Northland Investment Corp. rejection of latest state offer to buy space outside of XL Center will likely resurrect tensions over eminent domain.

[huskymedic]

Northland Investment Corp. rejection of latest state offer to buy space outside of Hartford’s XL Center will likely resurrect tensions over eminent domain or (here for the access challenged)

>>In a Sept. 6 letter obtained by The Courant, Northland Investment Corp. criticized the $4.5 million offer by the Capital Region Development Authority as another in a series of “low ball” offers for the property, known as the “Trumbull Block.” The block runs north along Trumbull Street from the driveway of the Hartford 21 apartment tower to Church Street.

“The appraisals average $4.5 million for the forecourt of a major arena, its street side retail and its entrance, a value that represents less than 10 percent of actual construction,” Northland chief executive Lawrence R. Gottesdiener wrote in the letter. “These actions assure us that CRDA is acting in bad faith in its dealings with Northland.” <<

>>Northland, once one of the largest commercial landlords downtown, developed the Hartford 21 tower and complex, which wraps around the arena. For several years, CRDA has been in talks with Northland to acquire the space, needed to redevelop and modernize the 44-year-old sports arena.The negotiations turned contentious in 2018 when CRDA threatened to use eminent domain to acquire the space, but subsequently backed off, resuming talks with Northland. This latest development is likely to again raise the prospect of eminent domain.<<

 

[zls44]

This MF has GOT to go. They have to eminent domain him. Gottesdiener is actually, way down, at the root of 90% of the problems with the UConn schedules. It sounds obscure, but its true.

There's so many developers excited to finally do some stuff downtown, but the biggest stick in the mud is the guy who holds up the XL Center. Its incredibly sad and frustrating. Even the LAZ parking ghouls have good ideas!

 

[HooperScooper]

This MF has GOT to go. They have to eminent domain him. Gottesdiener is actually, way down, at the root of 90% of the problems with the UConn schedules. It sounds obscure, but its true.

I've met him before. He's an arrogant SOB.

 

[Kenny11]

Dirtbag....against everything good in the city because he isn't getting his way anymore.

 

[CL82]

I don't know how to feel about this. The state hasn't proven itself to be successful at owning sports venues. UConn subsidizing the CDRA hurts the AD financials and masks the ineptitude of the CDRA. I think it is better for UConn to have sports on campus so the game become a revenue generator rather than an expense.

That said, assuming the state acted in good faith on the appraisals, eminent domain would seem to make sense at this point, if they can get someone to demo and build a modern replacement in exchange for a long term lease that would payoff the eminent domain costs.

 

[jimva]

the problem with eminent domain is that when the "state" exercises against someone you don't like you are okay. But the more they do it the easier it is for them to take your property, regardless of the financial impact on you. be very careful supporting this, even if you have reason to dislike Northland. This is not about DT Hartford or the Civic Center. what happens there will have nothing to do with this, in the end. It is about property rights in general. If you support this then you also willingly support the "state" taking your property for $1!

 

[zls44]

the problem with eminent domain is that when the "state" exercises against someone you don't like you are okay. But the more they do it the easier it is for them to take your property, regardless of the financial impact on you. be very careful supporting this, even if you have reason to dislike Northland. This is not about DT Hartford or the Civic Center. what happens there will have nothing to do with this, in the end. It is about property rights in general. If you support this then you also willingly support the "state" taking your property for $1!

One of these situations is realistic because it exists. The other is a fantasy in your head.

 

[Chief00]

I've met him before. He's an arrogant SOB.

He also doesn’t have a good history of paying his bills. On the other hand, CRDA is a disaster staffed with former political hacks. We need someone else to be our savior.

 

[WestHartHusk]

Who is this guys lawyer? In what world is construction cost the measure of value? In his telling, nobody can ever lose money on an investment.

The appraisals don't represent bad faith, they confirm he's an idiot.

 

[Chief00]

Who is this guys lawyer? In what world is construction cost the measure of value? In his telling, nobody can ever lose money on an investment.

The appraisals don't represent bad faith, they confirm he's an idiot.

Agree, the only thing that matters is current market value. Replacement cost or original construction cost is not what someone will pay you.

 

[jimva]

One of these situations is realistic because it exists. The other is a fantasy in your head.

Nope. Just ask people who have lost their homes due to eminent domain. My point of $1 was to emphasis the fact that seizures through eminent domain don't generally result in people receiving far market value.

