SC Eminent Domain Case

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Dave P

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Supreme Court to Hear Eminent Domain Case

By PETE YOST, Associated Press Writer

WASHINGTON - Residents trying to hang onto their homes in a working class neighborhood of New London, Conn., are waging a battle in the Supreme Court over their city government's attempt to seize property for private economic development.



Susette Kelo and several other homeowners filed a lawsuit after city officials announced plans to bulldoze their residences to clear the way for a riverfront hotel, health club and offices. The residents refused to move, arguing it was an unconstitutional taking of their property.

The case's outcome will have significant implications for so-called eminent domain actions.

There have been over 10,000 instances in recent years of private property being threatened with condemnation or actually condemned by government for private use, according to the Institute for Justice. The group represents the New London residents who filed the case.

The issue revolves around whether a government is serving a public purpose when it uses its power of eminent domain to take land. The Fifth Amendment prohibits taking private property for public use without just compensation. The New London case is not about the amount of compensation being offered, but whether the government can take the property at all.

Over the years, the Supreme Court has deferred to the decision-making of elected state and local officials.

The court said in 1954 that it is legal for urban renewal to encompass non-blighted commercial buildings in a blighted neighborhood. In 1984, the court upheld Hawaii's land reform law that broke the grip of large landowners, with property being taken and then resold to others.

More recently, many cities and towns have been accused of abusing their authority, razing nice homes to make way for parking lots for casinos and other tax-producing businesses.

New London, a town of less than 26,000, once was a center of the whaling industry and later became a manufacturing hub. More recently the city has suffered the kind of economic woes afflicting urban areas across the country, with losses of residents and jobs. City leaders say the private development will generate tax revenue and improve the local economy.

"The undisputed facts regarding the steady deterioration of New London's economy from the 1970s onwards demonstrate the dire need for such a development project," the city told the court.

The New London neighborhood that would be swept away includes Victorian-era houses and small businesses that in some instances have been owned by several generations of families.

Among the New London residents in the case is a couple in their 80s who have lived in the same home for over 50 years.

City officials envision a commercial development that would attract tourists to the Thames riverfront, complementing an adjoining Pfizer Corp. research center and a proposed Coast Guard museum.

Anthony Williams, who is president of the National League of Cities, says the power of eminent domain is one of the most important tools city officials have to rejuvenate their neighborhoods.

"Where would Baltimore be without the Inner Harbor, Kansas City without the Kansas Speedway, Canton, Miss., without its new Nissan plant?" Williams said.

The case is Kelo v. City of New London, 04-108.
 
Eminent domain, initially conceived for valid purposes, has been corrupted by those in power (gee, whoda thunk it???). If a government entity (municipal, county, state, or federal) seeks to "condemn" and seize property under the auspices of eminent domain, the owner should be recompensed at the value of the property FOR AT LEAST THE NEXT TWENTY YEARS!

If the gubmint says my li'l acre of property is only worth $500, and seizes it, it should pay me the $500. If, over the next 20 years, the value of the (now gubmint-owned) property rises (mysteriously . . .) to $20,000, I should get that additional $19,500 (in annual increments, or whenever the locale appraises property for tax purposes).

Any governmental entity that seizes property under eminent domain, then turns around and sells that property to a commercial entity should be penalized, somehow, some way. That happens, and its unconscionable.
 
If the gubmint says my li'l acre of property is only worth $500, and seizes it, it should pay me the $500. If, over the next 20 years, the value of the (now gubmint-owned) property rises (mysteriously . . .) to $20,000, I should get that additional $19,500 (in annual increments, or whenever the locale appraises property for tax purposes).
Sorry, no.


When the gubmint takes land under eminent domain, it hires an independent, unbiased appraiser to estimate the value of the land at the time of taking. The compensation paid to the property owner is exactly the value indicated by the appraisal. This is strictly fair, both to the property owner and the tax payers.

Any competant appraiser is able to recognize the future developmental potential a property might have, and his/her valuation will reflect that potential.

A property owner forced to sell under eminent domain is given sufficent compensation to be able to purchase a comparable piece of property elsewhere and resume his economic activities at the new property. He is, in essence, restored to exactly the same circumstances after the taking that he enjoyed before the taking. The process for accomplishing this is long, detailed, thorough, and fair. (I work for an eminent domain appriser, and I know exactly what lengths an appraiser will go to to ensure that a property owner is sufficently compensated)

So, if you start with an acre of property worth $500 today, but with the potential to increase to $20,000 in the future, you will be awarded a compensation that is soewhat higher than just $500. Exactly how much higher depends on the market conditions in your area. The amount will be sufficent for you to buy another "$500" property with similar potential to be worth $20,000 in the future.




