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CMC's real estate purchases worry Dilworth neighbors

08:58 AM EDT on Thursday, September 4, 2008

By Dan Tierney / The Charlotte Observer

CHARLOTTE, N.C. -- Neighborhood residents have long called East Boulevard the “backbone” of Dilworth, both for its central location and bustling activity.

Many of them worry, though, that the scenery could change forever. Carolinas HealthCare System – parent of Carolinas Medical Center – and its real estate representatives have bought dozens of nearby homes and some businesses over the years, spurring rumors of home tear-downs and medical school construction.

Those worries grew in June, after an affiliate of Lincoln Harris, a real estate firm, purchased properties along East Boulevard, which included the site of neighborhood hangouts Bruegger's Bagels and Caribou Coffee, for $3.6 million on behalf of the healthcare giant. Last year, another Lincoln Harris affiliate bought properties that held East Boulevard Bar & Grill for $3.1 million.

On quiet neighborhood streets behind East Boulevard such as Fountain View Street, Garden Terrace and Lombardy Circle, houses have been bought by the hospital's real estate representative. That includes two on Fountain View in July.

Scott White, a spokesman for CMC, said the hospital doesn't currently intend to tear down any structures, won't build a medical school on the three neighborhood streets and doesn't have any specific plans for the area.

“We need room for expansion when it's needed,” said White, who added that the hospital buys properties all around Charlotte when available. “Hospitals have to worry about getting landlocked.”

At least four residential property owners have told the Observer they believe the hospital and property management company haven't made fair offers for their property.

Neighbors also fear that removing gathering spots would go against the spirit of a street redevelopment plan that the neighborhood clamored for and the city granted in 2002. Under that plan, bike lanes were added and sidewalks widened.

White said the hospital has failed to actively communicate with the neighborhood recently.

“It hasn't been intentional,” White said. “It's something that we wish we did, and we're trying to make up for it now.”

The hospital hasn't filed with the state for a Certificate of Need to expand its campus into the neighborhood, said state analyst Angie Matthes. A certificate is required for health care projects that cost more than $2 million.

The hospital or its real estate representatives now own 10 of the approximately 26 properties on Fountain View and 23 of the approximately 29 properties on Garden Terrace, some of which were purchased back in the late 1970s. Some have medical uses, some are rented and others sit empty. Those used as medical facilities aren't subject to property taxes.

Still, the push toward East Boulevard has caught the attention of many residents, who wonder what the hospital wants to do with all the land.

Randy Burch, for example, said he received a letter from Lincoln Harris in January offering to buy his Garden Terrace home for $475,000. He declined, and the company sent another letter in April offering $525,000, which he also turned down. He said the company should offer more than the standard market rate.

Two nearby Fountain View residential properties were sold in July to a Lincoln Harris affiliate for $700,000 and $750,000, respectively, property records show.

“I don't want to sell,” said Burch, whose property is sandwiched between two hospital-owned parcels. “It's an unsolicited offer. Therefore, they have to pay. I'd just as soon live here the rest of my life.”

Jubal Early, a senior vice president with Lincoln Harris who signed the letters to Burch, said Lincoln Harris and its affiliates don't discuss any clients or purchases.

As for the businesses, East Boulevard Bar & Grill owner Frank Deal said he's unsure of the closing date. He plans to move the restaurant to nearby Latta Pavilion in January. A spokesperson for Bruegger's said the store has “every intention of staying and it's business as usual.”

City and county officials have also joined discussions following e-mails and calls from residents. Mecklenburg Board of County Commissioners Chairman Jennifer Roberts met last week with hospital representatives and said she urged them to act sensitively. She said the hospital reiterated that they have no master plan for the area.

White said the hospital met with city planning staff at least once within the last few weeks. An e-mail from city manager Curt Walton to a Dilworth resident said it wasn't about expansion in the neighborhood.

Some wonder if CMC is now focusing on Lombardy Circle, two streets from Fountain View, where most properties remain privately owned. Herbert Peek, who has owned his Lombardy house since 1978, said he has received written and verbal offers up to around $600,000, but considers them well below the value of his renovated home.

“If they offered me enough money to where I could find a replacement house in the neighborhood that's the same size as mine, I'd consider it,” Peek said. “But they haven't.”

Hospital representatives last week met with concerned residents and the neighborhood association, but many still have questions.

It all leaves neighbors like Les Farnum of Fountain View anxious about what to do. He moved his family from south Charlotte and his 90-year-old mother from California to Fountain View two years ago.

He chose the home partially to give his mother short walking distances to East Boulevard's shops and restaurants. Now, he doesn't know whether to invest money in his home if all the properties around his eventually are bought by the hospital, pushing him to also sell.

“We were assuming that we'd be here a while and make this easy on (my mother),” Farnum said. “With all this uncertainty floating around us, it's kind of concerning.”

Staff writer Karen Garloch contributed.

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