California recommends changes to leasing properties under freeways after major fire in downtown LA

Three months after an arson fire at a state-leased storage space shut down a major Los Angeles freeway, California transportation officials are recommending changes to the leasing program that would explicitly ban storage of hazardous materials like wood pallets and gasoline and provide more scrutiny of people who want to rent out the properties.

The state should require any individual who wants to lease one of the 600 available state-owned properties under roadways to attest they haven’t entered into bankruptcy in the past 10 years and are not embroiled in legal actions related to other properties, the head of the California Department of Transportation, or Caltrans, said Tuesday in a memo containing recommendations to Gov. Gavin Newsom.

Newsom’s office later praised the agency recommendations, saying the changes “will streamline enforcement, improve actions to address risks, and provide an overall safer environment for this program.”

The man who leased the property under Interstate 10 that caught fire had filed for bankruptcy twice since 2016 and was the target of several legal filings related to other sites he managed, Associated Press reporting found. The state is fighting to evict Ahmad Anthony Nowaid and scores of tenants subleasing through him in violation of his contracts with Caltrans, according to court records.

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