Eminent Domain as Last Resort? Negotiations Halted.

Dear Editor,

In response to the article in the October 9, 2007, Quad Community Press titled “Eminent domain concerns may be unfounded”, we question the word “may” because we know, and the city knows, these concerns also may be very real. Reading the proposal’s fine print, it states if voluntary agreements are not reached the City will initiate eminent domain. Then the City can deem the property blighted or obsolete and the property in question can be taken involuntarily.
While the City Council and the Beard Group may not have a concrete plan, we do know which homes will be affected; all of the downtown Centerville area. We are losing our small, hometown neighborhood to multifamily, high-density, three story buildings, duplicates of which we are seeing unoccupied and being foreclosed upon everywhere in the metro area and beyond.

Our family has been through this all before. Our beautiful home and farm on George Watch Lake was taken forcefully from us by eminent domain thirty years ago. We were compensated according to an Anoka County appraiser’s recommendations and were helpless to receive what the land was really worth.

Margaret has lived in this neighborhood for all of her 86 years, except for the 3½ years she spent in the Air Force, and she hates what this development will do to the little city that she has lived in and loved for so long. This development plan will destroy one of the oldest little communities in Minnesota and changing it into just another nightmare of row upon row of multifamily, non-interactive housing.

At this stage in our lives, we had not planned on being uprooted and sent off to find another place to live, like old kitchen appliances that no longer fit in the modern kitchen. It may be called progress, but we call it heartless.

Leo and Margaret Hensel
Centerville Citizens

Since this was published in the Quad Press, Leo has passed away. Our condolences to Margaret and her family.

Centerville Property Owners Concerned About Eminent Domain
City Says Seizures Possible, But Not Preferred Course
By Aaron Rupar
CENTERVILLE - Just months aft er the question of whether the city of Hugo would use eminent domain to acquire downtown properties became a source of friction between the city and concerned property owners, residents and business owners in Centerville are dealing with similar anxieties as the Beard Group begins its quest to acquire downtown properties included in phase one of the city's downtown redevelopment plan.
The city held an open house to inform residents about the downtown redevelopment plan on September 6, and many downtown property owners in attendance expressed concern about the possibility of being forced to sell their land.
Summarizing the mood of the evening, Council Member Linda Broussard Vickers said that "the overall air was not positive."
"There was a lot of distrust [from downtown property owners] towards the city and Beard," she said.
One of the people in attendance at the open house was attorney Lisa Dahlquist, attorney at Larkin Hoffman. Dahlquist said she'll be representing some of the downtown property owners as the Beard Group attempts to purchase their land.
"[The Beard Group] has been attempting to negotiate a direct purchase from willing sellers, but there are willing sellers who feel that the amount of money they are being offered isn't fair-market value," Dahlquist said in a later interview. Dahlquist said that some owners are fearful that if they can't reach a purchase agreement with Beard, the city will use eminent domain to seize properties against the will of the owners.
Recent changes in state statute dictate the limited circumstances under which cities can acquire properties through eminent domain. According to City Administrator Dallas Larson, the city would only be able to seize properties in the redevelopment area that are slated to be converted to public uses, such as roads or parking lots.
Larson acknowledges that eminent domain is a possibility, but he said that the city's hope is that any sort of land seizure can be avoided.
"No decisions have been made. [Eminent domain] is possible in some cases but it's the city's hope that we won't have to go down that route, and we'll have negotiated sales," he said.
Ron Mehl of the Beard Group also said that the company hopes eminent domain can be avoided.
"We would never want to force anyone out of their home; we're in the business of developing property," said Mehl, who added that any decisions about whether to pursue eminent domain will ultimately be the prerogative of the city.
One of the people Dahlquist will be representing is downtown property owner Margaret Lee, who has held neighborhood meetings with other area property owners at her home.
Lee said that she doesn't know of any downtown property owners who aren't willing to work with the city, but she's frustrated by the fact that the rezoning of downtown has precluded her from adding-on to her home.
"Almost everybody I've spoken to, including me, were willing to sell our houses," she said. "What's frustrating is that we don't have a right to live in our house the way we want to [right now] because they've written it into the zoning code . they've basically taken our property for their redevelopment plan."
While the redevelopment project is undoubtedly causing hardship for some residents, City Administrator Larson pointed out that there are other property owners in the area that are eager to sell. Additionally, he said that he believes the public remains supportive of the city's larger goal of revitalizing downtown.
Mehl said that the Beard Group would be sending out "letters of intent" to all property owners within the phase one area before the end of October. These letters will outline the terms of sale that the Beard Group would be amenable to.
If the process proceeds in accordance with the Beard Group's plan, those non-binding letters will be turned into binding purchase agreements, setting the stage for construction to begin with next spring's thaw.
However, Council Member Broussard Vickers said that it was her impression that some property owners will be unwilling to sell regardless of the terms. "Some will not go quietly into the night, that's for sure," she said.
The first phase of the downtown redevelopment plan involves clearing and demolition of properties adjacent to Centerville Road and Main Street and the subsequent reconstruction of commercial and residential buildings, and a similar overhaul for some downtown properties east of Progress Road.
The Beard Group's long-term plan for phase one includes the construction of 14,000 square feet of retail/office space and a 41-unit apartment building.
Mehl said that the Beard Group intends to make fair offers to the downtown property owners.
"We want to be good neighbors," he said, adding that if the company is unable to acquire properties within phase one the overall redevelopment plan would have to be modified.
While acknowledging the increasing anxiety level of downtown land owners, Council Member Broussard Vickers said that she believes the Beard Group will deal fairly while trying to acquire properties within phase one.
"[The city] feels that [Beard] will be an above-board developer and will make fair offers," she said.
As of November negotiations have halted. The residents are not allowed to make any type of improvement to their existing property. The area has been zoned "mixed use" which makes any sale nearly impossible, without a developer. Why are these citizens being held hostage, while Beard has been allowed to step back? Given the current economic state, it may be time for Council to reassess the scope of the project, yet again!

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