Federal government files lawsuit for land condemnation

The federal government filed a lawsuit Tuesday to condemn the property the Port O'Call social club sits on to make way for a new federal courthouse.

The lawsuit states that proper payment for the 29,122 square feet of land is approximately $5.5 million.

The popular club, which is in the Shubrick Building, 60 to 78 W. 400 South, is located west of the existing Frank E. Moss District Courthouse at 350 S. Main. Government officials believe the current courthouse is insufficient, particularly when it comes to security concerns.

There has been considerable discussion of building a new courthouse on the land going on for a few years.

"There has been some negotiation going on for some time, but we have not been able to resolve the issue of the price," said Melodie Rydalch, spokeswoman for the U.S. Attorney's Office. "We filed the condemnation action and that will bring the process into the court."

There also are talks about how long the Port O'Call will be able to operate in that location, but Rydalch said that issue will be determined as part of the overall resolution.

Paxton Guymon, the attorney for building owner Kent Knowley, said the government's financial offer fell far short of what the owner believes it is worth.

"The government offer is just a little over $100 per square foot. We think the value of the property is well over $200 per square foot," Guymon said.

"The old Bay Building across the street has 16,000 square feet and is being sold for $3.5 million. That's over $200 a square foot. We think many attributes of that property make it inferior to the Knowley property," Guymon said.

In addition, Guymon said the federal government wants the building occupants out by early in the year 2009.

"My client would like to stay in another nine months in order to find a suitable new location, which frankly is much easier said than done. Finding something of a similar size and similar attributes is very hard to do," he said.

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