The Rosemount Port Authority is considering the use of eminent domain.

At its May 15 meeting, Port Authority members voted 5-2 to schedule a public hearing for 6 p.m. Tuesday, June 19, at City Hall to discuss the use of eminent domain. It would be used to acquire the property at 14630 S. Robert Trail, commonly referred to as the Ratzlaff property on Core Block East in downtown Rosemount. The city wants to redevelop the area.

Negotiations have been taking place for months in closed meetings concerning the Core Block East area in downtown.

The city made a purchase offer April 13 to buy Dr. Kurt Walter-Hansen's four properties on Core Block East, and later added the alternative of a sale of only the Ratzlaff property.

Hansen had until noon Monday, May 14, to decide if he would accept the city's offer to purchase the property. Hansen responded by letter stating: "I am a willing seller and I am willing to cooperate with other developers, and with the city of Rosemount, in an effort to begin development in 2007." He did not agree to the offer and did not propose a counter offer.

He continued by writing: "I am requesting time to have an appraiser of my choice go through the properties and appraise them before a final price is negotiated or legal action is commenced."

When the city was seeking developers for the property two years ago, Hansen threw his hat in the ring with a proposal.

Using a framework developed by a group of residents, business owners and government officials, the Port Authority selected CPDC as the main developer instead of Hansen.

Stonebridge Development & Acquisition took over for CPDC this past January.

Before Stonebridge took over, CPDC worked on property appraisals along the Core Block East. With the exception of Fluegels, every property owner received a purchase offer. The property at 14610 Burma was purchased. A verbal agreement was made with Gary Betters for his property at 14650 S. Robert Trail.

At that time Hansen, who already owned the three single family homes converted to businesses on the Core Block East, purchased the Ratzlaff property (the location of a truck rental business).

Hansen takes issue with the transition between CPDC and Stonebridge, stating that there was no process of approval for a new developer as there had been when CPDC was selected.

Community Development Director Kim Lindquist explained the transition between CPDC and Stonebridge, stating that the city expected to work with another firm for the residential side of the project. CPDC brought Stonebridge into the project for that aspect. It was then discovered that Stonebridge had the ability to complete the entire multi-use development without CPDC.

Hansen also asked to submit a new proposal for his property to replace that of Stonebridge's, however, Port Authority commissioners voted 4-2 to not allow Hansen another opportunity to present.

City Administrator Jamie Verbrugge, who has been in close communication with Hansen, said, "Our commitment is we will continue to negotiate and will be very open to settlement within the time period."

Verbrugge called the decision to set a public hearing on eminent domain, "setting a clock" on negotiations, but nothing more than that.

"I am in the process of deciding what I'm going to do next," said Hansen during a phone interview after the meeting. "The most important thing is that the public knows about this."

Lindquist, who presented the process of eminent domain at the May 15 Port Authority meeting, said it will be a "long and extensive process," of which the public hearing is the first step.

Following the public hearing, where commissioners will hear public testimony, the Port Authority can vote on the matter at its next scheduled meeting, which is Aug. 7.

"The property isn't taken by the city without fair compensation," Lindquist said.

If use of eminent domain is approved, a petition will be filed with the court, followed by a court hearing. Three professional appraisers are chosen by a judge and will hear testimony from both the city and property owner before making a decision.

Eminent domain can only proceed if found to be in the community's best interest. Hansen could take the issue to a jury trial in he finds the decision unfair.

"We can develop this without eminent domain," Hansen said. "They just don't want the landowners involved."

Hansen said the Port Authority is the wrong governing body to be authorized to use eminent domain, because not all the commissioners are elected. Port Authorities are made of both City Council members and appointed residents.

"I don't know who these people represent on the City Council and Port Authority, but they do not represent the citizens of Rosemount," Hansen said.

Mayor Bill Droste, who is also a Port Authority commissioner, voted against setting a public hearing on eminent domain, as did Councilmember Phil Sterner.

