No more auto businesses in Old Town Newhall

By Jeff — Jeff Wilson

Well, we all knew this day of reckoning was coming, didn’t we?

The City has served eviction notices to two auto-related businesses that are located on land the City bought in 2009 in Old Town Newhall. KHTS:

Two auto repair shops, long the target of relocation in the slow-but-steady redevelopment process in downtown Newhall, have been given 90-day notices to vacate the premises.

The City’s Redevelopment Agency closed escrow on the parcel at Railroad and Main Street in November 2009 and immediately began working on getting business owners set up with relocation consultants. Both businesses are to vacate the premises by December 1.

City skeptics have long feared that the City would use eminent domain to force the closure of businesses it didn’t like in Old Town Newhall. And it more or less did when it came to the old tattoo shop, the dog boarding place and a chiropractor business located on Spruce Street in what is now the footprint to the new Newhall library.

But this move is even more drastic than eminent domain, a process which entitles the parties to certain rights and a formal, legal process. This is a basic landlord/tenant relationship. The City owns the land and is telling its tenants to get the hell out.

The auto businesses -no surprise here- are very upset and have lawyered up:

“With the old landlord, it was a handshake, a phone call,” Hagerty said. “I was 15 days late to renew the five-year lease, according to the paperwork. So it’s out by the first of December. Merry Christmas to our family and everybody else around here. … What did Automotive (Technology) do that was so bad?”

Indeed. I’d be upset if I was in his shoes too. Perhaps the businesses should have realized the writing was on the wall last year when the City spent $6.2 million to buy the land their buildings were on, but don’t get me wrong. I understand why he’s upset. No two ways about it, this is stark, naked government interference in the private sector.

In normal circumstances, I’d fight tooth and nail for the businessperson’s right to conduct his affairs as he sees fit. The government, after all, needs a justification to interfere with private businesses; a private business does not need justification to exist.

So the proper question here is is the City justified in ordering its tenants out?

On the balance, I’d say yes. If Old Town Newhall is to be a success, if it is to grow beyond what it was just a few years ago (a dim, unwelcoming, depressing place), if it is to be a destination for this city and even the region, then, yes, we need to crack a few eggs to get the omelet.

Our collective desire (expressed through Council votes and the various committees involved) to see an improved Old Town Newhall justifies us removing specific businesses that aren’t inline with that vision.

And the City is right: automotive service shops aren’t inline with what we’re trying to do in Old Town Newhall. We want ped-friendly shops, entertainment, libraries and civic uses, not the smell of oil and the sound of industrial air fasteners in old buildings that are dilapidated and poorly cared for. These sorts of businesses have failed to make Newhall an attractive, vibrant and inviting place.

There are plenty of places in the SCV for such businesses to set up shop (in fact we have 20+ percent office/industrial vacancies right now and the City has offered to help relocate them), but there is only one place in the SCV that has a grid-pattern layout, an authentic downtown, and loads of history. That place is Old Town Newhall, and I feel this move is justified.

By the way, just as an aside, did anyone notice this comment by one of the owners of the auto business?

“The last few months have really killed our business bad,” he said of the body shop that’s been in the location for the last 36 years. “I’m frustrated, it’s not L.A. County where you can point to a location and say ‘I want to put a body shop there’ and get approved right away.

That’s right! You can’t. We have standards and, at least in Old Town Newhall, those standards outweigh the needs of an individual business owner.

Many on this blog were upset with me for opposing the library takeover and used the “Local control” argument to great effect. Well, this is the other side of the “local control” argument. Our City is not as lax or careless as the County in approving developments and this is the second example in recent months (the other being various Castaic businesses who oppose annexation because the City has a tighter development regime than the County).

No Daily Brief today, by the way

Comments (16)

CCSeptember 10, 2010 at 7:23 am

Shameless to say the least. Our City that used to be so accessible to citizens has gone rouge. While I am sure Old Town Newhall will be a show piece when done, I don’t think that is worth the trampled rights of our citizenry. People will keep voting these clowns in until it is their own rights that get trampled.

