By Dave Niinemets
Enquirer contributor

NEWPORT - The city has begun land acquisition for the Newport Promenade project but that won't deter a group of residents from fighting eminent domain in court.

Newport officials decided in November to purchase the properties in the Cote Brilliant neighborhood to help speed up the stalled $110 million project. That decision was made despite an ongoing lawsuit claiming the city would be abusing its power if it tried to use eminent domain.

Cold Spring attorney Robert Blau represents four residents who filed the lawsuit and says the city's new approach doesn't change anything.

"Our position is still the same because it's not a blighted area," Mr. Blau said. "In fact, there are $200,000 homes up there now."

In order to enact eminent domain - taking of private property for commercial use - an area must be deemed "blighted" under Kentucky law.

Eminent domain may be used without a blight designation for the traditional uses of the legal measure: roads, community buildings, bridges, dams.

Mr. Blau argues his clients' homes and the neighborhood don't meet the state designation of blight.

But the city has begun eminent domain procedures on several properties. They are not those of the residents filing suit, however.

"Most of those are related to property owners we can't locate or are deceased or that have multiple owners," City Manager Phil Ciafardini said. "It's mostly a way to clean up titles so we know what we're dealing with."

Mr. Ciafardini said that as of Dec. 2 the city had purchased 21 properties. Fifteen more were scheduled for acquisition by Friday. There are about 80 more that must be acquired.

To help pay for acquisition, demolition and site preparation, the city is seeking $12 million in bonds. A first reading to pursue those bonds was held in a special commission meeting last week.

The city decided to acquire the land after developer Neyer Properties of Evendale failed to do so. The city is still negotiating with Neyer Properties on how to handle the retail portion of the project.

Neyer Properties continues to develop the residential portion, upscale housing showcased at this year's Citirama. The homes atop the hill were built on land that was more easily obtained - the hilltop was scrub and trees before building began.

The retail plan for the Newport Promenade project calls for a shopping area at the bottom of what is known as Wiedemann Hill along Grand Avenue from 10th Street to Carothers Road.

Many Cote Brilliant residents were left in the lurch because agreements to sell to Neyer never came to fruition.

"It's full steam ahead now," Mr. Ciafardini said. "The property owners have been strung out long enough. This is the real deal, with real money and a real closing date."

Not all city officials are happy about the city acquiring the property. Commissioners Beth Fennell and Jerry Peluso voted against the plan, citing the pending litigation as one reason. Despite some success in acquiring the properties, Ms. Fennell is still not comfortable with the arrangement.

"I just don't feel like we should take a risk for the developer," she said. "I think we've overstepped our responsibilities. (The developer) should have to take the risks if they want the gains."

Ms. Fennell's family is in its own struggle over eminent domain with Newport, as a piece of their property near Fourth Street is in demand to become a TANK transit station. The family is contesting in court the proposed taking of its commercial real estate, which is located near the World Peace Bell downtown.

Mr. Ciafardini said a large majority of Cote Brilliant property owners seem to be ready to sell. He said there are still 12 or so that don't appear interested. But he said the city would keep negotiating rather than turning to eminent domain.

Mr. Blau said if the city does decide to declare Cote Brilliant blighted for eminent domain, it could do the same for a majority of the city since the neighborhood has the second-highest economic base in Newport.

Mr. Blau fought the city of Highland Heights over a similar situation in the late 1990s and won. He contends that both cities abused eminent domain laws for their own interests.

"I think it's identical and I think this is even more blatant than Highland Heights," he said.

Mr. Blau said his clients are waiting to file a brief in federal court over the matter. He said he couldn't speak for his clients but imagines they would be willing to negotiate with the city as long as there's a fair offer for the property.

Mr. Ciafardini is confident the project will move forward.

"Early next year you'll start seeing demolition of property over there," he said.

Group promotes fights against eminent domain