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September 7, 2008
Palin's Hockey Rink Leads To Legal Trouble in Town She Led
Wall Street Journal shows that the "Killa from Wasilla" has a little secret about eminent domain and arenas on the public dime. Pushing a project through that was still in litigation turned out to not be the best idea:
Ms. Palin marched ahead, making the public case for a sales-tax increase and $14.7 million bond issue to pay for the sports center, which was to feature a running track, basketball courts and a hockey rink. At the time, the city's annual budget was about $20 million. In a March 2002 referendum, residents approved the mayor's plan by a 20-vote margin, 306 to 286. The city cleared roads, installed utilities and made preparations to build.Later that year, Ms. Palin's final one as mayor, the federal judge reversed his own decision and ruled that the property rightfully belonged to Mr. Lundgren. Wasilla had never signed the proper papers, the court ruled.
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After Ms. Palin left office, the city decided to take 80 acres of Mr. Lundgren's property through eminent domain. An Alaska court confirmed the city's right to do so and ordered that an arbitrator determine the appropriate price.Last year, the arbitrator ordered the city to pay $836,378 for the 80-acre parcel, far more than the $126,000 Wasilla originally thought it would pay for a piece of land 65 acres larger. The arbitrator also determined that the city owed Mr. Lundgren $336,000 in interest. Wasilla's legal bill since the eminent domain action has come to roughly $250,000 so far, according to Mr. Klinkner, the city attorney.
Posted by amy at September 7, 2008 11:31 AM