urban renewal area

[frank]

I have a property that is on a main intersection in a city. they want to buy right of way to create a turning lane. I told them that they needed to stake out the property they wanted and then we would see about coming to an agreement. in the meantime I noticed on the city council site that the city was trying to put my whole acre of property into urban renewal not just the 15 ft. or so they would need along one street. I asked why they want to put the whole acre into urban renewal and was told they wanted to use it for TIF funding on the project. I was also told that the urban renewal area designation doesn't hurt the value of the property or the homeowners right to sell it as residential{which it is now}. anyone with experience in this situation or something similar please let me know how you handled it. Are there any cons to the urban renewal designation that I do not see?

 

[njhowie]

Are there any cons to the urban renewal designation that I do not see?

Do you pay property taxes on it? Maybe you are in a position to get them lowered or abated?

 

[frank]

yes I do pay taxes on it. Have owned it for 48 years.

 

[Ronstar]

I don't know the details on TIF districts, but if your state's laws are similar to those in Illinois, the municipality may be able to do a quick take of the property they need by eminent domain. Whether you come to an agreement or not.

If you don't come to an agreement, it would go to court as a condemnation case, where a judge or jury would set the purchase price. Also - if the property owner and municipality cannot come to an agreement, the owner gets appraised value until the issue goes to trial.

 

[frank]

so you think it is a good idea to try to keep the city from putting the whole property into urban renewal, rather than just the property they need for the street improvements?

 

[Ronstar]

I would put the whole property in as long as your real estate taxes don’t increase. And as long as there is no zoning change or other new restrictions that would be too restrictive for you or future buyers.

You should probably get a good real estate attorney involved.

 

[rk911]

...You should probably get a good real estate attorney involved.

a big +1

 

[Scuba]

I would put the whole property in as long as your real estate taxes don’t increase. And as long as there is no zoning change or other new restrictions that would be too restrictive for you or future buyers.

You should probably get a good real estate attorney involved.

A real estate attorney consultation was my first thought.

 

[Winemaker]

You should probably get a good real estate attorney involved.

When a portion of my grandparents yard was put under eminent domain for a busway 40 years ago, a great real estate attorney got $100,000 instead of the $20,000 for them.

 

[OldShooter]

A real estate attorney consultation was my first thought.

This. I would rephrase though, to say " ... a politically well-connected real estate attorney ..."

This is highly local; SGOTI is not going to be much help.