Merchant sues DOT

A member of a longtime Spokane business family is suing the state Department of Transportation over the way it has handled the acquisition of real estate for a planned north-south freeway.

David Moore, owner of Zig’s Electric & Plumbing Supply Co., claims that the state has essentially condemned his commercial property at 4312 N. Market Ave., by purchasing the adjacent Ziggy’s Building Materials at 4220 N. Market Ave., and leaving him with property he cannot lease or sell.

A weeklong trial on the inverse condemnation claim has been scheduled for Sept. 10 in Spokane County Superior Court.

“I think the state has been a little sneaky and underhanded with this,” Moore said in a recent interview.

In 2002, the state purchased the adjacent Ziggy’s Building Materials and another large commercial property at 5820 N. Market Ave. from Vern and Mary Ziegler because the property will be needed for a planned North Spokane freeway. The sale was executed with a funding request of $7 million, according to Kevin Roberts, Moore’s attorney.

Vern Ziegler is Moore’s uncle. Moore went to work for Ziegler in the building supply business in 1965, and in 1983, Ziegler sold Moore the property at 4312 N. Market St. Ziegler had purchased the land from Safeway Stores in 1968 and completed the building in 1969.

The extended Ziegler family runs nearly three dozen building supply stores or businesses in six states, and they trace their roots in Spokane back to Moore’s great-grandfather, William H. Ziegler. A wood-cutting business founded by Moore’s grandfather, Ernest L. Ziegler, Sr., evolved into the building supply businesses today.

The two parcels at 4312 and 4220 N. Market St. were developed and operated jointly by the Ziegler family at the same time their enterprises spread throughout the region. On North Market, Ziegler ran the building materials business, while Moore ran Zig’s Electric & Plumbing. They shared offices, utility lines, a driveway, intercom, drywells and maintenance shop.

When the state purchased the building materials business, they agreed to lease it back to Ziegler, but reserved the right to terminate the lease with 30-day notice. Moore, who had his office in one of two buildings on the Ziegler property, was evicted by the state. Moore had closed down the retail portion of the electric and plumbing business in 2000 to consolidate it with the building material business to save money on overhead.

He said state ownership of the adjacent Ziggy’s building has left so many unresolved issues that it has clouded the future of his property. As a result, he has been unable to find someone willing to lease or purchase the building at a reasonable price. Plus, holding the property without a tenant is costing him about $100,000 a year.

He said the state has told him that it needs only 9,600 square feet of land on the east side of the parcel, and has offered him $90,000 for that property.

Moore’s appraiser puts the value of the parcel and building at $1.6 million. In addition, Moore is seeking compensation for loss of income and other damages.

Moore contends that the state’s plan to take just a slice of the land would disrupt rail service to the rear, block access by large delivery trucks and leave no room for fire engine access, and as such, is not a tenable offer. He said the building would no longer be useable as a large retail space.

Douglas Shaftel, an assistant attorney general for the DOT, said the state denies that it has taken or damaged Moore’s property, and that Moore is going to have to prove in court that the state did. In addition, Moore will have to show that he took steps to mitigate any possible damage, Shaftel said.

Moore said that during discussions, the state offered him a land swap, but the trade never materialized. One of the parcels the state identified for a possible swap was Ziegler’s former Big Bear Lumber Co. property at 5820 N. Market Ave., which was built in 1978 to house a distribution operation for eight plumbing and electrical stores.

Moore and his attorney contend that the state’s handling of the negotiations has created a situation where Moore’s property is essentially bottled up at a depressed price, and will remain that way until the state is ready to take it. They call the practice “warehousing.”

Roberts said the state constitution requires compensation if property is taken or damaged, and that the state may be overstepping its legal authority by not resolving issues with Moore. He said the DOT’s announcement of a route years prior to property purchases casts a pall over land in the roadway’s path.

“Mr. Moore has decided to stand up for his rights,” Roberts said.

Roberts said state transportation officials seemed to acknowledge Moore’s problem when they recently said they doubted whether a paying tenant could be found for the Big Bear property at 5820 N. Market St. It has been used rent-free for years as a small business incubator, community center and craft market.

Moore said, “They are the Big Brother, and they kind of interpret things the way they want to interpret them. I’m the victim here.”