Beeline Buzzes at State

[sgrizzle]

http://www.tulsaworld.com/news/article.aspx?articleID=070926_1_A2_JENKS78485

quote:
Beeline brouhaha: State's offer for site along highway at issue
Photo by MIKE SIMONS / Tulsa World
Traffic heads south on U.S. 75 on Tuesday in front of Beeline Furniture, at U.S. 75 and 111th Street in Jenks. The store and other businesses are on land the state plans to buy for a new interchange.
 


By SUSAN HYLTON World Staff Writer
9/26/2007

JENKS -- A co-owner of a furniture store charged Tuesday that the state is essentially putting it out of business by not offering what its property is worth for rights of way for a highway interchange project.

"They forced us out of business," said Henry Brown, a co-owner of Beeline Furniture at 111th Street and U.S. 75. The highway is commonly referred to as the "Okmulgee Beeline."

"With the price they offered us, we can't possibly go back into business," he said, adding that he and his partners would need to borrow $3 million to $4 million to do that.

"Our name is Beeline, so we need to be on the Beeline."

Kurt Harms, the chief of right-of-way for the Oklahoma Department of Transportation, said he did not believe the state's actions would cause the store to close.

"There's certainly no intent to put him out of business," Harms said. "We'll be very pleased to negotiate a settlement with this individual and look at any documentation to reach a more amicable solution."

The right-of-way area contains Beeline Furniture, an E-Z Mart and a few houses.

Brown said the department offered about one-third of what he and his partners think
their property is worth, based on land sales at developments in the area.

He compared the site to prices at the Tulsa Hills shopping center under construction east of U.S. 75 between 71st and 81st streets and a Wal-Mart store at 121st Street west of U.S. 75.

The partners made a counteroffer to the agency and are now waiting to see what happens, Brown said. If the state and the owners agree on a price, condemnation proceedings through the state's power of eminent domain would not be necessary.

Brown said he was not at liberty to disclose the department's offer for the land and 40,000-square-foot building but charged that it was nowhere near the current rates of $27 per square foot at 81st Street and U.S. 75 or $22 a square foot in the Tulsa Hills development. The offer is less than the $13 to $16 per square foot that is the going rate on Elm Street in Jenks, he added.

"In my opinion, we have the best piece of property there is," Brown said of the 111th Street and Beeline site.

The agency hired Cinnabar Service Co. to handle the appraisal process.

Cinnabar President Bob Parmele said the property underwent three independent appraisals.

Appraisers look at the selling prices of similar properties in the area that have already been sold. Tulsa Hills properties were probably not used because the parcels may not all have been sold yet. Parmele said those parcels probably aren't comparable to the Beeline property because of the shopping center's size. "A 25,000-acre site is not comparable to a 4,000-acre site," he said.

The three appraisals go to a review appraiser selected by the Transportation Department. The reviewer makes a recommendation and Harms then makes an offer.

"I certainly can't offer less than what the appraisals are," Harms said. "If the property owner provides information that is more applicable to the property, we'd be happy to see if that changes the value on his property. We went out and researched sales in the area. If he has documentation that supports his idea, I'd love to see it."

Harms said his agency offers a full package of relocation benefits, including reimbursement for moving costs.

Brenda Tankersley, the manager of the nearby E-Z Mart, said the convenience store's operators aren't happy with the state's offer, either. "It's going to kill us," she said.

Brown said he understands that the overpass is needed.

"Look at the traffic we've got coming through here. This thing is loaded," he said. "When we came out here, Jenks only had a constable and a volunteer fire department. Now there's houses all around us."

Beeline Furniture has been at the site since 1970. It employs about 19 people, some of whom have been there for more than 30 years.

Brown and his partner Bobby Combs have sold furniture since the 1950s, when they worked at the Cousins furniture store on Admiral Place.

The Charles Cousins Trust is a third partner in Beeline Furniture. Charles Cousins and his brother Roy are both deceased.

The store began a liquidation sale Thursday, offering up to 75 percent off on its remaining merchandise of upper-medium to high-end furniture.

Brown said the store must be vacated by January.



Project would put 'half interchange' at intersection


The state plans to build a "half interchange" at 111th and U.S. 75, which would include an eastwest bridge on 111th Street over U.S. 75 and a frontage road on the west side of U.S. 75 between 111th and 121st streets.

Plans call for an on-ramp from 111th Street to northbound U.S. 75, and an off-ramp onto 111th Street from southbound U.S. 75.

Construction will be advertised for bids in late 2008.

So they're closing now, for a 2009 construction project?

Also, say they're getting $12psf, that is $480,000 for a building that is far from outstanding. It's not amazing but it doesn't sound that bad.

[YoungTulsan]

"There's certainly no intent to put him out of business," Harms said. "We'll be very pleased to negotiate a settlement with this individual and look at any documentation to reach a more amicable solution."

