Company leasing land where 10 Freeway fire started says it is being mischaracterized by officials

A Calabasas company called into question by Gov. Gavin Newsom for its link to a massive fire underneath the 10 Freeway near downtown Los Angeles is responding to criticism by state and local officials.

Apex Development, Inc. says it previously leased the land since 2008.

Mainak D'Attaray, an attorney representing Apex released a statement Wednesday evening saying the company hasn't had access to the premises since October of this year.

Apex is currently suing the State of California for unreimbursed improvements it says it made to land it was leasing from Caltrans. Caltrans is suing Apex for alleged unpaid rent.

In the days following the weekend fire, Newsom called out Apex as "bad actors," saying the company was thousands of dollars behind in rent owed to the state and was illegally subleasing the land.

"Whoever the members of that particular corporation are have been bad actors," Newsom said at a press conference earlier this week. "We've been in a litigious posture for some time. They stopped paying their rent."

Apex's statement addresses those allegations, saying "Apex rented and improved the rundown yard and made substantial capital investments during the period that it had possession of the yard. Caltrans inspected the premises periodically, at least once a year, and Caltrans was fully aware of the sublessees and their operations."

Officials say there was a homeless encampment near the property where the fire started, and while a cause was still under investigation, officials believed an arsonist was to blame.

"It is unfortunate that Governor Gavin Newsom and Mayor Karen Bass have used this incident to speculate and mischaracterize Apex and its principals as ‘bad actors’ to excuse their own failures to adequately address the public safety issues caused by the unhoused," Apex said in its statement.

Bass has said no one should jump to conclusions about who started the fire until the investigation is complete.

Late Wednesday night, the governor's office sent NBC4 a new statement to address what Apex released earlier that day, saying “Caltrans sued Apex for failing to pay its rent and subletting the area to unauthorized tenants. CalFire currently believes the fire was caused by arson -- the criminal act of deliberately setting fire to property -- in a fenced-off area that Apex was responsible for maintaining while they continued to assert rights under the lease."

FULL STATEMENT FROM APEX DEVELOPMENT:

Apex Development, Inc. ("Apex") is deeply saddened by the damage caused by the I-10 Freeway Fire, in the storage yard which Apex previously leased since 2008.  However, since at least October of this year, at the direction of the California Department of Transportation ("CalTrans") Apex has not been able to access the premises. 

Apex rented and improved the rundown yard and made substantial capital investments during the period that it had possession of the yard.  Caltrans inspected the premises periodically, at least once a year, and CalTrans was fully aware of the sublessees and their operations.  Even the State of California's Fire Marshall inspected the premises.

In June of this year, Apex was forced to bring a legal action against CalTrans due to CalTrans' breach of agreement related to Apex's capital improvements to the premises and the escalating issue of the unhoused.  CalTrans retaliated with eviction suits against Apex, undermining Apex's authority as the Master Leaseholder.

It is unfortunate that Governor Gavin Newsom and Mayor Karen Bass have used this incident to speculate and mischaracterize Apex and its principals as "bad actors" to excuse their own failures to adequately address the public safety issues caused by the unhoused. In fact, on multiple occasions prior to the incident, Apex employees called the City of Los Angeles Fire Department to report fires started by the unhoused persons that camped around the premises and even along the fence line on 14th Street and at other yards.  These reports by Apex to the fire authorities and the Los Angeles Police Department were treated dismissively and the unhoused persons camping along the fence line of the premises were allowed to remain and accumulate all types of refuse and materials over which Apex had no control. 

Apex is sympathetic to the loss of property and the adverse impact the fire has caused the people of Los Angeles. But Apex was not involved in the fire. Apex is being unfairly scape-goated for something over which it had no control.