5/23/2005

Revitalization Projects Hinge On Eminent-Domain Lawsuit: Washingon (DC) Post, 5/21/05

By Kirstin Downey

Seven years after a real estate agent came knocking at her door [in New London CT] to tell her that her house was being condemned by the city to make way for a luxury hotel and office complex, Susette Kelo, a 48-year-old nurse, is still seething with rage.

Perched stiffly at the kitchen table of the cozy Victorian cottage she refurbished "from the concrete in the basement to the shingles on the roof," Kelo pours out the story of how she has fought the city and state, taking her case all the way to the Supreme Court. "I don't like to be pushed around," she said.

Now one woman's anger and determination may affect urban revitalization projects all over the country. She and her backers say the government has overstepped; those on the other side say such actions are needed for the public good.

Kelo's lawsuit, filed with eight neighbors and financed by the libertarian advocacy group Institute for Justice, alleges that New London's plan to redevelop the waterfront area where Kelo lives is unconstitutional because the government wants to take her land for private redevelopment, not public use as the Fifth Amendment permits.

While the Constitution grants governments the power to take land for public use, it specifies only that owners be given "just compensation" for their loss. Through the years, the people on the losing end of the arrangement have disliked it; the people deciding what needs to be taken have defended it.

There is little dispute over many kinds of public land use, such as that for schools, roads and water-treatment plants. In the past five decades, however, municipalities have expanded the interpretation of "public use" to include revitalizing dilapidated downtowns, removing urban blight and boosting tourism and tax revenue.

In the Washington area, the power of eminent domain, or the threat of it, was used to spiff up Pennsylvania Avenue and to build the Metro system and the development parcels around its stations. The District hopes to redevelop a down-at-the-heels cluster of stores in Southeast Washington known as the Skyland Shopping Center into a more upscale shopping complex, and if the 16 property owners there don't agree to sell their land to the city voluntarily, city officials say they will take the land through eminent domain. That plan could die if the Supreme Court rules in favor of Kelo.

City officials around the nation are watching uneasily as the Supreme Court deliberates. D.C. Mayor Anthony A. Williams (D), who is president of the National League of Cities, said he is worried that the case could interfere with "the critical need of cities to use this tool — reluctantly — for public purpose and benefits."

Williams said the success of the Kelo lawsuit represents the growing political strength of what he views as radical property-rights activists.

"Some of these people wouldn't use eminent domain to build a highway or a railroad," Williams said.

The Institute for Justice says it accepts the use of eminent domain for roads, schools and parks and opposes it for privately owned, for-profit operations. Lawyers there say they have taken Kelo's case because they think it represents a classic case of excessive use of government power. "It's an unholy marriage between land-hungry developers and tax-hungry local governments," said John E. Kramer, an institute spokesman. Institute officials say they found 10,282 incidents of filed or threatened condemnation procedures in which land was given to private, for-profit parties, such as Target or Costco stores or casino parking lots, between Jan. 1, 1998, and Dec. 31, 2002.

The Kelo case arose when New London, an old and scruffy city seeking to jump-start its economy, turned to urban redevelopment. Once a whaling center second only to New Bedford, Mass., and then a shipping and manufacturing hub, New London has slowly lost its industrial and commercial base.

In 1997, Pfizer Inc., the giant pharmaceutical firm that makes such drugs as Zoloft, Viagra and Celebrex, began discussions with state and local officials about a $300 million research plant in New London that would bring 2,000 jobs. It was the first time a major manufacturer had expressed interest in moving to New London in more than 100 years.

In a March 1999 letter, George M. Milne Jr., president of Pfizer's Central Research Division, wrote that the company's New London expansion "requires the world class redevelopment planned for the adjacent 90 acres," which included Kelo's neighborhood, encompassing about 115 properties. Milne said Pfizer needed a 200-room waterfront hotel, a conference center, a physical fitness area, extended-stay residential units and 80 units of housing.

Kelo learned about the government's plan for her property when a real estate agent showed up on her doorstep in early 1998, telling her that her home was scheduled for demolition and that she had better sell quickly. Kelo bought the two-bedroom, one-bathroom house for $53,000 in 1997. The real estate agent offered her $68,000. Kelo told the agent to get off her property. Other area residents were easier to persuade.

The issue of compensation was a sticking point. When Kelo bought her house, the Fort Trumbull area was run down, wedged between a decommissioned military installation and a ramshackle marina, near a malodorous sewage-treatment plant. But by the time demolition of the neighborhood began, there was a blue-chip corporate research center and an attractive waterfront park with bike trails and green lawns. The sewage smell had abated. And when Pfizer decided to build a state-of-the-art day care center for the children of its employees, the corporation bought homes near its compound, paying prices considerably higher than the previous going rates. One house reportedly sold for $400,000. Kelo said the final government offer she received was $125,000.

In a statement, Pfizer said it is not a party to the suit and has no stake in its outcome. It said it had been a "good citizen" in New London and is now the city's largest taxpayer.

Kelo decided to fight the condemnation and got support from area activists who also opposed the project. With the backing of the Institute for Justice, Kelo and eight other property owners sued and won at the Connecticut Superior Court, but the city appealed to the state Supreme Court, which sided with the city. In February, the U.S. Supreme Court held oral arguments on the case, and a ruling is expected sometime this spring.

No construction has occurred at the site because prospective developers were frightened away by the lawsuits and controversy, said New London city manager Richard M. Brown.

In the meantime, the city's financial plight has worsened. In a recent budget statement, Brown reported that the city lost $1 million in expected tax revenue, partially because the Fort Trumbull neighborhood that had once paid taxes has been destroyed. The city's budget had relied on projected building permit fees that never materialized. Homeowners will likely face higher taxes, city officials said. The city took another blow last week, when the Pentagon announced plans to close the U.S. Naval Submarine Base, one of the city's largest employers, eliminating 7,096 military jobs and 952 civilian jobs.

For Kelo, not much of a victory is possible. Her house faces a gated state park with the modernist, six-story Pfizer research headquarters looming overhead. The blocks where her neighbors lived are a flattened expanse of dusty, rock-strewn soil with a handful of remaining structures poking out desolately. A nearby vacant lot is a dumping ground for smashed and abandoned buses and burned-out cars.

"It was always a quiet neighborhood," Kelo said. "Now it's just quieter. I don't like the fact they're all gone, but what can you do?"


Washington Post: www.washingtonpost.com

Eminent domain taking is upheld: The Cincinnati (OH) Enquirer, 5/21/05

Appeals court finds Norwood acted properly

By Sharon Coolidge

The city of Norwood [OH] properly used eminent domain when it seized five properties off Interstate 71, saying the homes and businesses on the land were deteriorating and posed a danger to the community, the 1st District Court of Appeals ruled Friday.

Norwood handed over the land to Anderson Real Estate and Miller-Valentine Group after seizing the properties, citing a study that found the property was deteriorating. They are building a $175-million complex of offices, shops, residences and restaurants. The developers have bought 65 other properties in the area bounded by I-71 and Edmondson and Edwards roads, most of which have already been razed.

The ruling upheld a June 2004 decision by Hamilton County Common Pleas Court Judge Beth Myers.

"The Ohio Supreme Court requires that we give the definition of 'blighted area' a liberal interpretation," wrote 1st District Court of Appeals Judge Mark Painter.

