$10 Million Lawsuit Against CRA and City of Los Angeles Ruled Valid by Federal Court.Business Editors LOS ANGELES--(BUSINESS WIRE)--Jan. 12, 2004 The United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. Judge Stephen V. Wilson denied the Community Redevelopment Agency's (CRA See Community Reinvestment Act. ) and City of LA's motion to dismiss a lawsuit seeking a $10 million claim for damages by housing developer Geoff Palmer, announced Ben Reznik, a partner with the Century City law firm of Jeffer, Mangels mangels Beta vulgaris; called also mangel-wurzel. , Butler & Marmaro. Palmer has accused the defendants of illegally denying him a permit to demolish a structure at 840 Cesar E. Chavez Ave., on the outskirts of Downtown, which the City's Board of Building and Safety Commissioners declared to be a public nuisance public nuisance n. a nuisance which affects numerous members of the public or the public at large, as distinguished from a nuisance which only does harm to a neighbor or a few private individuals. . According to Palmer, this structure was a gang controlled crack house and the source of crime in the immediate neighborhood. "The lawsuit stems from the City's placing Mr. Palmer in a 'Catch-22' quagmire," said Reznik. "Mr. Palmer was subject to criminal and civil sanctions if he did not comply with the orders to demolish, yet the CRA refused to sign off on the demolition permit." Ultimately, the house was demolished without a permit and the City has implemented its "Scorched Earth scorched earth An antitakeover strategy in which the target firm disposes of those assets or divisions considered particularly desirable by the raider. Thus, by making itself less attractive, the target discourages the takeover attempt. Ordinance" for the first time since its enactment 15 years ago and imposed a 5-year ban on issuance of any building permits on the parcel. Palmer is credited with helping to trigger the housing renaissance in Downtown Los Angeles Downtown Los Angeles is the central business district of Los Angeles, California, located close to the geographic center of the metropolitan area. The sprawling, multi-centered megacity is such that its downtown core is often considered just another district like Hollywood or by constructing the Medici Medici, Italian family Medici (mĕ`dĭchē, Ital. mā`dēchē), Italian family that directed the destinies of Florence from the 15th cent. until 1737. , a 632-unit mixed-use development. He is now completing the 297-unit Orsini development at Figueroa Street and Sunset Boulevard, and has commenced construction at the Piero, a 225-unit development at 616 S. St. Paul Avenue. "The City's actions have delayed Palmer's efforts to redevelop a blighted area and to build desperately needed housing," said Reznik. "The local residents suffer from the continued blight while the Chinatown Redevelopment Area (which is now broke) is deprived of approximately $600,000 in annual funds," Reznik concluded. |
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