Downtown Chandler condemnations bittersweet

Enter downtown Chandler from the south on Arizona Avenue and you'll pass vacant lots overgrown with weeds, vacant parking lots and an empty storefront. The blight is temporary, though, as Chandler prepares to build its $74 million City Hall.

Eminent domain pushes Chandler business out

Until recently, the area was a mix of thriving businesses, such as a tire repair shop, an auto parts store and apartments, housed in aging buildings. The new project, which became possible through the forced sale of property, will dramatically change the character of the neighborhood from an industrial enclave to one of hushed offices, service counters and pedestrians going to or from their cars or a place to eat.

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When Deborah Valdez drives by, she's glad to see the "eyesore" that was her husband's small storefront and a small apartment complex gone.

"I understand what they're trying to do," Valdez said. "They're trying to clean up Chandler and I'm kind of pro what they're doing. I just hope they're not screwing anybody doing it."

Mayor Boyd Dunn said the city is not, and bases that on the fact that all but one landowner agreed to sell their property.

For some who were forced to sell their land or move their business, there was some regret about leaving something cherished behind mixed with an appreciation for the improvement the change would bring.

For instance, Clay Pedersen, who co-owns Muscle Car Garage, said he was emotionally attached to the building where he began his business six years ago and endured the initial lean years. He had to do what was best for business, though, and move the half-mile north to 301 N. Arizona Ave.

"This site fits our needs a lot better," Pedersen said.

Some landowners were left bitter, but they realized they had few options when the city came after their property.

"I got screwed, but like I say, you can't fight City Hall," said George Rodriguez, who owned a third of an acre that had been in his family since 1941.

Rodriguez, a 78-year-old retired postal worker, said he drew income from the property by leasing it to a plumbing company, which paid mostly for his golf and travel.

"I'm not hurting for money. But money doesn't hurt," he said.

Chandler hasn't had a City Hall since the early 1980s, with leaders choosing instead to lease space in private downtown buildings to spur development. As the current lease neared expiration, the decision was made to build an actual City Hall.

Preliminary designs include a six-story building, the Chandler Museum, a video production studio, council chambers and possibly one or more art galleries.

The city has spent $5.1 million so far to buy property, not including closing costs, with one deal left. The city has offered $1.6 million to landowners Mark and Michael Pace, who turned it down and are now in court to get "just compensation" under Arizona's constitution, court records state.

The city has also spent $552,996 in relocating businesses and residents, and expects to spend another $150,000 to $170,000.

"Ultimately, it is going to be a significant asset to downtown, especially in how it's being designed," Dunn said.

Dunn said the site was chosen out of several potential ones after considering the cost, the size of the building's footprint, the available land and the overall plan for downtown Chandler.

Much of the criteria was met, except there were 20 lots and nine property owners in the way, which included seven viable, long-standing businesses and one homeowner.

The city began making offers in 2006 and sued three landowners in August 2007 who had refused to sell by that time.

Besides reviewing city, land and court records, the Tribune interviewed a majority of the land and business owners for this story. Those who weren't interviewed either did not return messages or declined to be interviewed.

MUSCLE CAR MAN

Pedersen was the newcomer to the neighborhood.

Next to his shop at 191 S. Arizona Ave. was Lloyd's Complete Auto Supply Co., a store passed to the Pace brothers from their father and open for 60 years.

Across the street from Pedersen's shop was Bob Ms Tires, a converted gas station built in 1950.

Pedersen's shop was built in 1968 and was a tire shop at one time, too. It was in disrepair, but it was a good place to start a business, which for them is customizing cars.

"We were the Internet guys who got out of corporate America and took our severances and our 401K money and started a business six years ago," Pedersen said.

Pedersen said anxiety set in when he first heard of plans to build the City Hall, but he eased it by staying involved and informed. Pedersen leased the building, and the city helped him find the new shop.

He and co-workers watched the city demolish the old building.

"It was where we started our business, but at the same time it wasn't the end of our business," he said. "It's just progress and you just go with the flow."

LONG TIES

Rodriguez attended Chandler High School, but he never returned much after graduation except to get his haircut and see family.

Dossey Plumbing began leasing his property in 1970 and in exchange for a low rent made improvements such as a block wall and landscaping that the city required.

Rodriguez was going to charge more for rent when he got word the city wanted his property.

He resisted the sale.

"They took away a lot of future income from me and I would still have the property," Rodriguez said. "Now I have a little bit of money - not a hell of a lot - and no property."

The city sued for eminent domain and settled in June for $355,000.

Norma Womack and her husband, Arthur, a Chandler city worker, raised their four children at 230 S. Washington St., a 1,100-square-foot home with a palm tree, bougainvillea and carport in front squashed between a bustling convenience store and a business that made decorative wrought iron.

Behind them was a series of four duplexes.

Norma Womack, 58, and her family moved there in 1982, and she said the neighborhood steadily improved over the years, even as their house fell into disrepair.

She always knew that someday someone would want their house for redevelopment.

The house was appraised for $110,000 and the city bought it for $125,000.

The city relocated the Womacks 1½ miles away into a $220,000 home.

"It's a nicer neighborhood," Womack said.

RESTAURANT MOGULS

The Serranos Restaurant dining room at 141 S. Arizona Ave. won't be bulldozed, but two buildings that housed the support buildings for the family business will be.

The Serranos operate eight restaurants throughout the Valley.

According to city records, the city offered the appraised value of $1.1 million for the two buildings and bought them for $2,000,250.

Ric Serrano, the CEO of the company, made his case in a letter to the city for the final price.

"You are asking a business to move out of an operation that supports eight locations in four different ways," Serrano wrote.

Serrano said in the end, he believes his family's company was treated fairly.

The new building will house company offices, retail and office tenants.

"We believe it will be a real gem in the downtown," Serrano said.

ENTREPRENEUR

Luis Valdez earns a living from various enterprises.

At 241 S. Arizona Ave., he had a storefront called Kasa Communications, where he sold cell phones and calling cards and rented space to other businesses.

Behind that were four duplexes he leased out. Also on the property was a 12-foot by 25-foot billboard that generated income.

His wife, Deborah Valdez, who negotiated the sale of the land, said her husband had put much money and effort into fixing up the apartment units when the city approached him, but the couple were planning to marry and he was considering selling the property anyway.

The city paid $420,000 for the property, $70,000 more than the appraised value, records show.

Valdez said she believes the compensation was fair and the city treated them well.

"If we were more attached and we were making plans to stay there and our only livelihood was the rent from those units, it probably would have been a much different experience," she said.

"I did not like the fact that they said if you don't sell to us, eventually we're going to take it away anyway. That wasn't very nice."

After getting the check, the couple took a year off before Luis Valdez opened Auto Rico Car Sales and Rico Auto Body & Repair in Mesa.