UGHS, land owner remain far apart on purchase price for property

UGHS is seeking to purchase 80 acres from Daniel Riedel so it can expand the high school campus and facilities, and that process likely will be resolved in court through eminent domain.

Eminent domain, also known as condemnation, is part of the Fifth Amendment of the U.S. Constitution.

It gives public entities, including school districts, the power to acquire private property by providing “just compensation,” even if the owner doesn’t want to sell.

Jessica Hutson Polakowski, one of Riedel’s attorneys, said UGHS has a legal right to acquire the land but that the district has not followed the proper procedure to do so.

“This is a case of a citizen who has been treated very unfairly by a government authority,” Hutson Polakowski said. “He’s been required to expend significant amounts of money to protect an investment that he’s held for decades. All he wants is to just be treated fairly.”

Attorneys representing UGHS did not respond to requests for comment.

Diane Skewes, UGHS Board president, said the district eventually will acquire the 80 acres once a value is determined.

“We will own the land,” Skewes said. “What is being contested at this point is the price.”

Referendum plans

UGHS is its own school district with its own school board.

In November 2024, voters approved a $34.9 million UGHS capital referendum.

The money will be used to help with safety and traffic challenges, moving athletic fields, increasing technical education space, securing entrances, making classrooms more accessible for people with disabilities and connecting the agricultural building to the school.

Interior renovations are estimated to cost $20 million, and reconfiguring the campus is projected to cost $14.9 million, according to the district.

Work began earlier this year to make the high school — which has about 1,000 students — more safe, spacious and accessible.

Separate, but related to the referendum, are the district’s plans to buy 80 acres of Riedel’s land, which borders part of the UGHS property.

UGHS wants the land so it can build a road connecting Main Street to 58th Road to provide an additional school entrance, ideally alleviating traffic congestion during drop-off and pick-up time.

Money included in the referendum would allow the school to build a 500-space parking lot on the purchased land, which would about double the amount of student parking.

Riedel said he has spoken to people who believed the high school already owned the 80 acres before voting on the referendum.

Skewes said she has heard similar comments.

“Some people were not aware that we had not acquired the land yet,” Skewes said.

Lengthy process

In September 2024, UGHS Superintendent Tom Johnson said the district hoped to purchase the land by the end of November 2024.

The sale has not happened, though, and it does not appear close to being finalized.

Attorneys representing UGHS sent a letter to Riedel in December 2023 informing him of the district’s plans to acquire the land.

In March 2024, the UGHS Board approved a resolution of necessity to use eminent domain to acquire “all or a portion of” Riedel’s 116-acre property as part of its plan to expand the high school campus.

Under state law, there are steps involved in the eminent domain, or condemnation, process.

They include each side appraising the land’s value and negotiating to try to reach a deal.

Riedel paid about $2.7 million for 116 acres in 2004.

According to Riedel’s 2024 appraisal, the 116-acre property is worth $6.5 million, and the 80 acres UGHS wants are worth $4.82 million.

Skewes said Riedel’s appraisal of $4.82 million is “not tenable.”

In June 2024, UGHS offered $1.3 million for the 80 acres.

Riedel did not accept that price, and his attorneys called it a “lowball” offer in a legal brief.

After unsuccessful negotiations, the school district filed a condemnation petition to acquire the land, but UGHS dismissed the petition this March.

Skewes said the petition was dismissed so UGHS could soon make a new offer — $2.3 million for the 80 acres.

“I think that’s a fair offer based upon the assessments that we received,” Skewes said. “There is room for negotiation. We would like to have a conversation.”

Riedel said he does not believe $2.3 million is a reasonable number.

If the two sides cannot negotiate a price, the district plans to file another condemnation petition to acquire the land.

‘A long road’

Riedel lives in Gurnee, Illinois, but visits the Union Grove property fairly often. It has a house and a few other buildings but is mostly farmland and woods.

He had planned to eventually build a housing development with about 300 homes on the land, but it appears that will not happen.

Riedel said he should have sold the land to another developer “years ago.”

“I don’t know how I’ll ever build in that town again,” he said. “It’s just a major loss.”

Riedel said he doesn’t believe UGHS needs to acquire 80 acres, and that he is open to splitting the land with the district.

One example Riedel gave was him keeping the western portion for development and UGHS obtaining the eastern portion and building the new road.

However, that does not appear to be what UGHS wants.

“I do not believe it is in the best interest of my students, parents and staff to share the road with your upcoming development,” Johnson wrote in a 2024 email to Riedel. “I am looking at the 80 acres with a private road to allow safe access into and out of our district.”

Johnson declined to comment about the ongoing litigation.

Hutson Polakowski argued that UGHS buying 80 acres “would create an uneconomic remnant” in violation of state law, meaning Riedel would not own enough land for his development plans.

In a legal brief, UGHS attorneys argued that the district buying the 80 acres “does not constitute an uneconomic remnant” on Riedel.

Riedel’s son, also named Daniel Riedel, has been involved in some of the conversations about UGHS acquiring the land.

“It’s been a long road,” he said. “We just wanted to try to collaborate. Not everything has to be a fight.”

Skewes said the district has “periodically” engaged with Riedel about his land.

That includes an attempt by UGHS to acquire about 40 acres on the property starting in 2011, but the district abandoned that effort in 2012.

Next steps

All referendum-funded work is scheduled to be done in January 2027.

Depending how long it takes UGHS to acquire the land, though, that “timeline might shift” back, Skewes said.

A hearing is scheduled for Thursday, Sept. 4, to determine if UGHS has to pay the elder Riedel for costs associated with the district’s land condemnation.

Riedel said he has spent about $200,000 in legal costs, appraisals and expert fees related to the matter in recent years.

After the hearing, next steps include Riedel submitting an updated appraisal.

UGHS can consider that appraisal and make an offer, likely of $2.3 million, to buy the land.

The sides will then negotiate to try to reach an agreement, but Riedel does not expect that will happen.

If no deal is reached, UGHS almost certainly will file another condemnation petition.

Skewes said she has no ill will toward Riedel.

“All of our conversations have been respectful,” Skewes said. “My goal is always focused on the academics and the safety and accessibility of education for our students.”