Ambrose says city can’t use eminent domain to buy GM stamping plant site

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15 thoughts on “Ambrose says city can’t use eminent domain to buy GM stamping plant site

  1. Sending the Ambrose CEO an imminent domain letter when he is on a delegate to India with the Governor of Indiana for economic development and also representing the Indiana Pacers for the 2021 All-Star game is pretty weak. Maybe work a call in or something before inciting a media circus. It seems like the best way to work it out. Maybe I’m missing something?

    1. Do you think anyone in India gives a crap about an eminent domain issue in Indianapolis? You are brining up a completely irrelevant matter.

      The city owes Ambrose nothing. This is a legal negotiation nothing more. The city can seize the property anytime it wishes, the only legal requirement is it must pay Ambrose fair market value if it does so. All this jockeying and posturing is about trying to get the best price–that’s all. And, of course this will go to court, and the parties will settle on a price and it will be done.

    2. Christopher B.

      “The city can seize the property anytime it wishes”

      Not always. The N.K. Hurst company successfully fought the city off when they tried to eminent domain their company into the parking lot of the Colts stadium.

  2. It sounds like the city did not leave itself in the best position contractually to claw back the property if developments did not go as planned. If that language does not exist and Ambrose owns the property out right then they have every right to market it as they see fit.

    1. The city did NOT own the land. The RACER trust sold the land to Ambrose. The city entered into a development agreement with Ambrose and incurred significant costs. But, that is all beside the point. The city legally can seize property it deems economically blighted. However, it is required under the Constitution and state law to pay fair market value if it uses eminent domain to seize property. Ambrose is just posturing as part of the price negotiations and trying to get the best possible price from the city.

    1. Get real. Merritt has a snowball’s chance in hell of winning. Also, NO mayor drafts contracts for the city. The city has attorneys who draft agreements. Merritt who not draft contracts anymore than would Hogsett (or Ballard or Petersen or Goldsmith, etc).

      Also, there is NOTHING here. This is the usual posturing parties engage in when negotiating. Ambrose cannot prevent the city from using eminent domain. The only thing they can do is argue about what is fair market value because the city has to pay them for their property if it seizes it. This is all about trying to get the highest price.

  3. I don’t profess to know all the legal intricacies surrounding this situation, but it seems to me if the city sold Ambrose the property, then unless they were contractually obligated to develop it a certain way or lose the property, it is theirs to do as they see fit. Within zoning guidelines of course. I could see Ambrose being required to pay the city whatever portion of that 26 mil infrastructure commitment has been spent. But I doubt that is much at this point. And didn’t the city already own it for years with multiple past projects like a new jail and courthouse, or a new amphitheater to name a couple, falling apart? What makes then think they can do anything with it now?

    1. The issue really has nothing to do with the contract. Also, Ambrose bought the property from the RACER Trust, NOT from the city. Ambrose does own the property, which is why it was able to sell and gift some acres to the Indianapolis Zoo. What the city can do is seize the property if it deems it economically blighted. However, if the city seizes the property, then it is legally required to pay Ambrose fair market value for the land. This is all posturing for price negotiations. Ambrose wants to get the highest price possible from the city.

  4. City should never have gone with Ambrose in the first place, as this company had no history of development anywhere near what was proposed for the GM site. Who knows, this could have been a contributing factor in Amazon not going with Indy, even as Nashville got a piece of the prize. Should have gone with a proven developer like Hendricks. Bite the bullet and pay Ambrose what they want for the property and chose more carefully next time. And Merritt is clearly not capable of leading a city the size of Indy. He can barely compose a coherent sentence when he speaks. He already represents the Indy region in the state legislature. What has he done for Indy in this capacity?

  5. The City of Indianapolis just got played, Here’s the thing about eminent domain. Ambrose Property Group bought 102 Acres of PRIME real estate in what is essentially Downtown Indianapolis for a steal ($3 Million USD). Then they reneged on the agreed upon development plan. Sure the city of Indianapolis can pursue eminent domain all they want, and you know what I think the city would win. But there is a catch.

    The law requires fair value of the property, and we all know that property is worth WAAAAAYYY more than a cool 3 mil. Ambrose Property Group is going to laugh all the way to the bank as it ‘loses’ its property, and the Mayor Hogsett’s Administration will look like absolute fools for this deal during his administration.

  6. Christopher B – no city can just invoke eminent domain on a whim as you suggest. I’m not an attorney, but you say one option is to take it under the theory that it is economically blighted. However, that’s merely an assertion that must be proven in a court and not by simple declaration. As distasteful this deal may be, it’s too late for them to realize they were outsmarted by Ambrose – and that assumes they weren’t ever planning on doing anything but flipping it.

    1. Herm S, No. I did not state the city can invoke eminent domain “on a whim.” I did make one comment about as it “wishes” meaning the city can take immediate action, not implying the action would arbitrary or capricious. All legal actions have to have some “reasonable basis,” though that is actually quite a low bar to meet. Furthermore, both state law and Supreme Court precedent give the city very wide discretion to use eminent domain, including for economic development. Also, the city has wide discretion to determine what is blighted. And, the issue in most eminent domain litigation is not whether the city can or cannot use eminent domain, but over what is fair compensation for its use.

      The city was not “outsmarted” by Ambrose. The only reasonable interpretation of the contract clause to which Ambrose is rather desperately pointing is that the city agreed to deal with Ambrose in good faith WHILE THE DEVELOPMENT DEAL was in place. In other words, the city would not try to seize the property while Ambrose was making reasonable and good faith efforts to redevelop the property. The clause would not prevent the city from exercising eminent domain when Ambrose BROKE the agreement.

      The only distasteful thing will be the bitter taste in Ambrose’s mouth if it tries to fight an eminent domain seizure since it will lose in court. That said, both the Constitution and state law, as I already noted, do require the city to pay fair market value for the property in order to take it. That is the issue over which there will be some wrangling (but this is true in any eminent domain case), and Ambrose will try to get the highest price possible for the property.

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