Eric Segalewitz, the company’s owner, has said he is willing to sell the property back to the city for fair market value.
But city officials said the city will not unduly enrich a local property owner for a clerical mistake.
Officials said the city clearly intended to transfer another parcel and accidentally included the Cliburn Manor parcel as part of the purchase, and intent matters in the eyes of the law.
“Clearly, whenever you are dealing with human elements, errors and omissions unfortunately are commonplace,” said Shelley Dickstein, assistant city manager. “The law does provide opportunity for those errors and omissions to be addressed legally — we’ve got a very strong case.”
In 2011, the city of Dayton spent $500,000 to buy the former site of the Cliburn Manor housing projects from Greater Dayton Premier Management. The city used $357,500 in general capital funds and $142,000 in federal economic development money. The five-acre site is located on Burns Avenue.
But as part of the real estate deal, the city also received a small lot across the street at 50-56 Alberta St.
The city bought the property for redevelopment purposes. Site plans call for building housing and other infrastructure.
But in 2011, Upscale Realty submitted an application for the Alberta Street lot through the city’s Lot Links program, which allows people to buy vacant and abandoned properties for small fees.
The application was approved and Segalewitz paid about $635 for the property.
But the city put the Alberta Street parcel and the Cliburn Manor site on the same deed. The error went unnoticed for years.
Segalewitz learned he owned the Burns Avenue parcel when he tried to sell his Alberta Street home and the adjacent lot, which he turned into a garden.
The city asked Segalewitz to transfer the title, but he refused, and offered to sell it at fair market value, Dickstein said.
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