Gilroy’s future arts center has 30
days to prove the boarded up Chinese restaurant is as valuable as
he says it is.
City Council unanimously agreed Tuesday to let property owner
Loi Dong find a state-certified appraiser who could claim the
former Leyon Restaurant, at 7347 Monterey St., is worth more than
the $97,000 the city is ready to pay.
GILROY – The 83-year-old World War II veteran whose Monterey Street property stands in the way of Gilroy’s future arts center has 30 days to prove the boarded up Chinese restaurant is as valuable as he says it is.
City Council unanimously agreed Tuesday to let property owner Loi Dong find a state-certified appraiser who could claim the former Leyon Restaurant, at 7347 Monterey St., is worth more than the $97,000 the city is ready to pay.
And, the city will take what staff called an unusual step – it will pay for the new appraisal, even though it paid for an appraisal once before.
“(The situation) is not very good, but it’s better than before,” Dong said Wednesday.
Dong wants to sell the property, but he believes it is worth $300,000 to $400,000, based on his own estimates and in comparison to what other properties recently sold for.
The 60-year Gilroyan and naturalized U.S. citizen refuses to cave in to city pressure involving eminent domain. Eminent domain is the legal procedure by which a government agency takes private property at an established fair market price.
A majority of Councilmen Tuesday voted to begin that process since Dong had been unresponsive to various city staff attempts to resolve the issue. However, eminent domain proceedings need a super-majority vote (five affirmative votes) of the seven-member Council.
The failed vote prompted Council to grant the 30-day continuation.
Dong would not speak to the matter publicly Tuesday. His daughter-in-law, who did speak, said language and age barriers are making it hard for Dong to communicate with the city.
“There’s the language barrier, and it’s also an age thing,” said the daughter-in-law, who did not give her name. “My father believes he is right, so he is right. He worked for (this property) much of his life, so he doesn’t believe that he has to get an appraisal just because the government says he does.”
In an interview Wednesday, Dong – who speaks a very broken but fluid English – mostly agreed with his daughter-in-law’s characterization.
“This (is) like communism. It (is) not fair” Dong said. “If they pay me my price, I (will be) happy. The city (will) not lose money.”
Dong, who owned and operated the restaurant until water damage forced him to shut down nine years ago, never retained his own appraiser before he and the city hit a negotiations impasse. Dong said he would try now to find a certified appraiser he can trust as soon as possible.
“I hope (30 days is) enough time,” Dong said.
Councilmen seemed torn Tuesday night between following the letter of the law and wanting to go the extra step for the elderly war veteran who put blood, sweat and tears into the restaurant he ran for more than 30 years.
“He fed everybody in this town,” family friend Tracey Blundo said. “That man worked that building until he wore the linoleum out.”
Blundo was emotionally jarred by comments from Councilman Bob Dillon.
Dillon said he didn’t like the eminent domain process but told Dong’s representatives that the owner had been “terribly unresponsive” to the city’s attempts to negotiate with him. At one point the city paid for a translator when they met with Dong. On other occasions, Dong failed to respond to city requests for meetings.
“Every time I drive by that place our new blight ordinance flashes in front of my eyes,” Dillon said.
It’s not entirely clear what happens once Dong comes back with a price from a certified appraiser. Bill Headley, the Gilroy’s facilities development manager, said the city would take it into “high consideration.” The city likely won’t stick with the $97,000 first appraisal if the second is higher, and it may decide to take an average of the two prices.
Dong also must prove he is using the old restaurant lot as his current residence if he wants to get roughly 45 months of rent or mortgage paid upon his relocation. Dong says he lives on the lot behind the restaurant in a small side apartment that has power and running water.
“It’s got everything I need,” Dong said. “I’m not complaining.”
News of the impasse did not extinguish the hopes of the special task force involved with planning the future arts and culture center.
Task force member Sherri Stuart said City Administrator Jay Baksa told the group long ago it would be 18 months before all the land purchases of Seventh Street between Monterey and Eigleberry streets would be finalized.
“It’s one of those things you accept when you want to build something like this in a developed area,” Stuart said. “If we all wanted to drive for five miles to get to the art center, I promise I could find you an easy lot to buy real cheap.”
On March 3, the task force will meet at City Hall to see the unveiling of four alternative designs for the arts and culture center.
