From Deseret News archives:

Provo intent on razing inn

City OKs the use of eminent domain for a new arts center

Published: Wednesday, Dec. 7, 2005 11:17 p.m. MST
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"We offer the appraisal," Johnson said. "I have been in real estate for 32 years, and I've never had a city say anything but, 'Be fair.' We have made eight offers to Mr. Patel in the past year."

Patel paid $600,000 for the property two years ago. Billings and several council members repeatedly praised his work ethic and contribution to the community.

However, the council voted 6-0 to authorize the use of eminent domain if the negotiations break down. Billings met with Patel on Monday and committed to two avenues that might break the impasses. First, Billings asked the appraiser to revise the appraisal again, which could result in another, higher offer. Second, Billings agreed to hire an expensive, third-party appraiser to review the appraisals.

Patel lives in an apartment at the Traveler's Inn with his family. He wants to remain in the city and continue in the hotel business. Johnson said Patel told her he wanted to buy the Best Western Columbian Inn, 70 E. 300 South.

Johnson secured an option to buy the Best Western and Provo offered to trade it to Patel instead of paying cash.

"If I take the Best Western, I lose $48,000 a year in net operating income," Patel said.

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Patel said he makes $120,000 in net operating expenses and pays a $70,000 mortgage at the Traveler's Inn. He anticipates net operating income at the Best Western would be $72,000, which after the mortgage would leave "$2,000 profit in my hands at the end of the year."

Patel also said the Best Western has some design problems that make it a less desirable location.

Patel's business is based on clients from the LDS Church, which helps members with temporary housing, and the Food and Care Coalition.

Provo called for construction bids on Nov. 22. The bids are due back Dec. 14, and city officials plan to have a groundbreaking ceremony and see real construction begin by Dec. 31.

If that doesn't happen, Provo could lose the use of $2.2 million, finance director John Borget said. That money is expected to come from tax increment bonds that were banned by the Legislature earlier this year. The Legislature grandfathered in the performing arts center because it was already planned but set a Dec. 31 construction deadline.

Billings said he once had a parcel of land condemned by the city and didn't like it.

"The founding documents don't guarantee property won't be condemned," Billings said. "They say if property is condemned, the owner will get fair and legal compensation."

City attorney Bob West said if Provo and Patel don't reach an agreement and the mayor initiates eminent domain proceedings, the city can take the land and then a judge or jury will determine the fair market value of Patel's property.

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Bob and Rita Patel are owners of the Traveler's Inn in Provo. The city wants to demolish the inn to make way for a performing arts center.

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