San Jose, California: Sridhar Kollareddy, an Indian-American businessman and owner of Silicon Valley Granite, is confronting the imminent loss of his 3-acre property due to the Santa Clara Valley Transportation Authority's (VTA) use of eminent domain for a BART expansion project.
Despite operating his granite business at 125 N. 30th St. for over two decades, Kollareddy was given less than 72 hours to vacate the premises, with any remaining inventory deemed "abandoned" and forfeited without compensation.
Key Facts:
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Eviction Order Issued: April 28, 2025, mandating vacating by April 30, 2025.
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Inventory at Risk: Approximately 7,000 stone slabs, each weighing up to 1,000 pounds, along with thousands of tiles and monuments.
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Relocation Challenges: Moving the inventory could take up to five months and cost an estimated $1.5 million.
The VTA's BART expansion aims to enhance transit connectivity in the Bay Area, with the planned 28th Street and Little Portugal station situated on Kollareddy's property.
While the VTA asserts that Kollareddy was informed of the relocation plans as early as 2020 and agreed to vacate by March 2024, Kollareddy contends that the agency's settlement offers were inconsistent and insufficient, leading to the abrupt eviction notice.
Kollareddy's family has rallied to move the massive inventory, but only about 5% has been relocated to temporary storage on friends' properties.
His daughter, Anisha, expressed the family's distress, stating, "It feels like it's all being 'lifted,' all his life savings, 401(k), everything gone in two days."
The situation underscores the tension between urban development and the preservation of small businesses, particularly those owned by immigrants.
Kollareddy, who immigrated to the U.S. in 1998, built his business from the ground up, importing and selling natural stone products across the Bay Area.
The forced relocation not only threatens his livelihood but also raises concerns about the equitable treatment of small business owners in large-scale infrastructure projects.
As the eviction deadline looms, Kollareddy and his legal team are exploring options to appeal the court order and seek adequate compensation for the inventory and relocation expenses.
The outcome of this case may set a precedent for how eminent domain is applied to small businesses in future development initiatives.
Do You Know?
Eminent domain allows government entities to acquire private property for public use, provided they offer "just compensation." However, disputes often arise over what constitutes fair compensation, especially when businesses face significant relocation challenges.
Key Terms:
Eminent Domain: The legal power of the government to take private property for public use, with compensation.
BART (Bay Area Rapid Transit): A public transportation system serving the San Francisco Bay Area.
VTA (Santa Clara Valley Transportation Authority): The agency responsible for public transit services and infrastructure projects in Santa Clara County.