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only multiuse, multimedia adult entertainment complex operating
within the City.
In 1985, the City had approached MIC and Beverly and
attempted to negotiate an agreement to purchase the Property.
An initial meeting was held in May 1985, and the City made an
offer based on what it stated was the fair market value of the
Property. The City stated that the Property was worth less than
$700,000. The City later obtained an appraisal that stated that
the Property was worth $723,000.
Petitioners rejected the City's offer. Petitioners then
obtained two appraisals that respectively stated that the
Property was worth $1,950,000 and $2,100,000. On December 9,
1987, the City notified petitioners that it would acquire title
to the Property by condemnation, and, shortly thereafter, the
City petitioned the local court to condemn the Property by
eminent domain. The City named as respondents in the petition
all persons and entities that had, or could have had, a claim to
any interest in the Property. The respondents listed in the
petition included MIC, Beverly, and certain other persons who are
not relevant to our case.
The court assigned the case to a panel of three
commissioners to ascertain the condemnees' award. Before the
commissioners independently ascertained an award, the parties to
the condemnation proceeding settled their dispute. The
settlement, which occurred in January 1989, followed
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