Captain Corruption\'s Commentary

Wednesday, January 18, 2006

Hurst Bean Co. Hopes Stadium Authority Chokes like the Colts!

The Indiana Stadium and Convention Building Authority, playing hardball in its efforts to get all it wants to expand the Indiana Convention Center and build a new Stadium, filed an Eminent Domain suit on December 30th against Hurst Beans. They want the 70 year old, successful company out of the way so they can have some parking spaces for a new retractable roof stadium. That's right, force a successful business and employer out of the way for parking spaces.

N.K. Hurst has responded.

From the Indy Star:

The N.K. Hurst family responded to the stadium authority's eminent domain lawsuit by arguing that its bean company land won't be used for the public good.


In its objections filed recently in Marion Superior Court, attorneys for the family argued that the Indiana Stadium and Convention Building Authority can't seize its four acres of land for a new stadium because it will benefit a private organization -- the Indianapolis Colts.

The Colts get revenue from their games, plus about half of all revenue from non-Colts events, as part of the deal that led to the construction of the $500 million stadium. Attorneys argue that eminent domain can be used only to seize land for public use.


Sadly since the decision the United States Supreme Court has ruled that localities MAY seize land through Eminent Domain for private use but I'm with Hurst on this one... Tell em to choke on it!

Actually Hurst has been far more tactful, offering a solution back in September that seemed a win win for all involved:

N. K. Hurst Property Should Not Be Taken by Eminent Domain for Part of the Colts Parking Lot

There's a Better Solution

Current Status :

N.K. Hurst is actively in business on the site where we have been operating since 1947.

We have requested and the Stadium Authority has declined all requests to discuss any alternative to taking our property .

The Stadium Authority has taken the first statutory step to take our property by making a formal financial offer. We have made no financial demand because we hope to remain where we are.

The Stadium Authority has asked us to calculate the full cost to move Hurst's operations. We have retained an eminent economist from Purdue, a state-certified relocation analyst, and construction engineers to estimate relocation and reconstruction costs. The reconstruction cost estimates were done and then withdrawn due to the increases that will be caused by Hurricane Katrina.

We have made no financial demand of the Stadium Authority. When it comes to money we have only responded to their requests to what it will cost our business in terms of relocation and business interruption.

As of yesterday, the Stadium Authority has accepted our request to meet with us on these subjects.

Hurst's Proposal:

Create parking spaces on alternative land that is already available.

Adapt landscaping and the Hurst building's natural architectural features to complement the Stadium Authority.

A Win-Win-Win-Win Solution

Indiana taxpayers will pay less for the Stadium project.

Hurst will continue to generate gross revenues for Central Indiana projected over the next 30 years to be $205 Million.

A 70-year employer and a solid corporate citizen will remain as a part of the Indianapolis downtown business community.

The Colts will get all 3,000 parking spaces they are entitled to under their lease.

Long and Short Term Costs to Relocate

N.K. Hurst has estimated that it will incur relocation and business disruption costs in excess of $7,500,000 in the event of a forced relocation. This does not include the cost to N.K. Hurst for land acquisition or facility construction.

These costs come under the following categories:

Physical Move

Packaging and Marketing Material Replacement

Replace Lost Conveying Equipment

Employee Training and Retention

Property Tax Increases

Business Personal Property Tax Increases

Insurance

Product Costs and Production Costs as we run ahead to prepare for a move

Forward Warehousing of extra inventory

Lost Sales for walk-in traffic

Duplication of equipment to mitigate risk while getting a new production plant up and running.

Consultants & Engineers


Visit the Hurst Beans site and support them in their fight!

In the meantime, I'm thinking a good name for the new stadium would be the Heimlich Dome... might help my Colts avoid another choke!

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