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Friday, January 19, 2007

Consultant asks eminent domain be used for public safety building



A resolution proposed for Monday’s Roseburg Urban Renewal Agency meeting asks that the use of eminent domain be allowed to take seven properties for the new public safety building if negotiations don’t quickly come to a conclusion.

The properties lie on Douglas Avenue and Rose Street, behind the old Safeway, and include six houses plus the law office of Eldon F. Caley.

Although City Manager Eric Swanson stressed negotiations may still be possible, the resolution states “The agency board finds immediate possession of the described properties is necessary and directs the Agency Director (Swanson) to undertake such procedures as are appropriate to obtain immediate possession of the described properties.”

The renewal agency has been in negotiations with the property owners since August, but deals have only been reached for three of the 10 properties, with the remaining property owners asking more money for their properties than a third-party appraisal.

The safety center would replace both a police station the city rents from the county and the dilapidated downtown fire station that has a leaky roof and sinking foundation. Both buildings are a fire hazard, according to Roseburg police and fire officials.

Caley, an attorney who owns two of the properties, said he was prepared to offer the city a new deal on Monday, but he was less than excited about vacating the Rose Street office he’s had since before the Blast of ’59.

“Want to? I don’t think I have any choice,” Caley said. “Once the condemning authority decides to take the property, they have the right, but they have to offer just compensation.”

Caley, 76, a former president of the Oregon State Bar as well as a former judge who presided over eminent domain cases involving the Port of Portland, said the city’s offer of $400,000 for his office and a neighboring house isn’t good enough.

“My property is unique in its location in its access to the courthouse and the downtown area,” said Caley, who has made a counter-offer of $635,000. “My big current problem is there is no truly comparable property for me to invest in that has the same exposure and the same location.”

The urban renewal agency, a board made up of Roseburg’s city councilors, will meet at 6 p.m. Monday to decide on the resolution.

Consultant Jim Johnson, who drafted the resolution, said that with one exception, the property owners have shown interest in selling, it is only the price the parties can’t agree on.

“I don’t think it’s the city’s business to unduly enrich them,” Johnson said. “(But) They have a difference of opinion on the value of those properties.”

If the agency passes the resolution, it would still be Swanson’s discretion to take the properties. If the buildings are condemned under eminent domain, it would be up to a court to decide on just compensation.

“(The resolution) helps set some deadlines. We don’t want this (the negotiations) to go on forever,” Johnson said. “When we’re talking about $10 million. ... We would like permission from the council to use this tool if necessary.”

The public safety center has been estimated to cost at least $11 million. So far, the city has committed $2.3 million just for property acquisitions.

The need for a new fire station became even more urgent last month when the furnace in the station at the corner of Cass and Rose blew apart. Fire Chief Jack Cooley said they’ve been heating the place with space heaters while they wait for a replacement furnace.

The seven properties in question are split between three property owners.

In addition to Caley’s two lots, Ken Stull, acting under power-of-attorney for his mother, Janice Podmajersky, manages four modestly priced rental houses on Douglas Avenue. The agency also wants a Rose Street house owned by Crystal Loftin, who has shown little interest in selling.

On the three properties the city has been able to purchase, the city has paid higher than the value assessed by a third party. Those properties, a house, a warehouse and a car lot, lie along Rast Court or Brewery Street, the unpaved access drive next to Stephens Street.

Johnson said the urban renewal agency picked the site north of the old Safeway because those properties have easy access to the courthouse and Stephens Street.

He said that block had a lower tax-assessed value than the abandoned Safeway and Rite Aid buildings, but given the higher-than-expected costs for the properties being considered, he could not say which properties would have been more expensive.

Swanson said he would use eminent domain only if the city has “exhausted all means of discussion.”

A press conference was scheduled for this morning to discuss the matter.

• You can reach reporter Chris Gray at 957-4218 or by e-mail at cgray@newsreview.info.
So you know ...
Properties purchased by the city for the site of a public safety center

• Joshua & Marcea Webber’s house on Rast Court — $231,720

• Sparky Brown’s warehouse on Rast Court — $250,000

• Classics Northwest sell-your-own-car lot, corner of Stephens and Diamond Lake — $300,000

Total money agreed upon: $781,720

Offers floated for remaining properties

• Janice Podmajersky properties on Douglas Avenue — 4 rental houses — $550,000 (wants $665,000)

• Eldon F. Caley’s office and rental house on Rose Street — $400,000 (wants $635,035)

• Crystal Loftin house on Rose Street — $130,000 (no counter-offer)

Total committed money: $1,861,720



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