Eviction Notices from Caltrans Impact Local Businesses
SAN FRANCISCO — Several business owners leasing property from the California Department of Transportation (Caltrans) have recently received eviction notices, raising concerns about the impact on their operations.
Background and the Role of Caltrans
The shift stems from a report by the Caltrans Inspector General, which triggered an internal review of leasing and oversight practices for properties situated near highway structures. This review was initiated following a fire incident in November 2023 under Interstate 10 in Los Angeles, prompting Caltrans to reevaluate its Airspace Lease program.
Caltrans is making changes to its leasing policies, prioritizing safety and operational standards as part of its commitment to the public. The agency is collaborating with the State Fire Marshal and the Federal Highway Administration to develop guidelines that may allow for exceptions under the new airspace regulations.
Case Study: Kevin Barry and His Steel Fabrication Business
Among those affected is Kevin Barry, who has operated a steel fabrication business in San Francisco’s Dogpatch neighborhood for over twenty years. Barry’s business, located at Iowa and 25th Streets beneath the 280 freeway, has been undergoing turmoil since he received eviction notices in December.
“It’s over for me, at my age, if I have to move, it’s finished,” Barry expressed, highlighting his distress about potentially relocating and restarting his venture.
The Impact of New Regulations
Despite Barry’s proactive measures to ensure safety—such as removing trailers at Caltrans’s request and maintaining fire safety equipment—he still received eviction notices linked to the revised airspace policies. “It is fireproof the whole way around after those three buildings came down,” Barry said, expressing confidence in the safety of his facility.
Julie Christensen, the former Executive Director of the Dogpatch and Northwest Potrero Hill Green Benefit District, emphasized the vital role businesses like Barry’s play in community safety. “Kevin is our pride and joy,” she noted, stressing the positive contributions of local businesses in maintaining neighborhood order and cleanliness.
Concerns About Job Loss
For Barry, the stakes are high. If forced to close, he would have to lay off his employees. Initially, he was given a deadline of March 31 to vacate the premises; however, Caltrans has since offered him a temporary reprieve.
Caltrans acknowledges the concerns of its tenants regarding insurance coverage, indicating a willingness to work alongside them to find feasible solutions. Barry remains hopeful, saying, “Hopefully, with the help of the good Lord, we’ll be able to keep it going.”
Broader Implications for Local Businesses
Barry’s situation isn’t unique. Other enterprises in the vicinity, including the Urban Sports Alliance and a local taxicab company, have also received eviction notices, highlighting the broader implications of Caltrans’s policy changes.
As discussions continue, it remains to be seen how these amendments will shape the future of small businesses reliant on properties leased from Caltrans.
