Caltrans seized "Games for Fun" - a 25-year community fixture in San Bernardino - and tore down its landmark freeway sign. Caltrans now claims the business is valueless. Jury trial is scheduled for May 24, 2010.
01 | 27 | 2010
Case Study
San Bernardino, Calif. (January 27, 2010) – Ken Renfroe, long-time San Bernardino County resident, and family patriarch, opened Games for Fun - a manufacturer and retailer of game room tables and accessories - in San Bernardino in 1984. The Renfroe family built, over 25 years, a thriving Southern California business. Since 1989, Games for Fun has been strategically located, and its billboard became a landmark on Rialto Avenue adjacent to the 215 freeway.
But after 25 years, Caltrans has now taken it all away with an eminent domain lawsuit. Worse, Caltrans now claims the business is “valueless.” Jury trial is scheduled for May 24, 2010.
Games For Fun:
Since opening in 1984, the Renfroe family’s business became “one of the premier sellers of pool tables and other gaming tables and accessories in Southern California,” according to industry expert Mike Bathalter. Games for Fun benefitted from the three adjacent parcels Ken Renfroe assembled in San Bernardino for the business - all of which boasted excellent freeway visibility and frontage along the I-215 at Rialto. “My family’s business also benefitted from a large freeway sign which alerted drivers to the store’s location,” according to Ken Renfroe.
But Caltrans seized a large portion of the family’s properties earlier this month. Caltrans also tore down Games for Fun’s large freeway sign, all for Caltrans’ long-delayed, on-again, off-again, I-215 widening project. Caltrans now claims it needs a “full take” of the three properties. “It has put Games for Fun out of business,” reports the Renfroe family attorney. “We have been in limbo for over 10 years,” reports Ken Renfroe. “We look forward to finally getting our day in court.”
Caltrans’ Own Agent Admits To “Delays And Lies:”
“Even Caltrans has expressed frustration regarding the uncertainty surrounding the taking of the Renfroe family’s properties,” according to the Renfroe family attorney. Caltrans’ in-house appraiser assigned to the project, Frank Riley, wrote in the parcel diary on January 28, 2008: “It is the same old delays and lies.”
At his deposition on December 9, 2009, Frank Riley explained that he was referring to the uncertainty over funding and the uncertainty over the scope of the take. He testified at his deposition that Caltrans “wouldn’t make a commitment to what - what way they wanted to go.”
Employees:
“Over the years, the family business weathered several business cycles, and grew to support up to 15 local employees and their families. All family members on both sides of the Renfroe family have worked at Games for Fun. The family business was profitable its very first year and generated substantial gross revenue almost immediately,” according to Ken Renfroe.
Valuation:
The Renfroe Family’s attorney reports that “Caltrans now claims that the business itself is valueless.” By contrast, “The Renfroe family’s appraisers put the actual value of the family’s losses at several million dollars,” reports the family’s eminent domain attorney. Jury trial over the amount of damages Caltrans owes the Renfroe family is scheduled for May 24, 2010 in San Bernardino County Superior Court.
Community Roots:
Over the years, Games for Fun established deep roots in the community. The Renfroe family acquired and remodeled a blighted building in the Uptown redevelopment project area. The family business made significant contributions to charitable activities, including donating gaming equipment to the San Bernardino Boys and Girls Club and the Loma Linda Medical Center.
Caltrans’ Delay And Waffling:
But things began to change dramatically beginning nearly 13 years ago, in April 1997. Caltrans notified the Renfroe family for the first time that Caltrans needed to acquire part of the family’s property for the I-215 project. Thereafter, thirteen years of delay, inaction and misinformation occurred. Caltrans notified the Renfroe family in 2002, 2005, 2007 and 2008 that the property was required for the project, needed to be tested or needed to be appraised. “Caltrans changed the project’s design after its environmental documents were approved in 1999,” reports the Renfroe family attorney. “Six years later, in 2007, we heard Caltrans ‘hit a bump in the road’ when its funding apparently evaporated. Also, Caltrans waffled between a full take and a part take option, and then simply did nothing.” The Renfroe family’s business declined in San Bernardino as a result.
Eminent Domain Action:
Caltrans finally filed its complaint in eminent domain on November 21, 2008 - over 10 years after notifying the Renfroe family that Caltrans required the family’s property for the project and 20 years after Caltrans’ first public announcement of the project. “Caltrans now claims that the Renfroe family’s business operations have no value,” according to the Renfroe family attorney. “Caltrans now finally does admit that it put the Renfroe family out of business when it finally decided on a full take - a decision it made over half a year after filing the complaint in 2008.”
While the Renfroe family must now relocate its business because Caltrans seized the family’s property, Caltrans has effectively made it impossible for the Renfroe family to do so. Caltrans warned the Renfroe family, in writing, that relocating without receipt of a Caltrans form, “Notice of Eligibility,” would eliminate the family’s eligibility for relocation benefits. Yet, Caltrans waited until December 17, 2009 - less than two months before the originally scheduled trial date of February 8, 2010 and after Caltrans had already obtained an order for prejudgment possession of the properties - to provide the Renfroe family with a Notice of Eligibility for relocation benefits.
Caltrans’ Appraisals:
“Caltrans has consistently ignored the true value of the Renfroe family’s business location and business,” reports the Renfroe family attorney. “Incredibly, Caltrans has offered nothing for the Renfroe family’s business.”
“We are very disappointed with Caltrans,” reports Ken Renfroe.
The case is scheduled for a two-week jury trial beginning May 24, 2010, in San Bernardino County Superior Court, Department 32.
“Caltrans’ appraisals are riddled with errors and inaccuracies,” reports the Renfroe family attorney. Some examples:
- Caltrans’ real estate appraisal was largely prepared by the real estate appraiser’s inexperienced assistant. Caltrans’ real estate appraiser spent less than half the amount of time that his inexperienced assistant did.
- The comparable sales Caltrans chose are not truly comparable. The alleged comparable sales are not freeway frontage properties. The sales and rentals lack a freeway sign like the Renfroe family’s sign, do not include any retail properties, and are not of comparable size.
"Caltrans’ business appraisal is even worse,” reports the Renfroe family attorney. Some examples:
- Caltrans’ business appraisal was drafted by the business appraiser’s inexperienced assistant. The business appraiser’s inexperienced assistant is not certified by the American Society of Appraisers, is not a Certified Public Accountant, is not licensed by the State, and does not hold any professional designations or degrees.
- Caltrans’ business appraiser did not consider financial information from years preceding the devastating impact of Caltrans’ project on Games for Fun.
- Caltrans’ business appraiser never investigated the impact of Caltrans’ project to reach his conclusion of the Renfroe family’s loss.
- Caltrans’ business appraiser did not speak with the Renfroe family’s customers, suppliers, employees, competitors, lenders or game room industry experts.