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UPDATE: Metro Amendment Allows Gold Line to Progress

Stalled by a lawsuit against the state, the Gold Line Foothill Extension can now move forward after the Metropolitan Transit Authority passed an amendment to its funding agreement Thursday, an official said.

 

The Gold Line Construction Authority effectively circumvented a lawsuit that threatened to cause millions of dollars in delays for the Gold Line Foothill Extension when the Metrolpolitan Transit Authority amended its funding agreement Thursday.

Habib Balian, GLCA's CEO, said Thursday that the MTA had approved an amendment to the agency's funding system that gives Gold Line officials access to $208 million to continue building the Foothill Extension from Pasadena to Azusa.

Before the amendment, the GLCA was stuck waiting to hear the result of a lawsuit being heard in the California Supreme Court that tied up a land deal it reached with Monrovia. The MTA had previously required Metro to procure 50 percent of the land it needs for a maintenance facility in Monrovia, but it could not do so because of the lawsuit.

Balian said Metro agreed to the amendment after seeing that the GLCA had exhausted all reasonable efforts to get the land.

"We looked for a lot of different workarounds to do what we could do to maintain our schedule," he said. "We had done everything you could reasonably do to prepare to get these properties under title. I think that we demonstrated a good faith effort."

The deal reached with Monrovia was stalled when the California Supreme Court froze the assets of city redevelopment agencies as part of a lawsuit challenging the state's right to eliminate redevelopment. A ruling in that lawsuit is expected in January.

Once a ruling comes down from the court, Monrovia's redevelopment agency should presumably be free to execute its deal with the GLCA. The city has paid a "ransom" to the state to keep its agency alive, so it can still sell the land to the Gold Line even if the judges rule in the state's favor.

Complications could arise, however, if the California Supreme Court's ruling somehow interferes with the GLCA's ability to acquire Monrovia's land, Balian said. The GLCA must have the land ready for construction in a year's time, he said.

"If this doesn't get resolved in that amount of time, it could then once again impact our schedule or threaten our schedule to some degree," Balian said.

Another remaining obstacle to the Foothill Extension's progress is local property owner George Brokate, who has filed various lawsuits against the GLCA and city in an effort to keep his land from being condemned for the extension's maintenance yard project.

The GLCA has begun eminent domain proceedings against Brokate, and a condemnation hearing is scheduled for Nov. 16 in a Los Angeles court room. Meanwhile, negotiations to reach an amicable settlement with Brokate, who is said to be asking for four times the appraised value of his land, have hit a standstill, Balian said.

"He's not really negotiating with us," Balian said. "They have not moved off of their original demand."

Robert Silverstein, one of Brokate's attorneys, could not immediately be reached for comment.

What do you think of the amendment? Tell us in the comments.

Monrovia Betty

2:14 pm on Thursday, October 27, 2011

I am excited that this project is finally moving forward. It will be so nice to be able to take public transportation eastbound! Yeah Gold Line!

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Joe L

4:15 pm on Thursday, October 27, 2011

Very good, now let's get this thing built!

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Joe Black

1:00 am on Friday, October 28, 2011

Nathan, who said Mr Brokade is asking for 4 times the appraised value of the land and who mad this appraisal. In my opinion, landowners have the right to ask for what they feel is fair compensation, not to have that amount dictated to them.

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Heather Shaw

10:15 am on Friday, October 28, 2011

Joe, property owners have always had prices dictated to them. It is called "What the market will bear". Real Estate is not really that complicated. It is about a fair price based on the value of the land, what is on it, current market conditions and comparative sales. This owner has taken none of those items into consideration-he is making an emotional demand. The entire transaction is purely business and progress. It should be ruled on fairly by the courts if the parties cannot agree.

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