Tomlinson's home in the 800 block of North Main Street
CHURUBUSCO, Ind. (Dec. 11, 2008) — Peggy Tomlinson had seen it in the movies – when the state comes in and acquires private property for a redevelopment project. It certainly looked easy – and profitable. She remembers how she and members of her family had traveled along I-469 when it was fairly new and thought
, “Boy, I’ll bet those farmers made out like bandits.”
Tomlinson now knows better.
Tomlinson lived in the 800 block of North U.S. 33 or Main Street, on the west side of the dangerous curve that is to blame for many accidents and at least one fatality in the past two decades.
Tomlinson spent this past weekend moving from her home after the Indiana State Highway Department decided last year to straighten the curve. Because of the near blind spots and angle of the curve, a project slated for 2010 charted a new highway where the curve is not so prominent.
The casualty of the INDOT project was Tomlinson’s home and property of 17 years.
Tomlinson said she has learned that red tape, lack of communication and state laws don’t add up to a smooth transition. Nor does it mean she can retire on a big, fat check from the state, as she suspects some people think.
Many people admired the quality and beauty of Tomlinson's flowers
A place to call home
Tomlinson purchased the home in 1991 on the H.U.D. program and moved her two children in during the spring of that year. The house was in disarray and had been neglected, but Tomlinson saw promise and had hope. For nearly two decades she worked long hours and at times two jobs, not only to care and provide for her children, but to take the worn out and tattered house and make it a home.
Over the years she transformed the site into a very pleasant and quaint house and gardens that drew the admiration of passersby. Her flower beds were constantly admired by locals. A few people traveling the busy highway in front of her home were so drawn in by them, they knocked on her front door, asking for a start or two of Tomlinson’s plants for their own flower garden
Just one of the many flower beds in the corner of Tomlinson's home
Rumors
In late 2007 a family friend attended a town council meeting and listened to a discussion about a highway project on the north side of town. The plan was to straighten out the curve and the only plan being talked about was a route that was charted directly through the center of Tomlinson’s home. By this time all local agencies and department heads had been made aware of the project, but no one from the state had bothered to send a notice to Tomlinson.
Tomlinson was distraught. So were those who knew her. Her infuriated family and friends began contacting department heads and state agencies, peppering them with phone calls and letters explaining that the homeowner should have been informed about the plans well before any local agency.
In short order, a “notice of intent” from the state was sent to Tomlinson.
Tomlinson was heartbroken. The rumors were true.
Her home that she had poured her heart and soul into – the run-down house that she had transformed into a cozy and beautiful home – was now slated to be nothing more than asphalt and a memory.
Acceptance
This summer Tomlinson said she came to grips with the idea of what was going to take place and began looking at area homes on the market. “Fighting the plan would have been too costly,” she said, “and the chances of winning against the state were slim to none.”
She had yet to receive any kind of purchase offer or agreement from the state, but In August Tomlinson looked at a home for sale on the south end of town that was a near perfect fit. The size was just right, Tomlinson said, and although the yard was a bit small, the price was comparable to what she believed she would receive from the state for her home.
She informed INDOT that she had found a home, was willing to leave her current one voluntarily, and had no plans to fight the state’s proposed project.
Thinking the worst was over, Tomlinson was feeling good about the transition.
She had no idea the wheels were now set in motion for an emotional and a legal, red tape-filled roller coaster ride.
Governmental tape
The first blow came when she received the property offer from the state. The letter said the state was willing to pay Tomlinson the fair market value, based on the current housing market.
This was not a good time to sell a home at the value based on the current housing market. Tomlinson knew that. Not only in Churubusco, but across the state and the nation, homes were being sold for thousands of dollars less than they would sell for in a stronger, more stable economy.
To add insult to injury, Tomlinson said she had to go through her home and advise the state of every item she planned to take with her when she moved – windows, cabinets, sinks – anything nailed down. Outside, she had to list any flowers, trees or shrubs she planned to move. The state then deducted the value of every item from its original purchase price.
Tomlinson said she was shocked, but the heartache and frustration were about to get much worse.
State versus state
In 2001 Tomlinson received a grant from the state called a “forgivable loan”, which was to be used to make improvements on the home such as siding, heating, insulation or electrical or anything else that enhanced the value of the home. The loan could not be used for furniture or electronics or other such furnishings.
