• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
PoliticsCalifornia

After the LA freeway catches fire, Gavin Newsom is reconsidering California’s obscure policy of letting anyone lease land underneath

By
Julie Watson
Julie Watson
,
Amy Taxin
Amy Taxin
, and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Julie Watson
Julie Watson
,
Amy Taxin
Amy Taxin
, and
The Associated Press
The Associated Press
Down Arrow Button Icon
November 16, 2023, 10:21 AM ET
Gavin Newsom, Karen Bass
Los Angeles Mayor Karen Bass, center, joined by California Gov. Gavin Newsom, left,, speaks during a news conference about repairs for a stretch of Interstate 10, Tuesday morning Nov. 14, 2023, in Los Angeles. Dean Musgrove/The Orange County Register via AP
Add Fortune on Google for similar content.

The area under an elevated Los Angeles freeway that burned last weekend, damaging a section of a key thoroughfare in the car-dependent city, was stacked with flammable materials on lots leased by the state through a little-known program that now is under scrutiny.

Recommended Video

The blaze Saturday burned about 100 support columns, forcing the closure of a vital mile-long stretch of Interstate 10 near downtown that is used by hundreds of thousands of people daily.

It could take crews working around the clock between three and five weeks to repair the freeway, Gov. Gavin Newsom said.

Newsom said the state would reassess the practice of leasing land under roads to bring in money for mass transportation projects.

Details of that program remain opaque. Newsom’s office directed questions about whether the state has any regular inspection protocols to state transportation officials. The California Department of Transportation, known as Caltrans, did not respond to questions about inspections or provide information about how many properties the state leases.

State Assemblymember Miguel Santiago, who represents part of downtown Los Angeles, said officials should disclose how many sites are leased under the program, the terms of contracts, how much money the program generates and how the state ensures companies comply with the contract requirements.

“Some of those actions could have prevented what we now see happened underneath the 10,” Santiago said.

Apex Development Inc. has leased the land under I-10 since 2008. One condition of Apex’s contract stipulated it not allow flammable or hazardous materials to be stored there.

The fire that spread quickly over 8 acres (3 hectares) was fed by pallets, cars, construction materials, hand sanitizer and other items being stored under the freeway in an industrial neighborhood. No injuries were reported, but at least 16 homeless people living in an encampment there were taken to shelters.

No arrests have been made and Newsom has said investigators are trying to determine if more than one person was involved in what officials said was likely arson.

Prior to the fire, state officials filed a lawsuit against Apex saying the company owes $78,000 in unpaid rent.

The lawsuit also says Apex was subleasing to six other companies. That can be legal if the company received permission from state and federal regulators, but Apex did not, Newsom said.

Mainak D’Attaray, an attorney for Apex Development, said in a statement Wednesday that the company is not to blame for the fire and in fact had made improvement to the property. He said the company has not been able to access the premises since October.

“Apex rented and improved the rundown yard and made substantial capital investments during the period that it had possession of the yard,” D’Attaray said. “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.”

He said Apex had also repeatedly called the fire department to report fires started by homeless encampments, including along the fence line and at other yards.

A spokesperson for the governor disagreed with D’Attaray’s statement that Apex is not to blame for what happened.

The California Department of Forestry and Fire Protection currently believes the fire was caused by arson “in a fenced-off area that Apex was responsible for maintaining while they continued to assert rights under the lease,” Izzy Gardon said.

Owners of two of the companies that subleased the property said they also had warned of fire danger and other hazards related to homeless people living under the freeway. Luis Cartagena of Eagle Wood Services said he stopped using the space for his wood pallet business more than a year ago because he was losing so much to theft.

“There was a lot of homeless people there, drug dealing, prostitution and there was a lot of theft,” he said. “I couldn’t leave anything.”

Rudy Serafin said he’s been leasing space under I-10 from Apex since 2009. He uses it to store supplies for businesses in the garment district including hangars, boxes and bags. He also stores office supplies including hand sanitizer, which is flammable. He estimates he lost $800,000.

“I don’t know what I am going to do,” he said. “I am 49 years old. I have no other resources. This is my livelihood. This is what I feed my kids with.”

Serafin said he’s been unable to get insurance for his business because of concerns about homeless people using cooking fires in the area. He said he and other businesses called the city repeatedly to request a cleanup of the encampment. The city removed homeless people from the space once, but the encampments quickly returned, he said.

The city didn’t respond to a request for comment about whether they had received complaints or removed people from the site. Los Angeles Mayor Karen Bass warned Monday against assuming homeless people started the blaze.

