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

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.

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply 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

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

Battle for Hormuz begins as U.S. military fights off Iranian attacks while seeking to break regime’s grip on ship traffic through strait
PoliticsIran
Battle for Hormuz begins as U.S. military fights off Iranian attacks while seeking to break regime’s grip on ship traffic through strait
By Jason MaMay 4, 2026
40 minutes ago
rudy
PoliticsRudy Giuliani
Rudy Giuliani hospitalized, in critical condition
By Michael R. Sisak, Christopher Weber and The Associated PressMay 4, 2026
4 hours ago
Trump’s World Liberty Financial countersues crypto billionaire Justin Sun for defamation in response to allegations of fraud
CryptoDonald Trump
Trump’s World Liberty Financial countersues crypto billionaire Justin Sun for defamation in response to allegations of fraud
By Ben WeissMay 4, 2026
6 hours ago
China’s unprecedented defiance of U.S. sanctions triggers showdown
AsiaChina
China’s unprecedented defiance of U.S. sanctions triggers showdown
By BloombergMay 4, 2026
7 hours ago
Alphabet CEO Sundar Pichai in San Francisco, on Wednesday, June 4, 2025. (Photo: David Paul Morris/Bloomberg/Getty Images)
PoliticsMarkets
Inside Google’s quiet internal war against its own anti-military activist employees
By Jim EdwardsMay 4, 2026
8 hours ago
Google CEO Sundar Pichai
AIGoogle
Employee revolt once forced Google to back off on military contracts. But, in the wake of a new Pentagon AI contract, their leverage appears limited
By Beatrice NolanMay 4, 2026
11 hours ago

Most Popular

Diary of a CEO founder says he hired someone with 'zero' work experience because she 'thanked the security guard by name' before the interview
Success
Diary of a CEO founder says he hired someone with 'zero' work experience because she 'thanked the security guard by name' before the interview
By Emma BurleighMay 3, 2026
1 day ago
As economic despair mounts, Russian official admits the country has had enough of Putin's war on Ukraine. 'We can’t even take one region'
Economy
As economic despair mounts, Russian official admits the country has had enough of Putin's war on Ukraine. 'We can’t even take one region'
By Jason MaMay 3, 2026
21 hours ago
America got rich and got sad. A top economist says 2020 broke something that hasn't healed
Economy
America got rich and got sad. A top economist says 2020 broke something that hasn't healed
By Nick LichtenbergMay 3, 2026
1 day ago
Scott Bessent on financial literacy: 'it drives me crazy' to see young men in blue-collar construction jobs playing the lottery
Personal Finance
Scott Bessent on financial literacy: 'it drives me crazy' to see young men in blue-collar construction jobs playing the lottery
By Fatima Hussein and The Associated PressMay 1, 2026
3 days ago
I spent a decade selling homes to the ultra-wealthy. What I saw explains the housing market's nepo problem
Commentary
I spent a decade selling homes to the ultra-wealthy. What I saw explains the housing market's nepo problem
By Blake O'ShaughnessyMay 3, 2026
1 day ago
Sam Altman says the quiet part out loud, confirming some companies are ‘AI washing’ by blaming unrelated layoffs on the technology
AI
Sam Altman says the quiet part out loud, confirming some companies are ‘AI washing’ by blaming unrelated layoffs on the technology
By Sasha RogelbergMay 3, 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.