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City Seeks Eminent Domain Judgment to Build Parking Garage

Hamilton Street property owners say city is not offering fair market value for land to build new Arts District parking garage.

 

The Hyattsville City Council is attempting to use eminent domain to acquire two properties for a proposed parking facility on Hamilton Street to serve the redeveloping Route 1 corridor. 

Two lawsuits filed on Oct. 22 with the Prince George's County Circuit Court seek to condemn two properties in the 4500 block of Hamilton Street to make way for the new parking facility. Eminent domain allows a government entity broad powers to acquire land for public improvements in exchange for fair market value compensation for the property. The lawsuits were approved by the Hyattsville City Council in September, according to court documents.

The properties, across the street from each other, are the site of two auto repair shops, D&E Auto Repair Service at 4503 and 4503 Hamilton Street and Harold's Auto Body and Painting at 4508 Hamilton Street.

The D&E Auto Repair Service property is owned by mechanics David Samuel and Earl Guevara. Samuel also lives on the property with his family in an adjacent house. If the city's eminent domain lawsuit is successful, not only will he have to move his business, he will also have to move his family.

Samuel and Guevara have operated their auto repair shop on Hamilton Street since 1998. In 2004 they purchased the land for $575,000. According to the city's lawsuit, the two still have 11 years of payments left on the property. 

According to 2010 state tax assessments, the properties at 4503 and 4505 Hamilton Street are valued at $648,000, including site improvements. 

They first learned of the city's interest in their property in May. The first offer they received from the city was for $460,000. They turned down this offer, saying that it undervalued the land. 

They said that their counter-offer, seeking $1.2 million for the land according to court documents, has been ignored by the city. 

"We don't want to sell our property," said Samuel in an interview in his shop. "This is where we make our living. This is where we live."

Last Friday, more than a month after the city brought suit against the property owners, Hyattsville Mayor Marc Tartaro told Patch that the city was engaged in "active negotiations" for the properties.

"Litigation is never active negotiations," said Richard Colaresi, attorney for the city of Hyattsville, in an interview. "But it many times leads to active negotiations."

"Whether or not we are actively negotiating, I am not the person to tell you that, but I can assure you that the city is going to get this property," said Colaresi.

The negotiation process itself has come with its own costs for Samuel and Guevara. Since the city first expressed interest in their land, they said they have had to spend more than $60,000 on lawyers, appraisals and other incidentals.

"By putting us in this position, it is costing us." said Guevara.

Michael Herman, lawyer for Samuel and Guevara, said that the city's initial offer was far lower than what other surrounding properties have gone for in recent years.

"If you look at land transfers that have occurred in the last few years, some of the parcels in the EYA project have gone for approximately $4 million per acre," said Herman in an interview. "The city was offering my client one third the value of their land."

The sentiment is similar for the owner of 4508 Hamilton Street, Richard Loesberg, and his tenant, Harold Alfred, who has operated an auto body and paint shop on the property since 1977.

Loesberg, whose family has owned the property since 1979, said that the city has not offered a fair market value for the land. According to court documents, the city offered to pay $540,000 for the property. 

"We're inexperienced in commercial real estate transactions," said Loesberg, who works for a food distributor. "We kind of thought the city did it's homework…but we started asking around and learned that nearby properties had gone for three times as much."

Loesberg made a counter-offer, but he declined to disclose the price he countered with. His counter offer was not detailed in court documents.

According to state tax records, Loesberg's property–including improvements on the land–is assessed at $613,000.

Harold said that he worries what will become of his business if the court approves the eminent domain condemnation. His business employs five people. 

"I don't know what will become of me afterwards," said Alfred. "If I am on the street or if the business will cease to exist anymore. I don't know what will happen."

Related Topics: Hyattsville Arts District, Hyattsville City Council, and Hyattsville Parking

susie

7:06 am on Thursday, December 6, 2012

Seriously, eminent domain when the city should have anticipated parking problems with the new development YEARS ago? Offer fair market and move on, city. Help the owner find a new location. Be a good neighbor.

And speaking of parking, what's up with on-street parking. If electeds were serious about parking, they would have already had on-street, with meter parking in place (now don't get me wrong, I think parking on Rte 1 is a disaster waiting to happen). But this, on-street parking, is in the mayor's sphere of influence.

Back to eminent domain for a sec: What's next? Will the city of Hyattsville decide it needs my house or your apartment building for a long-standing issue? And for pennies on the dollar? No thanks.

