Salon closure blamed on west Little Rock road widening; city sues business owner to accept appraised figure

A $4.2 million project to widen Kanis Road in west Little Rock is welcomed by many who travel the congested corridor. But the progress has come at a cost, which Michael Hendrixson said he knows all too well.

The project design, which features a retaining wall on the north side of the project -- the same side as Hendrixson's hair-styling salon -- encroached so much on his property that he had to shut his salon's doors after operating at the address since 2002.

Now, the city has gone to court seeking an order forcing Hendrixson to accept what the city says is a fair price. A trial is scheduled for next month.

Even Little Rock Mayor Frank Scott Jr. has had to weigh in on the lawsuit after he extolled the project's virtues on social media and received some widely circulated blowback.

He said last week that his staff is looking into it to ensure Hendrixson has been treated fairly.

"You have to remember, this is one of many different types of things when you're dealing with appraisals. But we always want to respond to constituent concerns and figure out how to make certain that things are fair, fair processes. So that's the reason why, after receiving that request from a citizen, I wanted to visit with our public works department to move forward on how to make certain things are being fair," Scott said.

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EMINENT DOMAIN

In March, the city sued Hendrixson's company that owns the property at 11324 Kanis Road, Hendrixson LLC, under eminent domain to condemn a section along the front of his property that stretches 26 feet from the road for $68,850 and to give the city immediate possession. The lawsuit also asks Pulaski County Circuit Court to grant the city a temporary construction easement for $250.

The amount was based on an appraisal report by Dwight Pattison, according to the lawsuit.

But Hendrixson, through, his attorneys, David W. Parker and Judson C. Kidd of Little Rock, said that by taking just the small amount of property, that he has "lost all or substantially all value in the remaining property and should be compensated for the full value of [his property], including improvements and fixtures to the property."

The property now is fronted by a large retaining wall and has lost access from Kanis for his 300 clients. The property no longer is in compliance with laws governing access for people with disabilities as a result of the project, Hendrixson said.

"I have never asked for damages and lost income," he said last week. "I said, 'Look, guys, I have all these appraisals. I am paying taxes on this amount. If you will just give me that, I will relocate. I'll walk away.'"

The Pulaski County assessor's office values the property at $533,200 and estimates its taxes at $7,464.80 annually, according to the office's online data.

ALLOWED EVIDENCE

The city asked Pulaski County Circuit Judge Tim Fox to limit what evidence Hendrixson could introduce at trial.

"A condemnation proceeding has but one issue to be resolved by the jury and that is the amount of just compensation to be paid the landowner," Shawn A. Overton, a deputy city attorney, said in the motion. "Plaintiff anticipates defendant may attempt to introduce photographs, solicit testimony, and seek damages related to the loss of business profits. The profits of a business cannot be considered in determining the value of a property.

It also sought to deflect blame for the Central Arkansas Water shutting off Hendrixson's access to water when the utility had to relocate its line. The move forced Hendrixson to close the business two years ago.

"The city of Little Rock did not have any control over Central Arkansas Water, and any damages that defendant seeks for the temporary interference and damages associated with the utility relocations or disruption of water services should not be allowed as a measure of compensation for the fair market value of the property being acquired for the Kanis Road project," the city argued.

Hendrixson's attorneys disagreed, maintaining that Central Arkansas Water isn't a party to the lawsuit because it was due to the city's actions that the water and other utilities were disrupted.

"Evidence that the property was a thriving retail business before the taking and the reason the successful business closed and the property is no longer suitable for a retail business, all due to the city's actions, are relevant to determining just compensation due to the defendant," they wrote.

Fox declined to grant the city's motions at a pretrial hearing earlier this month.

BIG JOB FOR CITY

The long-sought Kanis Road project is the largest Little Rock has ever undertaken using only city money.

The project will widen Kanis to five lanes from two on a 3,500-foot-long section from South Shackleford Road to Embassy Suites Drive.

The work will include storm drains, curbs, gutters and sidewalks on both sides. A traffic signal also will be added at Kanis and Embassy.

The work is part of a larger project to widen Kanis west from Shackleford to Gamble Road, a busy section that has been unimproved except for required improvements as part of private development along the corridor.

Near Shackleford, Kanis carries about 21,000 vehicles per day, according to city figures. Traffic estimates say that figure will grow to 31,000 by 2034.

Farther west, the count is smaller -- 12,000 daily on Kanis at Kirby Road. But the intersection is the site of a planned apartment development, and its traffic count is expected to be close to what the easternmost section of the project is now -- 18,000 -- by 2034.

Improving the entire length is expected to cost $12 million. It is being funded by a mix of proceeds from a three-eighths of a percentage point capital improvement portion of a sales tax increase voters approved in 2011 and capital improvement bonds.

SOCIAL MEDIA MENTION

Earlier this month, a post on Scott's Facebook account lauded the project's progress, illustrated with several photos.

"Good weather has made for good progress on Kanis Road construction Shackleford to Autumn," the post said. "New pavement coming on the North side in six weeks. Bids recently opened for next phase that will complete five-lane section to Bowman. Bids open August for the last section to Gamble."

The post elicited some positive comments, among them one from Little Rock Director Doris Wright: "Wonderful progress on this long awaited project. Thanks for the update."

But the post also served as a platform for Hendrixson's clients and friends to vent:

"I understand the necessity of eminent domain in theory but it should be weighed against the damage that is being," said one comment on the post. "Infrastructure is so needed but not at the expense of someone's heart and soul. That is obviously what Michael Hendrixson has put into his business for 40 years. Please meet with him to find a better solution to this problem. Thank you."

Even Hendrixson took the opportunity to post.

"I would love the opportunity to meet with you Mr. Mayor about the challenges I've faced regarding my business and livelihood with the taking of my property," he wrote. "Specifically with The City Attorneys office. We have a court date set for a couple of weeks from now. Surely there is a better way. Thank you Mayor."

Scott responded: "This is news to me. Please send me an email at [email protected]."

Given the matter was in litigation, the mayor was reluctant to say much about it in the interview last week.

"It's a traditional right-of-way issue, a disagreement on the appraised value, our public works department and city attorney's office is working to come to terms with that particular property owner ... the only thing I can share is that they're in discussions on how to proceed," he said.

Information for this article was contributed by Rachel Herzog of the Arkansas Democrat-Gazette.

Metro on 07/29/2019

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