Pasadena City Council votes to use eminent domain on historic abandoned YWCA building

By Dan Abendschein
Pasedena Star-News
Apr. 14, 2010

PASADENA - The City Council wants to take possession of a Julia Morgan-designed building across the street from City Hall and may pay $6.43 million to get it.

The YWCA building at 78 N. Marengo, which was built in 1922, has become an eyesore, officials said. The unanimous vote by the Council Monday night means the Pasadena will begin eminent domain proceedings in court.

City officials have argued that the building has been badly treated by its owner. It has been fenced up and abandoned for two decades.

"The city cannot sit idly by anymore," said Councilman Terry Tornek, at Monday's City Council meeting.

All six Council members who were present for the meeting voted in favor of the resolution. Chris Holden and Steve Madison were not present for the hearing.

Staff members presented photos of interior of the building, which was once used by the Young Women's Christian Association as a social center and place for women to stay.

The photos showed a roof lined with holes, doors being used to cover up broken windows, peeling paint, and water pooled up on the floor. City staff said the building has received 11 citations for code violations over the past 10 years.

"It's clear that the owner has no intent of protecting this building," said Councilman Victor Gordo on Monday.

Businesswoman Angela Chen-Sabella, the daughter of a Hong Kong billionaire, has been the owner of the property since 1996, when she acquired it for $1.8 million. Greg Perry, a local lawyer who represents Chen-Sabella, acknowledged Tuesday that the building needs some work.

"The upkeep could have been better...it's hard when the building isn't occupied," Perry said.

But, he added, city officials have been wrong to suggest his client has not tried to develop the property.

"They slandered her pretty badly," Perry said, referring to comments at Monday night's meeting.

The city has been trying to acquire the building for years, and recently offered Chen-Sabella about $6.43 million. She rejected the offer, and asked for almost twice that, according to City Attorney Michele Bagneris.

Many projects have been proposed for the building over the years, including a boutique hotel, office space for city employees, and low-income housing apartments. None of the plans ever got off the drawing board.

Perry said that city officials should take some responsibility for the projects stalling- in the case of the hotel, for example, he said his client had requested the city contribute some other property to the project to make it work.

The next step is for the city to initiate eminent domain proceedings. The city listed its offer as fair compensation for the property, according to Eric Duyshart, the city's Economic Development Manager.

If the case goes all the way through court, a jury will be appointed and will decide whether Pasadena has a right to the property, and what value the 1922 building holds, Duyshart added.

It is also possible that the threat of seizure could compel Chen-Sabella to negotiate and lower her asking price, a possibility suggested by Mayor Bill Bogaard.

But Chen-Sabella looks to be prepared for a court battle: she has hired a second attorney to help in the case, John Peterson a specialist in Los Angeles County eminent domain cases, according to Perry. With the unanimous vote at Monday's Council meeting, the city will transfer $6.43 million to an account held by the court. The money will be Chen-Sabella's compensation for the property if the court approves the city's claim.

The funds will come from a city redevelopment account targeting economic development.

Officials anticipate that the building's historical landmark status will help make the legal case for why the city has a right to control the property.

If the court disagrees about the value of the property, or Chen-Sabella agrees to accept a lower offer, the city can always back out of the proceedings, Duyshart said.

"There will always be an opportunity for us to step away," Duyshart said.