Shell won’t renew lease in Old Agoura

By Stephanie Bertholdo Acorn Staff Writer

In a surprise turn of events after months of negotiations with the city of Agoura Hills, Shell Oil Products announced that the company won’t renew its gas station lease on Jan. 1.

With just a couple of remodeling points left to iron out, Shell Oil Products representative Robert Mustane addressed city council members at last week’s meeting with the 11th-hour decision that his company will "exit the Palo Comado station," located adjacent the 101 Freeway in Old Agoura.

Mustane said it’s "cost prohibitive to continue operation at the site." He added that the operator of the station may elect to close the operation or he may purchase the site and open a private gas station and mini-market.

The move to kill the lease next year was shocking to council members because many points of contention between the city and Shell had been resolved after months of work by the city’s public works and planning departments.

Issues of aesthetics, including driveway pavers and the monument sign’s backdrop color had been resolved in Shell’s favor, but the main points of contention—the removal of the southerly driveway along Palo Comado Road and leaving just one entrance to the station— appeared to be unsolvable. (The city did, however, agree to Shell’s appeal to leave a truck entry and exit in the back of the station off of Canwood).

Mustane explained that Shell proposed a modified exit plan with the driveway size reduced and angled, but that the city still rejected the plan. "Closing driveways are expensive," he said, adding that since driveways have value, "Shell deserves compensation."

In studies, according to Mustane, customers have cited ease of access is the No. 1 reason to use a particular station and that the city’s closure of the two driveways on Canwood Street and Palo Comado would "make exiting the station extremely difficult." Mustane accused the city of using the station’s snack shop conditional use permit as a reason "to extort."

Another Shell representative told the city council that by forcing closures of driveways "it is a taking—and one that should be compensated."

Mayor Pro Tem Dan Kuperberg said, "As of January first, you’re out of here; why should we care about your opinion after January first?" He added that there’s room to turn around in the station and exit.

Mustane replied that cars would have "to jump curbs" and that vehicles could be scratched as a result.

Director of public works and city engineer Jim Thorsen explained that the driveway access "really doesn’t prohibit an exit out." Since the driveway is 12 feet, there is room for both an entrance and exit," he said.

The city’s staff report noted that the city "is not requiring any modifications to the driveways until there is a change in traffic patterns, signal installation or site modification as identified in the revised condition. . . ."

Specifically, the resolution stated that it’s "contingent upon any traffic pattern change that results in a signal within 700 feet of this intersection, any increase in traffic collision data (as determined by the city), any significant increase in traffic along Canwood Street or Palo Comado Road, or in the event the applicant has site modifications to include new building, tanks or pumps islands….The applicant shall further agree to remove the southerly Palo Comado Road driveways within 10 years from the date of the agreement."

Agoura Hills City Manager Craig Steele explained that the city is required to consider the "potential for detrimental impacts as a result of the CUP" (conditional use permit). He added that the "use (snack shop remodeling) has already been going on illegally. . . . (We’re) looking at it as if it is new use."

Shell’s attorney, Marc Greenberg, spoke to council members regarding the driveway closures. He said it "was just speculation" and that there was no evidence that required the closures.

Mayor Jeff Reinhardt said that someone "was responsible for making changes without permits." The remodeling, he said, was illegal. Mike Kamino, director of planning and community development for Agoura Hills, said the remodeling job, without permits, was a code enforcement item.

City Councilman Denis Weber said in a subsequent conversation that "they painted an ugly building beige and I think that’s all they did." He added. "Had that not happened, we would have had a lot more common ground."

Nevertheless, Weber, too, was surprised with Shell’s announcement that they’re leaving.

"The breaking point was the driveway," Weber said. "By making (Shell) remove the driveways in the near future or 10 years in the future, it denies him the use of the property." Weber still believes that compromise is possible. Weber said he hopes there’s no lawsuit. "That’s not the way to solve things," he said.

City Councilwoman Louise Rishoff said she was dismayed and that if Shell was going to have "two lawyers impugning staff and making threats," the council needed time for consideration.

A motion was made to continue the discussion on Oct. 22.