Ackerman Ackerman & Dynkowski : Eminent Domain & Condemnation Lawyer & Attorney : Ackerman Ackerman & Dynkowski : Michigan, Ohio

Background

The Detroit Marine Terminal seizure was initiated by the City of Detroit in order to secure a parcel of waterfront property (located near the city limit of Detroit and Dearborn) as part of plans to build a new municipal water purification plant. Viewing the property in question as essentially a wasted backland parcel with little value in a declining industrial area, the condemning authority initially extended an offer of approximately $4 million to the owner, Detroit Marine Terminals, Inc.

Background

This case involved a gas storage field conversion/condemnation, where a formerly active 300-acre natural gas field would be repurposed as a gas storage field. The condemning authority, Washington 10 Gas Company, was a collaborative enterprise between major regional utilities and private investors. The company formally became a common carrier/public utility for the purposes of acquiring the gas field. After the condemning authority gained the rights to acquire and reuse the site, an initial compensation offer of approximately $1,000/acre—a total of $386,000—was made to the owner.

 Client Profile

RCU Independence, Inc. and Sentry, Inc. own and operate two successful, full-service car wash facilities called Pro Car Wash East and Pro Car Wash West. The two businesses are located across the street from one another on Rochester Road in Troy, Mich. 

Challenges

The City of Troy was moving forward with plans to expand Rochester Road, a major thoroughfare in arguably the busiest stretch of the city. As a result of the expansion, many businesses were confronted with partial takings, meaning that a portion of their property was being condemned for the project. In this case, the car washes were losing valuable frontage. After appraising the land in question, the City of Troy made a combined good faith written offer for both properties to the tune of $153,000. Following consultation with attorneys Alan Ackerman and Darius Dynkowski of Ackerman, Ackerman & Dynkowski, the defendants did not accept the initial offer.

While the city truly believed this offer was bona fide, the officials simply didn’t understand the elements that go in to a successful car wash operation. The significant frontage maintained by the majority of car washes is no accident—the space is used for what is called “stacking”. Stacking is space that allows for cars to dry after being washed. Without the space, the car wash line would have to frequently shut down, decreasing the number of cars washed from 150 per hour to just 90 per hour. In addition to this obvious blow to revenue, customers would be inclined to take business elsewhere to avoid the time consuming lineup.

Automobile Dealership Government Valuation: $115,000 Negotiated Settlement:  $700,000 Ackerman Ackerman & Dynkowski delivers: $585,000	General Motors Poletown Plant Government Valuation: $357,000 Negotiated Settlement: $5,100,000 Ackerman Ackerman & Dynkowski delivers: $4,743,000	Algonac Harbor Marina Government Valuation: $61,000 Negotiated Settlement:  $105,000 Ackerman Ackerman & Dynkowski delivers: $44,000

Detroit Marina Terminal Government Valuation: $4,000,000 Negotiated Settlement: $20,000,000 Ackerman Ackerman & Dynkowski delivers: $16,000,000	Eddie's Food on the Run Government Valuation:  $0.0 Negotiated Settlement:  $123,000 Ackerman Ackerman & Dynkowski delivers: $123,000	Frank's Bar & Restaurant Government Valuation:  $11,500  Negotiated Settlement:  $200,000 Ackerman Ackerman & Dynkowski delivers: $188,500

This list is not an all-inclusive list of the results achieved by Ackerman Ackerman & Dynkowski. The previously listed case studies represent a small percentage of the results achieved for property owners across the Nation.