Posted: May 26, 2009

City officials have opted not to declare eminent domain on two bars: Wayne's on Packard and Dusty's Place.

Last year, Common Council and Community Development Authority members decided to look into the feasibility of exercising eminent domain, the lawful power to take private property for public use by the process of condemnation, on the properties in an attempt to enhance the aesthetics of the area.

Mark Wiener, a developer for ERRS, was planning to build an upscale "live-to-work" complex next to the taverns. The development was to have allowed homeowners an opportunity to operate businesses in the same building as their residence.

The Plan Commission approved plans for the development, which was to be situated on a vacant lot at the northeast corner of Carpenter and Packard avenues.

After the project was approved, officials were looking at taking ownership of the two adjacent tavern properties through eminent domain. The goal was to beautify the area near the new development.

But the residential/business complex never materialized, and the city did not exercise eminent domain on the two taverns.

Mayor Ryan McCue said after the project was approved by the Plan Commission, Wiener wanted to add more units to the development. McCue told him the project would have to be re-approved by the Plan Commission, but Wiener never asked to have the issue reviewed again, McCue said.

McCue said officials will likely revisit the question of eminent domain on the two bars. A consulting firm is compiling financial data.

"If the economics make sense, we'll move forward," he said. "If not, we won't do it."

At this time, the cost for the city to purchase the two buildings is unknown, he said.

CDA Chairwoman Sara Eberhardy said if there was a viable development being planned in the area, it would make sense for the city to acquire the taverns through eminent domain.

"But this isn't the case," she said. "Without a development, it would be silly to acquire properties on the tax roll and take them off."

She said the CDA is being "very conservative" lately on how funding is allocated for redevelopment in the city.

If officials were to acquire eminent domain on the taverns, the money to purchase the properties would come from tax-incremental financing funds because the bars are located in the city's TIF district.

The CDA would make a recommendation on exercising eminent domain with the council having the final say.