RECENT STORIES

Jeffco dishes up higher fees for restaurateurs ( Simon Moya-Smith/YourHub staff )
The real estate short sale dilemma ( Michael Robinson )
New community center in Lakewood ( jen schafer )
Small, but mighty Optimist Club raises big bucks ( Barbara Hanson )
Armchair travel books: The vicarious vacation ( Erin Todd )

share a story | more postings »

YourHub.com \\ Lakewood \\ Stories \\ News \\ Government

Eminent domain takings at 50% discount

e-mail to a friend | print this | link to this

Contributed by: Natalie Menten on 5/25/2008

Investments can be risky but would you expect to be paid only 50% if eminent domain is used to take part of your property?
In 2005, RTD got a law passed to do just that.

If RTD takes a portion of your property for FasTracks and the portion you keep increases in value or you benefit because of the transportation project, RTD may only pay you 50% of the fair-market value.

Land for FasTracks Cheaper Under New Legislation
50% Rule (click here)
"...Regional Transportation District (RTD) only has to compensate the owner for half of the property's fair market value."

Lakewood will co-petition with RTD in some of the estimated 175 partial property takings on the West Corridor. We're supposed to believe government treats property owners fairly, without a hassle, so let's look at an example.

Recently, Lakewood sent a condemnation notice to a property owner in which the city-contracted appraiser valued the property taking at $23,000.
The property owner's appraiser valued it at $62,000. The city settled at $57,000 to avoid going to District Court because they had low-balled the appraised value and there's a penalty for that. The 50% rule wasn't even applied in this case.

City staff commented "By accepting this settlement offer the City also avoids attorney and court costs which would have added an additional cost of $10,000.00 to $15,000.00 to settle this acquisition."

Originally, the property owner mistakenly thought the city appraisal would be close to fair-market and they didn't need an independent appraisal, that is until they took time to research the numbers. Don't assume you're offered fair-market. If you're served with a condemnation notice you're allowed to get an independent appraisal and the condemning entity, such as RTD or Lakewood, must pay for the appraisal if the valuation is over $5000, there's also a 90-day time limit or an extension must be requested.

If property takings are low-balled and a 50% reduction is allowed, people are not going to be happy. What should a property owner do when they get notice RTD/Lakewood will pay $3700 for the taking? Assume it's actually $10,000, invest in an appraisal, invest in an attorney and go to court to find out they'll get 50% of the court's verdict of $8000?

When Lakewood authorized co-petitioning with RTD at the January 14th Council meeting (click here), I asked what valuation-formula would be used and whether Lakewood could protect our citizens by opting out of using the 50% rule. City Attorney, Tim Cox's answer was "If the question is "Would our attorneys say RTD should pay more?" , the answer is "No", because they are representing both parties and their obligation would be to take the City and RTD through the process in accordance with the law as its in effect at that time."

Lakewood City Council discussed this further at the Jan. 28th (click here) meeting and it was suggested that a study session be held before the next agreement was signed with RTD. Hopefully that study session, which should be televised and webcast, will occur so the city staff can educate the City Councilors and the public on the impacts of the 50% rule.

In fact...hint-hint...we have a study session for the Oak Street Station contract coming up soon, wouldn't that be an ideal time to have a briefing before we sign more agreements? Call up your City Councilor and ask them specifics, see if a study session is wise.

What is a benefit? ( Smart Growth article click here)
"As lawmakers debated the bill, sponsored by Democratic Senator Suzanne Williams and criticized by Republicans, reported Rocky Mountain News writer Stuart Steers, RTD spokesman Scott Reed stressed that the formula will ''only apply when there's a specific parcel immediately adjacent to a transit station,'' and subsequent area development is certain and the parcel's prospective value increase ''provable'' in numbers.

"'Say if a developer was going to build an office park,'' he noted, ''that would be a direct benefit to the property owner that could be quantified.'' "

[Report this as objectionable content.]

SUBMIT COMMENT

Rate the above story

Talk Back : submit comments to the story

*Note: you need to log-in to add a comment or rating.

Thank you! Your comment has been updated.

CONTRIBUTOR INFORMATION

Natalie Menten

Lakewood , CO

Natalie Menten has posted 135 stories and 4 comments since joining on 12/13/2007. Natalie Menten 's average story rating is 4.

view profile » view other postings from Natalie Menten »

SAVE AND SHARE THIS STORY

STORY RSS FEEDS

All stories

All stories in Lakewood

All stories by Natalie Menten

WANT TO WRITE FOR YOURHUB.COM?

Want to see the stories you write and the photos you shoot featured in the YourHub.com Thursday print section available all over the Front Range and with home subscriptions of the The Denver Post? All you have to do is register, then post a story or column, start a blog or tell everyone what events are happening in town. We will print the best stories, columns, event listings, photos and blog entries in our print sections.

Loading Ad