The problem in the case given in the article is that the taking is unconstitutional. Eminent domian is only supposed to be used when the property is being taken for the public good. Usually this means for public roads and the like. Eminent domain is NOT to be used for the benefit of private entities, such as a casino.

If the casino owners want a certain piece of land, they should pay "scalper" prices to the current owners just like any other developer would. This is how land development works, and it is fair and just.

It looks to me like the casino owners realized it would be cheaper to buy the Conn politicians than to buy the land directly. As such, the Conn officials who OK'd the condemnation should be tarred and feathered.

I wish the homeowners all the best.
 
Headless,

Eminient domain thwarts the free market. If the government wants to steal my property so that they can give it to Wal Mart then any "fair" appraisal is pure BS.

Let them persuade me with cash until I just can't say no. That is fair.

I don't have a problem with eminent domain for roads, fire stations or police stations. For any other purpose it is simply an abuse of power.
 
"Eminent Domain" ? ? ?

Hork! Pitoo!

My grandmother's near life-long home in Memphis, TN was "Eminent Domained" away from her in the very early 1960's. I-40 is STILL not complete through Memphis...Overton Park/Zoo area.

I don't remember the exact address, but it was on Forrest Ave, near the Overton Park & Zoo area. What is/was commonly called Mid-Town Memphis
 
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I believe that eminent domain has been used for plenty of important projects. I think most of our interstates and railroads were put in using eminent domain, but I do have issue with cities using it to renew an area that isn't offering the city enough tax revenue!!
 
Eminient domain thwarts the free market. If the government wants to steal my property so that they can give it to Wal Mart then any "fair" appraisal is pure BS.
You're missing the point. The government can't steal your property and give it to Wal Mart, because that wouldn't be for public use. Doing so would be unconstitutional.

The Constitution explicitly grants authority to the government to buy, at a fair price, property from individuals for the greater good of the public. If you don't like this, then you can revolt. If you succeed, you'll be free to write the new constitution any way you want.

Eminent domain is a power that the government holds over the people. As such it should be exercised with extreme caution. In most cases it is. In cases like the casino in Conecticut I think the guilty parties should do time in prison. What they did was NOT Right, and they should be brought to justice.

My grandmother's near life-long home in Memphis, TN was "Eminent Domained" away from her in the very early 1960's. I-40 is STILL not complete through Memphis...Overton Park/Zoo area.
I'm sorry to hear that. My girlfriend's family busines was "eminent domained", and the county civics center that was supposed to be built over it still hasn't appeared. So trust me when I say that I can sympathize with your grandmother. I know what this kinda thing does to a family.
 
City of Richardson is using eminent domain to take away a local shaved-ice vendor's stand & land...to give it to a developer who plans on putting up up-tp $500,000 townhomes.

We in Richardson are watching Kelo closely and I am hoping that the Supremes knock some sense back into eminient domain law.
 
The big problem with eminent domain-the abuse of it, that is- is that "public use"-ie, roads, schools,fire stations, and things of that nature has morphed into "public benefit"-which basically means anything that will increase municipal tax revenue, be it Wal-mart, a casino expansion, luxury condos, or whatever.

The starting point for this was the 1954 SCOTUS decision in the Parker case.
 
When the gubmint takes land under eminent domain, it hires an independent, unbiased appraiser to estimate the value of the land at the time of taking. The compensation paid to the property owner is exactly the value indicated by the appraisal. This is strictly fair, both to the property owner and the tax payers.
Not exactly. The appraiser is beholden to the gubmint, who pays his fee, and grants future work if they're happy with the results. I'm not saying the appraiser is dishonest, just that he knows who butters his bread.
 
E/d....

HTG; i'd like to know the color of the sun in the world of any individual who believes we can just "go somewhere else & resume their profit-making efforts"(paraphrasing here). without the concept of "PRIVATE property", there is NO liberty. and, who will pay customers, or whomever, to drive to a "new" place that, for many, may be inconvenient??? i've seen businesses wither & die, because they were forced to move from a formerly successful location. :barf: when these folks moved there, it was probably because those "waterfront mansions" were on the "wrong side of the tracks" & nobody else wanted to live there, the place probably stunk!! now, all of a sudden, they're priceless. and as for baltimore being praised as such a success story, well, that "inner harbor" is a joke to everyone except the politicians! at night, when the jaboneys come out, you better have at least a suburban, equipped w/a turret!!! just ask the people in little italy. :cool:
 
Not exactly. The appraiser is beholden to the gubmint, who pays his fee, and grants future work if they're happy with the results. I'm not saying the appraiser is dishonest, just that he knows who butters his bread.
Sorry, not true. About the worst thing a government-contracted appraiser can do is short a property owner. If an appraisal comes in too low, the property owner will take the matter to court. This is extremely expensive and time consuming, and will likely delay whatever project the gubmint was trying to complete.