"Once a legislative determination of blight has been made, courts are required to and should be zealous in giving such determination by the city great weight.

"We will not substitute our judgment for that of the legislative body of the city," Painter added.

The decision addressed two properties specifically - a rental home on Delmar Avenue owned by Joe Horney and a home on Atlantic Avenue owned by Joy and Carl Gamble.

But the same argument applies to a third property, the Kumon Math and Reading Center on Edmondson Road.

The owners of Wilker Design on Edwards Road are appealing the city's use of eminent domain separately and the owner of Hyde Park Holistic Center on Edmondson Road has since dropped his appeal.

The Washington, D.C.-based Institute for Justice, a public-interest law firm which represents Horney and the Gambles, said it will ask the Ohio Supreme Court to take the case. Ohio's high court has already said the properties in question cannot be destroyed until the issue is resolved.

Horney and the Gambles have vowed to continue to fight against the taking of their property.

"The appeals court's decision opens the floodgates to further abuse of eminent domain," said Bert Gall, an attorney at the Institute for Justice. "Under its decision, developers are free to buy out a city's power of eminent domain for private development projects. The United States and Ohio constitutions forbid that result, and we are confident that we will prevail at the Ohio Supreme Court."

Norwood's attorney, Tim Burke, said he doesn't expect the Ohio Supreme Court to take up the case.

"Given four judges have all looked at the case and all have decided in favor of the city of Norwood, I think it reduces the likelihood that the Ohio Supreme Court will take jurisdiction over the case," Burke said. "Frankly, I really hope people recognize the fight is just about over and maybe it's time for everyone to move on and allow this project to go forward."

Attorney Richard Tranter, who represents Anderson Real Estate and Miller-Valentine Group, added, "This decision confirms that Norwood's urban renewal process was open, deliberative and served the community interest."

Although the developers cannot touch three properties involved in the appeal, they are close to completing the demolition of the other 68 structures on the 10-acre site, which is the first step of Rookwood Exchange.

Tranter would not comment on when building will begin.

Friday's unanimous appellate decision by Painter, Lee H. Hildebrandt Jr. and Robert Gorman said the city did not abuse its discretion in finding that the area was in danger of deteriorating into a blighted area.

"In our system of government, we require judicial deference to be given to a city council's decisions," Painter wrote. "...legislatures are better able to assess what public purpose should be advanced by the exercise of eminent domain."

The appellate court pointed out that the Norwood council considered several factors, including traffic congestion, noise, diversity of ownership, safety issues because of dead-end streets and the quality of residential living in the area at night because of lights from nearby developments.

After hearing what Norwood considered, Myers found the city had sound reasoning in taking the property. The appellate court agreed.

The Institute of Justice also argued that Norwood's urban renewal plan didn't comply with city code, that eminent domain can't be used to eliminate deteriorating conditions and that the city was using the deteriorating designation to mask the real reason for wanting the property.

The appellate court found no merit in those arguments.

Norwood Mayor Tom Williams said he's pleased with the appeals court's decision. "A Common Pleas Court judge and three appellate court judges have said that Norwood followed the law in the action we took," he said. "It's time for this project to move forward."



TIMELINE

Fall 2002: Anderson Real Estate and Miller-Valentine Group begin talking about Rookwood Exchange, a $175 million shopping and office complex off Interstate 71.

August 2003: Norwood City Council accepts an urban renewal plan that finds property in the area is deteriorating, thus can be seized through eminent domain.

November 2003: Norwood files to take the five properties through eminent domain. Owners of the other 65 properties needed for the project agreed to sell.

September 2003: The property owners file a lawsuit in Hamilton County Common Pleas Court challenging the eminent domain action.

June 2004: Hamilton County Common Pleas Judge Beth Myers ruled the city properly used eminent domain power.

February 2005: The Ohio Supreme Court says three of the properties in question cannot be destroyed until the appeals process is finished.


The Cincinnati Enquirer: http://news.enquirer.com

Debate Pits Private Property Against Powers of the State: Online Wall Street Journal, 5/19/05

Later this spring, the Supreme Court is expected to issue an opinion on the power of governments to seize private property.

The closely watched case centers on a New London, Conn., economic development plan. The city wants to use eminent domain to build offices, a hotel, condominiums and parking where houses now stand, arguing that its plan has economic benefits in new jobs and property-tax revenue. But opponents maintain that the project isn't a legitimate public use, saying it unjustly takes private property for a project that will benefit other private interests.

As a warm-up to the court's decision, which is expected sometime before the end of term June 30, economist blogger Don Boudreaux and Harvard Law professor David Barron debate the theories underlying eminent domain and public use of private property.



Don Boudreaux writes: Secure private property rights are the foundation of liberty and commerce — the chief pillars of our civilization. Such rights give each of us the elbow room necessary to develop our unique talents and to think and act in whatever peaceful ways we like, even if others find our thoughts and actions to be disagreeable. Security of these rights also encourages the mutually beneficial exchanges upon which economic prosperity depends, in large part by preventing property transfers that aren't mutually beneficial.

Suppose I think that I value my neighbor's car more than he values it. The only way for me (or anyone else) to be sure is for the law to require me to secure my neighbor's consent to sell his car to me. If I could simply take his car without his consent as long as I agreed to pay the car's blue-book value, there's no guarantee that this property transfer is mutually beneficial. My taking my neighbor's car without his consent is thievery, pure and simple. No economy rises above subsistence without a widespread, hard and fast requirement of mutual consent for property transfers.

Contrary to much modern mythology, nothing about government renders its violations of property rights less objectionable than those of common thieves and vandals. If the city of New London, Conn., is permitted to confiscate property belonging to others, even if it is required to pay fair market value to the former owners, ordinary people will be less secure in their persons and possessions.

And the general populace, if not the local government, will be poorer than otherwise. How could it not be so? If government is permitted to confiscate property rather than purchase it, the presumption must be that government values the property less highly than it is valued by the private owners from whom it is taken. Even if in a particular case this presumption doesn't hold (although we can never know when such a particular case arises), the policy of permitting government to take property without the consent of its owners inevitably encourages thievery by the state.

David Barron writes: Thanks, Don, for getting us going — and in such sweeping terms. It's hard to know what to make of grand claims about the importance of the right to property necessarily conflicting with the government's power to take it — given that the right to property grew up along with the government's authority to exercise the power of eminent domain. The very same Constitution that precludes the government from depriving people of their property without due process of law makes it perfectly clear that the government can take that property for a public use so long as it pays just compensation. The founders were no slouches when it came to property rights. The American historian Charles Beard made a career making that point. But you make them sound like the outspoken leftist John Reed (played by Warren Beatty in the movie "Reds") and his fellow travelers.

So, is it the case that we can't have secure property and permit eminent domain? If so, what's the evidence for that? Seems like we are doing pretty well economically without the constraint. And, in fact, as the Supreme Court has set forth an ever more deferential approach to the government's assertions of authority to engage in eminent domain — in cases such as Hawaii Housing Authority v. Midkiff and Berman v. Parker — economic growth hasn't seemed to falter. Nor, from what I can tell, has a general sense of being secure in one's property taken much of a hit. If anything, market fetishization is on the upswing.

