Sunday, July 15, 2007


Jul. 15, 2007 (McClatchy-Tribune Regional News delivered by Newstex) --
In Eagan, a 70-acre 'new urbanist' district promises a campus-like gateway to the city, centered on the intersection of Cedar Avenue and Minnesota 13. A fresh mix of retail, offices and housing will replace nearly 50 businesses in the Cedarvale neighborhood, including the near-vacant Cedarvale Mall.

Now, there's only one question: When will the last remaining property owners part with their land?

'We're going to fight to the bitter end,' said Jerry Larson, owner of Larson Auto Repair on Cedarview Drive. 'I've already instructed my attorney to spend every penny in the bank. I think eminent domain is wrong.'

Eagan officials likely will have to resort to eminent domain proceedings to seize all the properties they want for the Cedar Grove project. A public hearing on the process has been scheduled for Tuesday night.

Some storeowners call the prospect of moving 'gut-wrenching.'

'For us to relocate would be an incredible hardship. We've been a part of the history for 40 years,' said Jeff Schendel, owner of Colonial Car Wash and Sara's Laundry Center on Cedarvale Drive.

'For my property, they were talking about (replacing it with) either a parking ramp or a condo complex,' Schendel said. 'We've got the oldest laundry complex in Eagan.'

With the owners of 23 properties still in negotiation with the city, Eagan faces an ambitious number of takings.

And so do a number of other cities in and around Dakota County, including Apple Valley, Rosemount and Farmington. Washington County also has acquired land from reluctant sellers.

Once considered a tool of last resort, eminent domain has evolved into a common approach across the country, turning fast-growing suburbs into ground zero for condemnation battles.

Under the Constitution's Fifth Amendment, governments are allowed to take private property for a public purpose only if the owners receive 'just compensation' for their loss. In practice, eminent domain proceedings can take months of legal wrangling and usually occur after negotiations for a fair selling price have broken down.

The number of eminent domain projects underscores the extent of population growth in the metro suburbs, where cities like Eagan, Ramsey and Rosemount are attempting to turn blighted areas into walk- able downtowns.

Elsewhere, land purchases are fueled by the need for bigger parks, schools and highways.

'As suburban sprawl expands, there's more need for sewers, roads or utilities, and new homes or new businesses,' said Gary Fuchs, an Eagan attorney who represents Larson Auto Repair and its neighbor, the Mediterranean Cruise Cafe.

Eagan officials said the city has acquired about three-fourths of the Cedarvale land area, and many owners were eager to be bought out. Among them was the owner of the Cedarvale Mall, a shopping hub in the 1970s that had hemorrhaged customers since it lost direct access to Minnesota 13.

'You would not believe how many people I talk to (who) think that we come and take your property, and you will not get a penny for it,' said Peggy Carlson, Eagan City Council member. 'That's not fair. That's not how it's done. There is a legal process in place, and people are bought out and paid for their properties and relocation fees.'

Businesses like Mike's Shoe Repair and the Eagan Pet Clinic were able to use relocation funds to move to the nearby Silver Bell Shopping Center and even expand.

'I'm pretty pleased with the move,' said David Ashfeld, owner of Cedarvale Barbers, who added 100 square feet to his shop.

Still, Minnesota residents have some new protections against eminent domain. A state law that took effect in May 2006 prevents cities from seizing private property to hand over to a private developer, an increasingly common strategy for redeveloping dying downtowns.

But exceptions exist, allowing different deadlines for cities that already had projects under way or tax increment financing plans in place. In Eagan, city officials said their five-year window to acquire the remaining 23 Cedarvale properties expires on July 22, 2008.

Eagan 'probably couldn't do under the new law what they're doing under the old law,' Fuchs said.

Larson questioned when Eagan's five-year window started, considering that the city has shuffled developers over the years, essentially restarting the project. He said he has approached the city about buying his property for roughly $800,000 and later $1.3 million and was rejected both times.

'If they just came down and paid us fair market value, every single property owner down here is willing to move,' Larson said. 'What they're going to do is wait until July 2008, and then they'll just kick me out of my business. Most people have sold their properties cheaper than they should have because they fear the city.'

In Farmington, officials sent out letters early this month to about 20 landowners along Flagstaff Avenue, letting them know they have 90 days to settle on a price or face 'quick take' proceedings.

At the end of August, crews will begin installing water and sewer lines and paving the largely dirt road, which will serve as the major gateway from Lakeville to the new Farmington High School, which is under construction.

'We try not to use eminent domain,' Farmington Mayor Kevan Soderberg said. 'It's actually a tool of last resort, but ... we're looking at a $90 million-plus public (high school). It's going to go.'

In Rosemount, a coalition of residents calling themselves 'Save Rosemount' is fighting plans to build a complex with mixed-income housing, retail and offices. The project has shrunk under the group's campaign, but some business owners said they would have been willing sellers -- for the right price.

In Ramsey, storeowner Jeff Wise was nearly ecstatic Tuesday night when the City Council shot down its plans for Ramsey Crossings, a 68-acre piece of land near the stalled Town Center. The Crossings couldn't find a big-box retailer to anchor the project, which would have required seizing Wiser Choice Liquor on U.S. 10.

Wise noted that the city offered him a 'pretty good' price for the building, but he resisted selling.

'I've got a good business,' he said. 'I've got a good location.'

The mere possibility of losing his site complicated his bank loans and his buyout of his partner, costing him 'tens of thousands of dollars in legal and banking fees,' Wise said.

Even after having property seized, some landowners have been able to get a better sale price through the courts.

In 2004, Washington County seized the 8-acre Shady Birch Resort for the Big Marine Park Reserve, a major parks expansion under construction in the northern part of the county. After a long squabble over the resort's value, a jury recently ordered the county to pay the owners an extra $645,000, or $1.59 million in all.

Land acquisitions in the park area have removed 34 homes and taken nearly 20 years.

Frederick Melo can be reached at  fmelo@pioneerpress.com or 651-228-2172.

Newstex ID: KRTB-0190-18141168


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