According to the terms of the loan, Tomlinson had to live in the home for ten years after the loan was administered and make timely payments. After ten years, any remaining balance was to be forgiven. But because of INDOT’s highway plan, Tomlinson was going to be forced out of the home before the agreement terminated.
Up to this point Tomlinson said she had been very cordial with the state department heads in charge of the road project. She had relinquished her home without a fight and communicated everything she could when they asked.
Other state agencies, including Region 3-A in Kendallville, informed Tomlinson that she was in violation of the terms of her agreement for the forgivable loan and informed her she either had to pay the remaining balance of nearly $10,000 or they would remove $10,000 from the rapidly dwindling purchase offer price.
Forced into legal action
It wasn’t long after hearing that she was found to be defaulting on the loan that Tomlinson sought legal advice to fight what she felt was an unjust situation.
It started fairly well, she said. “The state agency responsible for the loan was going to forgive the remaining balance entirely,” she said, “leaving me right back where I wanted to be.”
But just a few weeks later she got word that they would not forgive the loan, again pointing out that Tomlinson had violated the terms of her loan agreement.
Friends and family had this sign made after the state hadn't come through on the forgiveable loan
For a second time, family and friends went on the offensive and started contacting state agency heads and warning them of the fight they were about to receive if the loan was not forgiven entirely.
Soon, Region 3A officials realized that Tomlinson hadn’t violated the terms of her agreement deliberately, but was forced to because of INDOT’s road improvement plans.
“And through all of this,” Tomlinson said, “it was easy to see that the only reason so many problems occurred was because the group of state agencies involved weren’t communicating with one another.”
Tomlinson said she had to enlist a lawyer to get that loan waived because the State did not take her seriously, and in the end, it still cost her nearly $1,000 in legal costs, she said.
The State speaks
Toni Mayo, INDOT’s customer service manager and communications director, said the process of acquiring land is a “hugely drawn out process.”
As far as Tomlinson’s claim that she was not notified in a timely manner that her home was on the chopping block, Mayo said she could not answer that claim directly since she was not involved in the official notification process when it took place.
“What happened (in Mrs. Tomlinson’s case) was unusual,” Mayo said, “but overall, she was fairly and justly compensated for her home.”
According to Mayo, the state initially notifies homeowners at a public information meeting and then, a short time later, a public hearing is held to discuss the matter.
What the state pays for homes and properties is a matter of public record, and must be filed at the recorder’s office in each county, Mayo said.
“We also assisted Mrs. Tomlinson in finding another living space and helped her with the interest on her mortgage,” Mayo said.
Mayo contacted INDOT’s real estate department manager, Jeremy Mcmanama, after she was contacted by buscovoice.com and had this to say about the notification process. “(Jerry Mcmanama) denoted that Ms. Tomlinson was notified in June 2007, when a notice to survey letter was sent to her address. She was notified again this year and then again two more times, with the entire process complete on Nov. 26, 2008. Ms. Tomlinson was notified by the State at least four times (per Mcmanama’s project schedule),” Mayo said. “As per our (earlier) conversation, Ms. Tomlinson was given a fair and just compensation. She was also assisted in finding replacement housing, along with differential computation on her mortgage interest and her community block development grant was forgiven.”
Dave Koenig, director at Region 3A, said initially Tomlinson was found in violation of the terms of the loan agreement and when the state made an offer on her home, no one – including Region III-A – was notified.
“It’s unfortunate that she had to go through that,” Koenig said. “But we have to protect the federal reserve dollars that are in place to help individuals maintain their homes. Some people pocket the money and do not use the loan for the intended purpose. That did not occur in this case.”
Peggy Tomlinson
A happy ending
Despite all the red tape and frustration and with the help of legal counsel and the willingness of family and friends to confront government agencies, the loan has been forgiven and Tomlinson will be in the exact same financial position she would have been in had she not been forced to make the move from her current home.
She is glad it’s all behind her now, Tomlinson said. She is looking forward to a new chapter in her life and already making plans to improve upon her new home and yard.
And those who know her are betting that it won’t be long until passersby in Tomlinson’s new neighborhood will be stopping to admire the well-maintained home and beautiful gardens.
