The $2 million the city offered was clearly a lowball. The property is worth a lot more than that. Just because the Brewers invested wisely and bought a key piece of property early for a good price is no reason to screw them over. Of course the $23 million they countered with is just as crazy the other way.

They should get what the property is really worth. Eminent domain isn't intended to screw people out of their land, or to just give them back the money they invested. The Brewers should get fair market value. Both sides should negotiate in good faith. If the city starts screaming about eminent domain, that will reflect badly on them if this case goes on to court, especially if the Brewers can show that the property is much more valuable than the $2 million the city was initially offering. Then it looks like the city is using their power unjustly, and we might end up paying a lot more for it because of that.

ED goes to a 3 person panel that sets the "fair" market price ... what the city or the brewers do now doesn't have an effect .... like i have said before the city IMHO will play 5 mil or less

BTW, the City has used eminent domain multiple times in acquiring the land for Central Park and the process has seemed to move relatively quickly.

ED goes to a 3 person panel that sets the "fair" market price ... what the city or the brewers do now doesn't have an effect .... like i have said before the city IMHO will play 5 mil or less

And the owners can sue if they feel they are getting shortchanged in the deal. My point is that if the Brewers have invested $1M of their own funds and $1M in federal grants, that property may be worth quite a bit more than $2M. If the city pushes for ED seizure too quickly or without negotiating, it could come back to hurt them later. I am not against seizing it if that is what becomes necessary, but my preference would be a negotiated deal instead.

BTW, the City has used eminent domain multiple times in acquiring the land for Central Park and the process has seemed to move relatively quickly.

Big difference between taking some worthless shacks and taking a historic piece of architecture from a family with the money to sue you.

Big difference between taking some worthless shacks and taking a historic piece of architecture from a family with the money to sue you.

not really

Negotiations are what needs to happen. Their low offer is just as bad as the high counter. In the article it said that an appraisal is coming soon and that will set some ground work in place of what some fair comps and income streams are worth. The city wants to move at a faster pace and a ultimatum letter was given to the family to produce a "number" by the end of January and thats what happened. Due diligence by the property owner is still on going and just needs some time. Its just a "number" and there is no ill intent or lack of civic pride here. Its just a business deal that has to take its course and the city wants to pay as little as they can and the family is trying to get the most they can.

Bet the appraisal is MUCH closer to the city offer than the Brewer family number. It's one thing to try to get fair value and quite another to try to pillage the city.

yep, I'd be surprised if the appraisal is worth more than $3M. Brewers should have offered $4M or $5M max, Im sure the city would have gone for that.

I agree the Brewers shouldn't get screwed over for their building but then again - what have they done with it to make it all of the sudden worth nearly as much as some of the AAA towers downtown are selling for? ??? That train station isn't even open most of the time nor is it staffed. ....

Looks like the Brewers want to screw the city, not the other way.

Negotiations are what needs to happen. Their low offer is just as bad as the high counter. In the article it said that an appraisal is coming soon and that will set some ground work in place of what some fair comps and income streams are worth. The city wants to move at a faster pace and a ultimatum letter was given to the family to produce a "number" by the end of January and thats what happened. Due diligence by the property owner is still on going and just needs some time. Its just a "number" and there is no ill intent or lack of civic pride here. Its just a business deal that has to take its course and the city wants to pay as little as they can and the family is trying to get the most they can.

the owners were contacted months and months ago ... the city is moving a a deliberate pace (not fast)

Negotiations are what needs to happen. Their low offer is just as bad as the high counter. In the article it said that an appraisal is coming soon and that will set some ground work in place of what some fair comps and income streams are worth. The city wants to move at a faster pace and a ultimatum letter was given to the family to produce a "number" by the end of January and thats what happened. Due diligence by the property owner is still on going and just needs some time. Its just a "number" and there is no ill intent or lack of civic pride here. Its just a business deal that has to take its course and the city wants to pay as little as they can and the family is trying to get the most they can.

OKC waited months for their counteroffer. Did you even bother reading the article? There's not really all that much due diligence that needs to happen on the part of the Brewers. They have a cupcake shop and two ad boards and whatever they get from Amtrak. They're trying to screw the city.

OKC waited months for their counteroffer. Did you even bother reading the article? There's not really all that much due diligence that needs to happen on the part of the Brewers. They have a cupcake shop and two ad boards and whatever they get from Amtrak. They're trying to screw the city.

