Have you been ever through a municipal acquisition?
Our business shared an intersection with Walgreens but had to shut down during COVID. 

A national tenant approached us with a 10 year ground lease with two ten year options. We agreed to terms and before they signed the lease they discussed everything with the city to make sure everything was all good with their site plans.

The city told them they are planning to widen the street in 2024 that would no longer give access to the lot and I was told the city will be discussing acquiring our property (meaning the deal is stalled)

Have you heard of this and if so, what should I be concerned about?

Thank you in advance for all feedback
[{"id": "iddek20", "text": "You need to fight for a fair price, but it\u2019s imminent domain, plus side, you have more flexible options from a tax perspective without doing a 1031 to reinvest the proceeds. It might be worth paying for a little time with an experienced attorney if it really is headed that way.", "replies": [], "depth": 1}, {"id": "iddhvbk", "text": "The municipality would rather pay you a fair price for the property than exercise eminent domain, that's become a fraught topic in recent decades. But the municipality *will* exercise eminent domain if push comes to shove, they still have to compensate you for the taking but you'll get less then you would have had you simply negotiated.\n\nFirst, confirm with the town that they are indeed serious about their infrastructure plan and need to acquire the property. What you have so far is hearsay. Ask for formal notice. Then retain an appraiser and an attorney familiar with takings, land closing, etc. Get an as-is valuation and value for highest and best *as-right* use (you may need the services of a RE analyst for the latter, but maybe the appraiser could do that as well). Then rely on your professionals for the negotiation with the municipality. Start by insisting that the town buy the whole property and not just a piece. If the muni only wants a piece, you may need a certified planner to testify how taking even a piece could turn your property into an irregular lot and prevent development/use under current ordinance (unless you want a smaller lot, idk, up to you). And begin by insisting that the township be responsible for any Phase I and subsequent studies/remediation as may be needed (though if significant contamination is discovered in Ph II, the township will negotiate down the purchase price. If it comes to this, you may want to offer to pay for and complete remediation while still preserving the price, because you can probably hire someone to do the cleanup for cheaper than the township can).", "replies": [{"id": "iddq81e", "text": "&gt;Our business shared an intersection with Walgreens but had to shut down during COVID.  \n&gt;  \n&gt;A national tenant approached us with a 10 year ground lease with two ten year options. We agreed to terms and before they signed the lease they discussed everything with the city to make sure everything was all good with their site \n\nvocabularylessons knows his shit.\n\nA little additional commentary - the City will also need to obtain (depending on the state) a broker opinion of value and/or appraisal for the property. Their friendly appraisal will be undervaluing your property, which is why vocabularylessons is recommending getting your own appraisal. If their offer is wildly below fair market value or they destroy the value of the remainder parcel, you may end up in litigation regarding the value of your property (not whether they can take it, because they can for this purpose), the destruction of value of the remainder parcel, and whether they should just take the whole thing. In some states, if their value is below the value you are awarded by the court, then they will be required to pay your reasonable attorneys fees, too.", "replies": [{"id": "iddu4h2", "text": "Agreed and a third addition - find a General Appraiser with experience in muni work, with that muni if you can. Not all generals do muni work and you don't want to farm this out to some random residential Appraiser because he's a friend of a friend and gave you a deal.", "replies": [], "depth": 3}], "depth": 2}, {"id": "ide8mug", "text": "This is a very good reply and advice", "replies": [], "depth": 2}], "depth": 1}, {"id": "iddmv4m", "text": "I recently sold a property in Jurupa Valley that the County is purchasing the neighboring parcel for a road project (my client owns both parcels...we sold the shopping center and the city eminent domained the other parcel). The city is still going back and forth with my clients and their attorney's regarding the value they will be paid. Keep the info and all of the communication you had with the potential tenant regarding the lease because it is fair to say... that is the minimum value you should  be offered for the property.  Government agencies typically do not like paying top dollar for properties they are looking to acquire (unless it is for housing the homeless).\n\nIf it were my property, I would get in front of this and have a discussion with the City as the value of your property in 2024 may be less than it is right now. They are potentially going to be damaging your pocket book.", "replies": [], "depth": 1}, {"id": "idebyi4", "text": "Yes, it falls under Yellow Book. Any government funds used to take property for public benefit follows those rules. The biggest thing is making sure the appraiser that appraises that property knows the market rents for it, as in place rents don\u2019t matter, plus market sales of Walgreens in that Market area. \n\nIt will be better to wait as more sales &amp; the market improves for the appraiser.", "replies": [], "depth": 1}]