City of Sacramento uses eminent domain; forces pregnant woman to sell her business

In August of 2006, more than six business-owner tenants of the 700 block of K St downtown Sacramento were asked to leave their businesses or face a 90 day notice to vacate by Overland, Pacific & Cutler, Inc., a real estate services organization claiming that the Redevelopment Agency of Sacramento ("Agency") had aquired title to the property located on the 700 block of K St. The properties were however and are currently legally owned by Moe Mohanna, a downtown developer since the mid 1980's.

Through the use of eminent domain, the city redevelopment agency had claimed that the properties on the 700 block were "blighted" and by law had the right to seize the properties according to the Kelo v. New London decision in 2005. The Kelo v. City of New London, was a case decided by the U.S. Supreme Court involving the use of eminent domain to transfer land from one private owner to another to further economic development. The case arose from the condemnation by New London, Connecticut, of privately owned real property so that it could be used as part of a comprehensive redevelopment plan.

Many members of the general public viewed the outcome as a gross violation of property rights and as a misinterpretation of the Fifth Amendment, the consequence of which would be to benefit large corporations at the expense of individual homeowners and local communities. Most in the legal profession construe the public's outrage as being directed not at the interpretation of legal principles involved in the case, but at the broad moral principles of the general outcome

The notice to vacate served by Overland, Pacific & Cutler, Inc in August 2006 notified tenants of the 700 block of K St. that it will be necessary for them to vacate the premises before October 31st, 2006, it stated, "If you do not vacate the premise by that date, the [Agency] will initiate legal proceedings to recover possesion of the premises along with rents and damage. One of the tenants, Griselda Barajas- Keolanui, owner the Mexican restaurant Texas on 8th and K St. was served notice by the agency. In a recent letter to Moe Mohanna, Griselda Barajas- Keolanui, tells her story of how she was led to believe there was no other alternative given to her by the Redevelopment Agency of Sacramento, only to sell her business and vacate the premise while pregnant with child.

George Glazunov

Sacramento Citizens For Justice

________________________________________________________________________________________________


Subject: Tex Mex Restaurant
Date: Thu, 23 Aug 2007 17:58:52 -070
From: Griselda [at] griseldascatering.com
To: moemohanna

Dear Moe,

You are an inspiration for sticking to your principles and having a true vision for the future development of downtown. I cannot tell to you how helpless I felt when the City came with their limited and under compensating offer, a feeling of manipulation to accept it or eventually be evicted. I made the mistake of not consulting with you because I was led to believe by them that this was a "done" deal and that it was in full agreement with you. I was pregnant with my first child and did not want to stress myself out so I pretty much just laid down and put my arms up to surrender to their demands. I initially felt betrayed by you because again I was made to believe that you were the person initiating this process. I regretfully accepted their offer of 60K to close down because I felt there was no way to pursue any course of legal action to prevent the closure of my business. A business that allowed me to expand in to the Capitol building, that was well regarded in the community and put food on the table for my family. I fully recognize that I would never become a millionaire running Texas as is, but I had it to the point where I made a good living for myself and my family and that the concept itself was very valuable and could be expanded to other locations.

Since the closure of the restaurant, I never let one employee go. I moved my mom and my sister and our cooks here to the Capitol which has created a strain on me both financially and emotionally. My sister is the first to leave our business because I could not afford to keep her. She understands what needed to be done and has agreed under my protests to search for other endeavors. My husband has given up his career to join us and has been instrumental in reorganizing our infrastructure and implementing a whole new concept that has allowed us to gain new clients as well as maintain some profitability.

But what is this price for losing you business? For losing in many ways your identity and the perception that we closed down because we went "out of business". I knew in my heart that it was a slap in my face to settle for what they gave me. It barely paid off the original investors and taxes and I was left trying to figure out how to make up for the money that would continue to be here if all of this had not happened. A day has not gone by that I have not thought about rectifying the situation and pursuing some course of legal action.

I have read the classless articles in the Bee portraying you and myself, the so called "under classed" tenant that you leased to and I am appalled and outraged that a publication such as the Bee can publish such reckless lies. They neglected to mention how many immigrants like myself were given an opportunity by you to have their own business. They neglected to tell the truth of how their redevelopment team literally pushed everyone out before anything was ever finalized. I know my restaurant wasn't in the greatest location or building, but you gave us the opportunity to run with what we had and I believe I did good job of maintaining a clean, honest and reputable business.

You do not ever have to ask me for friendship or support, I am and always will be your friend...restaurant or no restaurant. You let me know what I can do for you and it will be done. You have the support of my family and my business and I would be happy to meet with you anytime. As the incoming Chair of the Hispanic Chamber of Commerce, I will work to help you in your vision and pursue any course of action you may need my support on.

I will be out of town until Sunday but will follow up with you on Monday to see if we can set up something.

Give my warmest regards to your family.

Sincerely,

Griselda


Griselda Barajas-Keolanui

CEO/Owner



Griselda's Ventures, Inc.



Griselda’s Catering & Event Planning

Tex-Mex At the Capitol

Food on the Fly Aviation Catering



915 L Street #C189

Sacramento, CA 95814

Ph: (916) 443-7313

Fax: (916)443-7646


Griselda [at] griseldascatering.com

http://www.griseldascatering.com