Serafin said he and other contractors received a notice from the state transportation agency in May saying Apex wasn’t paying its rent. Serafin and other business owners stopped paying Apex, but lost access to their properties. They resumed paying and tried to work directly with Caltrans but the agency’s lawyer said he couldn’t negotiate with them, Serafin said.

Serafin said he signed a contract with Apex in 2009 but couldn’t find it.

The danger of storing flammable materials under elevated interstates has drawn the scrutiny of federal investigators in the past. After a 2017 fire collapsed a section of Interstate 85 in Atlanta, the National Transportation Safety Board criticized the Georgia Department of Transportation’s decision to store construction materials beneath the bridge without assessing the fire risk. The department said it immediately changed storage practices.

California Fire Marshal Daniel Berlant said investigators have identified where Saturday’s fire started and what caused it after sorting through the rubble for evidence but did not specify what they found. He had no information on a suspect and said investigators are talking to witnesses.

An estimated 300,000 vehicles use the stretch of freeway daily, which runs east-west across the heart of the metropolis and connects with other major freeways. The city has been urging people to avoid the area, take buses and trains, or work from home.

On Wednesday morning, Javier Ramos inched along with his father who was driving to his weekly physical therapy appointment in an industrial area blocks from I-10 as trucks and tractor-trailers cut in and out of the traffic to get to nearby warehouses.

“We can’t do nothing about it,” he said, adding that next week they will leave earlier.

___

Taxin reported from Orange County, California. Associated Press writers Sophie Austin in Sacramento, California; Christopher Weber and Stefanie Dazio in Los Angeles; Jeff McMurray in Chicago; and Anisha Frizzell in Atlanta contributed to this report.

Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter delivers clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it. Sign up here.
About the Authors
By Julie Watson
See full bioRight Arrow Button Icon
By Amy Taxin
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Politics

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Politics

Trump to impose 50% tariffs on most Canadian goods, invoking the ‘nuclear option’ that could unleash a new wave of economic chaos and inflation
EconomyTariffs
Trump to impose 50% tariffs on most Canadian goods, invoking the ‘nuclear option’ that could unleash a new wave of economic chaos and inflation
By Josh Boak and The Associated PressJuly 20, 2026
13 hours ago
President Donald Trump walks down the steps from Air Force One.
PoliticsDonald Trump
Trump admin attempted to uncover phone records of NYT journalists and sources related to coverage of Qatari-gifted Air Force One
By The Associated Press, Eric Tucker and Jocelyn NoveckJuly 20, 2026
14 hours ago
Alaskan pilot Ken Jouppi sits in an aircraft hanger in front of a plane.
LawSupreme Court
A passenger brought a 6-pack of beer on an Alaskan pilot’s plane. He now has to defend his plane’s seizure in front of the Supreme Court
By The Associated Press and Michael KunzelmanJuly 20, 2026
15 hours ago
Blue Owl Capital owns about a third of the Freedom Fuel properties: A look inside the $3.47 gas chain
North AmericaDonald Trump
Blue Owl Capital owns about a third of the Freedom Fuel properties: A look inside the $3.47 gas chain
By Brian Slodysko, Michael Biesecker and Josh BoakJuly 20, 2026
15 hours ago
A 13-year-old teenage boy looks at an iPhone screen displaying various social media apps.
PoliticsSocial Media
French President Macron backs effort to ban kids under 15 from social media before departing office next year
By The Associated Press and Samuel PetrequinJuly 20, 2026
16 hours ago
jd
PoliticsWhite House
JD Vance becomes first sitting vice president to welcome a child in office in over 150 years
By Darlene Superville and The Associated PressJuly 20, 2026
23 hours ago

Most Popular

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
18 hours ago
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Success
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
By Sydney LakeJuly 20, 2026
22 hours ago
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
AI
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
By Jason MaJuly 18, 2026
3 days ago
Current price of silver as of Monday, July 20, 2026
Personal Finance
Current price of silver as of Monday, July 20, 2026
By Joseph HostetlerJuly 20, 2026
1 day ago
Warren Buffett says his $147 billion investing career was an accident: ‘I may be one of the 10 luckiest in the world’
Future of Work
Warren Buffett says his $147 billion investing career was an accident: ‘I may be one of the 10 luckiest in the world’
By Sarah GlodekJuly 20, 2026
1 day ago
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
Retail
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
By Sasha RogelbergJuly 20, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.