Dillard's 'price' case starts Wednesday
Last Updated: 16:11 December 10, 2013
A three-person board is expected to decide the preliminary price for the Dillard's store in an eminent-domain court hearing that's scheduled Wednesday through Friday in Boulder District Court in Boulder. The board is expected to set the store's preliminary legal value so that the store's title can be transferred to the Longmont Urban Renewal Authority and an $80 million redevelopment project can start at Twin Peaks Mall. LURA is made up of Longmont city council members.
Attorneys for Dillard's Inc. (NYSE: DDS) can use an "income approach" in appraisal arguments about how much the store is worth, according to a Boulder District Court document filed Friday, Dec. 6. What that means is that a Dillard's expert can discuss what the value of the property is, based on a potential stream of rental income, according to the court document. The Dillard's store is currently owner-occupied.
Attorneys for LURA can use Dillard's property tax appeal records from 2003, 2007 and 2009, according to the court document.
Attorneys for the LURA can use the $4 million sale of a 93,600-square-foot building near the Dillard's store in 2007 as a comparable sale in helping to make the case for the value of the store.
William R. Gray, a lawyer at Purvis, Gray LLP in Boulder, will be chairman of the three-person board. The board also will include J. Marcus Painter, a lawyer at Holland & Hart LLP in Boulder, and B. Scot Smith, a real estate broker at Colorado Group Inc. in Boulder.
Setting a preliminary price for the store has been a process called "unique" by a Dillard's attorney, because state law calls for a judge, a three-person board or a jury to decide the price of a property in an eminent-domain case. In this case, however, the price determination is on parallel tracks of both a three-person board and a jury because of decisions made by Mallard. A jury trial is scheduled for April.
Eminent domain is the legal right of a public entity to take a property after compensating the owner. A past Dillard's appraisal states that the land and store at Twin Peaks Mall in Longmont is worth $6.3 million - nearly double the $3.03 million appraisal commissioned by the city of Longmont in November 2012.
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