Arcadia (Calif.) Self Storge still waits to see if it will fall victim to eminent domain after the Arcadia City Council adopted a resolution that would allow Rusnak Mercedes-Benz to acquire adjacent properties—including the storage facility—for expansion. Assistant City Manager Don Penman said eminent domain would be a last resort, and nothing has been formally filed. In April, voters showed their opposition to the course of action by supporting candidates campaigning against it. As a result, City Hall may not have the political leverage it needs to move forward.
The consideration of eminent domain was purely a business decision, said Penman. In January 2005, the city's redevelopment agency approved an agreement to loan $8 million to help Rusnak expand, being that it is one of the city's largest tax contributors. Rusnak President Brian Beatt said the dealership is waiting to see how the city's negotiations transpire before finalizing expansion plans.