Real Estate & Property Law

Tenants' Rights

By Alan Ackerman

South Town Star

With negotiations over the Orland Plaza at an apparent standstill, Orland Park has begun condemnation proceedings against the owners of the village's oldest shopping center.

Orland Plaza owners and the mall's tenants were notified Tuesday after the village board approved an ordinance Monday and filed court paperwork to begin eminent domain proceedings Tuesday.

But both village officials and the property owner say they're happy to return to the bargaining table to negotiate a deal for the land the village wants near 143rd and LaGrange Road. Orland Park wants to extend Jefferson Avenue, Ravinia Avenue and a third street into the new Metra parking lot and development as part of its $100 million Main Street Triangle project.

"It's definitely our intention to keep talking to the property owners," Orland Park's assistant manager Ellen Baer said. "That's our intention to keep moving with the property owner. At some point we have to get the (legal) process going. We would certainly prefer to come to an agreed-upon price with the property owner. They have not countered our offer. They rejected our offer. I couldn't even tell you how far apart we are."

Eminent domain is a government power to seize private property for the public good, with the government having to fairly compensate the property owner. To begin the process both the village and the property owner were to get appraisals of the property to begin negotiating a fair price. George Gee, one of the property owners, said his attorney asked the village for a copy of its appraisal, but didn't receive one. As a result the negotiations stalled.

…While the village is offering relocation packages for the businesses it is leaving negotiations over the leases up to the property owners. Some of the leases including options for renewal extend to 2020. She said each tenant's relocation package would be different. The tenants would receive 90 days notice before they had to move.

All too often, tenants are left with little relief when they and their landlords are condemned.  However, many states do have statutes, which at least partially protect tenants.  The Uniform Relocation Act is losing its potency, minor as it was, in many states because a project not utilizing Federal funds does not have to follow the Federal act.

Full post as published by National Eminent Domain Blog on September 22, 2008 (boomark / email).