Missouri Supreme Court Denies Rehearing in Precedent Setting Ivanhoe Case
When the Missouri Supreme Court last week denied the request from the Planned Industrial Expansion Authority of Kansas City (PIEA) to transfer their case against a not-for-profit neighborhood and housing advocacy organization, the Ivanhoe Neighborhood Council ("Ivanhoe"), Lathrop & Gage effectively made new state law. This case is one of the first in Missouri to interpret significant changes made to Missouri's condemnation laws that were passed in 2006. Specifically, this case sheds new light on the meaning of good faith offer requirements that were substantially altered by the Missouri legislature in 2006.
Lathrop & Gage attorney Allison Bergman acted as primary development counsel to Ivanhoe, while Patrick Kenney acted as lead litigation counsel and Michele Gellis assisted on the briefing before the Missouri Court of Appeals. At the trial court level, the Lathrop & Gage team successfully challenged the rights of the PIEA to exercise its condemnation authority because it had failed to comply with the new requirements in Missouri's condemnation laws. The Court of Appeals affirmed that decision and awarded Ivanhoe its attorneys' fees incurred in the case. The Missouri Supreme Court affirmed that decision last week by denying transfer of the case.
Ivanhoe purchased the former Horace Mann School located at 39th Street and Bruce R. Watkins Dr. in Kansas City, Mo. Ivanhoe purchased the school for the purpose of turning the building into affordable senior housing. This project would employ residents from the surrounding neighborhood to do part of the rehabilitation work, and the project and Ivanhoe have been profiled in local media for helping spur significant improvement in the living conditions in the area.
Following Ivanhoe's acquisition of the School, the PIEA brought an action to condemn title to the School for a competing developer. Though condemning bodies are routinely allowed to exercise their condemnation authority in this type of matter, the Lathrop & Gage team established that the PIEA had not based its final pre-suit offer for purchase the property on an appraisal performed in accordance with generally accepted appraisal practices. After four days of hearings, the Court dismissed the PIEA's condemnation action with prejudice. That decision was affirmed by the Missouri Court of Appeals - Western District; a decision that the Missouri Supreme Court declined to review.
Mr. Kenney has successfully prosecuted condemnation actions on behalf of governmental and corporate entities with condemning authority. Mr. Kenney has also captained successful condemnation defenses and settlement negotiations for landowners. Ms. Bergman routinely leads complex real estate projects that involve the review, analysis and application of federal, state and local real estate laws, regulations, zoning and development incentives. These transactions have culminated in a variety of projects ranging from the creation of international and local corporate headquarters projects, multi-million dollar industrial expansion projects, the comprehensive redevelopment of entire urban neighborhood, and redevelopment of numerous historic properties into affordable rate housing. Ms. Bergman has also successfully represented utility companies exercising condemnation authority.
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