An Abuse of the Law
What would you say if you worked your whole life to create a business, paid your taxes and your mortgage payments of $1,222.22 a month faithfully for 20 years, in fact you finally paid off the mortgage last year, and then you were told that your land and your business were going to be taken by eminent domain? Well then, you would know what it is like to be Gentle “Jim” Day of St. Louis.

Now I know you’re thinking, “What is his property needed for?” Many of you might guess that a new road or a widening of an existing street may be the reason. Some of you may think that a new airport or something like that is being built on or near his property. However, you would all be wrong. Mr. Day was told by an agency for the city that his property was needed to make room for a ‘Media Box’.
It seems that the city of St. Louis, has been using these kinds of methods to revitalize and redevelop the city’s arts district. The city gave the group Grand Center (who’s head is the former mayor) the contract to develop the project. Grand Center was then given almost complete control over the land for this project. This included the ability to accept or reject building plans, the dispensing of up to $80 million in tax incentives and the right to use eminent domain to acquire land. Mr.Day’s property is located near several cultural institutions and would be considered prime real estate for this redevelopment plan. Causing more bad feelings for Mr. Day was the fact that he was told very little about what constituted this ‘Media Box’ and what exactly would be done with his property. For weeks officials refused to say what this ‘Media Box’ was until last week when a PR person for Grand Center said the ‘Media Box’ was a building that would house a design studio and apartments or condos.
Now the plan submitted by the Grand Center to the city did not say that Mr. Day’s land would be used for commercial purposes, but the former mayor insists that the purpose of the land is consistent with the redevelopment plan. Originally the former mayor offered Mr. Day $125,000 for his property and when Mr. Day refused, he cut the offer to only $67,500, over $12,000 dollars less than the city’s appraised value. Now that Mr. Day has refused that offer (he says he can make that much money in only three months at his business), a branch of the Grand Center has filed a lawsuit to have Mr. Day’s property condemned.
Sadly, Mr. Day’s story is only one of many and several of the other affected businesses are suing Grand Center to try to stop some of these heavy handed tactics and abuses of power. There could be some light at the end of this tunnel however, if the Supreme Court rules in favor of some residents of New London, Conn. on February 22nd. Their homes were taken through eminent domain by a developer who got permission from City Council to build office space and a hotel on their properties. The city’s reasoning is that they will get more taxes and economic development out of the commercial development that out of the existing homes.
So I ask you, do you live in an area that is growing? Is there a lot of development going on in your area, especially commercial development? Are there revitalization projects going on in or near your neighborhood? Could your home be considered a ‘blight’ on your area if growth happens? Could it detract from a theme of an area, such as an arts district or cultural center? Could the same thing happen to your business that you worked more than 20 years to build? Well if it could, you better hope that the Supreme Court reminds cities what the real purpose of eminent domain is and doesn’t give them a blank check to take your property just because they can get more tax dollars or because it doesn’t fit into the particular theme they are trying to create.
For a more info on this abuse of eminent domain, please go here.