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Issues

Eminent Domain

Government sometimes has the need to widen a road or make a public right of way through private property for the betterment of the community or transportation needs. It is becoming a daily occurrence across our country. Eminent Domain allows for this practice. Unfortunately there are those that see nothing wrong with this practice and believe the government is entitled to do so without a penalty.

Although we do not want to impede progress that is helpful to all of us, it is imperative that the government negotiates with the owner of such properties, a fair market value for the properties that are required.

Let me be clear, I cannot think of one reason why a private property owner should not be compensated or why government should seize a property without paying the citizen his/her just due.

Property that is needed by the government should never be seized without providing ample notice of the need and fair market value paid for the property required.

We can proactively do some things to make this less painful when in fact it needs to be done. First of all we need to understand there are two distinct need for Eminent Domain transactions.

The first need for the land is clearly a community need and one that will benefit all citizens in a community. Some examples would be a New public school, hospital, Community Center, mass transit or infrastructure needs such as roads and bridges.

Long Range Project Planning

Through long range planning it seems that communities would be much more proactive to plan for major projects that the entire community will benefit from way out in advance. They can actually approach affected businesses and homeowners and prepare them for the fact that they may need to move in say, ten years due to the community project.

The offer to buy those properties far in advance and allow the seller to bank the money and live there free of charge until the project actually gets underway would be a positive incentive for property owners. Selling early for a good price to see a great return on the money while they live there free and clear, could offer enough of a profit for the property owner to be able to invest in a new home or business without much harm being done.

Tightening and Publicizing Zoning Restrictions

The other safeguard that could be enacted is for communities to make their zoning ordinances clear and precise. This allows potential developers to see "where" they might locate a particular project based on the zoning ordinances in place. Many times communities do not make these ordinances clear, or have had a history of not clearly delineating where commercial and industrial areas end and residential areas begin.

Retail and Commercial Use and Developers Who Profit

The second category of eminent domain seizures have to do with development of property for retail, housing or commercial projects that have more to do with a select group of people benefiting such as property developers and businesses.

The two main issues that need to be fully understood and discussed are the ideas of blighted properties and Tax Incremented Funding or (Tif).

Blight

Many times to renew communities that have areas of blight where buildings are in disrepair and the infrastructure could use some refurbishing, developers come in with plans for renewal that may help the community economically but will also pad their pockets with a healthy profit.

In this regard the owner will profit hugely when the development is complete. Part of that profit will come from the fact that they will substantially increase the value of the property once it is developed and could turn around and sell it for a hefty profit.

This is largely what free enterprise is about. However, If a person's property is seized without a fair market price paid for said property, it seems less palatable for the homeowner. They realize the developer might very well lowball the price of the property as a buyer, but will end up with great profits from the property later after the fact.

Define Blight More Specifically

The devil is in the details. The definition of blight is used fairly loosely when it comes to eminent domain. We might protect the citizen better if the definition of blight was more defined and precise. This would make the property seizure for reasons of blight much more controlled and objective.

Tif - Tax Incremented Funding

The best way I can explain Tif is the idea that a developer is able to buy a property for tax credits knowing full well that when the project is finished he will repay the money through increased taxation on the property once it is up and running.

Unfortunately, when communities work to purchase the properties needed, they may need to pay more than fair market value to enable the sellers to turn enough of a profit to then purchase another home for the price they have received from the sale of their home.

Improve the equation for the seller and the community

My suggestion would be that if the community bears all the responsibility for the purchase of the home or property in on the front end, then those that profit for the full operation of the property, once complete, should bear some of the cost of the purchase price, paid back to the community. These ideas may keep TIF in line.

Bottom Line

I will not agree to the carte blanche taking of private citizen's properties for the gain of private interests that benefit a select group. I will not support the taking of property where citizens are not given a fair market price for their property.