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City to use eminent domain on NGA site

Jacob Kirn

The city of St. Louis plans to use eminent domain on properties within the proposed site of the National Geospatial-Intelligence Agency in north St. Louis.

Aldermen starting Friday will consider a resolution that would approve eminent domain for up to 360 properties, including 339 owned by NorthSide Regeneration developer Paul McKee. St. Louis Development Corp. Executive Director Otis Williams said Wednesday negotiations continue with McKee and the 18 other property owners, and that eminent domain may not ultimately be used on all of those properties. McKee had asked for far more than he paid the city for his properties within the NGA site, more than $700,000. He was aided by state tax credits. If eminent domain is used on McKee, he could pursue legal action against the city, potentially prolonging the city’s effort to assemble the land. McKee owns 39 acres out of the total 100 acres.

Titan Fish Two, the entity that has pursued legal action against McKee and foreclosed on some of his properties within the NGA site, has reached an agreement with the city to sell those properties, Williams said.

Seven properties subject to eminent domain are owner-occupied residences; four are tentative residences; five are vacant properties; 11 are vacant land; and two are vacant commercial properties.

The city’s Land Clearance for Redevelopment Authority has signed agreements with 76 property owners, which have an option dictating that individuals and businesses must move only if the NGA picks the north St. Louis site, which runs just south of St. Louis Avenue to the north; Jefferson Avenue and Parnell Avenue to the west; Cass Avenue to the south; and North 22nd Street to the east.

Negotiations are continuing with another 15 property owners.

Williams said some property owners subject to eminent domain have “title issues” or are asking for far more than their property is worth.
Williams said the eminent domain process would likely have to wrap by late December or January, even though the NGA will not decide where to locate until March. The federal government is also considering a site near Scott Air Force Base.

Aldermen previously approved the use of eminent domain, but must approve condemnation for each property.

An analysis by the SLDC says that if the city retains 3,100 NGA jobs, it could stand to gain more than $86 million. If the NGA eventually employs 5,000 people at the $1.6 billion facility, the city would gain nearly $140 million, according to the analysis. The NGA is currently located in a facility near the Anheuser-Busch brewery.

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