there's that "death spiral" quote again!

^^ Haven't you read? She's an interested taxpayer. Actually, it looks like Ms. Roether has kept a pretty low profile ... the only search engine info I could get was from this case. She apparently resides over in the Kamm's Corner area (per the auditor's record of her property ownership (http://auditor.cuyahogacounty.us/repi/transfer.asp?txtParcel=02411042), and her only local interaction with civil law in the last several years involved a motor vehicle tort back in the late 90s (per a name search here: http://cpdocket.cp.cuyahogacounty.us/).

 

But most importantly, of course ... she's an interested citizen!

Well, I'm an interested citizen, too!

 

I thought the property owners were the litigants in this. This is bizarre to me, but I'm no real estate expert. How can you sue before anything happens?

well, the Port Authority has already began the process. Also, you can always file for an injunction to stop an action.

The big question is whether or not she even has standing to sue based solely on her status as a tax-payer.  Not sure what the state of play is in Ohio.

Urban Ohio forumers should all file amicus curiae briefs on behalf of Wolstein ... as interested citizens and what not  :-D

The big question is whether or not she even has standing to sue based solely on her status as a tax-payer.  Not sure what the state of play is in Ohio.

 

Not sure either. The real question may center around her mental capacity ;)

WHERE'S THE LEADERSHIP IN THIS TOWN??  (Answer:  there is none). 

 

A leader would get the parties together and figure out a way to broker a deal so that Wolstein gets to do his project AND the other owners do not get screwed.  Yes, that could mean that the other owners get to share in the risk/rewards of Wolstein's project.  Or that could mean that Wolstein's concepts are modified to include the other owners.

 

Mayor Jackson hasn't done anything to work things out. 

 

Joe Cimperman is afraid of his own shadow.  He hasn't done anything to broker a deal.

 

It's too bad that our politicians can't pull this together.

Joe Cimperman is afraid of his own shadow.

 

Where the hell do you come off with that?  Look, I wish that this had happened in a much better fashion, but its ridiculous to make worthless comments like that.

Nothing against Joe Cimperman, but look at the facts.  The Flats East Bank is in Ward 13.  Joe Cimperman has been the Ward 13 councilman during the later part of the White administration, thru Campbell's administration and now into Jackson's administration.  Jane Campbell was working with Scott Wolstein very closely for years on this project.  When she lost the election, Jackson took a "hands off" approach to Campbell projects.  He's been generally supportive of Wolstein, but hasn't got directly involved. 

 

Joe Cimperman is another story.  He's been involved with this from the beginning.  The other owners have been asking him for help for over two years with this situation.  They have gotten some positive lip service, but Cimperman has not actually done anything to broker a deal.  Actually, there have been a few occasions where he’s been purposely misleading: 

• Summer of 2005 – Wolstein’s plans are announced.  Many of the other Flats East Bank owners call Cimperman to ask for a “process that is fair to everyone.” 

• Fall of 2005 - The City set ups a “blighted area” and establishes a “Community Action Plan.”  Cimperman was quietly but fully involved in these processes.  He made sure that the only property owner involved was Scott Wolstein.

• Fall & Winter of 2005 – The other owners continue to call Cimperman to ask for a “process that is fair to everyone.” 

• February 2006 – At a council meeting where Steve Strnisha (Wolstein’s consultant) was prepping Council about project details.   There were many routine questions asked (about public art and minority participation).  Cimperman asked 1 question.  His LOADED QUESTION was “For the record, will there be any request to City Council to use eminent domain?”  To which Strnisha said “no” in a loud voice and added that Wolstein is making offers to buy the properties he needs.  Martin Sweeney then unexpectedly stepped in and asked if anyone had accepted any of Wolstein’s offers yet.  Strnisha said “no” in a quieter tone.  Sweeney asked what would happen in the other property owners do not accept the offers.  Strnisha responded “We think they will.”  Sweeney pressed, “What if they don’t?”  Strnisha responded “we’re working with everyone.”  Sweeney pressed again “what if they don’t accept?”  In a barley audible voice, Strnisha said “The Port Authorty has eminent domain power that we can use.” 

• Spring 2006 – Several other property owners either submit their own development plans or tout ideas to work with Wolstein.  These are uniformly ignored by Cimperman. 

• Summer 2006 – Wolstein signs a “Development Agreement” with the City for Flats East Bank.  This gives Wolstein full power to develop other people’s properties (between the river and West 9th).  Cimperman supports this agreement even though it completely diminishes the rights of other property owners.