JayceSeptember 17, 2010 at 12:47 pm

I don’t like the shade of rouge atm

Your Web GuruSeptember 10, 2010 at 8:33 am

I can see how in this case eminent domain might actually be a better thing in the long run. I am all for free enterprise, but as it stands now, downtown Newhall only shows its eclectic side in the small stretch between Market and 6th Streets. It becomes rather bleak and unattractive as you head further north, which makes for street fairs to be pretty boring once you’ve walked that short block. Admittedly, some of the auto shops make the area look downright dumpy with their half-taken-apart sleds lying dormant in their wrought-iron dungeons. There are several ready-to-use facilities in the valley for auto shops to relocate (the shops on Ruether north of Home Depot for example). Downtown Newhall has the ability to become a wonderfully diverse, eclectic, vibrant part of the community without the Town Center snootiness, and in this case, the city is taking the right steps.

Tim MyersSeptember 10, 2010 at 10:57 am

This is the conundrum that Maria Gutzeit, who is probably the person with the highest IQ to ever run for City Council, brought up in the 2008 campaign; the issue of a slow motion condemnation. The auto businesses in question have, let’s face it, benefited from cheap rents because it is a crummy area. This crumminess might not impact their revenue if they do mostly fleet and insurance business, so they have gotten used to making money on that reduced cost structure. The fact is they will now make less money because the alternative venues are more expensive then what they pay now. Now if a private developer had purchased the property with plans to rip down the old building and put up higher rent retail stuff, the auto businesses would be in the same boat but it seems to chafe harder when the gub’mint does the same thing. Another difference between the private developer and the gub’mint is that the private developer usually executes quickly, so the pain is fast and over. The gub’mint, however, can stick around forever (Newhall Redevelopment will celebrate it’s 15th anniversary soon) while the businesses die a slow death. But very few people look at things the nuanced way that Maria does, so for her trouble she finishes dead last.

navigatorSeptember 10, 2010 at 11:08 am

And, in truth, that was the original plan by the developer but when the economy went south so did the development. The City then steps in and picks up where the project left off. I keep hoping that the City (not ours) wants to kick me off my property to redevelop the neighborhood. I could use the cash and definitely the retirement!

CCSeptember 10, 2010 at 12:59 pm

Right, and the City continues to talk out of both sides of their mouth. Pro business my ass!

HoosierSeptember 10, 2010 at 7:11 pm

If the property was not owned by the auto repair shops, then I’m not sure what the effective difference would have been with eminent domain. The property owners would still have received the dollars for the land, not their tenants. And the city would ultimately have owned the property just the same, and could still have treated the tenants just the same. Unless I’m missing something here (which is possible), I’d say I actually prefer the city to buy the property through negotiation than through eminent domain. The former means the property owners made a voluntary agreement that satisfied them, whereas eminent domain actually means more government force is involved.

Timothy MyersSeptember 11, 2010 at 8:05 am

Hoosier, it is a slow death. Once the plan is known the landlord realizes that eventually they will have to sell the property and so they make no investments in improvements and defer maintenance so that the facility gets crummier and crummier. The upside is that the gub’mint (City) is generous with our tax dollars since they tend to overpay by about 20 to 30% to avoid a condemnation trial once they decide to pull the trigger.

SFC PerezSeptember 10, 2010 at 9:46 pm

As long as the zombies can march through downtown Newhall this year, and in the future, it’s all good. But not in the hood since that wouldnt be in line with a nice and pleasant environment where Starbucks can sell smoothies and frappamoochalattetinis )

MGutzeitSeptember 11, 2010 at 7:27 am

Well thanks Tim. RE “plenty of places” for the auto repair to go…no. The City has an auto overlay zone. They cannot go in the “industrial parks” without a Conditional Use Permit and possible EIR. The only place they can just move into,with a business permit, is the auto overlay zone which is restricted to, frankly, some of the worst areas like Reuther Ave, or the area of Springbrook/Drayton, or one of the auto plazas along Creekside. There are rarely vacancies and if you have a business of any size, there is both limited parking and a not-so-attractive neighborhood to deal with. The City likes to think everyone is an insurance agent or realtor. These are usually family run businesses that pay better than minimum wage for their employees and provide a needed service to our residents. I suggested and continue to suggest the independant auto businesses get together and work on this issue as theirs is a very misunderstood and frankly maligned business. My husband has owned an auto repair business for over 20 years. When we moved from the South Bay it was hard to locate up here, and we got EXTREMELY lucky to find a building in a good area of town. If the guys (and gals) aren’t vigilent we soon will have no independant repair facilities except in Castiac or way up Sierra Highway. Business Friendly….for the right businesses only! BTW did you see there was a successful lawsuit in a South Bay city where a tattoo parlor challenged the city’s ban on such businesses. The business owner won in this case. Santa Clarita banned such a shop in Newhall a few years back. I am all for signage/landscaping/other standards but outright banning or restricting businesses is misguided. Trinket shops are not thriving is this economy, but that seems to be our vision.