That's your opinion but there is more to this story. I'm interested in seeing this kind of article about the acquisition of the convention center property.

This turned out to be very prophetic. There will be no sympathy for the Brewers after their outrageous sale price. They come off as petty extortionists as a previous poster pointed out.

To be fair, you can't extort the city government. They have the power of eminent domain and will probably commence condemnation proceedings shortly. I can speak with a little bit of authority on that subject as my firm has represented many landowners and governmental entities in these sorts of cases. The Brewers (and any landowner in this situation) need to hire experienced legal counsel ASAP and quickly start working on their own appraisals. They should avoid throwing out high numbers to the media or doing anything to influence a high commissioner's award. If the city really thinks this property is going to only appraise for a $2.5MM commissioner's award, all the Brewers' attorney would have to do at trial is get a jury to come back with $2,750,001 or more and the city gets to pay the bill for the Brewers' attorney fees. From previous experience with the city of OKC/ODOT, etc., their appraisers lowball things, which if they get a good attorney on the other side and a good appraisal on the other side, they're not doing themselves any favors.

Then again, who besides the city has any use for a train station? It's going to be tough to determine fair market value in terms of the value exchanged between a willing buyer and a willing seller for a well-located train station in OKC. I'd be really curious to see what goes into that appraisal.

They're trying to screw the city.

No, it looks like they're trying to lobby for a high commissioner's award.

That has a real potential to blow up right in their face.

Big difference between taking some worthless shacks and taking a historic piece of architecture from a family with the money to sue you.

My underground understanding of their finances is that the Brewer sons aren't nearly has business-minded and proficient as their father. Therefore, they don't have the money to sue. They need a cash supplement to help them out of other over-leveraged deals.

Can someone refresh my memory...... Why were the Brewers allowed to purchase the building to begin with, Why was it for sale?

Then again, who besides the city has any use for a train station? It's going to be tough to determine fair market value in terms of the value exchanged between a willing buyer and a willing seller for a well-located train station in OKC. I'd be really curious to see what goes into that appraisal.

There are a couple of ways to value this thing. One is based off surrounding comps and such, which is what most appraisers will look at. The other is a cap rate (say, 7.5%) of the income. If they were getting about $15k a month($180k/year) from Amtrak then your are looking at almost $2.4mil value. It looks like they have other income from it (parking, pinkitzel lease) so it could be worth close to $4mil pretty easily, based on a cap rate.

This. They really need a good PR firm, and a realistic negotiator. I volunteer. LOLI suggest Bruce Willis to negotiate with them (a la "The Fifth Element")...

There are a couple of ways to value this thing. One is based off surrounding comps and such, which is what most appraisers will look at. The other is a cap rate (say, 7.5%) of the income. If they were getting about $15k a month($180k/year) from Amtrak then your are looking at almost $2.4mil value. It looks like they have other income from it (parking, pinkitzel lease) so it could be worth close to $4mil pretty easily, based on a cap rate.

I don't think comps are going to work. Comps only work to compare similar property. Where would you have to go to find similar properties--convention space/retail and a train station centrally located downtown? Dallas?

And as far as development potential, that location has almost endless possibility. I'm thinking $4MM sounds easy and even low.

Whoever said hire a PR firm, that's a really terrible idea. This is going the route of eminent domain. You do not want to lobby for a high commissioner's award, and if the city remains true to form, they'll end up with a real low ball number which the Brewer's expert should be able to tear to shreds.

I said hire a PR firm, but to qualify that statement, I meant it in the sense of, to coach them in how to act before they make ridiculous public statements and proposals like they have been guilty of more than one occasion. This isn't the first time this same conversation has come up with the Brewers. To many people, they are seen as extortionists. That may be a little excessive, but they certainly project that message.

I said hire a PR firm, but to qualify that statement, I meant it in the sense of, to coach them in how to act before they make ridiculous public statements and proposals like they have been guilty of more than one occasion. This isn't the first time this same conversation has come up with the Brewers. To many people, they are seen as extortionists. That may be a little excessive, but they certainly project that message.

Extortionists? No. I think Jim Brewer was absolutely brilliant for acquiring the properties he did when he did it. There's nothing wrong with what he did there at all. Now was surface parking always the highest and best use? Definitely not. Do the Brewers make a decent living collecting for parking spots? I'm sure they do.

Their job is getting as much as they can off of those properties. Don't begrudge them that. That's business.

