The Tyranny of Government School Boards and Eminent Domain

[Muda69]

https://www.jconline.com/story/news/2022/01/20/family-center-eminent-domain-push-sees-dream-dying/6571009001/

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Owners of a section of land in Tippecanoe County still want answers.

Why would a school board seize the land through eminent domain and what will be done with property that's been in their family for generations?

Earlier this month, David Krause addressed the Tippecanoe School Corporation board with these questions, with the support of his brother, Philip Krause.

“We represent two-thirds of the property owners of the land that’s adjacent to Klondike Elementary and Middle School that’s being taken away through eminent domain," David Krause said, "and our question really is, is this what you guys want? Is this really what you want? I want to tell this story, but I really want to know if this is what you want to do, and my second question is why?”

Krause addressed the board and the audience during the meeting's public comment section, and after his five minutes were up, he was asked to sit down so the meeting could continue.

The board, as is customary during public comments, did not respond to Krause’s questions.

The case of the Krause land was settled in July 2021, when the Indiana Court of Appeals ruled in favor of the school board and the Krause family lost the battle to save their 43 acres of farmland from eminent domain.

As of now, there is a jury trial scheduled for March 2022 to resolve the matter.

How Did We Get Here

This battle started back in January 2020, when the TSC approached the Krause family – David Krause, Jane Krause and Philip C. Krause – with an offer to purchase their 42.97 acres of land sitting directly behind the Klondike Schools, positioned snuggly between Klondike Road and the US 52/231.

The TSC became interested in this plot of land after a study was completed by CSO Architects in June 2018, which examined the growth of enrollment at the two schools and made a recommendation of “building a new elementary school on a separate site or building a new middle school on a separate site and renovating the existing elementary and middle schools for use by elementary students,” according to the opinion of Gregory R. Pachmayr, clerk of the Supreme Court, Court of Appeals and Tax Court of the State of Indiana, released on Aug. 23, 2021.

Around this time, the TSC contacted the original owner of the land, Evaro Krause, the matriarch, to see if she’d be interested in selling her property to the school board.

This wasn’t something that Evaro was interested in doing at the time. Evaro had originally purchased the land in the 1970s, and over the past 50 years had a ton of different ideas of what to do with the land, said David Krause.

“It seems like every 10 years, my mom would think of a new plan but her latest plan was to create a medical arts building or, if possible, a cancer research building to help support the hospital that is going to be built over there,” said David.  

Evaro died in 2018 and by 2019, the deed to her 42.97 acres of land was given to her children.

Their plot of land was divided into three separate parts; parcels 1 and 3 took up almost half of the acreage and touched the US 52/231, while parcel 2 touched Klondike Road and meet parcels 1 and 3 in the middle of the property.

The Krauses started to create a plan to develop property on parcels 1 and 3 of their land, David said.

This is when the TSC expressed interest in purchasing their plot of land.

At first, the Krauses weren’t interested in negotiating with the TSC, “because the land was not for sale.” Eventually the Krause family offered the school parcel 2 of their land, which touches Klondike Road and the schools, but the TSC wasn’t interested in the single parcel, David said.

The Journal and Courier reached out to the TSC regarding the validity of this claim.

“TSC does not comment on specifics of settlement negotiations. Again, I would refer you to court records in the Tippecanoe Superior Court No. 2,” said the TSC representative.

After all momentum regarding the negotiation came to a halt, on May 6, 2020, TSC filed a complaint about the condemnation of the farmland, according to the filing, "alleging that TSC was in need of additional school buildings, facilities and related improvements for public school use."

“A year after she passed, they condemned it and are taking it by eminent domain. But what bothers us is mostly, we feel like it’s an infringement on our private property rights and that it’s an overreach,” said David.

In August 2020, the landowners in the dispute filed an objection to TSC’s complaint.

“The parties engaged in discovery limited to the objections and deferred discovery on damages. The objections issue was tried to the Court, and, on December 22, 2020, the court overruled the objections,” according to Pachmayr’s opinion.

In response to the Krauses' objection, defining the TSC's claim was "remote and speculative," the TSC argued in court that they were well in their rights to condemn the land.

“It is well-settled in Indiana that “a [condemnor’s] determination of necessity may be based upon either a present immediate need or a fair and reasonable future need.” Ellis v. Public Service Company of Indiana, Inc., 168 Ind. App. 269, 342 N.E.2d 921(1976) (emphasis added),” which was stated in the Order issued on Dec. 22, 2020

“That TSC is attempting to appropriate the Subject Property to accomplish its immediate purposes, not some future, speculative need.”

"On Jan. 29, 2021, the court-appointed appraisers issued a report stating a value for the property. Both TSC and the defendants filed exceptions to the report of appraisers and requested a trial on damages.

"On Feb. 12, 2021, the TSC deposited the amount of the appraiser’s assessment into the court and took possession.  

"The case was settled in July of 2021, when the Tippecanoe County Court ruled in favor of the school board specifically citing, State v. Collom, in the ruling of this case.

"It has long been established that the necessity of taking property for public use is purely a legislative question and not a proper subject for judicial review; where the intended use is public, this question may be determined by such agency and in such a manner as the legislature may designate.

"The parties scheduled mediation in November. 30, 2021.

“The TSC would be prejudiced by a continuance in two ways. First, delay in final determination of Defendants’ damages will increase costs to TSC a) by application of eight percent interest provided under IC 32-24-1-11, and b) potential increases in construction costs.

"Continuing the trial would unduly prejudice TSC because it would be subjected to an artificially high-interest rate due to Defendants’ request for a continuance. At a valuation of $3,000,000.00, TSC would be subjected to interest at the rate of $20,000.00 per month.

"In addition, TSC is in the process of designing a new middle school and other site improvements to be built on the real estate. TSC has acted diligently throughout the litigation to hold to the current trial date. Continuing the trial date will delay TSC’s 3 construction of the much-needed new school. It seeks merely to fulfill its public duty to conclude these proceedings as efficiently as possible while affording the Defendants the opportunity to obtain just compensation for their property from the jury,” stated the opinion.

Although this wasn’t the result that the Krause family desired, it’s the reality that was handed to them. This is what led up to January’s tense meeting. The brothers were expecting a letter to sign which would mark the end of this whole ordeal, said David.

Their lawyer said they should have expected the letter by the scheduled school board meeting, David said, but when it never arrived, they decided to visit the school board and ask them their questions one last time.

When the board members left Krause standing there without a response, he took his seat in the audience so the meeting could continue. Afterwards, he began sharing his family’s story.

“You know, in the grand scheme of things, I know things aren’t that bad. It’s not like someone died. But if I have to be honest, it does feel like my family’s dream has died and — it does hurt.”

Hmm, it does not state that the TSC even looked for an alternative parcel of land that was for sale. Instead they just happened to luck out with an adjoining parcel of farmland and decided to take it by force.  Tyranny.