Property Owner Sues Sacramento After Homeless People Break Into Vacant Commercial Building

Outline:

  1. Introduction

    • Bugatto Sacramento Properties sues the city over the homeless crisis.
    • Property located at the corner of 5th Street and 1st Avenue.
    • Ownership and history of the property.
  2. Background

    • Worsening homelessness since 2016.
    • Impact of the now-closed sanctioned camping site at Miller Park.
    • Break-ins, vandalism, and fires at the property.
  3. City's Response

    • City's failure to address the issue.
    • Code violations and fines issued.
    • Attempt to demolish and rebuild the property.
  4. Legal Action

    • Lawsuit claims unlawful taking of property and inverse condemnation.
    • Demands monetary damages and removal of road extension requirement.
  5. Context and Impact

    • Historical and current use of the area.
    • Homeless individuals seeking shelter in vacant buildings.
    • Current state of homelessness in Sacramento.

Property Owner Sues Sacramento After Homeless People Break Into Vacant Commercial Building

Bugatto Sacramento Properties, the owner of a vacant commercial lot just south of downtown Sacramento, has filed a lawsuit against the city, alleging that the city's failure to address the homeless crisis has led to significant damages to their property. The corporation, owned by Eugene and Michael Bugatto and based in San Francisco, has owned the property at the corner of 5th Street and 1st Avenue since 1998. The property, which once housed five buildings used for storing and distributing frozen fish, now lies in ruins due to repeated break-ins and vandalism by homeless individuals.

Since 2016, homelessness in the area has escalated, partly due to the city's decision to open and subsequently close a sanctioned camping site at nearby Miller Park. The lawsuit states that when the camping site was full, homeless individuals would often set up camps on the vacant lot owned by Bugatto Sacramento Properties. These individuals have not only trespassed but also vandalized the buildings with graffiti and set them on fire.

Despite repeated requests from the property owners for police intervention, the city has largely ignored these pleas. Instead, the city issued code violations, deeming the building a "dangerous vacant building" and fining the owners, rather than addressing the root cause of the problem. The city even sought an order to demolish the building in 2021, which the owners contested. Subsequently, the city ordered the property to be rebuilt as housing, per the West Broadway Specific Plan, forcing the owner to shut down their business.

In 2022, the owner entered into an agreement to sell the property for $5.1 million, contingent on obtaining city approvals for constructing housing. However, the city's requirement for the buyer to extend 6th Street to the north, a condition that would reduce the property's value by about $1 million, has further complicated the situation. The lawsuit accuses the city of unlawful taking of property and inverse condemnation, seeking monetary damages and the removal of the road extension requirement.

The area where the property is located has historically been industrial but is increasingly becoming residential. Despite efforts to develop the area, the homeless crisis continues to escalate, with over 2,500 people and 820 families on the waitlist for one of the city's roughly 1,300 shelter beds. Homeless individuals often seek refuge in vacant buildings to escape extreme weather conditions, highlighting the urgent need for comprehensive solutions to the homelessness crisis in Sacramento.

The lawsuit not only seeks to address the immediate damages to Bugatto Sacramento Properties but also to compel the city to take more effective measures to address the broader issue of homelessness, ensuring that property owners and the homeless alike receive the support and protection they need.

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