That doesn't mean there are no hard questions when it comes to eminent domain. The Supreme Court is presented with a potentially difficult one at the present moment. The case concerns whether the city of New London can take private property (while compensating) and then make it available for private development. That action at least raises an issue about whether the government is conforming to the Constitution, which requires takings to be for a public use. I think the court should uphold the exercise of eminent domain in that case. I am quite confident you don't. But from your first post, it seems like you think that the government couldn't take the property even if it was going to build a public road or an airport or any number of clearly public uses.

Does our tradition of respect for private property really mean that the government can be held hostage to any holdout who wants to preclude the development of a government highway? Perhaps you think the Constitution should be amended to preclude the government from exercising eminent domain in all cases. If so, I think the "empirical burden" ball to show that would do more harm than good is in your court.

Don writes: Fortunately, while the security of property rights is reduced by decisions such as Midkiff — which gives enormous deference to legislative maneuvers that forcibly transfer property from Private Citizen A to Private Citizen B — property rights remain, by and large, secure in the United States. Indeed, I'm sure that even a Supreme Court victory for the city of New London won't cast us into the dark ages.

As Adam Smith wisely observed upon learning some bad news, "There is a great deal of ruin in a nation." A society as civil and as dynamic as the U.S. can endure and even prosper despite instances of corruption, malfeasance, and petty tyranny.

But the fact that government confiscations of private property aren't so widespread in the U.S. to prevent economic growth doesn't justify such confiscations. To the extent that these seizures occur, they make us less free and less prosperous than we would otherwise be.

David's right that the framers of the U.S. Constitution were "no slouches when it comes to property rights." By and large, I admire their handiwork. But I do wish that they would have rejected eminent domain. As David correctly notes, government asserts that it needs this power in order to prevent its projects from being hamstrung by private owners "holding out" strategically for unjustly high payments.

While such problems are imaginable — and, no doubt, would occasionally occur — I doubt that they are significant enough to entrust politicians with the power to take private property (even if such takings require payment of fair market value). America is planted thick, for example, with private housing developments on large contiguous plots of land that developers manage to assemble without confiscating others' properties. If private developers can achieve such outcomes, there's no reason government officials can't do so.

For those who fancy that government's projects are uniquely important, or for those who imagine that holding government office makes someone unusually saintly or trustworthy, entrusting government with power that we would never entrust to our neighbors or other private citizens might seem sensible. To me, it's dangerous, unjustified, and unjustifiable.

David writes: Looks like our disagreement remains at the threshold — whether any exercises of eminent domain are ever justifiable.

Don suggests that they always result in social loss, and he points to the fact that developers manage to assemble master-planned communities with some regularity without resorting to the exercise of eminent domain. So, he suggests, why should the government be privileged to get land for less than it's worth? After all, it could always buy it at a price the seller would accept. Doesn't that mean that every exercise of eminent domain makes the world poorer?

Sounds plausible, but a few points in that regard:

The first is that these master-planned communities share a common feature — they are located near public roads, which exist only because the power of eminent domain exists. So it's actually not the case that these private developers acted without the aid of the government confiscating someone's property. Could we really have these developments if the private developers themselves had to assemble all of the necessary transportation infrastructure to get people from home to work as well? Indeed, even property that is taken is often property that itself benefited along the way from prior exercises of eminent domain — be they exercises of eminent domain that helped make it possible for the railroad to deliver the construction materials for the building of the home in the first place, etc.

The basic conceptual problem, in other words, seems to me to remain for those who oppose the eminent domain power simpliciter: Eminent domain and private property are more co-dependent than you'd think. So, in permitting eminent domain, we aren't just tolerating a drag on the system. We are upholding a practice that makes the system work as well as it does.

The second point concerns the fact that these master-planned developments are sprouting up further and further out into exurbia. One reason that places like New London occasionally resort to eminent domain is to revitalize a close-in city. It by no means clear that restricting eminent domain — insofar as it precludes cities from revitalizing themselves — makes us all better off if it just ensures that sprawling growth results. The literature on the costs of sprawl is itself sprawling, of course, and it is surely open to differing interpretations. But given the room for debate, why wouldn't we think that democratic processes are a good mechanism for making judgments about how to proceed when the best way of achieving social welfare is by no means clear? Seems to me we have a pretty deep tradition of looking to democratic processes to make such judgments all the time — even when they impose costs on private property owners. I don't think Don means to be calling all forms of property regulation into question, but I'm not sure I see how he isn't.

One final point. As a lawyer, now in dialogue with an economist, I am interested in your view as to whether there is anything to the distinction between takings for "public use" in the classic sense (say, for a public road) and takings in which the government gives the property over for private development (as in New London). Justice Kennedy at oral argument in the New London case kept suggesting the economists would think there is nothing to that distinction. Each kind of exercise of eminent domain is either equally good or bad. But is that right? Do you see a difference between the two — a difference that would make you even more hostile to what the city of New London is doing in particular than to what the framers of our Constitution authorized governments to do more generally?

Don writes: It's true that privately built housing communities depend upon road and sewer systems, which typically are built by government. But this observation doesn't address my argument that eminent domain is unnecessary. The fact that housing developers routinely acquire large contiguous plots of land without eminent domain — that is, by buying individual plots from private owners — suggests that government doesn't need eminent domain to build roads and to do whatever else it does.

Unlike David, I trust democratic mechanisms much less than I trust the rules of private property. If the city of New London, for example, can confiscate private property without the owners' consent, government officials have too little incentive to bargain in good faith with property owners to find out if mutually advantageous deals are possible. Government will confiscate property rather than pay market prices for it. And politicians will pander to special-interest groups eager to gain at the public expense.

The fact that government is democratically elected might put some restraint on use of this power — or it might not. If a majority of voters in New London perceive that they can gain by directing the city fathers to confiscate private property owned by voters in the minority, why should we trust that the city will seize private property only if doing so yields significant benefits to the public at large?

By obliging all persons — including government officials — to pay voluntarily agreed upon prices for any properties acquired, we best ensure that worthwhile transfers of property rights occur and that transfers that aren't worthwhile are avoided.

David writes: The government could build a statewide highway by just bargaining with landowners along the route? What about the owner of the last parcel in the road's path? Is the market value of that parcel whatever that property owner wants to charge? Suppose the owner wants whatever the fair market value of the parcel was before construction on the roadway began plus the entire budget for the roadway's cost now that the owner knows the road is being built? Why is it socially efficient to make society pay that premium?

But even if a flat ban on eminent domain is inefficient, there are hard cases. Can a city take a $200,000 house to permit a developer to build one for a $1 million, claiming the move would be good for the local tax base? Once we dispense with a flat ban on eminent domain, though, our choice is either to have judges do the sorting between good and bad takings or to have the people themselves do it through their elected representatives. Our nation's past experience with judges second-guessing the legislature's economic policies has been pretty dim. So, on balance, I'd cast my lot with the people.

Don writes: You raise an interesting point — usually called the "hold-up problem" — in which a single property owner can hold a project hostage and extract maximum gain. But in reality, because there is almost always more than one way to build a road or to site a large development, there usually isn't any one property owner who can hold the project hostage. This is one reason why private developers commonly succeed in assembling large parcels without using eminent domain.

