Real Estate & Property Law

Property owners refuse to leave

By Alan Ackerman

NJ.com

Some business owners in Cedar Rapids' flood plain say they've received a worse deal than homeowners: They were offered only the value of their land. And if they stay, there's no guarantee the Army Corps won't remove electric, water and sewer lines from under the levee to prevent them from undermining the system.

Jason Beauregard, 34, thought he was getting a bargain when he paid $350,000 for commercial property near the river after the flood.

"I went to the city, and I was told that not only would it be not a problem, it would be beneficial for me to buy it," said Beauregard, who owns the Superior Services janitorial company. "If anything, they said it could turn into a decent investment."

He spent $70,000 cleaning and furnishing his office space and a 8,000-square-foot garage, but now the city is offering him about $95,000.

"If it's (a choice between) land value or being on the wet side of the wall, we're going to be on the wet side of the wall," Beauregard said. "I guess if that happens, we'll be cleaning up a flood every time."   Nigel Duara, AP, August 12, 2009

There is a risk when in the floodplain, the Corps of Engineers are arguing marketable property has no market whatsoever.  This is a harsh result for owners because owners should expect to be compensated fairly.

Full post as published by National Eminent Domain Blog on August 24, 2009 (boomark / email).