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Small business owner locked in eminent domain dispute with city

A local business owner, who emigrated here from Mexico in search of the American dream, said he is being told by local leaders that despite its success, his business no longer fits the city’s long term plan.

SHELBYVILLE, Ky. (WHAS11) -- A local business owner, who emigrated here from Mexico in search of the American dream, said he is being told by local leaders that despite its success, his business no longer fits the city’s long term plan.

San Juan LLC, in Shelbyville, supplies different types of food to roughly 75 percent of Hispanic grocery stores in Kentucky, Indiana and Ohio. The owner tells WHAS that he may soon be out of business due to eminent domain.

Leonardo Castaneda is the first to admit his business started with a humble beginning.

“When we started, we started with two products in our house in one of the bedrooms,” said Castaneda.

Six years later Castaneda now sells food imported from Mexico to 350 stores across multiple states, and he said business is booming.

“Our revenue from sales is $400,000 per year,” Castaneda said.

Castaneda has plans for his largely vacant seven acre lot on 7th street but so does city of Shelbyville.

"Since back in the fall of last year, the city has been approaching the owner there about the possibility of purchasing that property for the purpose of doing a public project with that property to make it a public use property,” Shelbyville attorney Steven Gregory said.

“We don’t want to sell it,” said Castaneda. “With this property we’ve got a loading dock, we’ve got plenty of land, and we’ve got plans.”

After Castaneda rejected a $150,000 offer from the city, they exercised eminent domain, which doesn’t sit well with some people around town.

“If I was him, and they didn’t do me right, I’d go somewhere besides Shelby County,” said Owen. “There goes the tax base. Why would you do that?”

"The city was offering him $150,000 on the recommendation of several real estate professionals in the city,” said Owen. “What he asked for was $350,000."

“We checked two pieces of land,” said Castaneda. “For one piece of land they want $140,000 for two acres, and we’ve got seven here. This is prime land, and we’ve got to pretty much start all over.”

Ultimately the fate of the business, and the property, may be up to a Shelby County judge.

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