Although the lawsuit has been dismissed, the case is being appealed, members of the community development commission were told this week. They reluctantly gave the department of planning and development more time to acquire two of the motels, the 35-room Diplomat at 5900 N. Lincoln Ave. and 31-room Patio at 6250 N. Lincoln Ave.
"These are growing establishments. These are vital establishments. They service the community. They service the city," Chapman says. He disputes city arguments that the motels, built around 1960, have long been rendered obsolete by the interstate highway system and have attracted crime. "The city can no longer rely on findings from a July 1999 report that was the basis for singling out these hotels...It's not the same situation it was five years ago."
Motel owners argue they provide more affordable rates than those found Downtown. Meanwhile, the continued presence of the Diplomat did not hinder sales at a neighboring 64-unit condominium project, Chapman notes.
"We have not been given a fair opportunity to participate in the redevelopment of the area," says Patio motel owner Felix Korpar. "We want to be a part of it, not a pariah."
Jack Gore, owner of the Diplomat, also disputes claims the business he has owned for nearly 40 years is blighted. It also provides jobs for 10 employees, he says. "We would like to share in the economic growth of this area," he adds.
The properties could be worth $1.6 million each, according to their most recent equalized assessments. However, tax assessments do not take into account the value of their businesses, hotel and motel owners have argued in previous cases.
Chapman's lawsuit is based in part on a four-year time limit the city had to acquire the properties. Department of planning and development officials say they encountered delays in getting surveys and appraisals, resulting in offer letters not being sent by the November deadline. City attorneys say the department's authority can be reinstated.
"The four-year limitation is not an idle stipulation," Chapman argues. "There must be a new showing by the city."
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