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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Owners, State At Odds Over Land Values

While many businesses in the North Division construction corridor suffer from declining revenues, lawyers are working overtime to settle disputes over the project.

The state attorney general is locked in often divisive negotiations with North Division property owners who allege the state is forcing them into accepting low-ball payments for their land.

Most properties had to sell the 10 feet of land abutting North Division. The state can condemn property - in effect taking without asking - and negotiate reimbursement later.

Wendle Ford, at the corner of Wellesley and Division, has dickered with officials for several years. Negotiations went so poorly with city lawyers that the state attorney general was called in.

The parties remain “night and day apart,” said Dennis Beringer, city real estate director. Jerry Dormaier, general manager of Wendle, declined comment.

North Division real estate mogul Harlan Douglass is challenging state offers on at least five properties. Assistant Attorney General Jeff Stier has traded reams of memos dating to August 1994 with lawyers for Douglass over the International House of Pancakes property at 4209 N. Division.

”(The Washington State Department of Transportation) is only required to pay for the costs that are necessary to cure damages caused by the taking,” Stier wrote after receiving an estimate he said would have improved the property.

More briefs were filed last week, and Stier, stationed in Olympia, was in town for more negotiations.

Adjudication by a judge appears imminent, according to court documents.

Douglass, reached last week, declined comment, citing a gag order on the case. But he implied lawyers for the state Transportation Department had low-balled other property owners.

Among the others involved in property disputes are the North Division Denny’s Restaurant, the Wide World of Golf, Taco Time, Shamrock Auto, Premier Video, Sizzler and Godfather’s Pizza.

Berringer said the city and state lawyers involved in negotiations were trying to be judicious.

“We hope that all are resolved,” he said. “We don’t want to go to court, but we also don’t want to give away taxpayer money.”

, DataTimes