County commissioners call use of eminent domain to save state park 'abuse of power'

AUSTIN (KXAN) — County leaders near Fairfield Lake State Park have called the state's intended use of eminent domain to take over the land an "abuse of power and government overreach."

In a meeting of the Freestone County Commissioners Court Wednesday, commissioners voted unanimously to send a letter to the Texas Parks and Wildlife Department to "stop this now" and allow the new landowner, Todd Interests, to develop the property as planned.

The park, about 70 miles east of Waco, was leased to TPWD by Vistra Energy, which formerly owned a power plant on the lake, for about 50 years. The company sold the land to Todd Interests as of June 1, after years of failed negotiations with the state to purchase the property.

"TPWD had ample notification and time to purchase this land before this property was listed for sale, but blatantly and irresponsibly failed to act," the county commissioners wrote in the letter.

KXAN has reached out to TPWD for comment but has not yet heard back.

TPWD votes to use eminent domain

The Parks and Wildlife Commission voted June 10 to condemn the 5,000-acre property, which includes the 1,460-acre state park, and take it over using eminent domain. Commissioners said they were "extremely disappointed" and called the use of eminent domain an "infringement on private property rights."

Todd Interests is turning the site into the 'Freestone' community, marketed as a "luxury lake and golf enclave encompassing the largest privately owned body of water in the United States." In addition to 400 lakefront homes, the development will feature "amenities a family should expect from a world-class resort," including a clubhouse, restaurant, resort pool and a "championship-level" golf course.

In Wednesday's letter, commissioners said the county and Fairfield Independent School District stand to gain around $20 million in tax revenue annually from the development.

"The citizens of Freestone County lost a large portion of our tax base when the power plant and coal mine closed," commissioners wrote. "For TPWD to steal an opportunity for us to replace that tax base would be selfish."

County Judge Linda Grant, who previously testified in legislative hearings in support of saving the park, said the commissioners court had not been in favor of eminent domain and hoped the state and Todd Interests could reach an alternative agreement.

"That has not happened," Grant wrote in the letter. "The tax revenue that this project promises will be a great benefit to the citizens of our county. I respect the commissioners and their stand on this issue so I support this letter."

Parks and Wildlife commissioners voted earlier this month to draft a policy restricting future use of eminent domain to "extraordinary and unusual situations." The proposal will be considered Aug. 24.

What's next?

The first condemnation steps for the Fairfield Lake property include a formal written offer from TPWD, followed by a final written offer on or after 30 days. The final offer has to be equal to or greater than the land’s appraised value.

Shawn Todd, CEO of Todd Interests, told KXAN his bank recently appraised the value of the property's water rights alone at $238 million. The property had been listed for sale by Vistra for more than $110 million. Todd told KXAN his company paid "just north of $100 million" for the land.

After receiving the final offer, Todd has 14 days to consider. If the offer is not accepted, the Texas attorney general can petition to condemn the land. Three special commissioners, appointed by a district court judge, would hear evidence and give the property owners the current fair market value of the property. TPWD would then pay the amount and take possession of the property.

If either party objects to the special commissioners' findings, the case would move to a civil trial.