Moreover, ingenious strategies exist to avoid the hold-up problem. For example, a buyer can negotiate sales contracts contingent upon the buyer acquiring all necessary parcels of land. With such contracts, no one landowner is ever in a position to hold-out strategically for the full value of the project.

You ask, David, whether a legislature should be able to take a $200,000 house to build a $1 million dollar project that increases the tax base. My answer to that (and I hope the Supreme Court reaches the same conclusion in Kelo) is an emphatic no.

One reason is practical: If there really is such a discrepancy in value, the project will take place anyway, as I've argued above. But the second reason is my skepticism about of legislators' ability to dispassionately represent "the people." Which people, after all, are represented? Conflicts exist between those who would benefit from higher tax revenues (for example, developers who would be awarded lucrative contracts funded with these higher tax revenues) and those who lose — namely, property owners whose properties are seized. Politicians are simply too likely to pander to special-interest groups. The more unrestrained is government's power to use eminent domain, the more likely will our country be one marked by too many shopping malls and too few desirable, if not necessarily highly taxable, alternative uses of land.

David writes: Even the contingency contract you describe permits the landowner to extract a premium. If the contract price isn't more than the amount the government would owe as just compensation, then the government could just take and pay without complaint from the property owner. So the question for me is why society should bear the extra cost.

Absent evidence that net social welfare declines unless the government bears the extra cost, efficiency analysis simply can't prove that eminent domain is bad rather than good. And the necessary evidence just doesn't exist.

Our debate ultimately turns on differing views of government regulation. After all, there's no reason to trust government when it engages in zoning but not when it engages in eminent domain. Certainly zoning can "take" plenty of value from property owners. But we've generally recognized that regulation also can create value in property, and for many decades constitutional law has proceeded from that premise. That's partly why zoning generally raises no constitutional problem. And why eminent domain shouldn't either.

But to close on a point of (near) agreement, I grant that taking the $200,000 home causes real concern. Even John Reed might have a problem with that one, and the Supreme Court has long said that you can't take from A to give to B even if you can take for a public use. So I won't be at all surprised if the court makes some noises to that effect, even as it upholds New London's right to redevelop.



David Barron is a professor at Harvard Law School. His writings focus on the legal powers of local governments, federalism and the separation of powers, and he also researches property law and urban sprawl. Barron was a law clerk for Judge Stephen Reinhardt of the U.S. Court of Appeals for the Ninth Circuit and Justice John Paul Stevens of the U.S. Supreme Court. Prior to teaching, he was an attorney-adviser during the Clinton administration in the Office of Legal Counsel in the U.S. Department of Justice. Barron received his bachelor's in history and his law degree from Harvard.

Don Boudreaux is chairman of the economics department at George Mason University and has held the position since 2001. He previously was president of the Foundation for Economic Education and taught at George Mason and Clemson University. His research centers on the nature of law, antitrust law and economics, and international trade. Boudreaux blogs regularly (with fellow Econoblogger Russ Roberts) at Café Hayek. He received his doctorate in economics from Auburn University and his law degree from the University of Virginia.



Online Wall Street Journal: http://online.wsj.com

5/20/2005

Supervisors take major fire during forum: The (Woodland CA) Daily Democrat, 5/20/05

City lawsuit contentious point of debate

By Eve Hightower

Yolo County supervisors' decisions took major fire Wednesday at a public forum.
Supervisors Duane Chamberlain and Frank Sieferman Jr., city councilmen Dave Flory and Matt Rexroad and about 60 other people attended the discussion hosted by Woodlanders for Responsible Government, a nonpartisan group that seeks to inform Woodlanders of issues pertinent to the city.

The county's lawsuit against the city was among the most contentious points of debate.

Last March, Yolo County filed suit against Woodland to block development of a shopping center near Interstate 5. The county wants to halt the City Council's approval of the Woodland Gateway and Auto Mall, which would blanket 77 acres of prime farmland with retail stores, auto center and parking lot.

Mayor Rexroad said the county is just trying to win a share of sales-tax revenues from the project.

Supervisors Chamberlain and Sieferman disagreed, saying the project's environmental impact review is faulty and the city needs to mitigate for the loss of agricultural land and impacts to nearby agricultural operations.

Sieferman said the county repeatedly objected to the review, and concerns were not fully addressed. The county's concerns include a proposed interstate on-ramp, effects on other retail centers in Woodland, and wastewater treatment systems and water supply.

Rexroad said the county's statements about the need for agricultural land mitigation is just a front for their pursuit of money.

"It's about money. Be honest," he said.

The Gateway project is expected to provide at least $1.5 million to city coffers annually. Under a 1989 revenue-sharing agreement, Yolo County could gain more than $600,000 in property taxes from the project. The county would not partake of sales-tax revenue.

Chamberlain said the project would impact several county services, like roads, jails and waste.

"Once it's in the city, your not free of the county," he said. "There's no landfill in the city."

Rexroad said the board's suing the city is a sketchy policy decision. Sieferman and Chamberlain said their decision was based on information provided to them by county staff.

"You can choose not to take council's advise," Rexroad said.

The subject of debate shifted from the lawsuit to this week's announcement of the county-Wintun Indian alliance in purchasing Conaway Ranch to flood control protection to a city urban limit line and Assemblywoman Lois Wolk's proposed legislation to designate more than 30 miles of Cache Creek a wild, scenic and recreational area.

Several attendees pressed the supervisors on the county's use of eminent domain to acquire Conaway Ranch and agreement with the Rumsey Band of Wintun Indians. The tribe has pledged to "fully assist" Yolo County in buying the 17,300-acre ranch.

Jim Nielsen asked if there is a connection between the funding agreement and the board's approval of a golf course at the tribe's Cache Creek Casino Resort.

"No," Sieferman said.

Others asked why the agreement hadn't been discussed openly before Tuesday's press conference, where the alliance was announced.

"Nothing has been signed and there are no terms of agreement," Sieferman said.

He added the county and tribe have yet to create an agreement and there has been no board action.

Others questioned the county's determination to acquire the ranch.

"If we'd never gotten involved, anyone could own it by now - and they wouldn't be farmers," Chamberlain said.

Chamberlain reminded the audience that he ran for office last fall on a platform in opposition to the county's use of eminent domain to acquire the property. Now that he is in office, he has to deal with the board's choice to fight for the ranch.

Chamberlain said he'd like to see the ranch owned by those who farm it. He said the county could put easements on the land to take down its value and make it affordable to farmers.

Rexroad also suggested the county place easements on the property.

"And I think Gidaro's group would be willing to do that," he said in reference to ranch owners Conaway Preservation Group of which Steve Gidaro is a member.

"The county has to decide they can't fight every fight," Rexroad said earlier Thursday evening.

Rexroad said he thought the county was right to use eminent domain when dealing with an unwilling seller, but the ranch has since changed hands and the county should reconsider it's strategy.


The Daily Democrat: www.dailydemocrat.com

Swampscott Town Meeting backs land taking for rec trail: (Lynn MA) Daily Item, 5/19/05

By Debra Glidden

[The Swampscott MA] Town Meeting on Tuesday approved taking land by eminent domain to create a 1.3-mile recreational trail.

A motion to take property belonging to National Grid, formerly Massachusetts Electric Company, for a recreational trail, passed by only one vote, which sparked some controversy.

