City explores eminent domain possibility to acquire former Chinese Laundry

The City of El Paso is exploring the option of employing eminent domain to acquire a building located within the downtown arena footprint.

The building, owned by businessman Billy Abraham, is the former Chinese Laundry located on 212 W. Overland Avenue. The building, along with 10 other properties owned by Abraham, were set to be auctioned off Tuesday to satisfy a debt he owes.

The auction was called off because Abraham filed a chapter 11 bankruptcy petition moments before it was set to take place.

“We have now gotten authority to begin exploring the possibility of starting condemnation, which would give title free and clear to the City of El Paso,” City of El Paso Attorney Sylvia Borunda Firth said.

In a news release sent by the city on Tuesday, Mayor Dee Margo said:

“Mr. Abraham entered into a contract to sell the property to the City of El Paso but has not been able to deliver the property free and clear of liens.”

Borunda Firth added it was not the City’s intent to employ eminent domain.

“It’s an extraordinary measure, the council did always express the intention to acquire all the properties without the need to use condemnation. But, because of the situation with Mr. Abraham, that’s why they’re agreeing to allow us to move forward,” Borunda Firth said.

The City has hired attorney Ken Slavin to help with the eminent domain proceedings. Slavin confirmed with ABC-7 he will work with the City, but directed all other questions about the matter back to city staff.