Town of Iron Gate has to pay landowner $115,000

“The town of Iron Gate has had to mortgage its town hall, raise taxes on cigarettes and lay off part-time workers to pay the settlement in a lawsuit over its use of eminent domain.

In a mediated settlement, the town agreed to pay $115,000 to a private landowner from whom it had seized land for a water tower to improve the town’s water system.

Though the cost of the tank was covered by grants, it ended up costing $150,000 more than anticipated after the settlement and associated fees, Mayor Alan Williams said. That’s equal to half the town’s annual budget.”

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Chittum, Matt. Roanoke.com 10 July 2013.