Lakewood man wanted more money for his seized home. Jury says, no, you owe city
A Pierce County Superior Court jury found that the City of Lakewood overpaid a man for property the city seized under eminent domain to make way for a new parking lot along Lake Steilacoom.
Ebrahim Mirjalili sued the city claiming he should have received more than $1 million for his 5,000-square-foot lake home. Lakewood contended a third of the home was built on public land predating the city’s incorporation and thus it could only pay him for the private land.
In 2024 the city deposited $453,000 into a court registry for Mirjalili, believing at the time that was fair compensation for the property based on an initial appraisal estimate, said communications manager Brynn Grimley. On May 9 a jury found Mirjalili should have been paid $325,000 for his home, which means Mirjalili will have to pay the city back about $131,000 plus 12% interest, Grimley said.
“It is our understanding Mr. Mirjalili’s bank used the money to repay debt he owed on the property,” she said. “We hope this serves as the final chapter in this case that has gone on for years at Lakewood taxpayers’ expense.”
Mirjalili has contended that the city is abusing its power to take advantage of him and his family. According to court records, a judge found there has been “no evidence of fraud (actual or constructive), abuse of power, bad faith or arbitrary and capricious conduct by the city” in condemning the property.
In a statement shared through his attorneys Thursday, Mirjalili said although the jury’s verdict of $325,000 was “arguably the maximum amount” it could have awarded, the settlement “does not reflect the true amount of just compensation owed for the City’s taking of the Mirjalili family’s home.”
Attorney Tanner Hoidal said the court rejected a boundary survey submitted by the family and opposed the survey submitted by the city which “left the remainder of the property boundaries undefined.” In addition, Hoidal said, the city’s appraiser changed his opinion about the extent of the property he was valuing “just four days before trial,” creating confusion. Hoidal also said the city’s deposit of funds “were not withdrawn by the Mirjalili family themselves, but rather—over the Mirjalili family’s objections—by their mortgage lender, LoanDepot, who was then dismissed from the case with the City’s agreement shortly thereafter.”
“The Mirjalili family is currently weighing their options, including the possibility of an appeal. We have no further comment at this time, other than to refer you to the arguments set forth in our filings, which speak for themselves,” Hoidal said in an email. “We encourage anyone interested to review the record closely, as we believe there are unusual and nuanced aspects of this case that merit thoughtful attention and scrutiny.”
The city has contended Mirjalili is spreading misinformation about the case and painting the city in a negative light. Grimley said the city has spent “hundreds of thousands of dollars” in legal fees on the case “due to the property owner’s decision to continually appeal and delay legal proceedings and ultimately force this to go to jury trial.”
Mirjalili’s home has been demolished to make way for a new boat parking lot on Edgewater Drive Southwest. Other improvements to Edgewater Park include crosswalks, replacement of invasive species, adding a designated fishing pier/beach, swimming area and boat launch. Grimley said the plans will increase public access to Lake Steilacoom and make needed upgrades to the property.
“Legally the city cannot give away publicly owned land, regardless of how long someone has used that land for private purposes. When we learned of the significant encroachment onto city-owned property at Edgewater Drive, by law we had to act,” Grimely said in an email Thursday. “According to land surveys, approximately one-third of the home structure on the property was built on public land. The home did not meet code requirements due to non-permitted additions and renovations. In its condition, the home was not considered marketable.”
Grimley added that it was shared through legal proceedings that Mirjalili was compensated $650,000 in insurance proceeds due to the defective title on the property.
The city is proceeding with Edgewater Park improvements and design and permitting with construction is anticipated to begin in 2026, Grimley said.
“The recent legislative session included a number of grant awards and state funding allocations to help pay for these improvements and we are excited to see this park further transformed to support recreational opportunities in Lakewood,” she said.
