Battle Over Sites Near Future San Jose BART Station Heads to Trial

Small business owners fight VTA's eminent domain efforts to seize properties for new station construction.

Published on Feb. 22, 2026

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A legal battle is brewing between the Santa Clara Valley Transportation Authority (VTA) and small business owners over sites near a future BART station in downtown San Jose. The VTA is attempting to seize properties through eminent domain to construct the 28th Street/Little Portugal BART Station, but business owners like Monarch Truck Center are fighting back, claiming the VTA's actions have caused them significant hardship and losses.

Why it matters

This case highlights the tensions that can arise when major infrastructure projects like BART expansions clash with the interests of local businesses. The outcome could set precedents around eminent domain, property rights, and the responsibilities of transit agencies to support displaced businesses.

The details

The VTA filed a lawsuit in 2021 to seize control of the properties needed for the BART station construction. The agency even asked a judge to order businesses to vacate the site before a final judgment, citing the need to stay on schedule. However, the VTA has yet to begin any meaningful work on the site due to funding shortfalls plaguing the overall BART extension project. Monarch Truck Center, one of the businesses forced to relocate, says it suffered significant losses and is seeking just compensation from the VTA.

  • In 2021, the VTA filed a lawsuit to seize the properties through eminent domain.
  • In 2022, the VTA asked a judge to order businesses to vacate the site before a final judgment.
  • In 2024, Monarch Truck Center was forced to relocate to a new location at 1015 Timothy Drive in San Jose.

The players

Santa Clara Valley Transportation Authority (VTA)

The regional public transit agency leading the BART extension project in the South Bay.

Monarch Truck Center

A business that was forced to relocate from its longtime location at 195 North 30th St. due to the VTA's eminent domain efforts.

Nicole Guetersloh

The Chief Executive Officer of Monarch Truck Center.

Gary Griggs

The VTA's chief program officer for the BART extension in the South Bay.

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What they’re saying

“We were told we needed to leave so construction could start, but it has been almost two years, and nothing has happened. The building is still standing. They haven't even taken down our signs. The extra time could have made a huge difference for us in terms of finding a new location.”

— Nicole Guetersloh, Chief Executive Officer, Monarch Truck Center (eastbaytimes.com)

“To meet the current construction completion schedule and ensure critical path activities are not compromised, the subject property is needed by April 2023. Securing possession by this date will allow the contractor(s) to begin building demolition work and site preparation, followed by archaeological testing.”

— Gary Griggs, Chief Program Officer for BART Extension, VTA (eastbaytimes.com)

What’s next

The VTA's lawsuit against the property owners and businesses is now headed for a jury trial within the next few weeks, absent an out-of-court settlement of the case.

The takeaway

This case highlights the delicate balance between infrastructure development and supporting local businesses. The outcome could set important precedents around eminent domain, property rights, and the responsibilities of transit agencies to minimize the disruption and financial impact on displaced businesses.