A WakePol reader asked about the background of the property at the south end of Fayetteville Street that could soon be the cause of a lawsuit. Raleigh could file a condemnation suit against The Simpson Organization as early as next week as it tries to get the easements it needs to build the City Plaza. We asked City Attorney Thomas McCormick about the history of the City Plaza area. His response is below. Hope this helps.

"Yes, the city once owned the plaza area as well as the parcels where the BB&T building and the Bank of America Building now stand. The land was assembled as part of the property acquisition for the now demolished civic center building. The city sold the two parcels to York-Hannover Development, a New York Developer. The same developer also did the current Sheraton Hotel although it opened as a Radisson. The city entered into a joint agreement with York-Hannover to build the deck now lying beneath the plaza area. That deal contained a provision that allowed York-Hannover to buy out the city’s interest through a lump sum payment and the city’s retention of a surface easement for park purposes. The plaza area was once a part of the Fayetteville Street right of way."

As mentioned earlier, the City Council voted 6-1 Tuesday to allow a condemnation lawsuit to be filed against The Simpson Organization, owner of the Bank of America building and the underground parking garage under Fayetteville Street. (The vote took place with little comment from council members. Philip Isley was the only member to vote no. Mayor Charles Meeker Meeker recused himself from the vote because an attorney in his law firm is representing Simpson.)

The city attorney’s office could file a condemnation lawsuit as soon as July 15. The goal would be to obtain the easements the city needs to put the plaza and roadway over TSO's property. City Manager Russell Allen told the council on Tuesday that the drawn out negotiations with Simpson are costing the city money. Since May 2007, he said, the price of building the plaza has increased 10 percent, or more than $2 million, because of rising construction costs.
“Time is critical here,” Allen said. “Time is also money.”

If a law suit is filed, it is likely to be ugly. In e-mails to Allen late last week Boyd Simpson, TSO's president, said a condemnation action by the city would be viewed as a "declaration of war." Boyd Simpson sent a letter to Allen on Monday warning the city not to pursue condemnation against his company. The company submitted another document titled “Facts Regarding Negotiation of City Plaza Easement” to the City Council on Tuesday. Both are attached.

Documents: