Real estate broker, property owner shed light into eminent domain process

City Council Tuesday will be asked to approve an area Downtown to build a new voter-approved $180 million arena, going as far as authorizing the power to use eminent domain.

Efforts to buy properties have started in the identified two block area just south of the Convention Center, bordered by San Antonio, Santa Fe, Leon Street and Paisano. Plans tentatively call for an arena with 12,700 seats to be built there.

While the city doesn’t think eminent domain will be needed, a local commercial real estate consultant ABC-7 spoke with Monday is convinced it will come into play.

“I do think there will be some political play on this,” said longtime El Paso commercial real estate broker/consultant David Etzold. “That being said, it’s obvious they are probably going to get into eminent domain or condemnation.”

Etzold told ABC-7 the main concern when acquiring properties is “whether (the city) can reach an agreement with the owners on value. If they can’t, then they have to pursue the eminent domain or condemnation process.”

Etzold said an appraiser will set a fair market value for the properties. The best or last offer the city makes to a property owner, before possible condemnation begins, will be placed into the court registry.

“Once that takes place, the property is the city’s,” Etzold said. “They can go in and evict you and tear it down.”

“There’s no question that people’s properties are at risk, but this is a proper use of eminent domain,” said Downtown property owner Jerry Rosenbaum.

Nearly a decade ago, Rosenbaum fought and won in the City of El Paso’s attempt to use eminent domain for private use as part of the Downtown Plan. “We were never opposed to eminent domain, we were just opposed to eminent domain for the taking from private to private. You can use obviously eminent domain for public purposes, which is what’s going on now,” Rosenbaum said.

He still owns an empty lot in the arena footprint near the Greyhound station, and tells ABC-7 he doesn’t expect a drawn out process, even if it comes down to eminent domain.

“They don’t have to motivate you to sell their property, they just need to notify you are selling their property,” Rosenbaum said. “Now you’re just arguing over price.”

Etzold told ABC-7 the City of El Paso holds all the cards, especially if the process reaches eminent domain. He added values of the properties will not be based on what it could be worth, but what it’s worth right now.