County lessens legal threat

The tax collector wants a new office site, but using eminent domain is now less likely.

By CHUIN-WEI YAP, Times Staff Writer
Published January 6, 2008

ADVERTISEMENT Tax Collector Mike Olson bid $1.6-million for the site.

LAND O'LAKES - For three years, Tax Collector Mike Olson had his heart set on 22 acres of real estate on State Road 54 and Henley Road.

Last year, Olson called it "the chosen site" and "a perfect location" to house a new central Pasco office for the tax collector. Olson was so keen on the site, owned by the Vanderham family estate, that he said he was ready to go to court to take it by force.

But these days, Olson's dream appears to have slipped from his grasp.

There's a good reason for that - the county wasn't prepared to go to court to defend Olson's $1.6-million bid for the site.

"They decided not to proceed with eminent domain," said County Attorney Robert Sumner. "It was believed that the market was so hot right then, we might have had to pay more if it went to court."

On Wednesday, Olson didn't say eminent domain - the government's weapon for acquiring private land for public use - was off the table, but he acknowledged that it was a risky option.

"That's a last resort - you end up possibly paying more money," he said. "Our first choice would be to sit down and negotiate. They the Vanderhams never asked to negotiate."

Olson's offer paled in comparison to bids for commercial properties in the area, which were trading for $500,000 an acre at peak prices, and about $142,000 an acre even after the downturn.

But Olson argues that the Vanderham site isn't zoned for commercial use anyway.

He got an answer, of sorts: The heiress Lou Eleanor Vanderham hired S. Cary Gaylord - a man Olson describes as "a very good eminent domain attorney" - to defend the estate's interests, and Gaylord threw down the gauntlet, challenging Pasco to a rendezvous in court.

But for the last few months, Gaylord said he hasn't been working on the case.

"My understanding is that the county did back off," Gaylord said Wednesday. "My representation will come into play if there's litigation involving eminent domain, but they seem to have backed off."

Gaylord said that if the county loses its claim, it would also have to pay for the Vanderhams' legal expenses.

The Vanderhams are already looking for other suitors.

Last month, a "For Sale" sign went up at the Vanderham property. The sign prominently advertises: "Future RES-6" - the property's residential allowance of six homes per acre.

Olson said he understands that there have been at least three contracts to turn the 22-acre site into a commercial proposition.

One of them was a contract with Pasco Land Holdings worth $5-million.

Matt Mule, who runs Pasco Land Holdings, said he tried to work out a compromise between the Vanderhams and Olson. He would offer Olson leasable space in exchange for commercial entitlements on the property.

But that meant having to legally amend the county's growth blueprint to change the site's designation from residential to commercial.

"It's a process that would have taken nine months," Mule said. "We were willing to pay for it, but the Vanderhams didn't want to wait that long, so they put it back on sale. Our offer is still on the table."

Olson and Mule were dealing with a family that is not particularly close knit.

Patriarch Frans Vanderham died without a will, and his family has since been immersed in an intrafamily feud between his wife and his children. Control of his estate first went to his daughter, Franciska, before it fell to his wife, Lou Eleanor, and the family had since been embroiled in a court contest over legal costs.

Olson believes there are two factions on the tax collector's offer: One side favors selling, the other doesn't. But they appear to be united on one issue: they would like more money from Olson, if he is to get his new office.

"They all thought it was worth over $4-million," Olson said. "We just pulled away from it to let things settle down. We're not going to pay the kind of money being waved around."

The Vanderham family couldn't be reached for comment.

Mule said his $5-million offer represented a premium for a property that the market valued at about $3-million.

Olson said his office is now keeping its eyes open for other possible locations. He still needs a new place in central Pasco to meet the needs of more than 10,000 customers that his current U.S. 41 office sees each month. He still wants a place where he can include a driving test circuit course together with the tax collector's office.

County officials believe that the property market downturn may revive the Olson's bid for the site.

"We maintained it would not be commercially zoned," Olson said. "I'm certainly still interested in it."

Would the tax collector ever contemplate offering more than $1.6-million?

"I don't think I want to respond to that," Olson said. "That could affect my bargaining position."

Chuin-Wei Yap can be reached at (813)909-4613 or cyap@sptimes.com.

[Last modified January 5, 2008, 20:36:17]