• Look at Ken Prendergast’s Sun articles in June and July.  Cimperman says “let the negotiations thrive.”  While knowing full well that Wolstein is stonewalling negotiations and simply trying to screw the other owners in court.

 

Let’s face it, Cimperman has political ambitions beyond being a councilman.  He will not frustrate a big political spender like Scott Wolstein.  Especially when Cimperman likes Wolstein’s project and doesn’t really care about the means used to get it.  The end justifies the means.

 

So someone, please explain to me how Cimperman is doing his job in this situation.   How is he trying to broker a deal or work things out?  How is he is getting his hands dirty?  What has he done to roll up his sleeves and get to work? 

 

We’re talking about over $100 million of public money going to one private developer’s project.  I think this calls for active and real LEADERSHIP.

 

 

^I am still not sure where personal attacks have a place in this discussion.

^

the sleaze Larry Flynt's Hustler club...

 

That goes for Flynt too

This whole thing is bizarre! Maybe Henry Gomez will enlighten us tomorrow.

 

All I know is, if the Flats stay crappy because a bunch of people can't work together, I'm going to be angry!

the fairmount link says they are breaking ground in fall, 2006. lawsuit or no lawsuit with the stragglers, does wolstein control enough property yet for that to happen? it would be nice if he could fastrack and get some of it up and going. when they steamroller it usually then the opposition falls away.

If I recall the judge in the Roether common pleas case denied a temporary restraining order when the case was first filed.  I tried to check the docket but could not find the case (just the 1997 tort matter).  Her name may be mis-spelled somewhere.  Without having read the pleadings, I imagine she has filed what's known as a "taxpayer's action" which has a statutory basis.  In my experience the "independent" taxpayer usually has a connection to a party (in this case a property owner) and their attorney fees are usually paid for by the real party in interest.  Looks like the property owners are attempting to fight this on as many fronts as possible.

 

In Probate Court, a motion to consolidate the various eminent domain suits is set for hearing on September 27.

 

I don't believe Wolstein can proceed without many of the parcels at issue.  If I recall correctly a few of them are in heart of the development.

I'll apologize for the non-sequitur in advance, but did Fairmount Properties either merge or acquire Heartland Developers?  After browsing through their website I noticed that all of Heartland's properties (Sussex Courts, South Park Row, Jay Hotel, and Avalon Station) are listed on Fairmount's website.  Sorry if this was posted elsewhere and I simply overlooked it, but it was just something that caught my attention.

thanks for the explanation htsguy.

I heard on WCPN that the court hearings will start today.

The reporter stated that the judge is giving the both sides 3 days each to make their case.

So I'm thinking we will hear something withinthe next two weeks.

But what do I know?

Judge hears eminent domain arguments

 

 

2:56 p.m.

 

Cuyahoga County Probate Court Judge John E. Corrigan heard arguments Monday on a request to consolidate 14 lawsuits involving eminent domain in Cleveland’s Flats said he expects to make a decision soon.

 

The Cleveland-Cuyahoga County Port Authority filed the cases in May and June after property owners refused to sell to make way for developer Scott Wolstein’s redevelopment plans for the area.

 

More at cleveland.com http://www.cleveland.com

The  hearing only relates to a motion to consolidate all the separate eminent domain actions into one proceeding.  It is more procedural than substantive, although I imagine some substantive issues will come into play. The court's eventual ruling on the motion  (maybe in a few weeks...I believe after the hearing the judge will allow the parties time to submit supplemental briefs which will take additional time) will not resolve the cases.  It is going to be some time until the merits of the actions (or perhaps a single action if the motion to consolidate is granted) will be addressed.

Consolidating the Eminent Domain Cases

 

Aired September 26, 2006

 

A judge is considering whether to consolidate 14 cases challenging the Cleveland-Cuyahoga County Port Authority's right to acquire property in the East Flats through eminent domain. The Port Authority plans to sell the land to developer Scott Wolstein. ideastream's Lisa Ann Pinkerton has more.

 

Listen to the MP3: http://www.wcpn.org/mp3/2006/0926edCon.mp3

 

Lawyers for the Port Authority argued Monday that the 14 cases are so similar in their grievances and evidence that they should all be tried together. Lead Attorney for the Port Authority Steve Kaufman says this would prevent long delays leading up to the trial. In response, the lawyers for the 14 property owners argued each of their cases is unique and that trying them together would violate property owners rights. They did offer to shave time off the pre-trial process by consolidating the cases for discovery purposes only.

 

The two sides differ on the relevance of a recent Ohio Supreme Court decision that barred a Cincinnati suburb from using eminent domain to obtain property for economic development. Lawyers for the Port Authority argue it has no relevance in this case. The landowners say that ruling would apply.