Extortionists? No. I think Jim Brewer was absolutely brilliant for acquiring the properties he did when he did it. There's nothing wrong with what he did there at all. Now was surface parking always the highest and best use? Definitely not. Do the Brewers make a decent living collecting for parking spots? I'm sure they do.

Their job is getting as much as they can off of those properties. Don't begrudge them that. That's business.

And now what they're attempting could reasonably be called extortion. Counteroffering 21 million higher is not business.

And now what they're attempting could reasonably be called extortion. Counteroffering 21 million higher is not business.

They can't extort someone with the power of eminent domain.

This is a process.

They can't extort someone with the power of eminent domain.

This is a process.
So, when the city is being held hostage, the city should use ED and put an end to the hijacking.

As part of the acquisition in 1998 the family deeded the land east of the train tracks from Sheridan to Reno for free to use as the plaza for the Bricktown Canal.

from april 1998... -M
http://www.magnvs.de/pics/santafestation01.jpg

from may 2000... -M
http://www.magnvs.de/pics/santafestation02.jpg

also from may 2000... -M
http://www.magnvs.de/pics/santafestation03.jpg

After the fathers passing when it was determined no official lease was ever made with Amtrak, Gary Ridley made an official apology to the family in the city managers presence about the DOT's no response to meeting and document requests by the family for a year and a half that eventually led to the so called "lock out". He then called for the lease that is now in place and has been renewed for 5 years.

Steve said in his chat today that he expects the City to have ownership of this building by next month.

score!

There will still be ongoing court action, it appears, but yeah, custody is set to go to the city either way.

Potential settlement for City purchase of the Santa Fe Station in the works? City Council has a potential Executive Session item scheduled for tomorrow (December 3) to discuss a proposed final offer of $6,000,000 from the Brewers. If approved, they'll withdraw their request for a jury trial.

http://www.okc.gov/AgendaPub/cache/2/eefedxbfvq2ndz45b4zxhj55/213073712022013014604944.PDF

^
Thanks so much for posting that.


Here is what is says in that memo, noting that the City opened with a $2 million offer and the Brewers countered with $23 million:

**************

Enter into executive session on advice of the Municipal Counselor to receive
confidential communications from its attorney regarding proposed settlement in the case
of The City of Oklahoma City v. Bricktown Real Estate, L.L.C., et al., Oklahoma County
District Court Case No. CV-2013-1083, as authorized by 25 O.S. (2011) § 307(B)(4),
because disclosure would seriously impair the ability of the public body to conduct the
litigation with settlement discussions in the public interest.

On May 21, 2013, the City filed the above-captioned condemnation case in the District Court of
Oklahoma County to acquire fee simple title to Subject Property for MAPS 3 Oklahoma City
Intermodal Transportation Hub. The Subject Property is the historic Santa Fe Railroad Station.
Dan Brummitt is the Assistant City Attorney representing the City in this case.

The Defendant, Bricktown Real Estate, L.L.C., is represented by Joseph H. Bocock with McAfee &
Taft, P.C.

The Commissioners were appointed and filed their Report on August 30, 2013, assessing damages
for the taking of the Subject Property in the amount of $4,500,000.00.

On September 26, 2013, the Defendant filed Exceptions to the Report of Commissioners contesting
the City’s legal right to take the Subject Property. On October 2, 2013, the Defendant filed a
Demand for Jury Trial on the issue of damages.

Mr. Bocock, on behalf of his client, has indicated to this office that the Defendant may be willing to
settle this case for the sum of $6,000,000.00, i.e. $1,500,000.00 over the Commissioners’ Award,
including costs and attorney’s fees, for which they would withdraw their Exceptions and Demand
for Jury Trial.

It is the recommendation of this office that the Mayor and Council retire into executive session with
the Municipal Counselor to receive confidential communications with its attorney regarding an
agreed settlement in this case.

Thanks for moving it - I knew there was a more appropriate thread.

I think this is a fair deal for the City, considering the potential staff expense of a trial and the fact that it's nearly 1/4 less than what the Brewers wanted originally.

The commissioners have ruled. If we pay another $1.5M under threat of trial, the taxpayers are being extorted. Not that I want to wait out a trial to resolve this, but good golly Brewer family. That said, if they agreed to put that extra $1.5M toward renovation of their Bricktown properties, then I say deal, as we all benefit from that. Also, I get that they need to make a reasonable return on their investment, but the commissioners should have factored that in during their ruling.

