Gas Station to the Stars Fades to Black

It doesn’t take a rocket scientist to realize Beverly Hills property values are in the stratosphere.

It’s no wonder that Caltech grounded Hal Butler this week, shutting down the gas station he has operated on a school-owned street corner for 33 years.

The Pasadena institute has owned the quarter-acre Beverly Hills parcel since a wealthy benefactor donated it 44 years ago. The school leased the site to Chevron, which in turn franchised the station to Butler.

But the long-term lease fetched Caltech barely $800 a month -- a pittance in a town where motorists can pay more than that just to keep the tanks of their Mercedes, Ferraris and Range Rovers serviced and topped off at the full-serve gas pump.

Caltech’s pump closure order has angered residents, who note that only four gas stations remain in Beverly Hills. And the shutdown illustrates the downward trajectory of the service station business in the United States: Over the last decade, an estimated 30% of the country’s 170,000 stations have closed.

Butler’s employees at Wilshire Boulevard and Canon Drive checked the oil and lubed the limos for generations of film stars and luminaries. They counted the likes of Nicolas Cage, Wayne Gretzky, Kirk Douglas and Denzel Washington as customers.

“Queen Latifah brought her new Rolls in to be filled up. But it wouldn’t start when the gas was put in because its two batteries hadn’t been connected. It had to be towed back down to the dealer,” Butler said.

“Dinah Shore’s Citroen froze up one time down at Beverly Drive and Wilshire, and she walked in here for help. I didn’t recognize her at first. I thought she was the mother of one of my friends and I said, ‘Hi, Mrs. Moczolkis.’ She said ‘I’m not Mrs. Moczolkis.’ I said, ‘Oh, you’re the “See the USA in a Chevrolet” lady!’ She just laughed.”

Then there was Zsa Zsa Gabor. Butler said the actress, known locally for slapping a Beverly Hills police officer, exchanged words with one of his longtime workers. The employee left the pump island and tendered his resignation.

But Butler said he told his worker, “You’re not quitting. I’m firing the customer,” and walked out and asked her to never return. (Gabor could not be reached for comment Wednesday.)

Most of his clients were repeat customers. As business soared, Butler paid a fluctuating rental fee tied to gasoline sales to Chevron. Some months that totaled as much as $18,000. But all the while, Butler managed to regularly tuck away a chunk of his profits for the day he dreamed of buying the property from Caltech.

The problem was, Caltech officials had boned up on the science of supply-side economics. They knew Beverly Hills land was worth more than $800 a month. A lot more.

At the lease’s expiration Oct. 1, Caltech officials ordered the station closed and bulldozed while they figured out a more lucrative use for the property.

“We’re evaluating our options. We have no plans for development yet,” Caltech spokeswoman Jill Perry said. “We’re not planning to sell it. Our lease agreement with Texaco-Chevron ran out.”

Time increasingly is running out for gas stations in California. More than half the facilities in business in 1981 had disappeared by 2002, according to the California Energy Commission.

“The number dropped from 21,000 to 9,400,” though many of those closing had only a handful of pumps,” according to the commission’s Rob Schlichting.

Industry analysts blame the station flameout on soaring real estate prices, oil company consolidations and environmental issues.

In Beverly Hills, Chevron spent $150,000 two years ago on new underground tanks to meet anti-pollution regulations. Butler figured the leakproof containers would serve him for decades as owner of the station.

“We had the first right of refusal to purchase it. But we could never get Caltech to appraise the property so we could make an offer,” said Butler, 59. “Our own appraisal said the market value was $4.5 million. So we put together $5 million to be safe. The financing was all lined up.”

Beverly Hills officials said no development request had been filed, though a demolition permit has been issued for the site. The station is scheduled to be torn down Wednesday.

Butler, meantime, is clearing out. He is giving away old auto-repair manuals and station equipment to Beverly Hills police officers and other city employees he’s come to know.

Local real estate agents and friends are scouring the area for a new location for his gas station and repair shop.

Butler says he hopes they can help him relaunch his business. But he’s not counting on Caltech for any reentry support.