FLOOD CONTROL LAND COSTLY

The city of Cape Girardeau paid above appraised value for more than half of 42 tracts it purchased for the Cape LaCroix-Walker Branch flood control project.

Ken Eftink, the city's development services coordinator, said the city paid well over market value for some properties.

In all, Cape Girardeau spent more than $1.84 million on rights-of-way and easement costs, including purchase of the old James Glass and Auto Body building along Cape LaCroix Creek at a cost of $248,000.

Overall, the city paid 12 percent more than the $1.65 million appraised value for the land.

Most of the cost -- more than $1.1 million -- was for purchase of 27 tracts along Cape LaCroix Creek. The total purchase price was 17 percent above the appraised value.

In one instance, there was no appraisal or monetary settlement. The land bordering Cape LaCroix Creek south of Bloomfield Road was already included in an easement.

The city was given title to the land in exchange for soil excavated from the creek.

The city purchased 15 tracts along Walker Branch at a cost of $731,700, or 4.5 percent above the total appraised value. The city settled in all those cases without going to court.

But the city spent nearly $500,000 for 10 tracts of land along Cape LaCroix Creek acquired through condemnation, or 35 percent more than the appraisal price.

Two of those cases went to trial. In one case, a jury awarded $75,000 for property that had been appraised at $50,000. In the other, a jury awarded $65,000 for land that had been appraised at $32,200.

Eftink said some of the purchase prices were exorbitant, particularly since much of the land acquired by the city is in the creek or immediately bordering it.

But realtor Tom L. Meyer, who served as a commissioner in all 10 condemnation cases, said the city got a bargain.

"The city, in my opinion, has not overpaid for any property they have taken," Meyer said.

The flood control project is a joint effort of the city and Corps of Engineers. The city, however, has had to acquire the right of way and easements.

Corps of Engineers appraisers decided the value of the tracts. The city then tried to reach a settlement with each property owner. In cases where there was no agreement, the city took the property owners to court.

Under condemnation proceedings, the judge appoints three commissioners who set a value on the land. Either or both parties can seek a jury trial if the commissioners' award is unacceptable to them.

With the flood control project, some cases were settled shortly after the city initiated condemnation and before any concrete court action occurred.

Meyer said the Corps appraisals were too low. "They looked at the lowest value they could find."

The appraisals didn't reflect the true market value of the properties, he said.

"Historically, any government agency will offer about a third of what the fair market value is generally," Meyer said. "I don't blame the city for negotiating the best position they can. But I would like to see them one time really negotiate from a position of honesty."

Eftink said the city did negotiate honestly and fairly. The city, by law, can't offer less than the appraised value for right of way.

He said Corps appraisers did a good job of determining just compensation for the land needed for rights of way and easements.

"The appraisers looked at other sales in the area," Eftink explained.

He said the fairness of those appraisals is reflected in the fact that the city acquired 32 of the 42 tracts without resorting to condemnation.

But Meyer said many of the property owners he has talked with feel the city has paid them less than a fair price for their properties.

"A lot of people settled to avoid going to court," Meyer said. "A jury trial is a craps shoot to begin with."

Max Stovall, for example, settled for $68,920 even though commissioners had valued his property along Cape LaCroix Creek at $72,500.

Stovall said the city didn't accept the commissioners' award and planned to go to trial. "It was costing me a ton of money for my attorney," said Stovall.

Rather than continue to battle the city, Stovall said he opted for the settlement.

Eftink insisted the city has tried to be fair to both the property owners and the taxpayers.

"We wanted to pay the property owners everything they deserved for the right of way, but we didn't want to take the taxpayers' money and throw it away by paying more than it was worth."

PROPERTY COSTS

Cape Girardeau has paid above the appraised value for more than half of 42 tracts it purchased for the city's flood control project.

Overall, the city paid 12 percent more than the $1.65 million appraised value for the land.

In all, the city spent nearly $2 million on right-of-way and easement costs.