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Program to lease land under freeways faces scrutiny after LA fire

By Associated Press
Published: November 15, 2023, 5:28pm

LOS ANGELES — The area under an elevated Los Angeles freeway that burned last weekend, damaging a section of a key thoroughfare in the car-dependent city, was stacked with flammable materials on lots leased by the state through a little-known program that now is under scrutiny.

The blaze Saturday burned about 100 support columns, forcing the closure of a vital mile-long stretch of Interstate 10 near downtown that is used by hundreds of thousands of people daily.

It could take crews working around the clock between three and five weeks to repair the freeway, Gov. Gavin Newsom said.

Newsom said the state would reassess the practice of leasing land under roads to bring in money for mass transportation projects.

Details of that program remain opaque. Newsom’s office directed questions about whether the state has any regular inspection protocols to state transportation officials.

State Assemblymember Miguel Santiago, who represents part of downtown Los Angeles, said officials should disclose how many sites are leased under the program, the terms of contracts, how much money the program generates and how the state ensures companies comply with the contract requirements.

“Some of those actions could have prevented what we now see happened underneath the 10,” Santiago said.

Apex Development Inc. has leased the land under I-10 since 2008. One condition of Apex’s contract stipulated it not allow flammable or hazardous materials to be stored there.

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The fire that spread quickly over 8 acres was fed by pallets, cars, construction materials, hand sanitizer and other items being stored under the freeway in an industrial neighborhood. No injuries were reported but at least 16 homeless people living in an encampment there were taken to shelters.

No arrests have been made. Investigators don’t know if more than one person was involved in what officials said was likely arson.

Prior to the fire, state officials filed a lawsuit against Apex saying the company owes $78,000 in unpaid rent.

The lawsuit also says Apex was subleasing to six other companies. That can be legal if the company received permission from state and federal regulators but Apex did not, Newsom said.

Apex has confirmed the litigation but has not answered other questions through a lawyer.

Owners of two of the companies that subleased the property said they had warned of fire danger and other hazards related to homeless people living under the freeway. Luis Cartagena of Eagle Wood Services said he stopped using the space for his wood pallet business more than a year ago because he was losing so much to theft.

“There was a lot of homeless people there, drug dealing, prostitution and there was a lot of theft,” he said. “I couldn’t leave anything.”

Rudy Serafin said he’s been leasing space under I-10 from Apex since 2009. He uses it to store supplies for businesses in the garment district including hangars, boxes and bags. He also stores office supplies including hand sanitizer, which is flammable.

He estimates he lost $800,000. “I don’t know what I am going to do. I am 49 years old. I have no other resources. This is my livelihood. This is what I feed my kids with,” he said.

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