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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
Ellen Zunino May 19, 2013 at 01:37 pm
I kind of lost interest when, along with the Lion's barbecue, the carnival disappeared but thereRead More were always people I knew in the parade so I kept the date. Now that the parade is gone, it's just another festival day in town. Times change and this kind of under-stated event is what people want. The old Monrovia Days used to be a day we could all get together and have fun. Now, people are too busy with their own lives and "community" doesn't mean what it once did.
rubberband May 19, 2013 at 01:09 pm
Interesting. There was one person who decided that letting Monrovia Day slide with nothing doneRead More wasn't gonna play. BY HERSELF and her family and friends planned all of it and set everything up. That person was Keely Milliken. It was astounding how much got done, and without financial support or the usual cast of players to do anything. There were many pitfalls, permits that needed approval and what not...Perhaps if you voiced your displeasure to the City Council and volunteered your personal money and weeks of planning and organizing you'd feel a lot better about it. I can say with absolute conviction that Keely should hold her head high, and I was glad to be a part of it. With almost no money, the people that volunteered their time and efforts are not ashamed, but rather glad that at last minute a albeit mellower version, something nice was created. Sometimes being able to apologize is the biggest most wonderful quality a human can have. I am wrong, often, but not on this one. Great job Keely and family/friends. Thank you for all the hard work.
K. Eckstrom May 19, 2013 at 10:46 am
Danielle, you can call City Hall and they will direct you to the correct people. These peopleRead More worked hard to plan this with what little money we have.
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.