Council to Consider Eminent Domain Against Former Strip Club Owner

Former owner Larry Kladek is once again, it seems, at odds with the city of Inver Grove Heights.

City officials want to build a pedestrian trail between Heritage Village Park and the Rock Island Swing Bridge. But to do so, city staff say, they must acquire approximately 28,000 square feet of Kladek's property.

Kladek, convicted of filing a false tax return in 2009, no longer owns or operates the gentlemen's club. That job passed to his daughter, Debra Kalsbeck, . But Kladek does own the land upon which the gentlemen's club sits.

City officials want to run the proposed, ten-foot-wide pedestrian trail along an old railroad bed—half of which falls under Kladek's ownership. The other half of the proposed trail bed is owned by the city. The railroad bed follows the eastern and southeastern edges of the King of Diamonds property, according to a map provided by the city.

Once in August and once in September, Park and Recreation Director Eric Carlson sent written offers to Kladek to purchase the property for $56,548, according to a memo written by City Attorney Tim Kuntz. Kladek rejected the city's offers and expressed his desire to hire his own appraiser, the memo said.

But the city will forfeit $92,000 in grant funding earmarked for the trail if it does not complete construction by June 30, 2012. City officials say they must begin eminent domain proceedings now if the city is to avoid losing the grant funding, which was issued by the Minnesota Department of Natural Resources.

The process of eminent domain allows local or state officials to acquire private property for public use, according to Minnesota law. The government body is required to pay "fair market value" for the property.

The Inver Grove Heights City Council has been asked to approve a resolution during its regular meeting on Monday night that would authorize the use of eminent domain to procure Kladek's property. Check back at Patch for updates to this story.