8/23/2005

Eminent Domain Ruling Paves Way for $120M Redevelopment: GlobeSt.com, 8/22/05

By Alex Finkelstein

Home to Nascar, the International Speedway and spring break college students, [Daytona Beach FL, an] oceanside city of 68,000 permanent residents, is about to usher in a new attraction with the planned $120-million redevelopment of its 73-year-old decaying beachside boardwalk area.

After 24 years of planning the redevelopment, the city received court permission Aug. 19 to seize three beachfront businesses that have been blocking a 20-year-old, mixed-use venture proposed by Los Angeles developer Bill Geary and his Carlsberg Management Co.

State Court Judge John W. Watson III ruled the city may take title to the three properties by making an $8.85-million down payment to the court. A 12-person jury later in the year will decide the final price the city has to pay to owners of Capt. Darrell’s Oyster Bar, the Midway Fun Center and the Fun Fair Go-Cart Track. Lawyers for the three businesses have told the city they will appeal the Circuit Court’s ruling to the 5th District Court of Appeal in Daytona Beach.

Judge Watson based his ruling on the recent landmark US Supreme Court decision that held municipalities may seize and pay fair market value for businesses or homes that are hindering the economic redevelopment of a crime-ridden or blighted area, area retail marketers and brokers who attended the Aug. 19 court session tell GlobeSt.com.

Geary plans to build twin 23-story hotel-condominium towers and develop 50,000 sf of retail and restaurant space on the five-acre site, as GlobeSt.com previously reported. Daytona Beach taxpayers have voted to use about $12 million of public funds to help finance the boardwalk redevelopment. Carlsberg Management has purchased the boardwalk’s pier from local owner Theresa Doan for $3 million, as GlobeSt.com also previously reported.


GlobeSt.com: www.globest.com