Chris Berry On The Net

As the largest employer in the Roanoke Valley, and the driving force behind our local economy, Carilion Clinic is an 800 pound gorilla of sorts, second only to Virginia Tech in terms of it’s regional economic impact. The new clinic facility, and soon to be constructed medical school, will undoubtedly provide a major economic boost for the entire region.

There is an unfortunate side to this story, however, regarding the manner in which the Roanoke City Council, the Redevelopment and Housing Authority, and Carilion have gone about the process of acquiring the property to make this development possible. Recall the widely criticized 2005 case of Kelo vs. the City of New London, in which the Supreme Court ruled 5-4 that cities are within their rights to use eminent domain to transfer property from one private owner to another in the name of economic development. The same thing is happening right now in Roanoke. While 15 other property owners have accepted purchase offers from the city to make way for the new development, the owners of a three acre parcel on Reserve Avenue have refused to sell.

Jay and Stephanie Burkholder, and Brad Allen are the owners of Surfaces, a commercial floor covering company that has operated on the site since 1999. The Redevelopment and Housing Authority has filed suit in an attempt to have the property condemned. According to the attorney for the Housing Authority, “We are acquiring property in the redevelopment area for the purpose of eliminating blight and blighting influences…” Since when is a successful business a blighting influence?

There are a number of troubling aspects to the way this process has unfolded. Since Carilion is the primary beneficiary and sole tenant of the redevelopment area thus far, it seems reasonable that they could have acquired the property themselves and developed it as they saw fit. Instead, all of the property that has changed hands has been purchased by the Redevelopment and Housing Authority. The lots have then been cleared and sold to Carilion at a considerable loss. Carilion is then free to turn around and sell off parcels at a profit, as it has already done in the case of the Cambria Suites site.

If the city wanted to offer development incentives to Carilion to revitalize the Riverside area, I wouldn’t have a problem with it. What I don’t understand is why it can’t be done in an above board fashion rather than using a shell game approach? I also don’t understand why the city or Carilion can’t make a more reasonable offer for the property in question. What the Housing Authority calls a “bona-fide offer” is actually $175,000.00 less than the current assessed value of the property. Our city officials think it’s reasonable to give developers Ed Walker and Scott Graeff $880,000.00 for one redevelopment project, but would prefer to take the Burkholder’s property by force rather than paying a fair price.

In their dissenting opinion in the Kelo case, Justices O’Connor, Rehnquist, Scalia and Thomas wrote that the majority had tilted in favor of those with “disproportionate influence and power in the political process, including large corporations and development firms.” That is exactly what is happening in Roanoke. If we are to solve our economic problems, one of the things we must do is create a more business friendly environment, not one that is only friendly to certain businesses.