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Business May 25, 2006  RSS feed

Local businesses affected by Kanan construction

By Stephanie Bertholdo bertholdo@theacorn.com

There is a price for progress.

The Kanan/101 freeway interchange construction may improve traffic flow upon completion, but some businesses in Agoura Hills feel the price they're paying for the public good is too high.

While some business owners have embraced the inevitable compromises they've been forced to make, others continue to negotiate with city officials.

Invoking powers of eminent domain, the city purchased portions of several properties that were needed to construct the interchange.

Even before the city exercised its right to buy a sliver of his property, Ron Lopaty, owner of the McDonald's franchise on the northeast corner of Kanan and the old Canwood Street in Agoura Hills, had planned on remodeling his restaurant.

The interior design, faade changes and landscaping turned into a bigger and more expensive project than he expected.

The old Canwood Street, which ran parallel to the freeway, previously served as the main entrance into McDonald's. But with the access road now designated as a four-lane freeway off ramp, expensive structural changes were needed to reconfigure the entrance and drive-through areas of the restaurant. Lopaty said these changes cost an additional $100,000.

Lopaty hasn't minded the cost or the inconvenience.

"Ninety-nine percent of the things we asked for to be included in the agreement (with the city) were included," Lopaty said. "(The redesign) probably increased the value of the overall real estate of McDonald's."

Lopaty wasn't happy with the loss of lighting dictated by the city's lighting ordinance. He said the restaurant has an overall net loss of "foot candles," which is the amount of wattage produced by lights.

"More lights deter robbery," Lopaty said.

Lopaty wouldn't disclose how much the city paid for the McDonald's property that was used for the interchange, but the total cost of his remodel topped $700,000. Lopaty and his brother, Ken, used some of their own capital to complete the remodel.

McDonald's is now accessible from the new Canwood Street and also from Kanan Road.

Other changes to the restaurant include signage, which has become more visible from the back of the building. He said the estaurant also will have good signage facing the new freeway off-ramp.

The interior of McDonald's also is undergoing design changes, including new seating.

The loss of business during construction was Lopaty's only complaint. But even with the interchange construction, customers are returning to the 30-yearold McDonald's.

"You never get all you want when you have a condemnation," Lopaty said. "But, the city has been very, very fair in our dealings."

Dissenting owners

While Lopaty has reconciled the city's need to construct a new interchange-and his need to remodel his business-some businesses continue to negotiate with the city for additional compensation.These include the International House of Pancakes (IHOP), Kanan Plaza Properties, the Chevron gas station on the south side of the freeway, and the Shell gas station near McDonald's.

According to Agoura Hills City Manager Greg Ramirez, segments of these business properties are needed to relocate traffic signals, construct ramps to eliminate all left turns onto the freeway, and increase the number of lanes at the exit ramps, which Ramirez said will improve traffic flow.

The IHOP property was remodeled prior to the interchange construction and the owners aren't keen on further changes.

Ramirez believes that "an adjustment" might be needed to the front of the IHOP building if the business wants to stay competitive.

The restaurant owners and the city staff continue to negotiate the amount of money needed to

compensate for the cost of another remodel and IHOP's loss of business during the interchange construction.

Owners of the restaurant did not return phone calls requesting comment.

Ramirez wishes things went as smoothly as with McDonald's.

"McDonald's was proactive, and when we approached them and said we needed some property, they jumped on it immediately," Ramirez said. "It was really a win-win (situation)."



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