City approves filing of eminent domain case

City commissioners voted unanimously to approve the city to move forward in filing a condemnation case against the property owners at the East Poyntz/McCall Road intersection while the tax vote passed with one dissent.

Dale Houdeshell, director of public works, told commissioners that the property needed to improve the intersection must be purchased or a condemnation case filed no later than September 1, in order to receive the money from the American Recovery and Reinvestment Act of 2009.

The commission hesitated long enough for William Frost, city attorney, to explain the ramifications of the commissions vote.

"The condemnation case will be filed," Frost said. "We will not move forward or proceed with the case unless an agreement is not reached."

Frost further explained that the case is more like an administrative action not a lawsuit. If the city needs to move forward due to agreements not reached with the property owners, the proceedings would take three to four months.

Houdeshell said one property owner is close to an agreement and the other two owners are still negotiating, but is confident a settlement will be reached without further action by the courts.

The transient guest tax increase was passed by the commission, but voted down by Commissioner Loren J. Pepperd.

"I think its a little early to start taxing these hotels for a discovery center that hasn't even been built," Pepperd said.

Director of Finance Bernie Hayne said the tax would go into affect on Oct. 1, 2009.

Pepperd said the tax places too much burden on the hotels in town since the commission has just raised property tax, sales tax and water fees. The additional transient tax will make Manhattan hotels less appealing to visitors to the region and less competitive.

Ellie Baer, general manager for Comfort Inn, said the city seems to be working hard at improving the community and bringing in tourism. She said the people paying for rooms at the local hotels would not notice the one percent increase to the room rates.

"I think if we aren't using it for an attraction, it's a bad idea," Baer said. "But if it's going to something, it will help."