Three Springdale churches are asking a judge to drag the Arkansas Highway Commission into a condemnation lawsuit related to building the Don Tyson interchange on Interstate 540.
Springdale began condemnation proceedings against Victory Church, The Rock of Northwest Arkansas and Valley Harvest Ministries last year to get land to add the interchange. The city opted to build the interchange rather than wait for the Arkansas Highway and Transportation Department to do the project because the city could get the project done sooner. The five-member commission administers the department.
The churches contend the contract offered by the city asks that the land be granted to the Highway Commission. Church officials rejected the offers and the city sued.
“This is, in our opinion, a state project. What they have done is the state is giving money to the city, the city is acquiring the highway right of way and then they’re going to turn around and dedicate that back to the Highway Commission,” said Stephen Lisle, attorney for the churches. “Our argument is you can’t sidestep this law by having the city go out and do the condemnations on a state project.”
Court filings say the commission paid the city to initiate the project, performed all the design and construction engineering and, all the land acquisition and project oversight have been done in accordance with the state’s directions and standards.
Why that matters, according to the motion, is because the new state law requires the state to pay the cost, expenses and attorney’s fees of the property owner when the Highway Department fails to offer fair market value for land acquired through condemnation.
The Highway Department is responsible for the fees, costs and expenses if the final compensation awarded in a case by a judge or jury exceeds the amount of money placed on deposit to buy the land by 10 percent or more, according to the motion.
Cities aren't under the same obligation when they condemn land.
Act 503 of 2013 went into effect Aug. 16.
Springdale acted as an agent for the highway commission when it filed the condemnation lawsuit, according to the motion. So, the commission should be added as a party to the lawsuit so a judge can determine if it is responsible for the churches’ fees.
“The land was taken for ASHC highway purposes after Victory declined an offer to sell the land to ASHC,” according to one of the identical motions. “Victory will also argue that ASHC cannot avoid the legislative intent of Act 503 by having other governmental entities file eminent domain proceedings in order for ASHC to acquire property.”
The church also argues the land will ultimately be owned by the Highway Department, giving it a stake in the outcome.
Springdale officials disagree.
Legal Lingo
Condemnation
The seizure of a property by a public authority for a public purpose. Condemnation often occurs when a taxpayer owns property or real estate in a place that has been designated for public use or construction. Condemnation is exercised by public authorities through the power of eminent domain.
Source: investopedia.com
“Our position is that this is a project that doesn’t meet the statute. The statute says projects initiated by the state Highway Department,” said City Attorney Ernest Cate. “This is a city project, so our position is the statute doesn’t apply.”
The churches believe the Highway Department must be a party to the case in order for them to be fully compensated.
“It is ASHC’s responsibility to ensure that the taking is done in a way to satisfy its need for the property,” according to the motions. “It must participate in the trial in order to do so.”
The Highway Department has filed a motion to dismiss the third party claim and the motion to join a necessary party.
In court documents, the Highway Department contends it, as an agency of the state, has sovereign immunity and cannot be sued. Any relief from the state, according to the filings, would lie with the Arkansas State Claims Commission.
The Highway Department also contends the churches can continue with the case with Springdale and still have the ability to receive full compensation for their property.
“Regardless of whether the ASHC prepared the plans or will potentially operate facilities in the future, the undisputed fact is that the city of Springdale is acquiring the property through its power of eminent domain, not the ASHC,” according to the response.
The Highway Department further argues the law wasn't in effect when the condemnation actions were started and cannot be applied retroactively.
Victory has two pieces of property involved in the condemnation suits. The city offered $2.4 million for property on 48th Street, on the east side of I-540, and $74,700 for property on Dearing Road, west of I-540.
Valley Harvest Ministries has one piece of property. The city offer was $468,000.
Rock of Northwest Arkansas was offered $57,000 for its property.
A hearing in the cases is set for Nov. 19 before Washington County Circuit Judge Doug Martin.