Opponents of the trail immediately filed for reconsideration, which opened the subject up for debate again Wednesday night.

Abutter Richard Polisson moved for reconsideration Wednesday because he said people were not allowed to speak on Tuesday, and the presentation by proponents of the trail did not make it clear that some of the land that would be taken belonged to private homeowners, not National Grid.

Marc Caron also spoke against the eminent domain proceedings, because he said it would allow the town to take property for a project that might not be feasible.

"We have no information whatsoever on this. All we know is they are telling us it is free," Caron said.

Swampscott Partnership Initiative Rails Into Trails (SPIRIT) member Marc Barden spoke against reconsideration, and the motion to reconsider was voted down.

Barden said Town Meeting approval of the eminent domain proceeding allows the Board of Selectmen to file for the land taking, but that several conditions would need to take place before that could be done.

The RTIC would have to obtain two valuations of the property, which Barden said could range from no value to as much as $200,000.The RTIC would have to have enough money to pay National Grid for the highest valuation before the town could initiate eminent domain proceedings.

According to the Assessors Office, National Grid pays the town $65,000 a year in property taxes, and the taxes on the utility easement behind the High School, where the proposed trail would go, are $6,407 a year and opponents of the trail said that is revenue the town cannot afford to lose.

Opponents also said National Grid, which currently owns the land, assumes all maintenance and liability for the corridor.In addition to the loss of tax revenue, opponents expressed concern that the project would not be funded privately, and the town would be stuck footing the bill for the project.


Saily Item: www.thedailyitemoflynn.com

L.B. residents rally to save their homes: Atlanticville (Long Branch NJ), 5/18/05

By Christine varno

Long Branch homeowners facing the prospect of losing their homes to redevelopment made a statement last weekend at a rally against the use of eminent domain.

The rally organized by the Beachfront South Coalition of property owners in the Beachfront South redevelopment zone was the second of its kind to be held in Long Branch this year.

One resident vowed he is not going to give up the fight.

“Like Yogi Berra said, ‘It ain’t over till it’s over’” Harold Bobrow, Ocean Boulevard, said at the rally he organized on May 15 in the parking lot of the condominium unit he owns on Ocean Boulevard.

“I do not think anyone in this group would have a problem if a hospital was going to be built, but to make a redeveloper richer is wrong.

“It may be legal, but it is certainly immoral,” he said.

Bobrow and his wife, Michelle, founded the Beachfront South Coalition in March with two goals in mind: to stop eminent domain proceedings that would take his beachfront home and, if that failed, to obtain equitable compensation for the property taken.

The rally, Bobrow said, gave residents in the Beachfront South redevelopment zone a way to join voices.

Beachfront South is a 12-acre tract of land that extends from Bath Avenue to Morris Avenue between Ocean Boulevard and Ocean Avenue. Properties in the area are slated to be taken by the city using its power of eminent domain.

In August, K. Hovnanian Shore Acquisitions, Middletown, was designated as the redeveloper of the zone. Plans call for the approximately 30 properties in the zone to be razed and replaced with a $300 million project comprising five buildings with 350 residential units that will range in cost from $400,000 up to more than $2.2 million.

Residents of the Beachfront North phase II redevelopment zone, known as MTOTSA — Marine and Ocean Terraces and Seaview Avenue — in February hosted the first rally against what they say is the city’s abuse of eminent domain.

Many residents at the Beachfront South rally on Sunday said they did not agree with the city’s vision for redevelopment.

“I do not understand why the city would take nice modern condominium developments to put up more of the cookie-cutter-style apartments and condominiums,” Alice Kessler, Long Branch, said.

Bill McLaughlin, Ocean Avenue, agreed.

“I am against eminent domain,” he said. “Taking people’s homes away for a developer to make a profit is wrong.

Other residents came out because they said they could be next.

“I am here to support the homeowners,” Donna Peterson, Rockwell Avenue, said. “This could affect us next.”

A Neptune women who lost her home through eminent domain proceedings participated in the rally.

“It is hard for me to stand here today and hold an American flag and know this can be going on in America,” Dorothy Argyros said.

“[Eminent domain] takes away what America stands for. This is going on all over.”


Atlanticville: http://atlanticville.gmnews.com

Fontana to consider eminent domain: San Bernardino County (CA) Sun, 5/18/05

By Kelly Rayburn

The [Fontana CA] City Council likely will decide June 7 whether to give the redevelopment agency authority to use eminent domain in large parts of the town's north end.

A public hearing drew minimal public protest Tuesday evening.

At issue is a proposed amendment to the North Fontana Redevelopment Plan that would give the agency the right to take private land in the name of a greater public good in three areas of north Fontana areas the city leaders say have been slow to develop compared to the rest of Fontana's fast-growing north end.

At the meeting Tuesday, Ray Bragg, Fontana's redevelopment and special projects director, sought to make clear that the agency has no plans as of yet to actually use eminent domain.

"It's just a matter of getting it on the books so as a last-resort negotiating tool it's there if necessary,' he said.

The roughly 8,960-acre North Fontana Redevelopment Project Area was created in 1982 and the agency had the authority to use eminent domain within it through 1994, when it expired under state law.

Property owners both within and near the three areas have expressed uneasiness about the amendment, but Tuesday only one showed up to air his concerns.

Larry Bonanno, who owns land in one of the three areas and on which the city would like to build an auto mall, reiterated his protest of including his property in the proposal. He said his property already has all the infrastructure needed for development.

Though mostly quiet at the meeting, some elected officials, including Mayor Mark Nuaimi, have indicated their support for the amendment.


San Bernardino County Sun: www.sbsun.com

BOF Delays Eminent Domain Action: Shore Publishing Co (Madison CT), 5/19/05

By Ben Rayner

More questions were raised than answered about Branford's [CT] attempt to enforce eminent domain acquisition of the Queach property at the Board of Finance [BOF] last week. The BOF did not take any action in regards to the enforcement, instead deciding to put off a vote until its June meeting.

Through his lawyer Al Ippolito, developer Alex Vigliotti has maintained that if offered a fair price for the Queach land he would gladly sell it to the people of Branford. The town counters that it has already offered a reasonable price for the land and that a decision to enforce eminent domain is only a last resort. The actual value of the property is now at the heart of the issue.

A report prepared by the Select Committee on Open Space Acquisition (SCOSA) was given to the Board of Finance. The report attempts to resolve many of the questions regarding the parcel but most of those can't be determined without further analysis and appraisal. Town officials feel that the $1 million offer for the property is in line with previous appraisals and is commensurate with what Vigliotti paid for the land in December, 2004. Vigliotti through his lawyer contends that the actual value of the parcel is well over $4 million and possibly closer to $5 million. "The number [$1 million] is supported by past appraisals," Opie said. "The $5 million figure was based on the entire 205-acre parcel, including the 43.4 acre piece owned by Mr. Vigliotti that is not part of this matter. That price is also with the proviso of 115 building lots on the property. But that number of lots has never been approved by zoning and it is not realistic. "A lot of things point to the $1 million price," First Selectman John Opie continued.

Looking at Other Options
According to Ippolito (a Branford resident and former member of the Board of Assessment Appeals), Branford officials haven't been negotiating in true good faith with his client. He stated that he has a number of different proposals that would satisfy the town's need for open space and balance his client's development prospects but have not been considered.