 

Aides to Judge John Corrigan say he'll decide on whether to consolidate the cases within a week or two.

 

Lisa Ann Pinkerton, 90.3.

I just heard on the news tonight (wkyc) the judge ruled all of the cases could be heard at one time instead of eight separate cases. Not sure if that will be bad or good, but my gut tells me it is good

Also, the judge is fast-tracking the discovery phase. 

According to the PD discovery is to be completed by November 24 with a trial now slated to start in December.  Now that the judge has ordered all eight cases consolidated (as requested by the Port Authority and opposed by the property owners) it will be interesting to see if any of the remaining owners settle between now and trial.  I doubt that consolidation will trigger settlement but maybe information that comes out during the discovery phase (although I cannot imagine what that might be) might encourage at least a couple of owners to relent.  It appears however that a most of the owners have really dug in their heels and a trial is in the cards.  Appeals are likely too.  This could drag on for quite some time.

But probably not as long as it would be if they were held separate.

 

What exactly is the discovery phase?

Discovery is a phase before a trial where each party can ask questions of each other. The idea is to allow each party to be as well-prepared for trial as possible. You have to hand over all the evidence that you plan to give at trial. You also forward a list of questions that the other party is supposed to answer to the best of their knowledge. The only thing that is sacred is the attorney-work product (attorneys thoughts on conclusions concerning the evidence). Court is not like the movies with all the surprise witnesses and shocking evidence (ie My Cousin Vinny).  

If you want to follow the progress of the case(s), go to http://probate.cuyahogacounty.us/pa/pa.urd/PAMW6500 , click on each case then click on dockets.

Discovery also can have the effect of speeding up or even circumventing trial, in some instances.  It's kind of like high stakes poker... The game is: how much evidence can we get, from the other guys, on the record so as to hone our strategy... if, say, you can get some key (pro) documentary evidence in through requests for docs along with interrogatories, then build on them through witness depositions (much more flexible and free-wheeling than in-court testimony) based on what is or isn't in those docs, you can keep that piece of evidence out of trial; or you can settle (or convince your opponent to do so) based on what's gleaned in discovery.  Sometimes you don't want to lay down too much of your hand, strategy-wise... sometimes you do, in hopes they may feel the pressure (at least from their client) to settle and, hence, free up the docket ....  In any event, a good judge wants to stay on top of things to see whether or not he feels either you or the other guy is wasting his time and (taxpayer) money by dragging a full case to trial... That's why this judge moved to consolidate -- a trial/court economy thing where all the issues could be killed with one stone.

oh boy here we go. its good they are consolidated, this will speed things up in court. the bluff has been called and i'd bet at least a few owners fold before a trial.

 

i think evidence of the property owners under-use, mis-use and non-use for decades will win the case in the end, but we'll see you never know. i just wonder how far along west bank/stonebridge, the avenue and even stark's projects will be before wolstein ever gets it going?

 

 

I'm hoping if the ruling against the adversaries is decisive, they'll give up the ghost facing long odds and legal fees for any appeal.  Plus, at some point, with all the progress, I'm gambling that these guys are not going to want to bear the public shame as being greedy obstructionists (of course, since they've gone this far, these guys are w/o shame anyway).

What about the hustler club? Are they not continuing with their construction of the in and outside?

I bet they plan on putting up a fight.

 

 

While I am not an expert on eminent domain cases, many of the factors mentioned above really don't have much relevance in the actual proceeding.  There are generally two primary issues, one:  should there be a "governmental taking" of private property (and with the recent Ohio Supreme Court decision this is much more complex than in the past....although in my opinion it clearly is not a bar to a taking as the properly owners attorneys are clearly asserting) and two: if a taking is in order, what is the value of the property (experts are used to establish value and it can become pretty complex).

The Cleveland-Cuyahoga County Port Authority has reached a tentative deal with one of the holdouts standing in the way of Scott Wolstein's $230 million plan to redevelop the east bank of the Flats.

 

In a statement released this afternoon, the Port said the Shaia family, which owns parking lot property at West 10th Street and Main Avenue, has agreed in principle to sell the site. The deal would give Wolstein 73% of the land the developer and the port say is needed to create a mixed-use neighborhood with housing, retail and office space.

 

More at

http://www.cleveland.com/weblogs/business/index.ssf?/mtlogs/cleve_business/archives/2006_10.html#194262

I wonder if the Shaia family, negotiated behind doors to still build their project, by adding/incorporating it into the wolstein project?  Or did it just go down in flames?

from cleveland.com

 

Parking lot tentatively sold to Flats developer

7 p.m.