The court will hire a number of new appraisers to re-appraise the property in question, and will come to some sort of consensus on what the property is really worth. If it turns out that the original appraiser's value was too low, then the original appraiser will have cost the government a whole lot of money, time, and wasted effort. The government will not be happy, and will probably not be hiring that individual again.

In all of the cases I've worked on, the cost of the project (usually a road-widening) has substantially outweighed the cost of acquiring the right-of-way. Delays are more expensive than a few extra dollars awarded to a property owner, and the state knows it.

The state encourages us to be as generous with our awards as the law allows, so that the risk of ending up in court is minimal. That's right, folks. You're more likely to be overcompensated than undercompensated. At least here in Indiana...

Oh, and appraisers generally do far more work for the private sector than for the government. As an appraiser, your reputation for completing honest, accurate work is vital to your success in comercial trade. Falsifying a value on a meager government contract is a very good way to ruin your business.

The government doesn't want property owners to be short-changed. Appraisers don't want property owners to be short-changed. And if a property owner is still somehow unhappy with an award, the courts will correct matters.
 
You're missing the point. The government can't steal your property and give it to Wal Mart, because that wouldn't be for public use. Doing so would be unconstitutional.

Ideally, yes. But it happens, or the government tries to. Note the Alabaster, AL case (City wants a strip mall built along a highway for "tax revenue", but the citizens won't sell their property).

All sorts of other absurd cases are here: http://www.castlecoalition.org/
 
Mr. Roberts, "economic redevelopment" is a joke. Anyone in the real estate biz knows it. If the redevelopment of some area showed any promise of succeeding, then the private developers would have moved in long ago.

Don't blame me for the current state of private property ownership. Eminent domain was made possible by the Founding Fathers, not some latterday evil bureaucrat. If you don't like it, ammend the constitution.

As for people relocating a business, that's another matter entirely. Generally, the government offers some sort of "relocation assisstance" above and beyond the compensation for the property. Relocation assisstance is often given to allow a relocated business to advertise its new location, or upgrade its new facility to attract new customers. 90% of the property owners who have gone through eminent domain takings have been satisfied with the way they were treated by the "evil" government.

The other 10%? Well, that's just how things go sometimes. The government ALWAYS awards enough for the owner to make a go of things at a new location. Some owners choose not to reopen at a new location. Others try to and fail, despite all of the assisstance ofered. In the end, it's just an unfortunate thing if a business ends because of eminent domain takings. Such is life.

And before you get pissed off at me for being so callous, recall that the business owner went into business fully aware that eminent domain is a fact of life. There are plenty of ways to avoid becoming an eminent domain taking, and a prudent proprietor will take that into account before selecting a location. Besides, the projects that necessitate eminent domain takings are usually more advantageous to a business than disadvantageous.

If you don't like it, then sue the state. (You'll likely win...) If that doesn't satisfy you, then revolt and start a new country without eminent domain powers.
 
If the redevelopment of some area showed any promise of succeeding, then the private developers would have moved in long ago.

I was involved in a minor way in a real estate "redevelopment" project some years ago. The tax payers' dollars teamed up with government clout to... Well, to... Well, it was yet another example of government planning. The project was torn down after six or eight years of increasingly dismal results.
 
You're missing the point. The government can't steal your property and give it to Wal Mart, because that wouldn't be for public use. Doing so would be unconstitutional.
[Horselaugh] Bwwhaaaaaa [/horselaugh]<Wipes tears from eyes and blows nose> Thanks, I haven't laughed that hard in days. I've followed this case for some time now. Whether or not the taking is constitutional is beside the point. Not one in the coverage of the run up to the case has anyone brought up the issue. Of course the taking of private property for the benefit of private citizens is unconstitutional, but so what. We've descended to the point that the collection of additional taxes from private individuals is now a public need.

Years and years ago I spent some time in Atlantic city where they were building a new hotel. Seems there was on small house on the site whose owner refused to sell out to the hotel owner. So the hotel simply built its building on three sides of the holdout's house. The house was one story and faced a street. The hotel wall was notched all the way to the roof to accommodate the house. I applaud obstruction but can't help but think about how much money was left on the table.
 
recall that the business owner went into business fully aware that eminent domain is a fact of life. There are plenty of ways to avoid becoming an eminent domain taking, and a prudent proprietor will take that into account before selecting a location.

While everyone is aware of ED, now that it is being expanded to include anything that will increase taxes for a government entity, there is no way that anyone, or any business is safe. If this is deemed legal, then your house can be condemned because someone else wants to build theirs on the property. After all, a larger/newer one will bring in more tax money. And as to a business being able to relocate, that assumes that someone is willing to sell property to relocate to. It's not like a small business can use ED to relocate itself. At least in some rural areas, there are a few circumstances that can stop the ED insanity.

