Merritt says city shouldn’t have threatened eminent domain for GM stamping plant site

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6 thoughts on “Merritt says city shouldn’t have threatened eminent domain for GM stamping plant site

  1. I believe that most residents don’t approve of greedy developers who buy property at dirt cheap prices, promise the moon, and then wait until real estate prices skyrocket to flip it, sell it, and walk away with a bundle of money. Hogsett is doing the right and best thing for Indianapolis.

    1. So why didn’t the city buy it “at dirt cheap prices,” Walter?

      ‘Sorry, but Eminent Domain has no place in this discussion…nor should Ambrose get off scot-free if they took money for redevelopment and then did not fulfil their end of the deal.

  2. You forgot the part where they asked the City for money, agreed on a package, and then went back to the well for more…and when they didn’t get it, walked away from the project.

  3. Merritt seems like he forgot that Ambrose was walking away and had no interest in developing the property. Ambrose is just frustrated they could not pocket the profits from a property sold to them at below market values and the windfall after they failed to do what they promised.

  4. Eminent Domain is always in the picture when dealing in real estate with government. It keeps the parties at the table and keeps the redevelopment active. All parties usually win since Eminent Domain rarely goes to court.

    ,

  5. Full disclosure, I’ll be voting for Hogsett. That said, I don;t like the ED issue and I’m unconvinced by the arguments set forth above. ED should be used in rare occasions when the public interest in the property is overwhelming important. The city has been jerking around with this parcel for years and years. They sold it to Ambrose in an arms length contract for an amount the city deemed to be fair. The city then spent some relatively small amount of money ($500k?) on pre-construction infrastructure engineering or whatever vs. what the overall plan was for them to spend. You can ascribe to Ambrose whatever devious motivation you want – it doesn’t change the contract. Let the lawyers hammer out whether they’ve breached the deal or not. You may not like that they may end up making a killing on flipping it, but that’s our free enterprise system.

    Walter – they didn’t wait for prices to skyrocket. They’ve only owned it for a year or two. And so what if it did? Um, that’s the business they are in. Virtually every developer buys property under the assumption that it’s a fair price or even a steal. They usually plan to develop it but there’s always the option to get rid of it instead.

    Bob P – you’re right – if the city spent money under the contract pursuant to the promise of a development project, they are at least entitled to get that money back. But ED is too many steps too far. Again, the contract surely should have addressed this topic and if not, then the city could use some better lawyers. Ambrose will eventually make the city whole on their out of pocket costs when a deal is done.

    Chris B – same answer. This is a minor breach that is satisfactorily remedied by reimbursing the city for their costs. Not take it via ED.

    D.M. – To your first point that Ambrose never intended to develop the property, you must be clairvoyant. That they paid less than fair market value, whose fault is that? If the city intended for them to get a good deal only if they did the development, then the contract will provide for that. Apparently, the contract failed to contemplate this outcome and the city wants to have a second bite at the apple.

    Robert K – ED should not “always be in the picture” – there must be a compelling reason. Pretty hard to have a free market in RE development if the city can swoop in for frivolous reasons. And you must be smoking something if you think everybody wins. The city tells the owner what they plan to pay, negotiate a bit back and forth, but at the end of the day they pick a number and they are off to the races. Meanwhile, the owner is forced to go to court and hope that a judge will make them whole after years of expensive litigation.

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