The Grove family owns two adjacent parcels (totalling approximately 22,000 square feet) in the northeast quadrant of downtown Oxford, containing approximately 50 parking spaces. It’s been used for free public parking by the village since a 1974 lease agreement in which the municipality agreed to maintain, pave, sweep, plow and insure the parcel. In return, the Groves received $1 per year in rent and paid no taxes on the property.
In September 2001, the Grove family notified the village it wished to alter the agreement when the lease expired Jan. 1, 2002. The Grove family wanted to begin charging the village $4,000 per month in rent for 20 years with an annual 3 percent inflationary increase.
In February 2002, the Groves told the village if they weren’t interested in a new lease, they would convert their property into a pay-to-park lot.
The village rejected the new lease offer citing excessive cost as the reason. Instead, they offered to purchase the property in March 2002 for either $170,000 cash (a value determined by an appraiser hired by the village) or the same amount with $10,000 down and the rest to be paid off over the next 15 years at an interest rate of 7 percent.
The Groves rejected the offer. The family’s attorney at the time, Lee Knauf, said the land was worth between $500,000 and $600,000 based on comparable land sales and values around the village. When the potential value of a pay-to-park business was added in, Knauf estimated the parcel could be worth $1 million or more.
The village instituted a condemnation proceeding on July 10, 2002 to acquire the property and use it to provide free public parking, which it claimed is a public necessity. In response, the Groves filed a motion challenging the finding of necessity.