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The Daily Interlake

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    Tuesday, May 5, 2004, 2004




Local

KGEZ quadruples claim on road money

By Alan Choate
The Daily Inter Lake



Jennifer DeMonte/ Daily Inter Lake
John Stokes, owner of local AM radio station KGEZ, listens to Montana Department of Transportation attorneys Monday afternoon in district court in Kalispell, along with his wife, Pam. They are seeking $4.7 million from the state after a long-running legal battle over the widening of U.S. 93 through their property south of town.

Attorneys spent an hour Monday arguing whether broadcaster John Stokes should have access to millions more dollars in state money because of the ongoing construction on U.S. 93 in front of his radio station.

Stokes, who owns KGEZ-AM, says it will cost $4.7 million to relocate his station and that the Montana Department of Transportation should pay for it.

Vibrations and road noise from the expanded highway, which will come within a few feet of the station, will make it impossible for him to broadcast at that location, he says.

Monday's arguments centered on whether state law provides for the $4.7 million claim, since Stokes previously agreed to a claim of $1.1 million. And though it wasn't directly addressed, it remains unclear what's happened to money already paid out by the state to cover Stokes' relocation costs.

Stokes' attorney, Wade Dahood, argued that the grant of possession that allows construction to continue should be revoked until the state puts up the larger amount of money.

James Lewis, an MDOT attorney, noted that Stokes had filed three claims for compensation since the conflict started in 2001.

"There is no provision in this statute for three claims of just compensation," he said. "It allows for one claim."

He also challenged the contention that the station needs to be moved.

"The project is well under construction," Lewis said, including work directly in front of the station. "He's still on the air broadcasting. He does not need to relocate."

Dahood disagreed.

"Our experts tell us that the station cannot function once the highway is done," he said. He also alleged that the ongoing construction damaged the station's broadcasting power, although he didn't specify what the damages were or how they occurred.

Monday's hearing was the latest episode in a legal drama that's stretched on for years.

It started when Stokes challenged the amount of money the state Transportation Department offered for the small part of his property needed for the expanded highway. He and the Transportation Department reached an agreement requiring the state to put $1.1 million in an account.

Stokes and Dahood used a law requiring agencies with the power to condemn to pay the full amount of a landownerÍs claim up front in a contested case. If Stokes loses his case, the money has to be repaid.

The law allowed roughly two-thirds of that money „ $750,000 „ to be withdrawn by Stokes and Dahood. The idea is that a landowner might need the money before the case is resolved, although the law doesn't restrict how the money can be used.

The state deposited that amount, and Dahood withdrew it, according to court records.

What happened next is murky. Questa Resources, a group of investors who loaned Stokes the money to buy the station, was supposed to be paid first. They weren't, according to a foreclosure notice filed against Stokes and his company „ indeed, they say he still owes them more than $545,000.

Dahood, however, said Monday that "a substantial portion" of the money went to Questa, although he didn't specify how much: "You'll have to ask them," he said.

That appears to contradict his client, however, who in an earlier interview said Questa didn't get any money.

"[The investors] refused to take the money, or didn't take the money," Stokes told the Inter Lake. "I have no control over it."

The judge in the case, Katherine Curtis, issued no rulings Monday. Attorneys expect the case to go to trial later this year.

   05/11/2004 Tuesday