"The assessment price of large parcels has very little to do with the actual property value. I personally don't know the value and they [the town] don't know the value. We believe there is still room for negotiations. At a minimum we need an appraisal," said Ippolito.

When asked directly by BOF Chair Joseph Mooney if enforcement of the statute was the only option for the town, Opie responded, "As much as I dislike the words eminent domain, it may be the only vehicle left for an amicable agreement. No one wants to talk about eminent domain. It has a bad connotation but I'm not sure how much further we can move the process without this leverage."

Ippolito countered that negotiations should still be taking place and that there was room for a mutually agreeable solution, "This could be a win-win situation for the town and a win-win situation for my client. I feel it is premature to be here [before the BOF]. There are more options — they ended negotiations, we didn't end negotiations."

Cheryl Morris, Democratic candidate for first selectman, raised financial concerns about the enforcement. "Is the $1 million a realistic figure or a pipe dream? Eminent domain sounds like an easy way to go but appeals could potentially costs the town millions," Morris stated. "Are there any other alternatives?" Mooney stated, "We don't take lightly the use of eminent domain. We need to study the information [the SCOSA report] we have here."

he BOF has postponed any action on the matter until its June meeting. The next step, whether the BOF approves the measure in June or not, will be an objective third party appraisal of the property.


Shore Publishing Co: www.shorepublishing.com

5/18/2005

Yolo smooths out parks master plan: Yolo (County CA) Enterprise, 5/17/05

By Elisabeth Sherwin

The Yolo County Board of Supervisors was scheduled this morning to review the process that has been used to update the initially controversial draft Parks and Open Space Master Plan.

The draft plan met with considerable unhappiness when it was first made public earlier this spring. The main opposition came from landowners who feared the county was going to build public trails across private ranches, possibly by invoking eminent domain.

However, county staff held many public meetings, at least two specifically with rural landowners, and further explained the county's position, according to an advance staff report.

Staff made clear that possible sites of future parks and open space areas will not identify specific private land. The revised plan will emphasize willing participation and mutually beneficial partnerships. It also will present possible future park components as suggested ways to expand recreational and open space opportunities; these may not necessarily involve land acquisition.

Further, staff emphasized that the draft plan did not mention, nor was it intended to support, the use of eminent domain. The revised plan will clearly state that it is not the county's intent to use eminent domain for projects outlined in the master plan, nor is implementation of the plan dependent on eminent domain.

Staff also will remove all reference to Conaway Ranch as potential county-owned open space. The status of the 17,300-acre Conaway Ranch property is the subject of ongoing legal actions involving the county and other parties, and references to it will be removed from the revised plan. The county has initiated an eminent domain action to buy the land.

(On Monday afternoon, a news conference was called for 11 a.m. today at the County Administration Building in Woodland to announce news regarding the Rumsey Branch of Wintun Indians, the county and Conaway Ranch. The tribe's public relations spokesman, Doug Elmets, would not describe in advance what the announcement concerned but the county has been seeking more than $50 million to buy the ranch property.)

At the board meeting today, staff was going to hear from supervisors and members of the public in preparing revisions to the master plan in the hopes that most of the contentious issues had been addressed.

Staff says the need for recreational areas and open space continues to be a demand in Yolo County.

As a steward of public lands, the county is faced with the challenge of balancing often-competing user needs. This process for managing evolving demands within county parks is often difficult because a clear vision for the management of these lands is not defined.

Through the development of a park and open space master plan, a management directive would be available to staff and the public to provide a clear direction for the planning, development, and management of county parks.

Earlier this year, the board determined that a countywide plan was needed and selected a consulting firm to assist the county. The Dangermond Group, in association with Roberts, Kemp and Associates, was selected based on a recommendation of a subcommittee of the Parks, Recreation and Wildlife Advisory Committee that included chairman Andrew Fulks, Sally Barrett and Jerry Hartwig.

In May 2004, county staff and the consultants (the planning team) began developing the public outreach process. First, a list of potentially interested agencies, advisory committees, citizen groups, individuals, and businesses was developed to be contacted about the plan and planning process.

In addition, a Web site with the sole purpose of educating the public on the park master planning process was developed.

In total, there were nine public meetings in 2004 and 12 public meetings to date, including four public workshops.

The background reports, public outreach and public meetings all led to the creation of the draft master plan, released in February. Several public workshops were held, including a March meeting with rural landowners at the Farm Bureau to gather additional input and provide clarification on the draft plan.

"These meetings were very helpful, as the staff heard a perspective that was missed during the initial public workshops," said John Bencomo, director of planning and public works, in his staff report.

Nearly 100 individuals submitted a total of 50 written comments about the proposed master plan. From these comments, several reoccurring themes and issues became apparent, including questions about plan implementation, the identification of private lands as future parks, the issues of eminent domain and Conaway Ranch and financing for future parks.

Once staff has provided the supervisors with an update on the planning process and heard their comments, the planning team will then revise the draft master plan and return it to the parks advisory commission for more public comment and a recommendation to the board.

The final plan must be approved by the Board of Supervisors.


Yolo Enterprise: www.davisenterprise.com

City agency seeks land: San Bernardino County (CA) Sun-News, 5/17/05

Eminent domain possible

By Kelly Rayburn

Amid concern from some [Fontana CA] property owners, the city's redevelopment agency is seeking authority to use eminent domain in a large portion of the fast-growing north end.

The three areas where eminent domain is proposed all fall within the approximately 8,960-acre North Fontana Redevelopment Project Area, created more than 20 years ago to help eliminate blight.

While north Fontana has experienced tremendous growth and commercial development since then, Fontana Redevelopment Director Ray Bragg said that growth has been mostly stagnant in the three areas in question and that eminent domain could be used as a last resort to help the areas develop.

"We need to increase the tools we have to deal with these problems," Bragg said.

If eminent-domain authority is granted, it would give the redevelopment agency the right to take private land in the name of a greater public good.

Though the use of this tactic often is controversial, Bragg said the redevelopment agency has no specific plans to use eminent domain and that if it ever did, property owners would receive a fair price for their land, as well as money for moving costs.

Land in the three areas is mostly undeveloped, but homeowners nearby wonder what's to stop the city from using eminent domain in their neighborhoods if it is used elsewhere in north Fontana. Letters from Bragg specifying that only people within the three sub-areas of the redevelopment zone would be affected did little to quell some people's uneasiness.

"We're kind of skeptical," said Tony Galindo, who has lived on Lytle Creek Road, near the intersection of Interstate 15 and the Interstate 210 extension, for 18 years.

Galindo said, "Development is happening all around us, but we're not getting the upgrades ... we still don't have sidewalks."

He said he had been approached by a representative from a real estate development company looking to buy his property. He demurred, but wonders whether his property could be targeted if the city wants new development.

Bragg said he does not foresee the need for eminent-domain authority in any other region of north Fontana.

One of the areas where eminent domain is an issue includes land where the city would like to create an auto mall.

