L.A. Developer pushing Oxnard City Council to condemn the lease of a local business.
Oxnard, July 23, 2010: The employees of Pacific Oaks Federal Credit Union will have a long day next Tuesday as they rally to support their employer at the Oxnard City Council meeting, slated for 7 p.m.
Pacific Oaks will be fighting a developer’s unusual push to convince the city council to condemn the credit union’s lease in the Carriage Square shopping center. The developer, Los Angeles based Upside Investments, LLC, purchased Carriage Square in 2008, and has been promising redevelopment of the center, including bringing a Lowe’s Home Improvement store, ever since.
Among the existing tenants is Pacific Oaks Federal Credit Union, the oldest locally-based financial institution in the county. Originally founded at the Point Mugu military base, the 62 year old credit union has 4 years remaining on their current lease, with a 5-year option.
“We’ve seen this center change hands several times over the past decade,” says President and CEO Marianne Blitsch, “and we’ve really been looking forward to redevelopment of the entire area. Unfortunately, the latest developer has been engaging in some unusual tactics for dealing with existing tenants, including the attempt to convince the city to use the power of eminent domain to terminate our lease.”
According to Tom Neuhaus, Executive Vice President and in-house Counsel, “Eminent domain is not a power to be used flippantly by local governments. We’re talking about government taking something of value from private entities. In this case, taking the value of our lease and causing undue hardship on our members is particularly onerous given the fact that there is no compelling reason to do so. We are not holding up the project, we’ve been very reasonable in negotiations, we’re supportive of the redevelopment, and we’re willing to move. This is about an out-of-town developer using a city’s power of last resort as a way to enrich their bottom line.”
The credit union, a not-for-profit, is currently rallying employees, members, and friends in the community to support its fight against this action. “Our goal will be to get as many people as possible to that City Council meeting,” said Mrs. Blitsch.
The hearing for necessity was put on the agenda for next Tuesday, despite the fact that the developer and the credit union have a signed Letter of Intent, and appeared to reach broad agreement on components of a new lease. Upon learning of the impending action, the credit union was surprised to receive a number of additional demands from the developer, including a demand to vacate the premises in an unreasonable timeframe.
The Oxnard City Council meeting is scheduled for July 27th, at 7 p.m.
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