Lawyers argue county prices - A panel of
real estate appraisers will determine fair market
value of properties in the arena footprint
Acquiring land for the downtown arena is kind of like
the TV game show "Deal or No Deal."
Landowners have a piece of property of undetermined
value. Sedgwick County has made an offer.
And property owners have said, sometimes emphatically,
"no deal."
Now, they wait to see whether the next offer will
go up or down. And hundreds of thousands of dollars
could be at stake.
Unlike the TV show, the outcome of this game isn't
left to chance. A panel of three real estate appraisers
will determine each property's fair market value,
although property owners can appeal the findings in
court.
On Thursday, the panel took the first testimony on
whether properties in the arena area are worth more
than the county offered.
A lawyer and an appraiser hired by the county contended
the offers are fair and reasonable.
Lawyers for the landowners questioned the county
appraisal methods and began laying the groundwork
for their case that the properties are not the run-of-the-mill
warehouses and parking lots the county assumes them
to be.
Three properties went before the panel Thursday:
--A parking lot at 210 S. Emporia, near what has
been known as either the Flanagan or the Dancers Building.
The county has offered $70,000.
--A building at 317 S. St. Francis that houses Sergio's
Welding. County offer, $100,000
--A warehouse at 310 S. Commerce, now leased by Cox
Communications. County offer, $300,000.
Lawyer Brad Stout defended the county's offers, based
on appraisals done by Steve Adams of the Martens Commercial
Group, a downtown real estate firm.
"I don't think we cut the legs out from under
the people (who own the land) at any point,"
he said.
But in questioning Adams, lawyers for the property
owners probed for cracks in the appraisal methods.
The property owners will present their side of the
case next month.
Much of the argument Thursday centered on Adams'
choice of comparable properties used to calculate
the values of land and buildings in the area.
Lawyer Steve Robison, who represents the owners of
the Commerce Street warehouse, claimed the brick and
masonry building is of "superior construction"
to a nearby warehouse Adams used to compare in his
appraisal.
He also said it's been an "artesian well"
of rental income for its owners, S & J Real Estate.
He added, "We're going to rebuild that building
right before your eyes and it's going to be a whole
lot more than $23 a square foot," which is what
the county is offering.
Stout replied that it wouldn't matter if the building
were made of gold -- it's still a warehouse.
"If the market will only rent it for a certain
amount of money, you've got to deal with those facts,"
he said.
The parking lot on Emporia discussion was also contentious.
Lawyer Windell Snow provided documents that he said
showed the owners, GLS Flanagan Building Joint Ventures,
paid $66,000 in 1987 to create the parking lot --
$4,000 less than the county is offering today.
"Adjust that to the Consumer Price Index at
this time and that same parking lot is $118,000,"
isn't it?" he asked Adams.
"If that's what your math shows," Adams
replied.
The hearing continues at 11 a.m. today when the appraisers
will take up what could be the most hotly contested
acquisition, the Episcopal Social Services building
at 233 S. St. Francis.
Officials of the Christian charity have said the
county offer of $500,000 is too little for it to relocate
and continue providing job assistance, counseling,
food and other services to the poor and disabled downtown.
