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Protester accuses city of waste

May 30, 2003

Joshua Pelzer

One resident is protesting what she calls the misuse of taxpayer

funds when the city purchased property for its multi-use Town Center

development from the Armenian Relief Society.

The city's Redevelopment Agency approved $5 million to purchase

the 7,500-square-foot lot at 221 S. Brand Blvd. and relocate the

nonprofit to city-owned property at 117 S. Louise St. The society

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will pay $1 to remain at the Louise Street site until at least March.

The city will also grant the organization use of the adjacent

Marketplace parking garage and install a door at the east side of the

garage for access to a new facility it will build on the property.

The city needs 15.5 acres to develop the Town Center, which will

include shops, restaurants and residential units.

Resident Margaret Hammond said several larger lots along Brand

have been purchased for less money following appraisals.

"I believe all taxpayers selling properties to [the Redevelopment

Agency] should be treated equally," she told the City Council on

Tuesday. "If appraisals are required for all other properties, then

why is there an exception being made regarding 221 South Brand? I can't understand it."

City Atty. Scott Howard said state law does not require an

appraisal unless the purchase is made through eminent domain, in

which the city takes over property for public use.

When Hammond asked how she could take action against the city's

decision at a meeting in March, Howard resisted.

"It's not my position to provide legal advice to individuals who

want to seek to sue the city," he said later. "My job, as provided by

the city charter, is to give legal advice to the City Council, city

staff, city officers and city employees."

Following instruction from then-Councilman and agency chairman

Frank Quintero, Howard told Hammond that taxpayers can challenge

public agency action if it wastes tax money, and suggested she hire a

lawyer.

Hammond said she has contacted a lawyer for legal advice.

Development Services Director Jeanne Armstrong said each purchase

included different circumstances, and this purchase included

relocation costs, among others.

Armstrong confirmed that appraisals were done on all other

purchases for the Town Center.

"Each is an individual," she said. "The value of each property has

a different base and sometimes as a rule you pay more for square

footage for smaller properties than you do for larger properties."

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