"We ought to be able to figure it out without initiating a public hearing," said Droste, who worried the decision would feed into the negative perceptions of those against downtown redevelopment. "We should do everything we can before we go down this road."

Port Authority Chair Mike Baxter, who voted in favor of setting the public hearing, said the decision does not mean eminent domain is a forgone conclusion.

"We would resort to it only at the point that other options are exhausted," he said. The city's ability to call on the eminent domain process expires February 2008.

Hansen said the decision to move forward with the public hearing made it appear that commissioners already support the use of eminent domain.

Commissioners denied his claim.

Hansen, who has hired representation of Leonard Levine & Associates, said he will continue to negotiate with the city.

"We will continue to work with Dr. Hansen and whoever his representatives are," said Baxter. "I hope people come out and express their views June 19."

(You are invited to comment about this story on our website at www.mnsun.com and/or write a letter to the editor at suncurrentsouth@acnpapers.com.)

Community Development Director Kim Lindquist explained the transition between CPDC and Stonebridge, stating that the city expected to work with another firm for the residential side of the project. CPDC brought Stonebridge into the project for that aspect. It was then discovered that Stonebridge had the ability to complete the entire multi-use development without CPDC.

Hansen also asked to submit a new proposal for his property to replace that of Stonebridge's, however, Port Authority commissioners voted 4-2 to not allow Hansen another opportunity to present.

City Administrator Jamie Verbrugge, who has been in close communication with Hansen, said, "Our commitment is we will continue to negotiate and will be very open to settlement within the time period."

Verbrugge called the decision to set a public hearing on eminent domain, "setting a clock" on negotiations, but nothing more than that.

"I am in the process of deciding what I'm going to do next," said Hansen during a phone interview after the meeting. "The most important thing is that the public knows about this."

Lindquist, who presented the process of eminent domain at the May 15 Port Authority meeting, said it will be a "long and extensive process," of which the public hearing is the first step.

Following the public hearing, where commissioners will hear public testimony, the Port Authority can vote on the matter at its next scheduled meeting, which is Aug. 7.

"The property isn't taken by the city without fair compensation," Lindquist said.

If use of eminent domain is approved, a petition will be filed with the court, followed by a court hearing. Three professional appraisers are chosen by a judge and will hear testimony from both the city and property owner before making a decision.

Eminent domain can only proceed if found to be in the community's best interest. Hansen could take the issue to a jury trial in he finds the decision unfair.

"We can develop this without eminent domain," Hansen said. "They just don't want the landowners involved."

Hansen said the Port Authority is the wrong governing body to be authorized to use eminent domain, because not all the commissioners are elected. Port Authorities are made of both City Council members and appointed residents.

"I don't know who these people represent on the City Council and Port Authority, but they do not represent the citizens of Rosemount," Hansen said.

Mayor Bill Droste, who is also a Port Authority commissioner, voted against setting a public hearing on eminent domain, as did Councilmember Phil Sterner.

"We ought to be able to figure it out without initiating a public hearing," said Droste, who worried the decision would feed into the negative perceptions of those against downtown redevelopment. "We should do everything we can before we go down this road."

Port Authority Chair Mike Baxter, who voted in favor of setting the public hearing, said the decision does not mean eminent domain is a forgone conclusion.

"We would resort to it only at the point that other options are exhausted," he said. The city's ability to call on the eminent domain process expires February 2008.

Hansen said the decision to move forward with the public hearing made it appear that commissioners already support the use of eminent domain.

Commissioners denied his claim.

Hansen, who has hired representation of Leonard Levine & Associates, said he will continue to negotiate with the city.

"We will continue to work with Dr. Hansen and whoever his representatives are," said Baxter. "I hope people come out and express their views June 19."

(You are invited to comment about this story on our website at www.mnsun.com and/or write a letter to the editor at suncurrentsouth@acnpapers.com.)