MFH
 
Headless, with all due respect I have to jump in here.

In my 23 years' experience, virtually every government entity that exercises the power of eminent domain routinely hires "suggestible" appraisers who provide low appraisals, because they know that is what is expected of them, and they know they will not be hired for the next project if they come in with a higher value. In some cases, the government relies on "in-house" appraisals that tend to be even lower. The reason they do this is that most people want to be "good citizens" and not fight the government, and they also don't want to have to hire a lawyer and an appraiser. So from the government's perspective, it makes good economic sense to make lowball offers.

If the property owner does choose to fight the valuation, it almost never holds up the project. The government can do a "quick take" condemnation and acquire the property promptly, and the dispute over the amount of compensation may continue for a year or two after the project is completed.

The one possible exception to this is in cases where a private developer wants to do a redevelopment project, as opposed to a taking for a truly public project like a highway or park or school. When the taking will benefit a private developer, it is more likely to be unlawful (because of that nagging "public use" requirement in the Constitution, and we'll see how much life that doctrine still has once the Supreme Court rules), but it is also more likely the developer will pay a 5 to 10% premium to avoid a court fight.

The power of eminent domain has been increasingly abused by cities over the past 30 or 40 years, and it will be very interesting to see what the Supreme Court does with this case.
 
You're missing the point. The government can't steal your property and give it to Wal Mart, because that wouldn't be for public use. Doing so would be unconstitutional.

Tell that to the people who live in my town. :rolleyes:

Currently the village I live in is emminent domaining a couple of farmers in order to sell the land to Aurora Healthcare, which is the health care equivalent to walmart in my state. The farmers are fighting it and the vilage officials are using the words public good and public service to explain away thier own position. This is all in the the face of the fact that there is another clinic that already exists across the street from the site that is less than 5 years old along with a brand new hospital going up as we speak 2 miles from the site.

What does the village get out of this? Aurora has another smaller and older health clinic across town which the village is going to be able to buy at a very low price to use as a community center. I can't even imagine the number of greased palms and kickbacks are in the deal. :fire:
 
Headless Thompson Gunner,

You no doubt believe what you say, but the governments in various locales HAVE condemned property under eminent domain, then turned around and sold that property to developers. The purpose, as stated by others, is to raise the tax base by increasing property values, using business-related taxes, etc.

I believe the point that most of the posters (and I) are trying to make is that the concept has been perverted far beyond its initial intent. Needed to build a freeway? Well, OK. Needed so MegaCorp can build a superstore and pay the mayor's increased salary? Not legit!
 
HTG and the others who are debating the issue of how much a property owner is compensated and the honesty of the appraisers are missing the entire point of the case. If New London were buidling a road, or a new firestation, there wouldn't be a case. But they're not. They want to expand a Pfizer facility and build expensive new homes and commercial properties, in an area that is now non-blighted, middle class homes. And some of the home owners don't want to sell. It's not a matter of the money.

One family who is fighting has owned their property for over a century. Another is an octogenarian who has lived in her house for for over 50 years. The lead plaintiff, Mrs Kelo, simply doesn't want to sell.

Private property is central to a free society. When the state is not restrained from taking property, freedom crumbles.
 
When the gubmint takes land under eminent domain, it hires an independent, unbiased appraiser to estimate the value of the land at the time of taking.

This is funny. And very, very fanciful. It may be what the gooberment is supposed to do. in reality they set an arbitrary value, take the property and pay what they want...when they want. We lost beachfront property in Floriduh this way, for a "national park project", during the Carter Admin. Shortly thereafter the "project" fell apart and the land was sold to developers(along with that belong to several hundred others). It took the goobermint 2 years AFTER that sale to pay us less than one fifteenth what they sold it for.

And that, my friend, is how eminent domain always works today. While I am certain someone somewhere has gotten something close to fair market value I personally have not encountered a single such instance. Ever. Anywhere. It's just the way it's been for the past 30 or 40 years. Especially out west. All this case does it further legitimize it if the locality wins, and I am certain they will.
 
E.d.

In Georgia,even Ga. Power Co. can take your land and it is not part of the Government!
Ga Power has been known to take someones property and sell or lease to someone else.
It has happened a lot on some of the Ga. Power lakes.
 
IANAL, but from a quick review of this case before the SCOTUS, it the municipality wins this one, NO ONE'S property is safe from seizure for any perceived "public benefit". The courts will have failed to abide by the Constitution, again.

Here in Colorado, this :cuss: goes on far to often. I've spoken in other threads here of at least one case outside Boulder, and know of others from the media equally repugnant. People sue, courts side with the city/designated authority and all our liberties are eroded just a little bit more.

Is it time yet Claire?
 
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