Oklahoma City to acquire Santa Fe Depot after objections dropped | NewsOK.com (http://m.newsok.com/oklahoma-city-to-acquire-santa-fe-depot-after-objections-dropped/article/3924607)

Great news

Great news

Indeed.

Brummett said Thursday the station's ownership will be transferred to the city and that existing leases with a cupcake shop and a billboard company will be honored.

A spokesman for the Central Oklahoma Transportation and Parking Authority, meanwhile, said Brewer's operation of the adjoining parking lots is likely to end once the city acquisition is completed.

Really wish they'd remove those hideous electronic billboards. I can't believe they were ever allowed in the first place.

Really wish they'd remove those hideous electronic billboards. I can't believe they were ever allowed in the first place.

They had to go to Board of Adjustment to get variances, I believe. They had a really smooth lawyer on their side...

Really wish they'd remove those hideous electronic billboards. I can't believe they were ever allowed in the first place.

Once the city buys it, won't they be able to remove them?

Once the city buys it, won't they be able to remove them?

The article pointed out that they were honoring the billboard company lease.

The article pointed out that they were honoring the billboard company lease.

Yeeeeeeeeeeeeeeaaaahhhhhhh, I didn't click on the article. Guilty.

Thankfully the thieves who were trying to rip off the city got their comeuppances.

The article pointed out that they were honoring the billboard company lease.

This is absurd. The city plays ball with business interests every time at the expense of even holding itself to any standard of decent appearances. As always, there is literally zero accountability with urban design in OKC.

Spartan, I'm assuming the sale of the property included lease agreements. The city will probably wait until the lease is up, and then elect to not renew the lease. Instead of dishing out money to break the contract over those two signs.

I hate the signs as much as the next person, but I don't think this is a big deal right now.

Potential settlement for City purchase of the Santa Fe Station in the works? City Council has a potential Executive Session item scheduled for tomorrow (December 3) to discuss a proposed final offer of $6,000,000 from the Brewers. If approved, they'll withdraw their request for a jury trial.

http://www.okc.gov/AgendaPub/cache/2/eefedxbfvq2ndz45b4zxhj55/213073712022013014604944.PDF

So did the City end up paying an extra $1.5 Million?

Spartan, I'm assuming the sale of the property included lease agreements. The city will probably wait until the lease is up, and then elect to not renew the lease. Instead of dishing out money to break the contract over those two signs.

I hate the signs as much as the next person, but I don't think this is a big deal right now.

Hard to say until we see the final sale agreement

Maybe the city could use the signs for streetcar stop times...

Lease agreements remain intact until expiration = cash flow for City taxpayers.

Lease agreements voided = out of pocket expense to taxpayers AND no cash flow. A DOUBLE hit to the wallet. Seems like a no-brainer to me.

Lease agreements remain intact until expiration = cash flow for City taxpayers.

Lease agreements voided = out of pocket expense to taxpayers AND no cash flow. A DOUBLE hit to the wallet. Seems like a no-brainer to me.

This and this also makes the street car project (where the purchase money came from) cash flow positive right now

This and this also makes the street car project (where the purchase money came from) cash flow positive right now

^ Excellent point

^ Excellent point

I don't really mind them right now, especially the one that's near Reno. There is already so much light coming off the massive LED board on the Peake that it really isn't that noticeable.

City acquires Santa Fe Station (http://newsok.com/oklahoma-city-chugs-ahead-with-plans-to-revamp-santa-fe-depot/article/3930881)


Oklahoma City has secured the key and control to downtown’s Santa Fe Depot


Brewer Entertainment is still seeking a jury trial to contest the purchase price, which could result in the city paying more or less than the $4.5 million.

Work to start in early 2015.

The city had better be careful what it pays for CC land. If the price for it is extortionate, the Brewers will have a better case.

Is this still on track for early 2015?

OKCTalk - First look at the Intermodal Transit Hub (http://www.okctalk.com/content/80-first-look-intermodal-transit-hub.html)

i do like the idea of the "arrival court"... i can't count the number of times people have blocked the outer lane of northbound ek gaylord during rush hour just to unload their vehicles.

-M

That is freakin awesome!

So for the BRT, are they proposing something like this: http://upload.wikimedia.org/wikipedia/commons/3/36/Curitiba_BRT_RIT_550PINHEIRINHOCARLOSGOMES_B12M.JP G