Finance and Economic

St. Louis — Eminent domain might yet be used to give land to developer Paul McKee.

But it could also be used to take his land away.

That prospect was raised recently when the Missouri Department of Transportation launched eminent domain proceedings against a McKee-owned holding company over five properties it owns around the foot of the yet-to-be-built Mississippi River bridge.

And while both MoDOT and McKee say the actual use of the controversial land-taking process is unlikely, the filing serves as a reminder that the developer doesn’t hold all the cards in his $8.1 billion plan to rebuild a distressed swath of north St. Louis.

The case, filed in St. Louis Circuit Court on Friday, concerns roughly three acres McKee’s Northside Regeneration LLC owns along Cass Avenue and Mullanphy Street, north of downtown, in the planned footprint of the new bridge. For months, McKee has been negotiating with MoDOT over price and rights-of-way, but the two sides haven’t reached a deal yet.

To meet requirements for federal funding on the $640 million bridge, MoDOT must make clear that it will acquire all the land it needs, said regional counsel Philip Morgan. So, the department filed paperwork to start eminent domain.

"It’s just part of our normal process. We acquire real estate all the time," he said. "Most of it we acquire by negotiation. Some of it invariably ends up in my office."

A hearing has been set for May 24, and the process will go forward from there. In the meantime, Morris said, talks continue and MoDOT is open to a deal. McKee said one is near.

"We’re very, very close," he said. "I think we’re days away from having it settled."

The threat of eminent domain — used by McKee, not upon him — has hung over NorthSide since it was unveiled last year. Despite repeated promises by both the developer and city officials that it won’t be used on owner-occupied homes, fear remains that people will be forced to move to make way for the project.

That fear is behind a lawsuit against NorthSide, which is now being considered in St. Louis Circuit Court. A ruling is expected in May by Judge Robert Dierker, the same judge who now may be asked to consider MoDOT’s request for McKee’s land, if an agreement is not reached.

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