by Lance Turner
Posted 7/24/2013 03:23 pm
Updated 9 months ago
An eminent domain battle over a Dillard's department store at a mall in Longmont, Colo., goes to court on Thursday.
It's a situation that's been simmering since last year, when the owner of the Twin Peaks Mall, NewMark Merrill Mountain States, announced an $80 million redevelopment plan for the property.
NewMark Merrill had hoped to break ground on the new mall this fall. But as plans were developed, Dillard's became a sticking point; the retailer owns its own building and has a covenant with the mall giving it veto power on any reconstruction. Talks between NewMark and Dillard's hit a wall by April 1; follow-up talks between the city and Dillard's also proved fruitless and led the city to go to court, asking for a condemnation.
The Longmont Urban Renewal Authority offered has offer Dillard's $3.6 million for the building, but Dillard's wants $5 million. The value of building was most recently appraised at $2.9 million. In June 2010, however, it was appraised at $3.8 million.
Tomorrow, the city will ask a district court judge to give the city immediate possession of the property. Developers are eager to begin redevelopment. Dillard's has said it will not be part of the revamped property.