Woodstock OKs eminent domain to force sale of vacant property next to future hotel

Woodstock wants a vacant property downtown and plans to use eminent domain to acquire it.

The City Council voted this week to authorize city staff to start legal proceedings to force the sale of the land at 101-109 S. Jefferson St.

The vacant lot is next door to the city-owned parking lot at the intersection of Jefferson and Calhoun streets. The parking lot is slated to be the site of a hotel that the City Council approved last summer; officials said the city wanted the vacant lot for parking.

The City Council two weeks ago voted to defer the decision about going to court to seek eminent domain to Tuesday’s meeting, and officials said Tuesday that the city made a third offer to the owner of the property, but it was rejected.

According to city documents, the city in December also acquired two neighboring parcels on Calhoun Street, where a strip mall with some existing businesses is located. The council signed off on the purchase in November.

The economic development staff agreed on a price of $300,000 for the Calhoun Street parcels, according to city documents. Those funds came from cash on hand, and city officials expect they will recoup those costs from future tax increment financing district revenues.

“City staff recognizes that acquisition and future development of the site will displace existing, operating businesses. Economic development staff is in the process of devising a plan to mitigate negative impacts to the best of our ability. Potential strategies may include allowing tenants to continue to operate after the sale until development is imminent, and providing relocation assistance to help businesses identify and establish in new space in Woodstock,” according to city documents.

The council only briefly discussed the eminent domain issue Tuesday, but Mayor Mike Turner reiterated that opting to start eminent domain doesn’t mean there couldn’t still be an out-of-court settlement. Turner previously said eminent domain is rarely and reluctantly used in Woodstock.

A member of the public, Mary Beth Walsdorf, talked about some of the businesses in the strip mall and said it was a “win” to be able to grab coffee, go to the bank and go to the cleaners without crossing Routes 47 or 14. Walsdorf talked about Stewart’s Cleaners and said the owners, Roberto and Maria Diaz, have had the business for 10 years. She urged the City Council to revisit plans for the strip mall and said it was important to keep amenities aside from restaurants in town.

Regarding the Jefferson Street property, Woodstock in August made an offer for $549,000 and a second offer about a week later that was similar to the first, according to city documents. The city based that “on a fair market value appraisal prepared by Frank E. Harrison, Harrison & Associates Inc., dated May 1, 2024,” according to city documents.

When the council first talked about the potential for eminent domain two weeks ago, some members were worried they would look like bullies if they forced the property owner into forking over their land to the city.

About a year ago, the City Council entered into a nondisclosure agreement with Throop Street LLC. Two weeks ago, the council, prompted by the agreement, went into closed session and spent about 25 minutes there before coming back and punting.

Throop Street LLC said in a statement to the Northwest Herald last week: “The city is attempting to acquire our property. We have been and will continue to engage in good-faith negotiations.”

A request to Throop Street LLC for comment on the city’s decision to begin eminent domain proceedings was been returned as of Wednesday.

City Manager Roscoe Stelford previously said officials were confident that Woodstock would prevail in court.