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Analysis: Is the Gold Line Settlement a Good Deal for Taxpayers?

The Gold Line Construction Authority settled a lawsuit to acquire land last week, paying four times what it is worth. Was that the only course of action left?

The way attorney Robert Silverstein tells it, he and his client have been asking for $24 million for the last two years.

Silverstein represents George Brokate, a local property owner who repeatedly sued Monrovia and the Gold Line Construction Authority in an effort to keep his land from being seized via eminent domain. Though Silverstein positioned his client as a crusader against government abuse, there was a price he'd accept to make all the disappear.

Last Thursday, the GLCA agreed to pay it.

"We did not come down one penny," said Silverstein in an interview. "They should have done the right thing from the beginning."

Instead, the GLCA fought Silverstein for the last two years, piling up attorneys fees before --$24 million--that Brokate had always asked for. The price was more than four times what the property was appraised for by the Gold Line.

The question becomes, then: Why didn't the GLCA save itself the time and money by buying out Brokate two years ago?

Habib Balian, CEO of the GLCA, said his agency believed the lawsuits to be without merit but stressed that officials needed time to weigh the costs of litigating against paying a settlement.

"These things have to evolve, you have to get to a point where you can justify settling," Balian said. "I think you just have to wait. You have to get more information."

The GLCA lawsuits eventually came to a point where it became possible that they could significantly jeopardize the future of the $735 million Foothill Extension project, Balian said.

"There were scenarios where the project could have been delayed two years," Balian said. "If the lawsuits played out in court ... we would have had to stall our schedule. If we had to do that and pay any delay damages to the contractor or be in a psoiton where we would have to cancel the project, it could have cost the project a $100 million and a two-year delay."

Silverstein maintained that the Gold Line always had two options: Carve his client's land out of the project, which the GLCA insists was impossible, or pay his client at the rate it agreed to pay Monrovia. The GLCA reached a deal to pay about from the city for its maintenance yard project, a sum well beyond what the land was worth.

"I think [$24 million] is a reasonable price, and that was in part based upon the fact that we were seeking parity with what the Gold Line intended to pay Monrovia for its neighboring property," Silverstein said.

Now that Brokate's suits are settled, the deal with Monrovia remains the last major hurdle for the GLCA to clear. Because the GLCA reached that deal with Monrovia's redevelopment agency, and a state law has , Gold Line officials are now pursuing .

The two sides maintain that their original, all-inclusive price of $56 million remains on the table. Balian said the ideal course of action is for the GLCA to reach a settlement with the city for that amount in eminent domain proceedings.

"That's the most efficient way of getting access to the property on our schedule," Balian said.

Once that land is acquired, the Foothill Extension should be on schedule and under budget, Balian said.

"I think all the pieces are coming together," he said.

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Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors. Write a new post... What's up? Make an announcement, speak your mind, or sell something
B Ulm May 21, 2013 at 09:06 pm
Wow - what an insulting, non-constructive post. You live in a city whose citizens banded together toRead More tax themselves to save it Foothill wilderness, raised funds to renovate its schools and to build a state of the art library. The fact that one one single event in the year didn't go the way you wanted made you ashamed to be a Monrovian suggests you need to seriously rethink your priorities in life. As the first response said, quit complaining and get involved. Its not very hard in this city to find out how to volunteer if you had given it a slight effort. And the volunteer groups like the one that put the event together are starving for help since tearing people down is a lot more popular these days than putting in hard work. You are the one who should be ashamed.
rubberband May 21, 2013 at 04:10 pm
I am gonna do my own thing, invite everyone to have a parade on Monrovia Day next year... RememberRead More the Doo Dah parade? Assemble old folks in black socks and hedge clippers!
sarah May 20, 2013 at 08:24 pm
The street fair the day before had more going on than Monrovia Day. I'm 21 and even I remember backRead More when everyone used to look forward to the days long celebration, it really is a shame.
rubberband May 20, 2013 at 07:38 am
Who was that face painter? She was really good with the kids, even the wiggly ones. She also wasRead More giving away little handmaid mermaids. Some of the stuff at the celebration was cool. I think next year the city council should be the dunkees for the dunk booth.
Mike Day May 17, 2013 at 09:56 pm
Thanks for the compliments. mor video to follow
Buzlightyear aka marty May 17, 2013 at 07:37 pm
Yeah, it's cute...... For now......
Ellen Zunino May 17, 2013 at 01:02 pm
Cool presentation. Many of us have had our own encounters and all of us have seen numerous photosRead More and videos so your creative approach freshened it up for us.
Dan Crandell May 16, 2013 at 09:28 pm
A California city will never prevail in a lawsuit against the STATE. All CA. cities must merge toRead More sue in mass under Federal RICO laws while we still have Federal laws. Filing alone at the State level is useless. Wake up people.
Ernie Dogs May 2, 2013 at 07:09 pm
Ernie, the CBO (Chief Barking Officer) of Wonder Dog Ranch, dog day care and boarding, is woofingRead More with excitement about this happy ending. He'd love to meet Ruby and thinks she wants to more structured activity in her day -- so Ernie will give her a free day of day care at Wonder Dog Ranch! She just needs current shots, and to get enrolled with us: Contact us for details, we've got Ruby's name on our list: WonderDogRanch.com, 626.205.2501.
atripp April 30, 2013 at 02:32 pm
We Found Ruby!!! Monrovia neighbors are the best !!