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Albert Van Thournout

7:42 am on Thursday, December 6, 2012

I agree with Susie totally. Hyattsville political leaders are making themselves look very ugly in this matter. What is at stake here is not just the value of the property on the tax roles; it is the more important value embodied in the fact that this property holds a business for the owners, a place to live for their families. Indeed, offer a price which includes the value of the business and the home. Help the business relocate. How about in the 'swank' arts district? After all, auto repair is an art. Stop acting like the Gestapo. As Susie writes, be a good neighbor. And the next time, perhaps you wonderful leaders should plan ahead a bit more before being blinded by the dollar signs behind all your marvelous redevelopment plans.

Farmer Joe

8:16 am on Thursday, December 6, 2012

I'm still trying to figure out why we need a parking deck. "A city within walking distance" and you're going to slap a monstrous alter to the automobile right in the middle of it. There are so many things wrong with this situation. Who believes that Baltimore ave. is going to become a regional shopping/entertainment district that needs to attract heavy automobile traffic? I'm all for the success of businesses on our "main street," but let's get real about who those businesses are primarily serving: residents of Hyattsville who need to get off our lazy butts and walk to the shops and restaurants. As for eminent domain, it sickens me how often developers bully courts into believing that these laws stretch to include economic boons for redevelopment target areas. I hope these property owners, who clearly don't want to move, can make a stand until our representatives see the ridiculousness of this entire project.

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John Mutchler

8:59 am on Thursday, December 6, 2012

"Whether or not we are actively negotiating, I am not the person to tell you that, but I can assure you that the city is going to get this property," said Colaresi.

This is just plain wrong and disgusting… that a government agency can just up and decide they want something and if the owner doesn’t want to give it… the governments can “legally” take it. Most small businesses are struggling and now these two businesses have to put out money for Lawyers to fight this injustice. Not to mention the cost of finding a new place to move the business and the cost of moving the business… if in fact they can find a suitable place that they can afford. And they have to do all this while still trying to run their business.

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John Mutchler

9:00 am on Thursday, December 6, 2012

Continued:
How long have these businesses been good business citizens and partners in Hyattsville… paying their taxes… providing jobs and services to the community? And Hyattsville was gladly accepting their taxes. But now they don’t fit into the grand scheme of Hyattsville and the new Route 1 corridor and they are fine with kicking them to the curb.

If this type of thing is going to be legal it should be slanted in favor of the property owner. If the city wants this property so bad they should have to find a suitable property for the business to move to and they should have to foot the bill to move the business. And then still compensate the business for all of their troubles.

I swear it don’t see how politicians sleep at night… Al Capon was nothing compared to governments and politicians.

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tanisha

8:21 am on Friday, December 7, 2012

Wow! This is just sad. What an abuse of power. Typical of the idiot politicians we have in PG.

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Scot Brown

10:05 am on Friday, December 7, 2012

I have to disagree with you all. And honestly, comparing City Council to the Gestapo is repugnant. Dear lord, they are not secret police routing out Jews. Albert Van Thournout you owe a public apology to those men and women. By all mean disagree but keep the ignore hate speech out of the public forum.

Yes change is difficult. The Hyattsville of yesteryear is long gone and the supporting businesses may or may not keep up with the changing market. The City’s first offer is public information. That does not mean it’s the sale price. It’s an offer. And in fact it is the estimated tax rate developed by the State. Basically that is standard practice as a negotiation starting point. If city council started high I think you’d concede there would be equal ire about careless spending of our tax dollars.

There is ample proof that parking is needed. It is not a ridiculous project nor is it a disgusting process. It’s a smart one and one long planned for. This is not an abuse of power at all. Not even close.

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Farmer Joe

1:06 pm on Friday, December 7, 2012

There is "ample proof" that we need more parking in a city whose central identity is that it is "within walking distance?" The only people who need parking are those who cannot walk. This is largely about whether we want to be just another generic suburban area full of parking lots and traffic, or a community that supports walking as a healthy, cost-effective, and interactive method of mobility. As for eminent domain, this is supposed to exist for extreme issues of public safety or livability, not the minor inconvenience of walking a few blocks. I just ask you to image that it were your house, where you raised a family and grew a business, and now you are being told to get out so we can park our SUV's closer to Chipotle. And, we are not going to pay you even the amount the the county has been taxing you on all these years. Not Gestapo, you are right, but pretty offensive none the less.

Adelphi Sky

3:28 pm on Friday, December 7, 2012

Couldn't his body shop be on the ground floor of the parking facility?

