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May 24,2002
<br /> III THE BUSINESS JOURNAL I twin bizjournals.com 9 ,, #
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<br /> Eaan homeowners sue over McGou hproject s TF area
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<br /> BY SAM BLACK r. 1, z 1 iThea.-:' r-
<br /> which is awaiting a • i the Walser case other than both are challenging
<br /> STAFF REPORTER ruling from the state i 35 - the creation of a TIF district.
<br /> Four homeowners are suing the city of Eagan Supreme ConLir.:.......-.-.44941 r—. 49� Jamie Verbrugge,assistant city admunistiator,
<br /> over their inclusion in a tax-increment financ- the city's threat of condemnation out of negotia- "The fact is the city ' aBlue said the first stepin the redevelopment process
<br /> ing (TIF) district, and that's delaying plans by tions between McGough and the homeowners, can't just condemn a Gcu.etA ;`a" Gentian was to create in February the TIdistrict for the
<br /> Roseville-based McGough Cos. to assemble Swensen said.Without the 11F district,it will be property for a private [ Rd' McGough site and two smaller sites nearby.The
<br /> property and build two office buildings. much more difficult for the city to meet the cri- developer unless they 1 ® projected amount of the increment will be$9.9
<br /> McGough's proposed complex,which would teria to legally condemn the properties,he said. have a public pur- ' million, with roughly 40 percent available for
<br /> include 400,000 square feet of office space on 19 The issues in this case are similar to those pose,"Swensen said. fry ('r J'J McGough's site,Verbrugge said.
<br /> acres,has no tenants yet,but the company is in being considered by the Minnesota Supreme But George Hoff,an " - -" "" Miller said no matter what happens to the TIF
<br /> talks with a prospective tenant for a 135,000- Court in the case involving Walser Automotive attorney at Eden Prairie-based Hoff Barry in the court case,the development project will
<br /> square-foot regional headquarters. and Best Buy in Richfield,Swensen said.In that Kuderer who is representing Eagan in the law- go forward.Without TIF,he said,McGough will
<br /> The homeowners are fighting to get fair com- case, the city of Richfield condemned Walser's suit,said the city vigorously denies any improp- need to charge higher; rents, which would
<br /> pensation for their land,said Marilyn Sanford, car dealerships to make way for Best Buy's cor- er formation of the TIF district and asks the lengthen the time it would take to find a tenant.
<br /> one of the suing homeowners. porate headquarters, now under construction. court to dismiss the homeowners'claims.
<br /> "We know[the lots]are worth more than what Walser contested the city's actions in a lawsuit, Hoff said he doesn't see any parallels between sblack@bizjhoumals.com 1(612)288-2103
<br /> McGough is offering,"Sanford said."The day I
<br /> sell this property is the day I lose money.It's five
<br /> miles from the 500-pound gorilla — the
<br /> [Minneapolis-St.Paul International]airport.It's
<br /> on a fairly major road and very close to the inter-
<br /> state."
<br /> Greg Miller,a developer with McGough,said
<br /> the company bought nine properties in the
<br /> neighborhood, and the four remaining home-
<br /> owners are trying to take advantage of being the
<br /> last parcels of the site. The city council, at
<br /> McGough's request, has ordered city staff to
<br /> begin negotiating a development agreement - ;-,
<br /> and,if necessary,condemn the homes. ;;=it, 4• f�, -,•t- - - =--
<br /> The council plans to consider approving the _ -7 ` t4 `: -- ",,,--f.?;;,,,,
<br /> agreement at its June 4 meeting. Local --= -T ': 1- - - "2{`,_ '-"We've of tune none arnd the vision but #, "_ -"
<br /> we've got unmotivated parties on the other end, ' #
<br /> and that is going to require some actions by the _-
<br /> city'Miller said. L... ) n [) istance 'The
<br /> r
<br /> The homeowners asked a Dakota County _ „. -
<br /> District Court judge for a temporary injunction 4_-
<br /> to prevent the city from taking further action on & Web Networks .,.
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<br /> the TIF district, said Michael Swensen, a _ -
<br /> Minneapolis attorney representing all four ■ ' Y,.-: ,_ -=,--
<br /> homeowners.The judge is expected to make a T;£= ,,„ . •a -
<br /> j g for Business 4
<br /> ruling in the next 30 to 60 days. ■ - ,.;.e•-.�. �,=�-t - '�::_ �:��. -
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<br /> If the temporary injunction is issued, the -- . _ . t:_:.-;_.-.,4 ,-- ,• -„_°`' ,=-
<br /> homeowners will push for a permanent injunc �` r3
<br /> tion,Swensen said. _- +'t--' = " '_`=_
<br /> The aim of the suit is to prove the TEF district
<br /> was created illegally and have it voided, taking •
<br /> a -. - -
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