Larry Bonanno, who said he owns 23.75 acres in the auto mall area, sent a letter to city leaders protesting the inclusion of some of his property in the eminent-domain area. He said his property is not blighted and that the infrastructure needed for development including curbs, gutters, utilities and traffic lights is already in place. He plans to air his concerns at the City Council meeting tonight. Eminent domain is scheduled to be considered tonight during a joint session of the council and the city's redevelopment agency, which is composed of council members. Bragg said officials likely would use the meeting to hear concerns and would vote at their June 7 meeting.

Some elected officials have indicated their support for the proposed amendment.

City Councilwoman Janice Rutherford describes herself as a supporter of individuals' property rights.

"I generally oppose the use of eminent domain," she said, "but I think it's a valuable tool for the city to have to negotiate with people."

She said the redevelopment agency's work has been critical in bringing commercial development, including a Target and a Stater Bros., to north Fontana.


Sun-News: www.sbsun.com

5/15/2005

Baby boomers driving redevelopment: (Camden NJ) Courier-Post, 5/15/05

By William Sokolic

Houses for aging baby boomers looking for a second home on the Jersey Shore. A marina, restaurants, upscale retail shops, water sports and fishing.

Coastal communities covet such developments, which are part of ambitious plans to boost tourism in Ventnor, Pleasantville, Wildwood and Somers Point.

And all four towns have turned to a popular tool: They hang their future on redevelopment, something usually associated with efforts to recycle blighted sections of urban centers or older suburban communities.

What has helped is that it has become easier to designate an area for redevelopment. Gone are the days when you required proof of distress to get such a designation.

"Now, all you need is a plan and a good reason to redevelop," said Dr. Richard Perniciaro, director of the Center for Regional and Business Research at Atlantic Cape Community College.

These four municipalities all seek to use redevelopment to capitalize on the growing demand for - and limited supply of - waterfront housing near the shore. "Baby boomers are getting ready to retire, and that's driving the market up and down the shore," Perniciaro said.

Declaring a redevelopment zone allows municipalities to offer tax incentives and abatements to developers.

Although redevelopment has drawn rave reviews for its ability to resuscitate a neighborhood, it can come with a price. To achieve their goals, municipalities must often acquire homes and businesses that do not fit with their plans. And such acquisitions could require the use of eminent domain - the government's right to acquire private land for public use - to force out unwilling owners.

Residents often question the need for revitalization.

Such is the case in Ventnor, the most controversial of the four projects. The city has targeted a 28-acre section of older homes, some mid-rise apartment buildings and a shopping district.

Too many of the buildings are overcrowded and don't meet today's building codes, the city claims.

But the Hispanic Alliance of Atlantic County calls it a form of racial discrimination.

It says the redevelopment effort seeks to eliminate rentals in favor of home ownership and with the higher-end housing proposed, Latinos couldn't afford to buy a new home in Ventnor.

"They'd have to leave town," said Bert Lopez, president of the alliance, which has filed suit to modify, if not stop, the redevelopment proposal. "There's a way of doing redevelopment and improve those buildings in need of repair, and still maintain this as a good working-class neighborhood."

City officials counter they will give financial assistance to displaced residents to help them find other housing in the city.

The redevelopment also affects businesses like the Nashville Market, a grocery bought by Jose Osoria in 2001. Given his druthers, he would stay put rather than be forced to sell and lose money on his investment.

News of the project is also driving away businesses.

A movie theater closed when the landlord pulled the plug in anticipation of having to sell his property. A clothing store folded. Jagielky's Homemade Candies is still around, but owner Mike Carr has opened up in Margate as a hedge.

"The city is still up in the air what to do with me," Carr said. "They talk about relocation, but it will cost a ton to get rid of me."

Mayor Tim Kreischer defends the possible use of eminent domain. "No one will invest in this area without controlling a large portion of the land," he said of developers.

Opposition to the other three redevelopment proposals is not as intense.

The redevelopment area in Pleasantville lies between the old high school and the new marina. It is a mostly vacant neighborhood with a few homes and a wholesale seafood distributor. The city has designated two heavyweights, Edgewood Properties and Toll Brothers, to build homes expected to sell at more than $260,000 each.

"Hopefully we would be able to bring something into the marina as an attraction, like a riverboat shuttle through the Lakes Bay area, some fishing and wind surfing," said Councilman Lincoln Green.

The city wants to keep existing owners as residents. But Michael Giordano of Collingswood worries Toll Brothers will muscle him out of the vacation home he bought on the same street where his grandmother lived for more than 40 years. He and his wife, Patricia, have a vista across the channel to the Atlantic City skyline. He's just steps from the Pleasantville Yacht Club and its new marina. And it's cheaper than Margate or Ocean City.

"I think Pleasantville will take us (through) eminent domain, and then sell to Toll Brothers," Giordano said.

The owner of Randall Seafood, while hoping to stay in the area it has occupied for decades, worries the new residents won't be thrilled by the arrival of trucks at 2 in the morning.

"They want a commercial waterfront, but I do not know if this is what they want," said Al Glenn, owner of the business, which started in 1949. "The city so far made it seem like we would end up staying in the area. But I heard rumors of using eminent domain."

Wildwood selected a top developer, K. Hovnanian, to build in an area of the city fast becoming popular for housing because it's one of the few locations where land is available. Townhouses surrounding the Hovnanian site are selling for as much as $500,000.

"It's consistent with our company philosophy to look for redevelopment opportunities in areas where we think the market is good," said Lew Kurland, legal counsel for the Red Bank-based company.

Realtors in the area praise the proposal. But at least one property owner believes Hovnanian is squashing his plans to build 22 townhouses, valued at $400,000 each. Robert Wood said if the city denies him a permit to build, he expects the developer to pay him for the land.

Somers Point is focusing as much on retail and restaurants as residential housing in the first phase of a four-pronged proposal revolving around Bay Avenue, once home to legendary rock clubs like Tony Marts and Bayshores.

"The overall vision is to have a resort-oriented development," Councilman Carmen Marotta said.

But phase one has run into opposition from Shore Memorial Hospital, which owns much of the land targeted. The hospital has its own ideas, some of which conform to the city's plans and some that don't. The impasse has led to legal action, which may lead to negotiations for a compromise.

To date, none of the projects has broken ground. Concerns about the environment and, to a lesser degree, acquisitions, have held up plans in Wildwood and Pleasantville.

Somers Point has to resolve its conflict with the hospital to move forward. Ventnor is faced with the outstanding lawsuit.

And all are watching for the U.S. Supreme Court's decision on the legality of eminent domain in New London, Conn., where residents of a working-class neighborhood have sued city officials who want their properties for a hotel, offices and luxury condominiums. A decision is expected before the court recesses in June.


Courier-Post: www.courierpostonline.com

5/14/2005

Hospital district assailed: Los Angeles (CA) Daily News, 5/12/05

Palmdale's mayor criticizes possible move to stop project

By Jim Skeen

[Palmdale CA] Mayor Jim Ledford said Antelope Valley Hospital officials can forget about getting a bond measure passed after the revelation they are considering the use of eminent domain to stop a competing private hospital.

Palmdale residents won't be willing to tax themselves to build a Palmdale hospital for a government agency that blocks a private effort to provide medical care in Palmdale, Ledford said Thursday.

"The hospital district has shot themselves in the foot on this bond," Ledford said. "Why would anybody approve a bond for this type of action?"

