Panel backs Dillard's on value of store
Last Updated: 15:29 December 16, 2013
A three-person board composed of Boulder attorneys William Gray and J. Marcus Painter and local real estate broker B. Scot Smith decided on the $6.3 million value after a three-day, quasi-judicial court hearing last week. The board filed its decision with the court on Monday. The preliminary value is expected to be followed by a jury trial in April to determine the actual price the Longmont Urban Renewal Authority, or LURA, must pay for the store.
LURA is taking the Dillard's store by the power of eminent domain to help facilitate the redevelopment of the ailing mall. Dillard's, which owns its store and the seven acres on which it sits and has been an unwilling seller, holds a reciprocal easement agreement that gives it veto power over any redevelopment at the site.
In the three-day hearing, attorneys for Dillard's Inc. (NYSE: DDS) presented a case indicating the store was worth $6.3 million. Attorneys for LURA said the store was worth $3.03 million. LURA is made up of Longmont's elected city council members.
"Is it what we expected? We hoped for it," Chris Johnson, vice president for real estate at Dillard's, said of the ruling. "I wish we could keep a store open in Longmont, but obviously that's not going to happen."
Brad Power, director of Longmont's economic development department, was not immediately available for comment about the court document.
Within 10 days of the preliminary price being set, LURA will deposit the set amount in escrow with the court until the jury trial in April. If the jury price comes in higher, LURA will have to pay the difference then. If the jury price comes in lower, LURA will get a refund. In the meantime, Dillard's can withdraw up to 75 percent of the $3.03 million that the LURA has argued the property is worth.
The Twin Peaks redevelopment has been dubbed The Village at the Peaks. It is slated to be anchored by a Whole Foods Market, Sam's Club and Regal Cinema 12-screen movie theater.
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