Monday, May 23, 2011

Yolo Sun: Petrovich sues Hoblit while his city subsidies and multiplex project lose traction

Excerpts from the Yolo Sun article "Petrovich sues Hoblit to force quick eviction, redevelopment law prohibits city assistance and conditions funding for public upgrades; city withdraws $800,000 cineplex subsidy:"

Petrovich tries to evict Hoblit... again

Sometime during April, Petrovich suddenly filed a lawsuit in Yolo County Superior Court to compel the immediate eviction of Hoblit’s car and truck (and Jeep) dealership from his property, the former Electric Garage...

When a fleeting yet competing proposal for a downtown cineplex project unexpectedly surfaced several years ago, Petrovich sent Hoblit an instant letter of eviction; but he then recalled it as that proposal rather quickly evaporated.

Petrovich may be similarly motivated in this current, aggravated instance of eviction, by the fact that Frank Rimkus, CEO of Galaxy Theatres (a multi-state movie-house chain) has recently said that his corporation is — “still considering” — whether to file a project application to construct a new cineplex at the northeastern corner of Main and Walnut Streets, across Main Street from (now blighted) State Theatre.

$200,000 RDA subsidy to move Hoblit for Petrovich is illegal

Woodland Redevelopment Agency has for many months been seriously considering an expenditure of $200,000 toward a relocation of Hoblit Motors, based upon an argument that it has been: “[S]purred by redevelopment actions” related to Petrovich’s cineplex plan.

Redevelopment law (specifically, Health and Safety Code, Section 33426.5) explicitly establishes that: “[A]n agency shall not provide any form of direct assistance to [a]n automobile dealership which will be or is on a parcel of land which has not previously been developed for urban use[.]”

$800,000 city subsidy for Petrovich's Cinema West inexplicably skids

During the previous several months, dual proposals have surfaced for redevelopment agency funding in general support of Petrovich’s cineplex project, $200,000 of relocation assistance for Hoblit and another $800,000 for various public improvements contiguous to his project.

City manager Deven now indicates that he does not foresee this $800,000 expenditure item ever again coming before the redevelopment agency board of directors.

Read the entire article at YoloSun.wordpress.org.

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