Potential real estate litigation slows development in St. Paul

For builders and real estate developers, finding the right tract of land to build on is essential. By finding the right location, these professionals have the opportunity to build and develop the area, quickly sell and turn a profit. However, the right location can sometimes come with legal challenges that need to be overcome.

This has been true for one property owner in St. Paul’s Tangletown neighborhood. In this case, a home in the popular and sought after area was recently sold for $475,000. After the new owner realized the cost of renovating the property, plans were created to tear the house down. In its place, two new homes would be built.

The city has tentatively approved plans to split the lot and build the new houses. The existing 2,000 square foot house would be replaced with two 4,000 square foot houses. Each new house would also include a garage. Neighbors, upon learning of these plans, have organized a protest. They claim that new plan does not fit with the feel of the neighborhood. Many worry that it would be out of character for the area and its large lots and mature trees. Neighbors are now working to stop the tear down and redevelopment of the lot — a court case could ensue.

Additionally, it has been discovered following the sale that nearby Macalester College’s High Winds Fund had a right to first refusal on the property. This means that the college should have had the right to purchase the property before it was sold to a third-party. Potential real estate litigation can add costs and time to a development or building project. These delays can be the difference between turning a profit or not for a builder. In these situations, property owners should keep in mind that they have extensive property rights and seek help understanding and exercising them.

Source: Pioneer Press, “St. Paul neighbors rally to save Tangletown house from demolition,” Frederick Melo, Nov. 15, 2014 

Image Source: TwinCities.com