What’s next for Fairfield Lake State Park?
Over the weekend the Texas Parks and Wildlife Commission took a unanimous vote to use eminent domain to seize the state park, setting up a potentially long and costly legal fight with a Dallas developer.
Professor Julie Rogers with SMU’s Dedman School of Law said the state has the right to take the land under eminent domain.
“The state is exercising the power of eminent domain to take the property for what is clearly public use,” Rogers said, “So the issue is going to be what is the compensation to the developer.”
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Under eminent domain, the state must pay fair market value.
The property was originally listed for $110.5 million, but what developer Todd Interests paid for the property is unclear. Attorneys will likely argue the company is owed for investments already made toward the development, said Rogers.
The state must submit a formal offer to Todd Interests based on the land appraisal. If the offer is rejected, a three-person commission appointed by a judge will decide the fair market value. If either side objects, it goes to trial.
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“It could certainly be long,” Rogers said. “Litigation takes a long time and is expensive.”
A spokesperson for Texas Parks and Wildlife told NBC5 the park would remain closed until the state takes ownership of the property.
"Our commissioners have asked Todd Interests to delay demolition of park infrastructure and vegetation until this process plays out, but we don't have confirmation that he intends to do so," said deputy communications director for Texas Parks and Wildlife Cory Chandler in a statement.
Chandler confirmed the department has submitted an offer to Todd Interests, but cited property code for keeping the amount confidential unless the landowner choses to discuss it publicly.
The state park, and the land around it, have been privately owned for decades with Texas Parks and Wildlife Department serving as a tenant.
The approximately 5,000 acres of land went under contract with Dallas-based developer Todd Interests in 2021. The company planned to build a private luxury community, which would require permanently closing the state park.
After negotiations between park officials and the developer to save the park failed, state lawmakers filed legislation to stop the sale. All three bills failed, resulting in Saturday’s vote to seize the land through eminent domain.
An attorney spoke on behalf of Todd Interests regarding the state’s use of eminent domain in a press conference on Thursday morning.
During a public hearing at the Texas Capitol in May, the developer blasted state efforts to stop the sale and said Texas Parks and Wildlife could have purchased the property but did not compete in the open bidding process.
“When can government step into a transaction and covet something that’s not theirs? And want something that’s not theirs,” developer Shawn Todd told lawmakers.
