Posted: 12/11/02

Ruggles land price is $320,000

Cliff Buchan
News Editor

Acquiring the Ruggles property for the south end of the E. Broadway Ave. project will cost the city of Forest Lake $320,000.

The EDA board and council voted Monday to accept a settlement offer from G. Howard and Ann Ruggles that was reached this fall by three court-appointed commissioners. The commissioners, all veteran appraisers, were called in to help resolve the issue which utilized the cityís power of eminent domain.

The main question to the EDA on Monday was to appeal the settlement offer or accept the proposal. With the condemnation proceeding under way since January of this year, the EDA agreed the time was right to take the offer, move forward and avoid what could be a costly legal challenge.

According to David Hebert, city attorney, testimony in the condemnation hearing found a wide gap in the damage award sought by the Ruggles and what the city felt it should pay.

During testimony, Ruggles listed damages incurred as $550,000 from the cityís taking of land behind Lake Area Bank, Lakeswear and the Family Dollar Store. Ruggles owns the buildings which house the businesses.

Ruggles further testified that based on the amounts the city paid for the Stadium Sports and Worth Furniture property, he was damaged in excess of $800,000.

Julie Schwartz, an appraiser employed by the EDA, put the damages at $148,500. Based on a per square foot evaluation, however, without use of special benefit, the damages would have been closer to $300,000, Hebert reported.

After evaluating the wide gap in damage estimates, Hebert told the EDA a court appeal may have risks.

ìWith the way these figures are floating around, anything can happen,î Hebert said.

Hebert, who formally filed an appeal with the court to protect appeal rights, recommended taking the settlement which the Forest Lake couple had agreed to accept, he said.

The EDA board agreed and voted 3-0 to accept it. Votes by President Ray Daninger, John T. Lynch and Bob Morehead approved the deal.

Will exceed budget

The $320,000 purchase price will exceed limits budgeted by the EDA for the south half of the downtown redevelopment project, said consultant Dan Wilson.

The city this fall approved a payment in good faith of $150,000 to Ruggles as an advance payment for any settlement offer.

Through the court action, the city was granted rights to move ahead with the parking lot and city drive projects that will serve the south end businesses, residences and The Plaza, a 22,000 square foot, two-story office-commercial building now under construction adjacent to Lakeside Memorial Park.

Wilson, who also recommended the EDA take the offer, said the $320,000 cost would greatly reduce any cushion in the EDAís budget for south end work.

The EDA had budgeted $115,000 to acquire the Rugglesí land, but Wilson said the EDA began the project with the understanding the property would be donated to the city with Ruggles benefitting from the city improvements to the drive and parking area and taking care of all future maintenance needs.

Ruggles contested the project and forced the city to use its power of eminent domain to acquire the property. The opinion by the commissioners and the settlement award demonstrated damages and loss of private property.

Ruggles, contacted Tuesday, said he was pleased the matter was over. He said his main goal was to seek just compensation for his property.

ìOur only problem was we didnít know the value of the land and we wanted a third party to look at it,î Ruggles said. ìI have to protect my interests and my familiesí interests.î

Ruggles, a former city councilman and longtime downtown property owner and businessman, said he supports the EDAís efforts and believes the redevelopment will be positive.

ìI am 100 percent in favor of what they are doing,î Ruggles said.

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