Last week, North Penn Now reported on a recent eminent domain case in which a jury awarded $5.85 million verdict against Montgomery Township in connection with their acquisition of a 50-acre tract owned by the Zehr family along Stump Road. The article can be read here.
In the wake of the verdict, the Montgomery Township Board of Supervisors have released the following statement:
Recently, Montgomery Township was involved in litigation to settle a dispute with the Zehr Family Limited Partnership about property the township acquired from the Zehrs through an act of eminent domain.
In October 2010, the Board of Supervisors adopted a resolution unanimously approving the acquisition of two parcels of land comprising 51-plus acres utilizing eminent domain as allowed by the Pennsylvania Township Code. The properties are located along Stump Road adjacent to the township’s largest park. At the time of the taking, the board’s expressed desire was to save this land from development, eliminate the potential for additional vehicular traffic and congestion, and incorporate the parcel into the township’s parks system. The township paid a little over $1.53 million to the Zehr family for both parcels in December 2014. This property valuation was subsequently disputed by the Zehr family.
The township’s valuation reflected costs to remediate significant soil contamination on the property that resulted from a chain link fence manufacturing business that had been operated on the site. Testing by the township’s environmental consultant revealed the presence of heavy metals including three lagoons of toxic sludge containing high levels of Hexavalent chromium, a known carcinogen. The consultant estimated the cost to remediate the property at over $2 million.
The Zehrs disputed the appraised value and filed an appeal before the Board of Viewers in January 2015 and the hearing was held in November 2016. The Board of Viewers found the property value to be $3,348,000 and agreed with the township’s estimate to remediate the property.
The Zehrs appealed this decision to the Montgomery County Court of Common Pleas. On the advice of legal counsel, this Board of Supervisors authorized a second appraisal for the property utilizing the services of Indian Valley Appraisal Company who valued the property at $2.67 million.
Due to the ongoing legal dispute, the Board of Supervisors was advised not to proceed with improvements to the property. The township attempted to settle this litigation but could not arrive at an amount that was agreeable to both parties. Ultimately, the result was a civil trial before a jury who awarded in favor of the Zehrs and required the township to compensate them for the difference in the property value, as well as interest for delayed compensation. The total paid is $7,534,234.62.
The Board of Supervisors believes this 51-plus acre parcel is an integral part of the township’s efforts to preserve land for both passive/active recreational use and open space in keeping with our comprehensive plan and our residents’ comments about both.
As a next step, the township will begin the process of demolishing several buildings on the site that are in a state of disrepair. Further, the township will be moving forward with the necessary environmental clean-up required by the Pennsylvania Department of Environmental Protection (PaDEP) to make the site safe for public use.
This concludes the Township’s statement on the Zehr matter, and the board will have no further comment on this matter of litigation.
See also:
Preliminary Plan Submitted to Tear Down Sumney-Forge Shopping Center, Build ‘Super Wawa’
North Wales One Step Closer to Converting St. Luke’s Church into Community Resource Center
Early Concept Plan Proposes 32-Unit Apartment Building at National Auto Location in Lansdale
Montgomery Township Receives DCED Grant for Whistlestop Park