 

Another property owner has reached a tentative sales agreement to make way for Scott Wolstein’s plans to redevelop the east bank of the Flats.

 

- Sarah Hollander

KJP, or anyone in the know, do you think there is some networking going on between Stark and Wolstien and Zaremba?  It just seems like a lot of retail is being proposed for downtown and I wonder if that causes competition for recognizable retailers.

 

Speaking of all of the new retail, has anyone heard anything from Forest City in the past 10 years?

^the dollar store wasn't good enough for you?

In regard to coordinating retail developments, I'd leave Zaremba out of the conversation.  The Avenue District is a different neighborhood and will be shooting for neighborhood retail, not big anchors like Wolstein & Stark.  Although, if Borders said they wanted to open a store over there, I get the feeling that Zaremba wouldn't push 'em away!  And yes, I hope they're communicating, but in the end, what retailers will see is that there are several major Downtown developments that they can choose to be a part of.  The number of housing units being built will encourage them to choose one, where they may not have even been considering Downtown Cleveland previously. 

 

This Shaia news is surprising.  I figured they had the best shot in the trial.  And there's was the only one that I really had any mixed feelings about.  I hope they worked something out too, because I would hate to see Wolstein's vision of a parking lot there.  Again, the question of why the development agreement must be set in stone with matters like this is one I don't understand.

 

 

^ I wouldn't be surprised if they offered a much higher bid to Shaia, recognizing that he was probably the most high-profile owners and that, with his semi-salient development plan, he would be most able among them to effectively challenge claims of blight.

Good point Shades.  We shall see!

^the dollar store wasn't good enough for you?

 

maybe for my wedding day, otherwise, I tend to shop at the 33 cent store

This is great.  Too much parking, why doesn't someone hype up the Rapid?

maybe for my wedding day, otherwise, I tend to shop at the 33 cent store

 

Just don't buy the canned fish from Mexico

^ It was plankton, and it was expired according to the mexican food council.

This is semi-related as it has to do with Wolstein and might impact the Flats project:

From Crain's:

 

DDR plans to acquire 307 centers in $6B deal

By STAN BULLARD

 

11:35 am, October 23, 2006

 

Developers Diversified Realty Corp. (NYSE: DDR) plans to hike the size of its shopping center portfolio 37% with the proposed acquisition of Inland Retail Real Estate Trust Inc. of Oak Brook, Ill., in a $6.2 billion transaction.

 

Beachwood-based Developers Diversified intends to buy all of Inland’s shares for $14 each in the transaction and to assume $2.3 billion in debt, which it expects to repay as it closes the deal.

 

More at crainscleveland.com http://www.crainscleveland.com

Wow, the silence is deadly down here on Old River Road.  What's poppin with this project these days?  I've heard nothing about the legal proceedings...

 

However, word on the streets is that the development is now showing buildings on Shaia's property.  What type/size is not clear, though.  Apparently, the response to FEB from the office market has been strong, with a fairly large portion coming from outside of the existing Downtown market and the region.

 

Plans still include anchor tenants in a bookstore, cinema, gym, and grocer, and talks of a school are being floated as well.  Otherwise, the neighborhood commercial retail tenant is the target.

 

Anyone have more news?

Interesting rumors. If you hear more details, please pass along. You've got my e-mail address (if not, PM me).

 

It's not so easy for me to go to DDR anymore for info after my reporting on the Shaia/Lighthouse Landing vs. DDR/Flats East Bank squabble. It painted DDR in a bad light, and her honor Nancy Lesic wasn't too happy with me.

Nancy Lesic wasn't too happy with me.

 

Forget Nancy....We love ya man!!

Thanks bro

Discovery was to be closed in late Nov. and trial was to begin in December.  With Shaia now out of the way, and Woltein controlling 73% of the land, Eminent Domain is now against the rag-tag bunch holding the other 27%.  ED would have been easier pre-Norwood, but now there’s very heightened scrutiny when using terms such as “blighted” (private property) or econ development as the means justifying the public taking of private property.  However, one would think the ‘taking’ aspect would be ameliorated since it’s clear these owners are milking the system in fighting for low assessments when the Flats was dead and, now, asking the max.  Wolstein may get from under this by articulating that he offered these guys FMV for their props based on what their most recent assessments -- thus, meaning Norwood, in fact, would not apply.  Also the fact Hustler hustled his club’s improvements through after Wolstein announced should put Larry Flynt on weaker grounds.  It remains to be seen.  I’m surprised by the silence, though.