This Texas auto shop owner says he was forced out of his building thanks to eminent domain — only for it to sit vacant for months before the utility company got around to demolishing it

What is eminent domain and how can it affect your business?

That notification didn’t come from TxDOT, but from Atmos Energy, a Dallas-based natural gas-only distributor. A spokesperson for the utility company confirmed to WFAA they are required to perform pipeline replacements in accordance with the state’s road expansion project.

“We really didn’t understand we were going to lose the building until the very end. And we didn’t really understand timelines to the very end,” Jordan said. According to him, Atmos said it needed to run gas lines through the land where his shop stood.

To make matters worse, the building was demolished months after his business was told to leave.

Jordan said he was required to vacate the property by January 31, but the building wasn’t demolished until mid-June. He said, “We could have continued operations until they actually needed to tear the building down, that would have saved me months of, at the least, staying in business.”

The upheaval faced by Fifth Gear Automotive is due to a legal mechanism known as eminent domain. It allows the government to take private property for public use, think highways, pipelines, railroads, schools, in exchange for “just compensation.”

“We always prefer to acquire property rights through negotiation,” said Atmos in its statement. “When that is not possible, the courts have a process for acquiring the easement and compensating the landowner.”

That "just compensation" is usually based on fair market value. It may also include certain damages if your remaining property’s market value is diminished by the acquisition itself or by the way the condemning entity will use the property, says the Texas Landowner’s Bill of Rights.

It sounds fair, but isn’t always in practice.

For example, in Jordan’s case, the financial and emotional pain may be much deeper than the compensation. "It's basically cut our business in half and taken us to a point where it's an investment to stay in business, not a profitable venture," he said.

Dave Ramsey’s plan has people crushing debt fast

Drowning in debt? Dave Ramsey’s viral 7-step method is helping people wipe it out and finally build real savings. No gimmicks—just a clear plan that works. Moneywise breaks it down so you can get started in minutes. If you’re serious about getting ahead, don’t miss this.

See the steps

Negative effects of eminent domain

Here’s how eminent domain works:

• The government identifies the land needed for a project.
• They offer the owner “just compensation.”
• If the owner and the government cannot agree on the value of the property, the government can initiate a legal process called condemnation, filing a claim for the property in court.

Eminent domain is meant to allow the building of better public infrastructure, but for small business owners, it can bulldoze more than just property. When timelines shift or communication is poor, the financial fallout can hit like a wrecking ball.

Fifth Gear Automotive has relocated to a temporary office about two miles away off Highway 407, with hopes of opening a new permanent site there in 2026.

"I’m excited about the investments that we’re making in this area," Jordan said. "We need larger roads and better infrastructure to support a growing city and town, but you need to be very mindful of the businesses and how it impacts the people around."

“By imposing tremendous costs (both social and economic) in the form of lost communities, uprooted families and destroyed small businesses, eminent domain often thwarts, rather than helps, economic growth,” says the Institute for Justice. “Instead of seizing private property, cities can streamline regulatory barriers, like permitting and zoning laws, and usher in development without eminent domain.”

In 2006, the U.S. Government Accountability Office (GAO) produced a report on the use of eminent domain by state and local governments.

Property rights groups and a national community organization described the negative effects like loss of small businesses and jobs, decreases in affordable housing, and the dispersal of communities.

They also said property owners may be hurt by lack of notice, blight designations that negatively impacted neighboring nonblighted properties, significantly undervalued appraisals, and inadequate compensation.

If your business is near a major public works project, talk to a lawyer early, even before the notices arrive.