PHOTO BY PAULA MULLER
The property on 2 Washington St., in Peabody, which has been taken over by the city.
BY ADAM SWIFT
PEABODY — The city has hired a Boston law firm to help fight a lawsuit over its taking of the former O’Shea Mansion.
The city seized the historic building at 2 Washington Street by eminent domain earlier this year from Empire Design & Development LLC. The Gloucester-based company was paid $425,000 for the property.
But in a lawsuit, Empire Design is seeking nearly $1.8 million. The city took the property to renovate the mansion as part of the downtown revitalization and prevent its demolition.
On Thursday night, the City Council approved hiring John Leonard, a partner at Menard and Walsh, at $325 per hour.
“Given his experience and the available funding through the legal department, I consider this a proper course especially in light of the prospect that our solicitor will be needed as a fact witness to substantiate the propriety of the process accessed to effectuate the taking,” said Mayor Edward A. Bettencourt Jr. at the council meeting.
Last fall, it appeared that the mansion was facing the wrecking ball and the city was ready to take the property by eminent domain from Northeast Community Bank. But as that was about to happen, Empire Design purchased the property from the bank for $350,000, according to county records. The city proceeded with the taking, paying what city officials said was the market value. The property is assessed at $957,100.
Bettencourt said he believes the city is in good legal standing.
“I feel good about the direction the city took,” said Bettencourt. “I think the city is handling this properly and we want to mount a vigorous defense.”
The mayor said it is too early to say how much the city will pay for Leonard’s legal assistance. But he estimated it could be as much as $50,000.
Empire Design could not immediately be reached for comment.
Adam Swift can be reached at [email protected].