Popular mom-and-pop coffee shop resisted New Hampshire city's attempt to seize property by eminent domain — family claims moving would cost over $1 million

Cost of moving

The city previously offered $455,000 for the property, nearly $100,000 less than an estimate provided by an independent appraisal the family had done, according to Manchester Ink Link. Following publicity of the shop’s plight in early October, the offer was upped to $550,000, which met the appraisal. But, the owners argued that this compensation did not cover relocation costs.

Tong claimed to CBS News Boston it would cost over $1 million to buy and move to another property to set up shop.

"A good solution is if the city would purchase us a building and move us," he said at the time. "That would have been great."

Starting over at a new location can present its own set of challenges.

"We have been established here for nine years. We have a clientele. We are busy," he explained. "We have a full commercial kitchen that we can't really move with."

Even if the owners found a different location at a similar price, there would likely be additional expenses to ensure any new coffee shop is ready for business. Installing a commercial kitchen, for example, can cost tens of thousands to hundreds of thousands of dollars, according to restaurant supply company Kitchenall.

Not to mention, a new location would also mean building up a new customer base.

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Eminent domain

In New Hampshire, and other states, eminent domain allows the government to take private property for public use, such as infrastructure projects. However, the government must provide "just compensation" to the property owner.

Compensation is typically based on fair market value of the property, which is determined through an appraisal. It can be possible to challenge the compensation offered or even the necessity of the seizure in court.

Eighty Eight Coffee Co. had insisted relocation assistance should be included as part of their compensation.

"We’ve never downgraded the importance of the project," Tong’s brother, Marc Lee, told Manchester Ink Link. "I was told directly by a city official that 'we’re going to take care of you guys' and it will be 'a lucrative offer.' Maybe I’m a fool for believing it."