Margie M. Palmer

The California Department of Transportation (Caltrans) is moving forward with an auction of its former Old Town headquarters. However, pending litigation may discourage would-be buyers from bidding on the property.

The crux of the lawsuit filed by Save Our Heritage Organisation (SOHO) is that Caltrans failed to comply with the California Environmental Quality Act (CEQA) when it decided to sell the Old Town State Historic Park-adjacent parcel.

CEQA requires state and local agencies to identify the “significant environmental impacts of their actions” and that those impacts be avoided or mitigated, if feasible.
SOHO Executive Director Bruce Coons said the Caltrans property is historically significant because it occupies an important piece of the Old Town settlement, which was founded in 1769. He also said he believes transferring the property to the Department of Parks and Recreation should be the preferred course of action.

Caltrans spokesperson Ed Cartagena said the purpose of the sale is to dispose of an excess state-owned property that has been vacant since 2006. More than $150,000 has been spent maintaining the facility, which does not include utilities or unexpected maintenance requirements.

Cartagena also said the State requires Caltrans to submit an Environmental Impact Report (EIR) for all projects.

The EIR states that Caltrans said transferring the building to Parks Department or selling the building with “protective covenants,” which would require preservation of the building, have been withdrawn from consideration.

“The requirements needed to save the numerous interior character defining features in accordance with the Secretary of the Interior Standards would limit the list of potential buyers,” the EIR stated.

Coons said the EIR is one of the worst he has ever seen because it doesn’t look at any alternative or mitigation to the sale of the property. The goal of the lawsuit, he said, is to “have a real EIR done, which would look at various alternatives to sale,” which he said the current EIR does not.

Transferring the property to the Parks Department, Coons said, is the most logical course of action. He said his opinion is shared by a long list of business owners as well as Senator Christine Kehoe.

“Selling the building doesn’t make any economic sense,” Coons said. “Old Town is one of the biggest economic engines the city has and draws a significant number of tourists every year. [The Caltrans property] is a key site in that industry,” he said.

Caltrans, however, said their hands are tied because State agencies are required to dispose of excess property at fair market value unless directed otherwise by legislation.

The auction, initially scheduled to take place on Jan. 25, was rescheduled to Feb. 23 in an effort to gain more exposure for the sale and to attract additional bidders.
Cartagena said there have been a few people who have viewed the building since the auction was announced.
Coons, though, says that buyers should beware.

“[SOHO] is against this, local businesses are against this and the politicians are against this,” he said. “[Not transferring the land to Parks Department] is going to be a major problem because no one is for the sale.”