All the discussion of the Kelo case has put me in mind of a use of eminent domain down here in Houston that led to the demise of an internationally known store that was over 130-years-old. Now please note that this is a "pure" eminent domain case, dealing with highway expansion that is a true "public use". But the effects were just as devastating, because the deck was stacked and the state held all the cards.

Western-style clothier Stelzig of Texas has possessed the grit of an Alamo defender for more than 130 years, withstanding floods, the Great Depression, recessions and even a bit of cowboy backlash.

By the end of this year, though, the country's oldest Western store could ride off into the sunset, shutting its doors for good. It's a case of Houston's massive highway system gobbling up the retail landscape.

The state acquired the company's land via eminent domain for the West Loop construction project, but the settlement amount for the property is still in dispute. A panel of special commissioners, which sets the amount, ruled in July that the Stelzigs should be paid more than $4.7 million. The state is contesting that ruling.

Until the store gets that money in hand, owners say, they can't buy new property for relocation or build a new store . The state says they must vacate by Dec. 31.

Hardly a storybook ending for a family-owned business spanning five generations, serving everyone from foreign dignitaries to American presidents, oil barons and pop icons to your everyday urban cowboy.

Leo Stelzig Jr. said he thought he found a permanent home for the business his grandfather founded when it relocated to the Galleria-area location from downtown about 18 years ago.

"Then the state comes along and says they're taking it," Stelzig said. "It's not a choice. That puts you in the position where you have to vamonos. And that's terrible."

The odds of the store reopening in the future are remote. "It's pretty slim," Stelzig said. "When you liquidate inventory, furniture and fixtures, that's pretty tough."

"We don't want to quit doing business," his daughter, Frances Stelzig-Butler, chimed in.

The Stelzig property is needed for the $80.97 million road reconstruction project. The contract was awarded by the Texas Department of Transportation in July and work is scheduled to begin in January, says Janelle Gbur, spokeswoman for TxDOT.

Yeah, that's right -- the state didn't like what its own panel decided, so they took the matter to court, which meant that the family got nothing while the state got immediate possession of the property. I've never seen any resolution to the case, so I can only presume that the family is still waiting to be paid for land over which thhousands drive daily.

No doubt we will see plenty of this as communities engage in eminent domain for economic development -- "Take this low-ball offer or we will take the house with no compensation while we tie the matter up in court for the next few years." With a home being the major investment of most Americans, and a small business being the sole source of income for many an entrepreneur, what choice will the victims have? Can you afford to wait for two or three or five years, paying a lawyer and a new mortgage, while a judge or jury decide what you should be paid for a major asset that the government has already confiscated and is already using? Can you afford to wait out the appeals process if you or the state are still not satisfied? I know I can't, and I suspect the same is true of most Americans.

Now there is a mini-happy-ending to this story, but one which strikes me as bittersweet. Stelzig of Texas did get a resurrection of sorts this past year -- as part of a shop at Bush Intercontinental Airport. But gone are the days when it was a thriving business that had customers from around the world and a distinguished place in the fashion world.

Posted by: Greg at 06:06 PM | Comments (78) | Add Comment
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