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Judge rules Burrow lacks ownership interest in former Citizens Bank building; city says ruling reduces risk of inverse-condemnation claim
Summary
At the April 1 Jonesboro City Council meeting city attorneys reported a judge found that Bruce Burrow does not have an ownership interest in the former Citizens Bank building, narrowing the legal exposure to the city over demolition and cleanup.
City attorneys told the Jonesboro City Council on April 1 that a recent court ruling found the individual who had claimed interest in the former Citizens Bank building does not have an ownership interest, reducing the city’s potential exposure to an inverse-condemnation or wrongful-taking lawsuit related to the building’s demolition.
City Attorney Carol summarized the judge’s decision, saying, "Judge Lesby basically ruled that Mr. Burrow does not have any ownership interest in the building, and he dismissed those claims." Carol added that the judge left open a possible claim by the landowner to collect back rent from Mr. Burrow but dismissed other claims in the litigation.
Carol told the council the city has not been officially added as a third-party defendant in that lawsuit; outside counsel had filed a motion and a response deadline for opposing counsel was pending. She said the city’s attorneys are seeking a favorable ruling that would either find the claimant lacked standing because appeal opportunities were not exercised or that there is no basis to add the city as a third party. Carol said an appeal by Mr. Burrow’s side would not be surprising.
The mayor noted the ruling mattered because it reduces the risk that the city would face a costly legal claim after spending what the mayor described as approximately $3.5 million to demolish and clean up the site. The mayor and council discussed potential next steps for the site, including the possibility of the city acquiring the property from the rightful owner once litigation concludes and then guiding redevelopment in a way that could help recoup some cleanup costs through sales, prepared-food, hotel and liquor-by-the-drink taxes if a qualifying business locate there.
Council members expressed optimism that demolition and cleanup allow new development possibilities downtown, and the mayor said local business owners may want to thank the council and discuss development ideas at an upcoming meeting.
No formal legal action or new appropriation related to the site was recorded at the April 1 meeting; the council’s discussion was informational and focused on the litigation update and future development possibilities.
