Wednesday, May 20, 2009

Sewer lines, cow farms and fair negotiations

A story in the community news section of the Mooresville Tribune caught our attention today due to it's snappy title "Sewer line and cows don't mix, so town and farmer reach agreement." Of course, at first one might be interested in reviewing the article simply because it is about sewer lines and cows, but it was the second part of the title that caused us to stop and read. It is not often that one hears about a well-negotiated agreement between government and property owner. Therefore, it is our opinion that this story is worth repeating.

As the story goes, 91-year old farmer, Eugene Alexander, stumbled upon surveyors' stakes marking a sewer easement through his 200-acre farm in Mooresville, North Carolina. Since, Mr. Alexander had not been informed of the project, he and his family attended an April town meeting seeking an alternative. The family appealed to the town board to relocate the easement along the edge of the family's farm rather than through the middle of the grazing pasture.

This week, the town board returned to discuss proposals it had received from the engineering department. After a short 45-minute discussion, the board proposed a compromise: keep the original alignment and the property owner would be compensated for the easement area and the loss of use of his property. Additionally, the town offered to cover the cost of fencing that would be required to secure the construction area (and keep the cows safe). The compensation amount of $149,100 was based on the town's highest appraisal for the land and included a value for loss of use, which is not normally accounted for in condemnation appraisals.

The family agreed to the compromise requesting only that the 20 proposed manhole covers be constructed at ground level to maintain the aesthetic appeal of the land.

"We feel good about it," David Alexander said after the meeting. "We're not hard to get along with, we just want done what's right."
The moral of the story: Despite the fact that notifying the landowner about the project "fell through the cracks" (as explained to the board by the Engineering Manager), a fair offer of compensation and willingness to negotiate allowed the Town of Mooresville and the property owner to reach an agreement without the burden of litigation. However, folks, we do not recommend that you try this one at home. If you are a property owner threatened by eminent domain, we recommend that you seek the advice of a qualified and experienced eminent domain attorney. To locate an eminent domain attorney in your state click here.

Friday, May 8, 2009

101-year old property owner wins eminent domain court battle against village

On Tuesday (May 5, 2009) a Cook County, Illinois jury awarded Ema Mae "Babe" Ahern $25 million for the taking of her 95-acre golf course and country club property in the Village of Evergreen Park on Chicago's South Side. News stories about the jury trial and the property owner, Babe Ahern, reported that Ms. Ahern has lived on the property since her birth 101 years ago and that she continues to actively run the golf course and club, her family's business.

The primary issue before the jury in this trial was determining the value of the property, the amount that the village should pay to take it by eminent domain. In 1999, Ahern was approached by a developer who offered to purchase her property for $25 million. The developer planned to build a mixed-use commercial and residential development. However, the village refused to rezone the land and the sale fell through.

In 2001, Evergreen Park offered between $5 and $6 million to purchase the property. When negotiations were unsuccessful in 2002, the Village filed eminent domain to seize the property. In court, attorneys for Evergreen Park argued that the value of the land should be based upon the village's intended use as green space for "municipal recreational purposes." However, the property owner's attorneys argued that the value of the property should be based upon the highest and best use of the property as commercial and that the village's intended use could be secured through zoning or ordinances.

After about 30 minutes, the jury returned the verdict of $25 million as just compensation for the taking of the Evergreen Golf and Country Club. At this time, the Village of Evergreen Park has not indicated whether it would appeal the decision, pay the $25 million or simply walk away. If the village decides not to take the property, it will still be required to pay Ahern's legal expenses for the duration of this 7-year legal battle.

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