A new hotel is planned for Woodstock. The city wants the land next door – and may go to court to force sale

Woodstock city officials are mulling whether to use eminent domain to force the sale of a vacant property downtown to the city to be used for parking.

The property, located at 101-109 S. Jefferson St. in downtown Woodstock, is next door to the site of the future hotel to which the city council gave its blessing over the summer. The future hotel site is a city-owned public parking lot.

Woodstock acquired adjacent properties at 225 and 231 E. Calhoun St., next door and down the block from the hotel site, in December, according to city records. A building that is home to some businesses is located on there.

The city made a written offer to the vacant property owner, Throop Street LLC, on Aug. 14 for $549,000, which was “based on a fair market value appraisal prepared by Frank E. Harrison, Harrison & Associates Inc., dated May 1, 2024,” according to city documents. Woodstock made another offer Aug. 22, with the same terms and including the appraisal report, according to city records.

“Despite verbal and written communications, the owner has not accepted the offer, provided a counteroffer supported by an appraisal, or engaged in meaningful negotiations. These circumstances indicate an impasse, necessitating consideration of eminent domain,” according to city documents.

The City Council originally took up the issue of eminent domain last week, but some council members were concerned that using it would make them look like bullies.

“If the man doesn’t want to sell his property, he doesn’t have to sell,” council member Tom Nierman said.

Mayor Mike Turner said Nieman’s comments were fair, and eminent domain is infrequently and reluctantly used, at least in Woodstock. Turner said authorizing the city staff to start on eminent domain proceedings doesn’t mean the parties can’t come to an agreement.

“It is not the intent to appear as a bully. It is not to overuse this, this tool in any way, shape or form,” Turner said.

City officials said outreach had been going on for months, and attorneys for the parties were in touch earlier the day of the council meeting.

The city of Woodstock signed a nondisclosure agreement just over a year ago with Throop Street LLC for the property. The agreement was passed by the City Council on Jan. 16, 2024 through the consent agenda.

In a memo to the council accompanying the NDA, City Attorney Ruth Schlossberg wrote she believed the agreement was “reasonable under the circumstances in which a property owner would not want to publicly disclose the terms of negotiations for the sale of any part of their property.”

Schlossberg added in the memo that it will restrict the discussion of the terms from public disclosure, but the city council will be able to vote on a final offer in public.

Turner said last week he believed the city did it all it could to come to terms with the property owner, but there’s still an opportunity for a negotiated settlement, which is his preference.

City Manager Roscoe Stelford also said the city’s preferred move is a negotiated settlement but expressed the city would prevail in court.

“The reasons that the city wants to take it is sufficient in the eyes of the court and the law that we can take it for parking, so we can construct a parking lot,” Stelford said, adding the city is not taking a home or a business, but rather a vacant lot next to the Square.

In a statement to the Northwest Herald, Throop Street LLC said “The city is attempting to acquire our property. We have been and will continue to engage in good-faith negotiations.”

The City Council opted to go into closed session, but came back and voted to defer the question of whether to start eminent domain proceedings to Feb. 4.

The city believes redeveloping the property aligns with its comprehensive plan goals, according to city documents.

A redevelopment of the area, according to city documents, “is expected to attract private investment, increase property values, and spur further revitalization efforts within the downtown area” and that owning the property “positions the City to pursue high-density residential or mixed-use developments and additional public amenities, such as parking, in alignment with community needs.”