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Historic Main Street:  SWEATHEART DEAL?

February 14, 2006, City Council awarded to Sheldon Public Relations an exclusive right to develope the parking lot on the west side of Main Street.

August 3, 2006, over the howls of many, the Planning Commission approved an enhanced Sheldon Project, 25% denser than the original proposal.


October 24, 2006, the City Council by-passed normal protocols. They declared all of Main Street blighted and the parking lot as surplus City property.  Then, they transfered ownership of the lot to the Agency For Redevelopment, so it could be sold without going through a competitive bidding process, and approved a developmental agreement with Sheldon.

January 22, 2007, unable to effect redress, the Garden Grove Downtown Business Association petitioned the court for judicial review.  They want a say in the disposition for the parking lot that they bought with their own monies through special tax assessments.  Merits of the project aside, the approval process seems outrageous.  Complete details are available at the Downtown Business Association's website: http://www.savehistoricmainstreet.com/

October 20, 2007, Judge Thompson ruled against the Downtown Business Association.  Unless the Association appeals, the case is closed.

November, 2007, the GG Downtown Business Association elected to appeal!
  IT IS NOT OVER!  See Letter to the editor page 3 in the January 17,2008 issue of the GG Journal.

February 7, 2008, latest shot fired in letter to the editor "Condo Deal Stinks" by Mike Silva a Main Street business owner page 9 for the February 7th edition of the Garden Grove Journal. 
 

Another shot fired at the Main Street Condo Project; this one from Lennie DeCaro of San Juan Capistrano.  See "Sweatheart Deal for Main Street Condo" plan page 3 of the February 7th edition of the Garden Grove Journal. 

Brief Filed with the 4th District Court of Appeals!  See press release below.
  GARDEN GROVE DOWNTOWN BUSINESS ASSOCIATION FILES OPENING BRIEF  The Garden Grove Downtown Business Association (GGDBA) is filing their opening brief against the City of Garden Grove last week in the California Fourth District Court of Appeals.  The case is expected to be heard by three Justices later this year.  The complaint filed by the Association is to obtain relief against the City and it’s actions to take the Historical Main Street Parking lot from the merchants and sell it to Sheldon Public Relations for the purpose of building a 5-story, 100 unit condominium complex.

This has been a contentious issue between the Main Street Merchants and the City since February 14, 2006, when the City Council granted an exclusive negotiating agreement to Steve Sheldon without notifying or communicating with either the business owners, the property owners or the Parking and Main Street Commissioners (PMSC).

The legal issues of which the GGDBA are presenting to the Court for relief are: 
  1. Did the City violate State law by circumventing the Parking and Main Street Commissioners in selling the district parking lot to Sheldon’s PR Firm without their approval.
  2. Did the City abuse it’s discretion in making the legal determination that the parking lot was no longer needed for Main Street patrons and businesses.
  3. Did the City violate it’s own ordinance which provides for the Parking and Main Street Commissioners to have approval or dis-approval rights regarding any new development projects within the Historical Downtown Main Street District.
  4. Did the City violate the Government Code when it sold public parking property directly to a private party without first offering it up to other public agencies for other beneficial community purposes such as for parks and/or schools, as is required by law.
  5. Did the City abuse their discretion by determining that Main Street was “blighted,” which was the designation required in order for them to be able to take the property from the Parking District and deliver it directly to a hand picked developer without offering it up for bid to all other interested and potential purchases and developers.
  6. Did the City violate State law in designating that the proceeds from the sale of the parking district lot would go directly to the City’s coffers, and not back into the parking district acquisition fund, as is also required by law.
The appeal is filed by the GGDBA’s attorney Robert Ferguson. Mr. Ferguson was retained due to his extensive knowledge and experience in re-development law abuse as well as his prior, successful engagement in opposition to the City in the 1970’s, when he represented then Garden Grove Mayor Bernard Adams against the Garden Grove Redevelopment Agency in another lawsuit very similar to this case.                                                                                                                                            
Dec. 17, 2008, the 4th District Court of Appeals hands down a ruling favorable to the City.  The battle to Save Historic Main Street by the GG Downtown Business Association seems to be lost, but the war may have been won.  The current economic climate may doom the project.  

May 26, 2009, Main Street Parking Commission set to be abolished!  On a vote of 4 to 1 the City Council voted to initiate the process to disolve the Main Street Parking Commission.  The Commission was formed under state law before Garden Grove was a city to purchase and administer parking facilities in and around the Main Street shopping area.  Morally the parking lots belong to the merchants who bought them thru a special assesment.  Legally, however, they belong to the City.  The Commission recently took the City to court when a deal was struck with a developer to turn the lot on the west side of Main street into a condominium complex.

See: 
www.savehistoricmainstreet.com for more information or contact:
Scott Weimer; GGDBA  714-534-0992

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