VTA taking local trucking business to court after eminent domain dispute
SAN JOSE, Calif. - Valley Transit Authority (VTA) and a local truck dealership are headed to trial over VTA's use of eminent domain. At issue: what is fair compensation for a forced move?
Use of eminent domain
What we know:
The transit agency has been acquiring land for its six-mile BART extension project, slated to open in 2036.
After decades in this San Jose spot, the Monarch Truck Center was forced to move to make way for VTA's BART extension.
VTA took the property off North 30th using eminent domain, essentially acquiring private property for public use.
At the time, Monarch owner Nicole Guetersloh remembers thinking, "Eminent domain, it's hard. But there are laws, there's a process. We'll come out of this OK."
Compensation & business drops off
But Guetersloh says that has not been the case. She says the rushed timeline meant a move to a subpar location. She says they've lost square footage, parking, visibility and most importantly revenue.
"We were doing fine, running business as usual. The move happened, and we've probably had a 50 to 60 percent drop off," Guetersloh says.
Monarch, a truck dealership, was a tenant at the old location, not the building owner. Still, California law says they can be entitled to compensation, both for relocation costs and for their business losses.
But in this case, VTA valued their losses at $0.
"I just am not going to let somebody push me around like that. I'm going to at least push back as much as I can to protect what I think needs to be protected," Guetersloh says.
So Monarch is refusing to accept VTA's assessment. And VTA is taking them to court. The matter is scheduled for a jury trial.
And while VTA says they can't comment on pending litigation, Monarch is hoping it will help lay the groundwork for other small businesses.
They say it's unfair for businesses to pay the price for a move they could not control.
"We have a lot of people depending on us. And I'm just trying to make sure we're still here for them," Guetersloh says.
What's next:
The case is supposed to go to trial next week, but they're in a bit of a holding pattern as they're waiting for a judge to be assigned.
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