California program to lease land under freeways faces scrutiny after major Los Angeles fire

LOS ANGELES (AP) — 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. The California Department of Transportation, known as Caltrans, did not respond to questions about inspections or provide information about how many properties the state leases.

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.

The fire that spread quickly over 8 acres (3 hectares) 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 and Newsom has said investigators are trying to determine 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.

Mainak D’Attaray, an attorney for Apex Development, said in a statement Wednesday that the company is not to blame for the fire and in fact had made improvement to the property. He said the company has not been able to access the premises since October.