On The Money: Big Fight Over Property Rights
By Mike Luery
RANCHO CORDOVA, Calif. (CBS13) -- Millions of dollars are at stake in a big fight over private property rights in Rancho Cordova, where a court decision is sparking celebration by some – while others are gearing up for more legal fireworks.
"This is very unfortunate," said Marko Mlikotin, president of the California Alliance to Protect Private Property Rights, a group based in Folsom.
"This private property had been in Mr. Fong's family for decades," Mlikotin told CBS 13.
The private property along Folsom Boulevard in Rancho Cordova is about to change hands. Last August, an On The Money story documented the dilemma faced by Sam Fong, whose family owned for 40 years, what has now become an empty lot surrounded by fencing. Fong had a deal to sell the property to a community college district for $8 million, but the deal fell through.
The city of Rancho Cordova took control of the property by declaring it a blighted area, under the rules of eminent domain. Sam Fong took the city to court, but lost.
Rancho Cordova now plans to purchase the property for the very same community college district at half the price Sam Fong negotiated. Fong's lawyers have advised him not to comment while the case is under appeal, but his spokesman says acquiring the property will be expensive.
"It will cost taxpayers of Rancho Cordova up to $8.6 million for this property," said Marko Mlikotin of the California Alliance to Protect Private Property Rights. "That money could be better spent on police, parks and other critical services," he stated.
But Rancho Cordova's economic development director disagrees strongly.
"We will be paying what we call market value or appraised value of that land," said Curt Haven.
"Our appraised value last year came in at about $4 million," Haven told CBS 13.
"And you have that in the bank ready to go?" I asked.
"Yes," he said. "The Redevelopment Agency is prepared to purchase the land."
This is what the new community college will look like under the Rancho Cordova plan:
"There could be six or seven thousand students here," said Curt Haven. "That's the exciting part about this project. It is bringing people to Folsom Blvd., bringing income to Folsom Blvd, bringing new dollars to Rancho Cordova," he stated.
Here's a look at what the entire developed complex might look like, with senior housing included as another phase of the development.
Rancho Cordova sees the new complex as a big win for the redevelopment of the city. But private property supporters see it differently. Marko Mlikotin asserted, "I think the city's trying to acquire this property on the cheap and profit by it."
Either way, the battle is far from over. Sam Fong is appealing the case – and then there will be a second trial, in June, to determine how much money the vacant property is truly worth.
What if the court rules Rancho Cordova must pay $6 million or even more for the property?
"That will be a business decision that we'll have to make in the future," Curt Haven told CBS 13. He added the city is confident it can obtain the property for $4 million – and hopes to see dirt turning by the fall – with the first students attending classes within two years.
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