Langer

—In this inverse condemnation action, two commercial tenants appeal from a summary judgment in favor of the Redevelopment Agency of the City of Santa Cruz (the Agency). 1 Appellants sought compensation for business goodwill and improvements lost when they were evicted from the properties they were renting and the land became part of a large-scale commercial development funded in part by the Agency. We find that there was no taking of the properties by the Agency, either by actual condemnation or its substantial equivalent. Consequently, appellants are not entitled to compensation for goodwill and improvements under eminent domain law. (Code Civ. Proc., §§ 1263.510, 1263.205.) We will affirm the summary judgment.

Background

Charles Scherer owned 3 parcels of real property which together comprised 3.74 acres of a 10-acre area in the City of Santa Cruz (City) known as the Gateway Project site. The Gateway Project site consisted of approximately 20 irregularly shaped parcels, including Scherer’s 3 parcels, which were dedicated to various commercial and light-industrial uses. Its location on the edge of town at the intersection of two main thoroughfares made it well suited…