The threat of eminent domain has neighbors of proposed Henderson redevelopment efforts up in arms and city officials worried about the future of a $100 million private project.
City staffers and developers have threatened to seize and raze the homes of Henderson residents unlucky enough to be living in the path of downtown redevelopment projects, several residents told the Henderson Redevelopment Agency Advisory Commission on Tuesday.
And the fight between homeowners and developer Phyllis E. Thompson may be leading to the demise of the proposed $100 million office/retail complex across the street from City Hall, said Bob Wilson, the city's acting redevelopment officer.
Behind it all is the looming specter of eminent domain -- the process by which a government agency may obtain private property for a public purpose. In Henderson's case the "public purpose" is the rejuvenation of a languishing downtown and nearby environmentally contaminated lands.
Even as city officials try to reassure residents in downtown Henderson that the city is either not considering eminent domain or will use it only as a "last resort," the phrase is still being used in property negotiations.
Alan Tillery, one of three residents who addressed the commissioners, claimed he had been lied to, bullied and threatened by Jim Dale, a properties manager for the city's public works department who approached him about buying Tillery's Magnesium Street home.
"We have been lied to and intimidated," Tillery said. "(Dale) told me I was going to be bulldozed, and they were going to do what they felt was appropriate."
For 18 months the city has been purchasing properties near the intersection of Water Street and Victory Road, assembling a parcel for an as-yet-unidentified use.
And at the other end of Water Street another battle is brewing where a private developer is planning to build an office retail complex.
Phyllis E. Thompson Cos. have been working to buy out homeowners in the 50-year-old neighborhood behind Basic Road and Water Street to make room for the proposed $100 million development.
Thompson has been negotiating with the city and property owner for more than a year. Only one property has been purchased by the company in the last 11 months of negotiations.
"You better understand there's going to be a court fight, and the city of Henderson is going to end up picking up the bill for Phyllis Thompson," resident Jim Orndoff said.
But Mary Kay Peck, director of community development, said there's never been any discussion of using eminent domain on any of the properties. "We're not trying to hold that as a hammer over anyone's head," she said.
But a memo obtained by the Sun suggests Peck consulted with former redevelopment officer Brad Percell in May about the use of eminent domain.
The memo outlines the 12 steps toward carrying out the forced purchase of private properties and attempts to summarize how the City Council should pursue making such a decision. The first step is prefaced with the recommendation that the city ensure the developer has made "a justifiable effort" to acquire the properties before getting involved, Percell wrote Peck in the May 15 memo.
That requirement has yet to be met by Thompson Cos., some contend.
Thompson herself was recently admonished by the City Council to return to negotiations with homeowners after she asked the city to consider pursuing eminent domain on several downtown properties.
And downtown resident Stacy Afflerbach said that Thompson Cos. representatives regularly threaten homeowners with eminent domain.
"It is blatantly used again and again. They threaten it at every meeting," Afflerbach said of the private meetings between the developer and the homeowners.
She pleaded with the commissioners to assign a member to attend the meetings.
"You need to know what goes on at these meetings," Afflerbach said. "There have been promises made, and then they're not kept. Then more promises are made, and they are not kept."
Her request for a commissioner to attend the meetings was denied on the grounds that involvement may create problems for the agency. Instead the residents were asked to record and transcribe the meetings for the commissioners or hire a court reporter to do it for them.
Wilson suggested it may be time for the city to consider alternatives to the Fountain Plaza project and "approach ultimatums" with the developer's attorney.
"He's in an hourglass, too. And the sand's starting to run a little thin up there," Wilson said.
Wilson further suggested appointing a redevelopment "specialist" to assist in mediating the meetings with homeowners.
"It's very disturbing to hear that people on our behalf have the right to go out and make potentially erroneous statements," said Commissioner Tony Traub, suggesting that open meetings needed to be held to clear up some of the misunderstandings.
Committee Chairman Barry Fieldman suggested instead that homeowners educate themselves on the city's statutes regarding eminent domain to keep from being led astray by developers.
Commissioner Alice Martz suggested that new redevelopment guidelines may aid downtown residents, but Peck advocated the advisory commission maintain a "hands-off" approach.
Since the concerns were heard during the public comment period of the regular meeting no action could be taken.
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