Litigants in a landowner dispute with the city of Independence and an Arizona-based company that was recently compensated by the city in an eminent domain case say the company has reneged on a letter of credit to rebuild a road near 39th Street and Little Blue Parkway and should fork over its condemnation reward to settle the contract.

Tom Scott of Scott, Hewitt and Mize said Kidwell Enterprises should forfeit to the city a $147,000 payment the company was awarded last month by condemnation commissioners for two parcels of land the city needed for the 37th Terrace, Jackson Drive to Little Blue Parkway project.

Scott said Kidwell Enterprises no longer has the means to build the road that will provide access to Kidwell Business Park. The city acquired the small piece of land east of the railroad tracks at 39th Street and Selsa Road through eminent domain in 2004, and Kidwell agreed to build an extension of the road and offered the city a $300,000 letter of credit.

Scott, Hewitt and Mize, which owned the land, was involved in a lengthy dispute with the city for the 1.13 acres of land. Last summer, Scott and the other two owners of the land decided to settle with the city for $232,500.

"Bill Kidwell doesn't have the money," Scott said of the developer of Kidwell Business Park. "That ($147,000) should be kept towards the $300,00 letter of credit. As of right now, the city of Independence, with taxpayer money, is building the second part of Selsa Road that he is supposed to be building."

Tony Gosserand, an attorney for Kidwell Enterprises, said he would not comment on Scott's assertion due to pending litigation. Several landowner disputes making their way through the courts involve Kidwell Enterprises, Scott, Hewitt and Mize, the city and various other companies.

City Manager Robert Heacock said the city's agreement with Kidwell Enterprises requires it to complete construction of phase II of Selsa Road within 12 months from the date the city issues a notice to proceed for the construction of the Little Blue Parkway. The city did that on July 7. Heacock said the city will claim the company's performance bond to guarantee the construction if the work is not finished.

"As Jackson Drive will be the emergency vehicle route while Selsa Road is closed, it is important for the Kidwell work not to begin until the construction on Jackson Drive between 39th Street and R.D. Mize is completed," Heacock said in an e-mail. "Jackson Drive is scheduled for completion in March 2009."

Heacock said the $147,000 recently paid into the Jackson County courts represents the payment for land needed for right of way and easements to extend 37th Terrace to the Little Blue Parkway, adding that the land acquisition near 37th Terrace is not addressed in the Selsa Road agreement with Kidwell Enterprises and the city has no claim to the recently awarded funds for street construction.

"The construction contract for the Little Blue Parkway contains a work item for temporary asphalt that will be used for phase two of Selsa Road," Heacock said. "It is a thin, temporary layer of asphalt, which could not be used for the permanent construction of Selsa Road.

"The temporary construction road is common in this type of project and has nothing to do with the Kidwell permanent road construction. The two are separate items, and one item cannot be substituted for the other."

Meanwhile, Scott said he believes taxpayers should be cautious of the possibility that the city is spending tax dollars to build a road for a private developer.

"Kidwell was supposed to build the second phase of that road and he was supposed to start it and have it completed one year from the day of the (fourth phase of ) Little Blue Parkway that they are doing right now," Scott said. "They are supposed to take the $300,000 from him to build the road. They are paying $147,000 for a piece of his property right now. Well, they ought to keep that and put that towards the road he is supposed to fix."