Timothy MyersSeptember 11, 2010 at 8:01 am

Gary at Valencia Imports on Creekside is our “fleet” mechanic for years and you are right that it is extremely difficult to get in and out of those “dense” industrial slots on Auto Row. I have heard anecdotally that the dealers are getting more competitive with the independents on repair costs in an attempt to lift their volume, but God protect us from them when the independent repair shops are driven literally out of town.

spineflower2September 11, 2010 at 1:43 pm

So in a conservative valley that decries Obama’s alleged “socialist” agenda, our esteemed City Council decides to do some social engineering and decide that a business that has been there legally making a profit for decades is no longer welcome. Where are all those Nazi and Russian dictator signs now? More of the City’s hypocrisy: like Nixon claimed, they believe “if the City does it, it isn’t illegal.”

Timothy MyersSeptember 11, 2010 at 7:04 pm

SP2: There is not a right winger in the SCV who would hesitate to start social engineering experiments if they make it onto an HOA Board or elected office. That is not hypocrisy: It is called being retarded.

Where oh where do the auto shops go?September 13, 2010 at 7:21 am

“There are plenty of places in the SCV for such businesses to set up shop (in fact we have 20+ percent office/industrial vacancies right now and the City has offered to help relocate them),” Hey Jeff, check on this fact please. You sited office/industrial vacancies at 20% vacancy. Those vacancies if I am correct do not include space for auto repair. Please tell us readers exactly how much space in SCV can be occupied as auto repair. Thank you BTW, I dont think that auto biz is asthetically pleasing for old town Newhall.

ThomasSeptember 13, 2010 at 3:14 pm

No, but the many illegal food carts and trucks are though.

ThomasSeptember 13, 2010 at 3:14 pm

And the many billboards advertising beer.

