Henderson homeowners rip developer’s talk of using eminent domain

Greg Harman

Wednesday, June 7, 2000 | 11:04 a.m.

In the push to open the first phase of the proposed Fountain Plaza project in downtown Henderson -- and spur the redevelopment of Water Street -- the talk has turned to city-sponsored evictions.

While about a dozen residents east of the intersection of Water Street and Basic Road continue to negotiate selling prices on their homes, representatives of developer Phyllis E. Thompson Cos. have been trying to persuade the city to use its power of eminent domain to condemn at least two properties standing in the way of the project.

Many residents criticized the company for raising the specter of eminent domain -- a legal process by which the government may acquire private property for a public purpose -- before it finished negotiating with landowners.

Faced with the protests of several homeowners singled out by the developer as "extremely unreasonable" at a recent meeting, the Henderson Redevelopment Agency -- composed of Henderson City Council members -- urged the developer to resume negotiations with landowners.

But language noting the potential for use of eminent domain was approved in a memorandum of understanding with the company, despite the objections of some residents.

Tammy Miller Stanton, speaking on behalf of her mother, Barbara Stanton, complained that Thompson Cos. officials were raising eminent domain when the developer hadn't even discussed the project with her mother since January. The company at that time rejected the family's first asking price.

The Stanton residence at 322 Nebraska Ave. is one of the two properties for which Thompson Cos. officials have been encouraging the city to use its power of eminent domain. It and 314 Nebraska Ave. are zoned commercial but are used as homes.

"This company has been less than accommodating," Tammy Miller Stanton told the council. "These people built this community. They deserve good negotiations."

Even those who have agreed to sell are having a hard time of it.

Bobbie Carlson signed a contract in April that states she was to receive $1,800 cash immediately to pay for her move from Nebraska Avenue. But she's still waiting for the check, and she can't close on a new house until she gets it, she said.

"I've already had two houses lined up and they've both been sold," she said. "I have six kids, and the way I have it fixed up right now, they all have their own space. So it's not going to be easy to put us in a small house."

When the issue came to the council's attention Tuesday night, company representatives said Carlson will be paid today.

Andy Urban, assistant city attorney, said the city has never performed a condemnation in the recently created redevelopment zone. The city is required to make a "good-faith" effort to purchase the property at a fair market value before it moves forward with any attempt to condemn the property.

"We don't willy-nilly go out and condemn property," he said. "That is a last resort."

One of Henderson's principal planners, Bob Wilson, confirmed the developer is negotiating where it can, but said it has been unable to work with some property owners.

The use of eminent domain could easily land the city in court, said Rick Smith, president of RDS Associates LLC, a consultant to Thompson Cos.

Nevada's strong sense of private property rights has limited any aggressive use of eminent domain in the past, he said. The state courts still consider use of eminent domain reserved strictly for cases of "public benefit" and not for the betterment of private interests.

But Smith argued that both the public and private interests could benefit by use of eminent domain in a redevelopment zone.

"Public benefit can be cleaning up a blighted area," he said. "If you're going to clean up a blighted area, it would be important to replace it with something that is clean and functional.

"The problem will have to go all the way to the Supreme Court," he said.

Urban agreed that using eminent domain in a redevelopment zone can become difficult, citing recent cases in Las Vegas that have led the city into cantankerous court cases that have cost the city money.

Now the discussion over possible condemnations in Henderson is worrying those who have not yet struck a deal for their properties.

Diane Luciano of 327 Nebraska Ave. said she is angry because the developer has not responded to her letter or phone calls.

"I'm willing to negotiate down, but my child starts school this year. I wanted her to have a home," Luciano said.

Mary and Bill Eighmy say they are willing to sell, but not for what they have been offered.

"Who wants to give up a house at this age?" Mary Eighmy asked.

The developer has offered to relocate the couple to another home in the Henderson Townsite area, much of which lies within the city's redevelopment zone, but they refused.

"You think I want to trade for another Townsite (home) and go through this again?" Mary Eighmy said. "I'm gonna sit on it until they come after me again."

Eighmy paid about $12,000 for her home 33 years ago. Now she says it is valued at about $90,000.

So Thompson Cos.' original offer of $130,000, or its more recently proffered $170,000, would appear to be a handsome deal for the couple. The problem is that Eighmy knows how much her neighbors are getting paid.

She knows who has sold and for how much. Who is holding out, and for what magic number. And who among her neighbors are just plain "ornery" and hard to deal with.

"There's no logical way they're coming up with these fees," she complained. "Just because Bobbie's got kids, she gets more than me?"

Smith admits the company's negotiations are not performed "very scientifically."

But, he added, "There is every effort by the developer to be as fair as is possible with the seller.

"The last two on the block start getting delusions of grandeur, shall we call it? There is a tendency to up the ante."

The last-minute haggling won't slow the project's progress, Smith said. The company will be able to fulfill its commitments to clients without moving any of the existing homes.

The developer is committed to having space ready in a 105,000-square-foot building for a pharmacy school expected to open for fall semester on Sept. 1, 2001.

Two other retail and office buildings -- one 35,000 square feet, the other 28,000 square feet -- would be affected if Thompson Cos. executives are unable to complete negotiations with the homeowners on Nebraska Avenue.

Victor Vincent, executive vice president of Thompson Cos., said all negotiations have been entrusted to Lee and Associates Commercial Real Estate.

But he promised to personally ensure that negotiations resume with property owners at both 314 and 322 Nebraska Ave.

The memorandum of understanding approved by the agency Tuesday night states that it will consider "initiating condemnation proceedings" against three properties recommended by the developer.

An agreement was reached with the owner of the third property before Tuesday night's meeting, company attorney Doug Malen said.

Malen responded to residents' complaints while pledging to "exhaust every reasonable effort" to reach agreements with property owners.

"We've had unreasonable prices given. They keep going up, and we can't afford to go up," Malen told the agency. "There are memories there that no price can pay for, and we appreciate that."

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