City to invoke eminent domain for property

After failing to reach agreement with owner, city may leave decision up to courts.

HAMILTON — What is fair market value for a piece of property when the owner doesn’t want to sell at just any price?

That’s the question a judge will likely have to answer after Hamilton city officials failed to reach a deal with the owner of a three-acre plot they hoped to acquire in order to build a compressed natural gas fueling station and employee parking lot. The city now plans to take the land in the 1700 block of South Erie Highway by eminent domain — the government’s ability to seize private property for public use so long as the owner is compensated with what is deemed a fair market value.

Cities across the country have used eminent domain to force property owners from their land in order to build roads, schools, courthouses and other infrastructure. Hamilton last invoked the power seven years ago to obtain property to install a water line.

New York-based Nassimi Realty Corp. bought Hamilton Plaza LLC, which includes Big Lots, Papa John’s Pizza and Blockbuster in 2006, according to the Butler County Auditor’s website. The three vacant acres the city wants to acquire sits between the Hamilton Municipal Garage and Big Lots, and includes the site of the former Car-X service garage.

The property was appraised at $595,000 by a consultant hired by the city in late 2010. After offering the amount to the owners, Jim Collins, director of underground utilities, said the owners sought a larger amount.

“For today’s market, that’s a decent price,” said Lynn Nevel, broker and owner of Re/Max 100, Inc. on Brookwood Avenue. “With eminent domain, they will get it anyway and I don’t see any commercial development going on there for a while.”

Representatives of the property owners did not return numerous phone and email messages seeking comment.

Keith Calloway of Hamilton said in no case does he support eminent domain.

“It’s unfair to the property owner; that’s on the lines of dictatorship,” Calloway said. “I can understand wanting to build in that location but there are other properties within the city of Hamilton.”

Calloway said oftentimes the property’s real value differs from the value to the owner, especially if it’s a home.

Brian Scott of Fairfield Twp. said he doesn’t think building a fueling station is enough public purpose to take a property without consent. Scott, who works in Hamilton, said the area being debated is blighted and hasn’t often been economically viable.

“The property owners are probably being stubborn, if they have the opportunity to sell,” Scott said.

Scott said he would be supportive of the city’s plans if it were going to improve quality of life for residents.

Hamilton Law Director Hillary Stevenson said most times, through private negotiations, the city and property owner come to an amenable agreement.

Heather Lewis, partner at Millikin & Fitton Law Firm, the city’s outside legal counsel, said the city remains willing to maintain open lines of communication. But with the impasse, “the resolution of intent to appropriate is forwarded to the property owners,” said Lewis, who added that she is unable to comment further because the case is pending.

Butler County Common Pleas Judge Keith Spaeth said each year the court’s seven judges receive several eminent domain cases from Butler County communities. He said most commonly, easements are needed to widen intersections or install utility lines.

“The Bill of Rights says government can’t take someone’s property without due process and adequate compensation,” Spaeth said.

Spaeth said usually both parties involved will have the land appraised and the two amounts are presented before a jury, which then decides the property value.

“Sometimes property owners will get back in contact to negotiate and discuss further,” Stevenson said. “Often we can resolve it but if not, council adopts an ordinance to go to court and file suit.”

According to the Butler County Treasurer’s Office, the City of Hamilton receives about $1,100 annually in property tax for this property.

“It’s an interesting process that involves balance of individual property rights and the good of the community and public projects,” Spaeth said.

Stevenson said about seven years ago was the city’s latest use of eminent domain to obtain an easement to install a water line along the side of a Fairfield home.

“We have to demonstrate to court and the jury a valid public purpose,” Stevenson said.

Ernestine Woolens of Main Street said she’s familiar with eminent domain through her previous real estate work in California. She said it’s a universal issue affecting most cities.

“If the land is there and not being used, and you aren’t actually taking it from someone personally, yes I support it,” Woolens said. “As long as it doesn’t mean taking over someone’s personal home; that’s the only thing about eminent domain I don’t like.”

Woolens said even though the property at first would be used for city purposes, such as the employee parking lot, she said some trickle-down could be felt by residents once the natural gas fueling station is opened up to the public.

Contact this reporter at (513) 820-2179 or hpoturalski@coxohio.com.

About the Author