Posted on 10/29/2005 6:42:30 AM PDT by radar101
Jurors awarded $7.7 million yesterday to the former owner of a Gaslamp Quarter cigar store who was forced to move by the city to make way for a new hotel.
The verdict in San Diego Superior Court was the latest chapter in the battle of Ahmed Mesdaq and his Gran Havana Cigar and Coffee Lounge. The city used its powers of eminent domain and forced Mesdaq out of the property at Fifth Avenue and J Street so a developer could build a Marriott Renaissance Hotel. The case attracted national attention in the growing debate over the government's power to take private land and hand it over to a private developer in the name of economic development.
Vincent Bartolotta Jr., who represented Mesdaq during the two-week trial, called the verdict a "home run" for Mesdaq and important for other property owners.
"The message is you've got to play by the rules," Bartolotta said outside court. "You can't take advantage of the little guy because you've got the power."
The jury's award covered two aspects relating to the store. The first was the value of the property and the second was the "good will" – the value of a business due to its location, good reputation and other factors.
Outside court, Mesdaq welcomed the verdict but said he still would prefer to be in business.
"The verdict is what it is," he said. "But I wish we had never had to come this far. I love the Gaslamp. I love San Diego. I just want to work."
For two years, he had waged a spirited campaign against the city's attempt to take his land. Exhausted by the legal battle to stop the condemnation, he gave up the fight and vacated the building in June. He now has his business stored in a 400-square-foot storage space as he decides what his next move will be.
The trial, over the value of the land and business, pitted Mesdaq against the city. The City Council, acting as the Redevelopment Agency of San Diego, voted in April 2004 to use eminent domain power and condemn the property and others around it for the 334-room hotel.
The hotel developer will have to pay the judgment under terms of its agreement with the city.
Bruce W. Beach, the attorney who represented the city, said it was unknown whether the verdict would be appealed.
"It's too early to say," Beach said. "We are disappointed in the result. There are some legal issues that we need to discuss with the agency first."
Bartolotta said the city offered $3 million before the trial.
Mesdaq bought the property in 2000 and – combined with renovations he had made – sunk about $2.5 million into the former warehouse. The city long has maintained that Mesdaq knew the hotel proposal was coming when he purchased the land.
Mesdaq refused offers to sell and went to court to stop the condemnation. He argued that taking his land and handing it to a private party did not amount to a "public use."
That is traditionally why governments have taken property – for public projects such as roads, schools and bridges.
In recent years governments have used eminent domain powers for "economic development," arguing that the tax revenue and jobs that private developers bring ultimately benefit the public.
The city used the same argument in this instance, declaring that the property and hotel room tax revenue – as well as additional rooms to serve the Convention Center – would benefit the public.
Using eminent domain for economic benefits has been a controversial development in the law. In June, the U.S. Supreme Court ruled in a case from Connecticut that it was appropriate for governments to take land for that purpose.
That ruling touched off a fight in which property rights activists nationwide are lobbying state legislatures to pass laws curbing the practice. Such legislation is pending in California.
Mesdaq said that while he strongly believes he was wronged, he still hopes one day to return to the Gaslamp Quarter. Before moving to the J Street location, he had run his business for more than a dozen years from other locations in the neighborhood.
"I hope, someday," he said quietly, "I will have the ability to come back to the Gaslamp."
Greg Moran: (619) 542-4586; greg.moran@uniontrib.com
("Denny Crane: Gun Control? For Communists. She's a liberal. Can't hunt.")
Beautiful.
Next the City of San Diego will raise taxes on those using hotels to cover this.
Good!
Maybe it will make governments think twice before using the power of eminent domain for private interests, no matter what the Supreme Court says!
Be prepared to see that the award for damages be vacated, because of the Supreme Courts decision.
Of course it will be appealed. A three judge panel will adjust the jury's award to something less, the developer will pay it and that will be the end of it. Juries rule by emotion on civil award cases, seems like the judgments are always reduced on appeal.
So?
The one thing that concerns me; I wonder how much Ahmed will give to muslim "charities"??
"The one thing that concerns me; I wonder how much Ahmed will give to muslim "charities"??"
Perhaps nothing... there are Christians, Jews, Hindus, etc who live (and emmigrate from) the Middle East.
"...no matter what the Supreme Court says!"
Sigh...
Conservatives want a non-activist SCOTUS until their ox is gored. This is a case-in-point (as was Shivo).
The SCOTUS simply ruled that the US Constitution did not prohibit the ED actions of CT. That is true, and this (sadly) isn't the first case. Anyone else remember the Detroit "Poletown" GM factory?
If you want legislation changed for eminent domain, then it must be changed by elected officials. If you want the US Constitution to be change, it must be changed by legislation.
I doubt ahmed will see anything remotely close to the award.
You think the Kelo case was correctly decided, ie, that the Constitution allows governments to condemn land for *any* purpose?
I don't think that's what the Framers had in mind.
This guy seems to be some sort of celebrated muslim against terrorism.
I'm glad to hear he was awarded something. The Gaslamp Quarter is a beautiful area of San Diego. Why do they need another hotel, there are loads of them within walking distance of the Gaslamp?! Plus they have great public transportation in San Diego.
As someone who used to frequent Ahmet's business, I say good for him. San Diego's city council and former mayors were corrupt scum.
I used to get cigars there myself a number of years ago when I lived in SD. Kinda still miss that town sometimes.
Until government apparatchiks are forced to pay for their criminal acts such as this land grab (yes, I know that this was not a criminal trial, but in a just world it would have been), either through $$ or jail time, this kind of theft will continue unabated.
What kind of half-assed defense is that? Even if he was just speculating, that's free enterprise. Since he sank $2.5 Mil cash into the property, not to mention his time and the value of the business he built, he was a serious businessman. This award shouldn't be reduced by very much.
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