 

[UConnSwag11]

Nope. Just ask people who have lost their homes due to eminent domain. My point of $1 was to emphasis the fact that seizures through eminent domain don't generally result in people receiving far market value.

Kelo Eminent Domain - Institute for Justice

One of the Supreme Court’s most controversial cases made it much easier for the government to seize homes and small businesses.

ij.org

 

[nelsonmuntz]

This is a shake down by Northland. They are saying they will fight it and make everyone's life miserable if someone doesn't pay them an above market price for the property.

 

[CL82]

Kelo Eminent Domain - Institute for Justice

One of the Supreme Court’s most controversial cases made it much easier for the government to seize homes and small businesses.

ij.org

Kelo and company weren’t offered a dollar. If you believe valuation to be the issue in that case, you missed the point. The problem in Kelo is that the government seized the property for private rather than public use.

 

[Dream Jobbed 2.0]

Tear it down and put in a Trader Joe’s.

 

[JohnFSilver]

the problem with eminent domain is that when the "state" exercises against someone you don't like you are okay. But the more they do it the easier it is for them to take your property, regardless of the financial impact on you. be very careful supporting this, even if you have reason to dislike Northland. This is not about DT Hartford or the Civic Center. what happens there will have nothing to do with this, in the end. It is about property rights in general. If you support this then you also willingly support the "state" taking your property for $1!

In eminent domain you get a fair value. They can’t just take your house for $1 unless it is worth $1.

The concept of eminent domain is very important. It should only be used as a last resort, but some people think you can just take the government for a ride if they need a parcel of land.

 

[nelsonmuntz]

In eminent domain you get a fair value. They can’t just take your house for $1 unless it is worth $1.

The concept of eminent domain is very important. It should only be used as a last resort, but some people think you can just take the government for a ride if they need a parcel of land.
[/QUOTE]

In this case, "some people" is Northland.

 

[the Q]

Kelo and company weren’t offered a dollar. If you believe valuation to be the issue in that case, you missed the point. The problem in Kelo is that the government seized the property for private rather than public use.

It was a very broad interpretation of public use, right? Kind of like how the commerce clause expanded exponentially until Lopez.

 

[Pudge]

Who is this guys lawyer? In what world is construction cost the measure of value? In his telling, nobody can ever lose money on an investment.

The appraisals don't represent bad faith, they confirm he's an idiot.

Well. You’ll never be an MAI Appraiser.

I’m sure I’m not the only real estate guy not only one who reads Appraisals. There are 3 methods of Valuation. Cost is one. Capitalization of Income. Comparable Sales. (Market).

So. No. I’m not letting you wiggle with this. The simple common resolution is 3 Appraisers. (You pick one. I pick one. And a third neutral). A Mediation. And then Eminent Domain. The Government has to get tough. You can’t let a MF get away with typical developer BS.

 

[ClifSpliffy]

Who is this guys lawyer? In what world is construction cost the measure of value? In his telling, nobody can ever lose money on an investment.

The appraisals don't represent bad faith, they confirm he's an idiot.

in case you are interested, the three commercial property appraisal methods;
'Defining the Cost Approach
According to the cost approach method of property appraisal, the value of commercial realty should equal the current expenses required to replicate the structure exactly, taking into account additional variables such as depreciation and land value. In areas of high property density, it is quite likely that the land value will figure prominently when calculating commercial real estate values using the cost approach. Depending upon the specifics of the structure in question, the value of the building itself may not factor as prominently into overall appraisal value as the land value when using the cost approach.
Defining the Market Approach
Unlike the cost approach, which focuses predominantly on the literal value of the structure in question and the land it sits on, the market approach is fundamentally derived from an analysis of the value of properties in the immediate area of a similar size and function. It does not matter specifically what method of appraisal has been used to determine the value of these neighboring properties, and instead relies almost exclusively on the fair market value of the properties themselves. As could be expected, using the market approach will likely result in a variety of pricing fluctuations if and when the relative demand in the property market shifts.
Defining the Income Capitalization Approach
Using the income capitalization approach, real estate appraisers divide the net operating income of property, also explained as all of the revenue generated by the property, by its current market value. The income capitalization approach to appraisal is widely considered to be an excellent benchmark by which real estate investors can assess the attractiveness of a property according to their own standards. For example, if a commercial real estate investment group considers a capitalization rate of 10 percent – or, in other words, a revenue-to-market value ratio of 1:10 – to be their ideal, this numerical calculation method will allow them to quickly assess the viability of properties quickly and efficiently.'

the commercial property owner facing an eminent domain action will naturally argue the method most favorable to them.