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MINNEAPOLIS — A courtroom fight over the land for a new Minnesota Twins ballpark could leave the public on the hook for millions of dollars in legal fees.
Condemnation proceedings are well under way. And lawyers for the current landowners say that taxpayers could be responsible for more than $8 million in legal fees because of the state’s relatively new eminent domain law.
Representatives for Hennepin County, in turn, say the bigger issue is the landowners’ questionable appraisal of the site.
As part of the eminent domain process, Hennepin County took title in May of the 8-acre parcel of land where the ballpark will be built. The price of the land has been disputed by the county and the owners of the Rapid Park lot, but county commissioners approved an escrow payment of $13.755 million to the court to enact a quick-take procedure of the land.
Attorneys for Land Partners II and Hines Interests, the two companies that own the site, say litigating the case and a possible trial is only making things more expensive.
The county has “as many or more (lawyers) as we do, as far as I can see,” said John McDermott, a vice president for Hines. “You’ve (also) got lawyers in the cheap seats for the Twins.”
The county alone is paying lawyers at Leonard, Street and Deinard $320 an hour.
And the county could be liable for “reasonable attorney fees, litigation expenses, appraisal fees, other expert fees and other related costs” if the condemnation award is more than 40 percent greater than the county’s original offer, which was made before it filed for condemnation last November.
The county says it offered $13.35 million for the land at that time, but the landowners say they never received a formal offer before condemnation papers were filed.
Hennepin County Commissioner Mike Opat, the County Board’s lead stadium negotiator, said the ownership group is trying “to drive up legal fees and have a long ugly battle” in hopes of getting a better offer from the county. Instead, Opat is focused on a land-option agreement between Hines and Land Partners II that was revealed last week.
Opat said the agreement shows that Land Partners II would sell the property to Hines for about $19 million, far below their claim last week that it is worth more than $65 million.
He also says the agreement was signed after the financing for the stadium was authorized, which shows that the companies did factor in the possibility of a ballpark being built there.
Opat called the land owners’ stance “a shakedown” made easier for them to take a chance on if they don’t have to play legal fees.
“We’re not going to be strong-armed,” Opat said.
A spokesman for Land Partners II called Opat’s comments “preposterous.”
“His political career’s on the line,” Rich Pogin said.
Pogin said Opat was in error when he calculated the sale price at $19 million.
To this point, the dispute is not expected to delay the planned opening for the 40,000-seat ballpark in 2010.
But officials for the Twins and the county worry that further delays could drive up the pricetag, with the county already reportedly having upped its offer to $17.23 million.
The condemnation panel is expected to determine the land’s value by Aug. 1, a decision that could trigger an appeal and trial later this year.
