Eminent Domain & Land Development Case Study
Star Scrap Metal – Montebello
Challenge
Star Scrap Metal and their sister company Metal Depot are third-generation, family-run businesses founded in 1947. For decades they operated on the side of the Golden State Freeway in La Mirada. Their location afforded them excellent visibility and gave them a competitive advantage with aluminum can savers, and commercial contractors all knew exactly where to go to trade their scrap. However, as the “5 Fwy” widening project got underway, CalTrans warned them that they would be seizing their property. Star Scrap was faced with a series of daunting challenges which included: negotiations with CalTrans, postponing the project to find a site, compliance with reimbursement rules, finding sites for both businesses, contingency plans because they were running out of time, planning for a modern facility, updating all of their safety protocols for a new location, constructing a modern facility, occupying the site during construction, in what would be the worst rain years on record, and 10 phased moves.
Solution
Star Scrap Hired Jack Kozakar to sort things out. Jack worked with several planning agencies, conducting heavy community outreach and entitlement support until ultimately helping Star Scrap purchase and entitle property just months before they had to vacate their old property. By the time the property was ready to be developed, there was not enough time to complete planning, let alone construction. So, understanding their business and project requirements Jack developed and reorganized the project as if it was a freeway project with cars whizzing by as each part constructed. The project was ultimately completed in dozens of small phases including about 30% slab completion by the time they had to move in. That, coupled with short term rented warehouse space and a reduced operating model gave Star Scrap enough of a platform to stay in business while planning and construction were complete. Jack also worked with council and manufacturing reps to develop site specific safety policy and procedures.
Results
Jack succeeded in helping the family keep their businesses. Jack excelled at managing the project contracts and budgets that were built and managed per State/Federal reimbursement codes. Jack also worked closely with council on reimbursements, actions, filings and ultimately litigation. Jack expertly dealt with changes in city permitting policy, challenges with neighbors, flooding on several occasions, site security, changes in contractors, update to safety protocols, and the many, many issues that come up when you try and build and use a site at the same time.