^ They're even willing to make a higher offer, but these guys decided to whine to the media to make a huge issue out of it.  I just heard about a guy who was getting bought out by ODOT for the I-44 widening, didn't like the first offer because his home had "extra features", and got almost 50% more without too much hassle.

[tulsa1603]

quote:Originally posted by sgrizzle

http://www.tulsaworld.com/news/article.aspx?articleID=070926_1_A2_JENKS78485

quote:
Beeline brouhaha: State's offer for site along highway at issue
Photo by MIKE SIMONS / Tulsa World
Traffic heads south on U.S. 75 on Tuesday in front of Beeline Furniture, at U.S. 75 and 111th Street in Jenks. The store and other businesses are on land the state plans to buy for a new interchange.
 


By SUSAN HYLTON World Staff Writer
9/26/2007

JENKS -- A co-owner of a furniture store charged Tuesday that the state is essentially putting it out of business by not offering what its property is worth for rights of way for a highway interchange project.

"They forced us out of business," said Henry Brown, a co-owner of Beeline Furniture at 111th Street and U.S. 75. The highway is commonly referred to as the "Okmulgee Beeline."

"With the price they offered us, we can't possibly go back into business," he said, adding that he and his partners would need to borrow $3 million to $4 million to do that.

"Our name is Beeline, so we need to be on the Beeline."

Kurt Harms, the chief of right-of-way for the Oklahoma Department of Transportation, said he did not believe the state's actions would cause the store to close.

"There's certainly no intent to put him out of business," Harms said. "We'll be very pleased to negotiate a settlement with this individual and look at any documentation to reach a more amicable solution."

The right-of-way area contains Beeline Furniture, an E-Z Mart and a few houses.

Brown said the department offered about one-third of what he and his partners think
their property is worth, based on land sales at developments in the area.

He compared the site to prices at the Tulsa Hills shopping center under construction east of U.S. 75 between 71st and 81st streets and a Wal-Mart store at 121st Street west of U.S. 75.

The partners made a counteroffer to the agency and are now waiting to see what happens, Brown said. If the state and the owners agree on a price, condemnation proceedings through the state's power of eminent domain would not be necessary.

Brown said he was not at liberty to disclose the department's offer for the land and 40,000-square-foot building but charged that it was nowhere near the current rates of $27 per square foot at 81st Street and U.S. 75 or $22 a square foot in the Tulsa Hills development. The offer is less than the $13 to $16 per square foot that is the going rate on Elm Street in Jenks, he added.

"In my opinion, we have the best piece of property there is," Brown said of the 111th Street and Beeline site.

The agency hired Cinnabar Service Co. to handle the appraisal process.

Cinnabar President Bob Parmele said the property underwent three independent appraisals.

Appraisers look at the selling prices of similar properties in the area that have already been sold. Tulsa Hills properties were probably not used because the parcels may not all have been sold yet. Parmele said those parcels probably aren't comparable to the Beeline property because of the shopping center's size. "A 25,000-acre site is not comparable to a 4,000-acre site," he said.

The three appraisals go to a review appraiser selected by the Transportation Department. The reviewer makes a recommendation and Harms then makes an offer.

"I certainly can't offer less than what the appraisals are," Harms said. "If the property owner provides information that is more applicable to the property, we'd be happy to see if that changes the value on his property. We went out and researched sales in the area. If he has documentation that supports his idea, I'd love to see it."

Harms said his agency offers a full package of relocation benefits, including reimbursement for moving costs.

Brenda Tankersley, the manager of the nearby E-Z Mart, said the convenience store's operators aren't happy with the state's offer, either. "It's going to kill us," she said.

Brown said he understands that the overpass is needed.

"Look at the traffic we've got coming through here. This thing is loaded," he said. "When we came out here, Jenks only had a constable and a volunteer fire department. Now there's houses all around us."

Beeline Furniture has been at the site since 1970. It employs about 19 people, some of whom have been there for more than 30 years.

Brown and his partner Bobby Combs have sold furniture since the 1950s, when they worked at the Cousins furniture store on Admiral Place.

The Charles Cousins Trust is a third partner in Beeline Furniture. Charles Cousins and his brother Roy are both deceased.

The store began a liquidation sale Thursday, offering up to 75 percent off on its remaining merchandise of upper-medium to high-end furniture.

Brown said the store must be vacated by January.



Project would put 'half interchange' at intersection


The state plans to build a "half interchange" at 111th and U.S. 75, which would include an eastwest bridge on 111th Street over U.S. 75 and a frontage road on the west side of U.S. 75 between 111th and 121st streets.

Plans call for an on-ramp from 111th Street to northbound U.S. 75, and an off-ramp onto 111th Street from southbound U.S. 75.

Construction will be advertised for bids in late 2008.

So they're closing now, for a 2009 construction project?

Also, say they're getting $12psf, that is $480,000 for a building that is far from outstanding. It's not amazing but it doesn't sound that bad.

Yeah, but to get land fronting Highway 75 and build a similar store would definitely cost more in my opinion.  But it does sound like they went straight to the media instead of trying to negotiate...