SRC May Use Eminent Domain on IV

(posted 9.22.09)
(updated 9.29.09)

International Village Apartments could be the first test case for the Speedway Redevelopment Commission to use eminent domain. The commission voted 4-0 at their September 21 meeting to use eminent domain “if necessary against the owners, Resource Real Estate VIP International Village LLC.

Commissioner Benny Grove read the resolution's findings of fact supporting the commission's actions. The resolution cited unsafe living conditions and the failure to repair items the town cited during inspections in 2008. The property was described as a nuisance, causing a reduction of surrounding property values. It stated the property drew complaints from residents about criminal activities. Although the number of police calls were not revealed, the resolution stated the property experiences more frequent police runs compared to other properties in the area.

President Vince Noblet said that some property owners are unwilling to change in the direction of the SRC's vision and “residents are tired of waiting." “I think it is time to pass a resolution that we mean business,” Noblet said.

The commission did not discuss the immediate ramifications to the tax base if International Village is taken off the tax rolls by the SRC.

International Village currently pays $253,120 per year in property taxes, more than Allison Transmission pays on its parcel at 4700 W 10th Street. Allison filed a property tax appeal in 2008 that lowered its assessed value from $19,416,000 to $10,604,300, reducing its tax liability by $182,000.

Allison / Clutch Operating Company 2008 Taxes
PARCEL ASSESSED
VALUE
ANNUAL
PAYMENT
LOCATION
9011619 $204,100 $4,770 4402 COSSELL RD
9002138 $659,900 $15,421 4300 W 10TH ST
9008473 $10,423,600 $243,590 4700 W 10TH ST
9003720 $1,073,800 $25,094 5100 W 10TH ST
9002148 $280,400 $6,553 4200 W 10TH ST
9026763 $312,000 $7,291 4300 W 10TH ST
9028067 $12,800 $299 4520 W 10TH ST
9045913 $18,300 $428 5100 W 10TH ST
9054579 $77,900 $1,820 Abandoned railroad
TOTAL $12,738,000 $297,675

Executive Director Scott Harris said IV had only a 35% occupancy rate this summer when the commission tried to negotiate a purchase agreement. The eminent domain action will also require town council approval.

Commissioner Ron Fisher requested an eminent domain resolution be drafted by the next meeting for the Budget Inn property. Fisher said the closed hotel is unsafe and the security fencing is inadequate to keep children out from playing in the area.