CCSeptember 10, 2010 at 7:23 am
Shameless to say the least. Our City that used to be so accessible to citizens has gone rouge. While I am sure Old Town Newhall will be a show piece when done, I don’t think that is worth the trampled rights of our citizenry. People will keep voting these clowns in until it is their own rights that get trampled.
JayceSeptember 17, 2010 at 12:47 pm
I don’t like the shade of rouge atm
Your Web GuruSeptember 10, 2010 at 8:33 am
I can see how in this case eminent domain might actually be a better thing in the long run. I am all for free enterprise, but as it stands now, downtown Newhall only shows its eclectic side in the small stretch between Market and 6th Streets. It becomes rather bleak and unattractive as you head further north, which makes for street fairs to be pretty boring once you’ve walked that short block. Admittedly, some of the auto shops make the area look downright dumpy with their half-taken-apart sleds lying dormant in their wrought-iron dungeons. There are several ready-to-use facilities in the valley for auto shops to relocate (the shops on Ruether north of Home Depot for example). Downtown Newhall has the ability to become a wonderfully diverse, eclectic, vibrant part of the community without the Town Center snootiness, and in this case, the city is taking the right steps.
Tim MyersSeptember 10, 2010 at 10:57 am
This is the conundrum that Maria Gutzeit, who is probably the person with the highest IQ to ever run for City Council, brought up in the 2008 campaign; the issue of a slow motion condemnation. The auto businesses in question have, let’s face it, benefited from cheap rents because it is a crummy area. This crumminess might not impact their revenue if they do mostly fleet and insurance business, so they have gotten used to making money on that reduced cost structure. The fact is they will now make less money because the alternative venues are more expensive then what they pay now. Now if a private developer had purchased the property with plans to rip down the old building and put up higher rent retail stuff, the auto businesses would be in the same boat but it seems to chafe harder when the gub’mint does the same thing. Another difference between the private developer and the gub’mint is that the private developer usually executes quickly, so the pain is fast and over. The gub’mint, however, can stick around forever (Newhall Redevelopment will celebrate it’s 15th anniversary soon) while the businesses die a slow death. But very few people look at things the nuanced way that Maria does, so for her trouble she finishes dead last.
navigatorSeptember 10, 2010 at 11:08 am
And, in truth, that was the original plan by the developer but when the economy went south so did the development. The City then steps in and picks up where the project left off. I keep hoping that the City (not ours) wants to kick me off my property to redevelop the neighborhood. I could use the cash and definitely the retirement!
CCSeptember 10, 2010 at 12:59 pm
Right, and the City continues to talk out of both sides of their mouth. Pro business my ass!
HoosierSeptember 10, 2010 at 7:11 pm
If the property was not owned by the auto repair shops, then I’m not sure what the effective difference would have been with eminent domain. The property owners would still have received the dollars for the land, not their tenants. And the city would ultimately have owned the property just the same, and could still have treated the tenants just the same. Unless I’m missing something here (which is possible), I’d say I actually prefer the city to buy the property through negotiation than through eminent domain. The former means the property owners made a voluntary agreement that satisfied them, whereas eminent domain actually means more government force is involved.
Timothy MyersSeptember 11, 2010 at 8:05 am
Hoosier, it is a slow death. Once the plan is known the landlord realizes that eventually they will have to sell the property and so they make no investments in improvements and defer maintenance so that the facility gets crummier and crummier. The upside is that the gub’mint (City) is generous with our tax dollars since they tend to overpay by about 20 to 30% to avoid a condemnation trial once they decide to pull the trigger.
SFC PerezSeptember 10, 2010 at 9:46 pm
As long as the zombies can march through downtown Newhall this year, and in the future, it’s all good. But not in the hood since that wouldnt be in line with a nice and pleasant environment where Starbucks can sell smoothies and frappamoochalattetinis )
MGutzeitSeptember 11, 2010 at 7:27 am
Well thanks Tim. RE “plenty of places” for the auto repair to go…no. The City has an auto overlay zone. They cannot go in the “industrial parks” without a Conditional Use Permit and possible EIR. The only place they can just move into,with a business permit, is the auto overlay zone which is restricted to, frankly, some of the worst areas like Reuther Ave, or the area of Springbrook/Drayton, or one of the auto plazas along Creekside. There are rarely vacancies and if you have a business of any size, there is both limited parking and a not-so-attractive neighborhood to deal with. The City likes to think everyone is an insurance agent or realtor. These are usually family run businesses that pay better than minimum wage for their employees and provide a needed service to our residents. I suggested and continue to suggest the independant auto businesses get together and work on this issue as theirs is a very misunderstood and frankly maligned business. My husband has owned an auto repair business for over 20 years. When we moved from the South Bay it was hard to locate up here, and we got EXTREMELY lucky to find a building in a good area of town. If the guys (and gals) aren’t vigilent we soon will have no independant repair facilities except in Castiac or way up Sierra Highway. Business Friendly….for the right businesses only! BTW did you see there was a successful lawsuit in a South Bay city where a tattoo parlor challenged the city’s ban on such businesses. The business owner won in this case. Santa Clarita banned such a shop in Newhall a few years back. I am all for signage/landscaping/other standards but outright banning or restricting businesses is misguided. Trinket shops are not thriving is this economy, but that seems to be our vision.
Timothy MyersSeptember 11, 2010 at 8:01 am
Gary at Valencia Imports on Creekside is our “fleet” mechanic for years and you are right that it is extremely difficult to get in and out of those “dense” industrial slots on Auto Row. I have heard anecdotally that the dealers are getting more competitive with the independents on repair costs in an attempt to lift their volume, but God protect us from them when the independent repair shops are driven literally out of town.
spineflower2September 11, 2010 at 1:43 pm
So in a conservative valley that decries Obama’s alleged “socialist” agenda, our esteemed City Council decides to do some social engineering and decide that a business that has been there legally making a profit for decades is no longer welcome. Where are all those Nazi and Russian dictator signs now? More of the City’s hypocrisy: like Nixon claimed, they believe “if the City does it, it isn’t illegal.”
Timothy MyersSeptember 11, 2010 at 7:04 pm
SP2: There is not a right winger in the SCV who would hesitate to start social engineering experiments if they make it onto an HOA Board or elected office. That is not hypocrisy: It is called being retarded.
Where oh where do the auto shops go?September 13, 2010 at 7:21 am
“There are plenty of places in the SCV for such businesses to set up shop (in fact we have 20+ percent office/industrial vacancies right now and the City has offered to help relocate them),” Hey Jeff, check on this fact please. You sited office/industrial vacancies at 20% vacancy. Those vacancies if I am correct do not include space for auto repair. Please tell us readers exactly how much space in SCV can be occupied as auto repair. Thank you BTW, I dont think that auto biz is asthetically pleasing for old town Newhall.
ThomasSeptember 13, 2010 at 3:14 pm
No, but the many illegal food carts and trucks are though.
ThomasSeptember 13, 2010 at 3:14 pm
And the many billboards advertising beer.