Developer, Henderson residents reach an impasse

Greg Harman

Tuesday, Aug. 1, 2000 | 11:05 a.m.

Beleaguered negotiations between a developer and a close-knit cadre of Henderson homeowners threaten to derail the city's first serious shot at revitalizing its sleepy downtown business district.

The first phase of a proposed $100 million office/retail complex known as Fountain Plaza is unable to proceed until developer Phyllis E. Thompson Cos. is able to purchase another eight townsite homes -- a negotiation stalled in bitter contention.

"If it doesn't work, it's not the end of the world," said Bob Wilson, Henderson's acting redevelopment officer. "There's always the option of do this, do that, or three: do nothing."

Wilson, who has been mediating between Thompson Cos. officials and property owners, criticized Thompson Cos. last week for failing to adequately negotiate with residents, a process that started in September 1999.

"Basically I told them, 'If you guys aren't going to work with these people ... Maybe we need to consider other options,' " Wilson said.

Residents complain of unsigned contracts, reneged agreements and weeks of unreturned phone calls by the developer and its agents.

Victor Vincent, executive vice president of Thompson Cos., strongly disagreed with charges that negotiations are stalled.

He said Thompson Cos. has closed on three homes of the 11 needed for the project's first phase. Of the remaining eight properties, three are being held in escrow by the developer and five are being negotiated with four property owners.

Vincent added the company expects to have the necessary financing in place by early September to proceed with property acquisition and launch phase one of Fountain Plaza, which includes a parking garage and two office/retail buildings.

"We're not folding our tents. We're moving forward," Vincent said. "There are more positives than there are negatives."

Councilman Andy Hafen, whose district includes the downtown area, understands the plodding negotiations have been taxing on residents.

"It's gone on longer than any of us would have really wanted it to," Hafen said.

But he also believes a successful Fountain Plaza is in the best interests of all involved.

"I think we're at a point where we have a 'for real' project. I'm hoping this will come to a resolution fairly quickly.

"If this doesn't come to pass, then we'll have even more emotional distress" with a new set of developers and another difficult round of negotiations, he said.

And though Wilson has suggested the City Council has made a "political" decision not to utilize eminent domain, it has not been completely ruled out by city officials.

Eminent domain is a process by which local government may acquire private property for a public purpose.

Thompson Cos. attorney Doug Malen's repeated maxim and warning to residents -- "Pigs get fat. Hogs get slaughtered" -- is an allusion to eminent domain, residents say.

Though the majority of homes are protected from eminent domain by a city statute that excludes single-family residential zoning, Wilson recently suggested blanketing the area in a commercial overlay -- making them all vulnerable to forced acquisition by the city.

He said a commercial zoning would more properly reflect the city's intended use for the area while possibly aiding families in their negotiations with Thompson Cos.

But Thompson Cos. has repeatedly refused to consider paying commercial prices for those few residences already zoned commercial.

"I told him not only no but hell no. I said, 'You do that and you are showing prejudice,"' Jenkins recalled. She then called Hafen, who represents the downtown residents, and told him a lawsuit would follow any attempt to rezone their properties commercial.

The matter was quickly dropped.

Meanwhile, residents complain the ongoing negotiations, a vicious cycle of offers proffered and retracted, have resulted in depression and sleepless nights.

Some claim even their health has suffered from the stress of the situation.

"This is like a living nightmare," said Barbara Stanton, facing a possible forced acquisition due to her home's commercial zoning. "We are the ugly stepchildren in this whole situation."

"Most of the people along Water Street in these townsite homes are scared," agreed Stacy Kaffenbach, another concerned resident that may be displaced by Thompson Cos. Fountain Plaza project. "Because they know it's coming to them next."