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Keith Jensen

10:49 pm on Friday, December 7, 2012

Even in New Jersey our Mayor and Council are having a similar affect. Here, our town's leadership decided to purchase a $2Million piece of land to allow a major developement to better occupy the land. Now our taxes increase. Your article here is so similar to our situation. Please comment if you see the similarities: http://fortlee.patch.com/articles/fort-lee-to-acquire-main-street-property-for-2m-to-build-park

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Michael Theis

12:10 am on Saturday, December 8, 2012

Now I'm curious as to how a New Jersey-ian like yourself stumbled across this little article. Do you have a google news alert for eminent domain or something?

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Michael Theis

12:14 am on Saturday, December 8, 2012

And in reading your article, I would like to point out a few differences. It seems as if your city is acquiring the land to hand over to developers to make into a park. That's not the situation here, as I understand it. Here, the city is acquiring the land to build a piece of public infrastructure which will remain in government control.

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Keith Jensen

12:40 am on Wednesday, December 26, 2012

Hyattsville to build a garage, my town to have a park built. In my case though, they are using public funds to acquire what is akin to an investment property. Much more explained here in my op-ed.
http://fortlee.patch.com/articles/fort-lee-gop-starts-petition-to-stop-acquisition-of-main-street-property
@MTheis, I came across because I was looking around the country for other eminent domain articles in PATCH. Yours came up. Good job as Editor!

Nearby

8:46 am on Saturday, December 8, 2012

I agree with Tanisha. This is an abuse of power. If you are going to take it away, give them what they need to give up the property and continue with their business, livelihood, and home, and come out whole on their mortgage and business obligations..

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Adelphi Sky

10:38 pm on Saturday, December 8, 2012

Here's a thought. Since so many people have an issue with eminent domain, which is legal, why not have the law abolished or place that power in the hands of voters? OR, is there good eminent domain and bad eminent domain? And when you think about it, didn't some of the places we enjoy belong to someone who was asked to move via eminent domain? There seems to be an outcry every time this power is used, but no one seems to want to have the law changed or eliminated.

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Brad Kay

3:07 pm on Sunday, December 9, 2012

Eminent Domain has become an egregious affront to the property rights of all citizens.
Injustice anywhere is a threat to justice everywhere. The idea that a city council in a small town can decide that it "needs" to take the properties of its citizens to locate a parking garage is reprehensible. This is exactly the type of legalized theft that led to the American Revolution in the first place ! The easier it becomes to excercise eminent domain, the more often it will be used . This issue exemplifies a perversion of the rights and principles upon which our country is founded.

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Scot Brown

9:35 am on Monday, December 10, 2012

I think what bothers me the most is the assumption that the government is bad as the starting place for the discussion. This string of comments started with Albert Van Thournout comparing our friends and neighbors on the City Council to the Gestapo. Then Farmer Joe is convinced only people who can walk to Baltimore Ave should be accommodated. (The disabled would find your comment short sighted and ignorant.) People are coming to Hyattsville from all over. Just a few years ago they used to come to Hyattsville from all over for hookers and drugs.

Progress and change are contentious. Yes if I were the family who received a fair market offer to sell my home and business I’d give it a good consideration. The family in fact is holding all the cards. The government has already publicly committed to the location. They can’t back down now without losing face.

That is exactly what the family did. THEY COUNTETR OFFERED with $1.2 million. The city has not responded, yet. (No surprise there… it’s called doing business)

So the Mayor stated they were going to get the property. That could also mean they are willing to go up in price to get it. But no, most of the people who commented ASSUMED the City is going to screw the family over. You assume the government is bad and evil.

That’s what I don’t like. You are treating these people who are friends and neighbors with a lack of decency

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Farmer Joe

9:40 pm on Monday, December 10, 2012

I have to reply that as someone whose career has been helping children with disabilities, I find your comment "short sighted and ignorant." if you carefully read what I said, I stated that only those who can't walk should be provided parking. In addition, eminent domain does not mean the government is making an offer on a property. People are touchy about this because governments often put down an offer and tell you it is the best you will get while you are forced to surrender your land. Again as i stated it was only to be used on extreme cases for public safety or necessary municipal development, not for parking cars.

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Scot Brown

9:56 am on Wednesday, December 26, 2012

It's a different situation Keith. And not sure why you are sticking your nose in others business.

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Michael Theis

11:05 am on Wednesday, December 26, 2012

Hey, he's allowed to comment here. I was just curious as to how he found out about our little town's eminent domain push.

Scot Brown

9:59 am on Wednesday, December 26, 2012

Farmer Joe. I am sorry and what I wrote was rude. I got all worked up about my sisters struggle with her two disabled children and the parking problems she has had. Sorry.

I hope that family gets a fair deal. I think they will. I check to see if they are.

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