Pennsylvania-based Universal Health Systems, operator of Lancaster Community Hospital nearly four years ago reached an agreement for city help in building a hospital in west Palmdale, near 10th Street West and Palmdale Boulevard.

Since then, Antelope Valley Hospital officials have expressed fear the new private hospital would draw off patients with insurance coverage, leaving Antelope Valley Hospital with a higher proportion of indigent patients unable to pay for their care.

"What we're seeing is protection of their market," Ledford said of the eminent domain idea. "How long can that game go on?"

Antelope Valley Hospital officials said Thursday that no decision has been made to pursue eminent domain action on the west Palmdale hospital site or to go for a bond.

"The bond is not a bond yet. We are just right now trying to educate the community on the health care needs, that there are not enough emergency and critical care beds," hospital spokeswoman Jackie Weder said.

As for Ledford's claim that the hospital was trying to protect its market, Weder said the hospital is "protecting the community."

"Universal Health Services has been promising a new hospital to Palmdale for some years. The Antelope Valley Health Care District wants to see that the community gets what they deserve and what they need, more emergency and critical care beds," Weder said. "We really want the community to get what they deserve. We want a Palmdale hospital to become a reality."

Antelope Valley Hospital officials have paid for a telephone survey among potential voters to gauge support for a bond to finance renovation of the Lancaster hospital and to build a new hospital in Palmdale. Hospital officials spoke Wednesday at an Antelope Valley Chambers of Commerce luncheon about local health care needs.

A glossy Antelope Valley Hospital mailer received this week by Palmdale voters doesn't mention a bond measure, but says on its cover: "Want a new hospital? Your input is needed: Make a new hospital in Palmdale a reality."

Universal Health Services is on track to open its Palmdale hospital in 18 months, said Bob Trautman, chief executive officer for Lancaster Community Hospital. The first in a series of required state approvals for the project is expected this week, which will allow construction work to start.

On Monday, the City Council approved a $370,000 contract for grading for street work and utilities in support of the hospital project.

One of the first facilities to emerge for the project will be a medical office building that will adjoin the hospital.

"If all goes well, we will have this building occupied next year," Trautman said Thursday.

Trautman declined to comment on the eminent domain concept, saying that UHS will focus on the positive things it is bringing to the community. UHS plans to run advertisements in local news media showcasing its Antelope Valley efforts.

City officials said they have been seeking partners to open a Palmdale hospital for years and that the Antelope Valley Hospital District has either been unwilling or unable to participate.

Even if the hospital district were able to get a bond passed, there are no guarantees when or even whether a Palmdale hospital would be built, Ledford said. State approval of hospital designs can take years.

Palmdale officials complain that the hospital district, which is a government entity that collects no tax dollars but is governed by an elected board, has a history of underserving their city.

City officials said the hospital district is in default on an agreement by which the city contributed $1 million in street work and other help toward opening a clinic on Palmdale Boulevard and 40th Street East.

The agreement called for the clinic to provide 24-hour service there and expedited ambulance service. Neither of those conditions are being met, said Michael Adams, Palmdale's housing manager.


Los Angeles Daily News: www.dailynews.com

5/13/2005

Eminent Domain is a hostile legal act: Swampscott (MA) Reporter, 5/12/05

Letter to the Editor

By David Dishman

I have read Warrant Article 25 in which the Rail Trail Implementation Committee (via a 2/3 Town Meeting vote) is seeking to take the entire abandoned Marblehead-Swampscott rail corridor by an eminent domain "land taking."

I wish to comment here from the legal perspective. To begin with, National Grid does not own the entire corridor in fee simple, and they have stated so in public at a selectmen's meeting on Jan 18, 2005. The fact is that for a significant length of the right of way, the railroad (and then the utility) only had an easement for layout of the track. Thus, if Town Meeting passes this measure, the town must seek to take land not only from National Grid, but also from private property owners, who have right to title.

Please make no mistake about this ...despite what the editor of this paper claims, the hostile taking of land involves eminent domain process. Eminent domain is a hostile legal act and must, by definition, involve an expenditure of significant legal resources and time. Some of these activities are outlined below.
  1. Town counsel (and their legal team) must research the situation and understand the complicated issues of land conveyance that dates back to antiquity; this involves researching all affected properties and their titles (at the Salem Registry and perhaps at Land Court and National Archives) back to the late 1800s (when the railroad was built across the old estates).
  2. Two professional appraisals of the value of each of these parcels of land must be made and submitted for study by attorneys representing the abutters with right to title and National Grid; these appraisals must be fair and reasonable and must take into account the true value of these properties. Any attempt to undervalue these parcels of land, as has been suggested by some proponents, would be subject to challenge in court.
  3. All 150+ properties (from Burrill Street to Bellevue Ave) must be surveyed professionally by a vendor approved by the town to delineate the exact location of a neighbor's property as it abuts the right of way.
  4. Finally, and most importantly, the town taxpayers, not the Committee and particularly, not its leadership, must bear the cost of litigation and any awarded damages. Remember, National Grid is on the record as saying that if the town comes after this land by eminent domain, they will protect their assets and sue for damages.

Let's not be naive here... this will be a nasty, risky and expensive process. Swampscott needs to prioritize any increase in its already significant tax burdens. I believe our citizens would rather see the essential subjects of art, music and gym remain in our schools, rather than support a few lawyers who would profit from this endeavor.


Swampscott Reporter: www2.townonline.com/swampscott

Eminent domain is expensive and nasty: Swampscott (MA) Reporter, 5/12/05

Letter to the Editor

By Michael Gibeault

I was taken aback after reading your editor's notes in last week's Swampscott Reporter regarding one letter from me and one other regarding Warrant Article 25.

No matter how much the Implementation Committee tries to embellish the wording of the article, whether now or at Town Meeting, it remains eminent domain spelled out in black and white with its intent clear for all to read for themselves.

Eminent domain is an expensive and nasty proposition. The Implementation Committee does not want voters to realize this, but their Article will eventually also involve taking land from private residents.

If the town is capable of actually going through with this, then all Swampscott residents should beware. Why would the Town stop here? There are many great ideas out there that could involve usage of land that is not currently owned by the town.

For example, why should only the people who own beachfront property be allowed to enjoy the coastline? Shouldn't all residents, tourists and the general public be able to enjoy it? Why not create a recreational trail along the shore? We could "acquire by eminent domain a recreational easement." The town could also qualify for a number of coastal grants available for such projects. I think you get the idea.

This is just another case in the now rampant misuse and abuse of eminent domain.


Swampscott Reporter: www2.townonline.com/swampscott

5/12/2005

Home sweet home: Chester (PA) Daily Local, 5/11/05

By Adam Cirucci

Dick Saha’s home is his again.
The city [of Coatsville PA] never took possession of his family’s horse farm, but at times during the six-year eminent domain battle he said it sure felt that way.

"There are certain fields that we didn’t cut because we didn’t know what would happen," Saha, 75, said Tuesday. "Now, until we die or give it to our children, it’s ours. There are no fences, no boundaries, other than what is on the map."

Saha and Coatesville City Council officially put an end Monday to the land dispute that for years hung over the city’s bold redevelopment plans like a dark cloud.

"It’s a relief. There are no two ways about it," he said of the settlement. "It’s a chance for the city to move on and we’re just ready to go on with our lives."

Under the agreement, which council voted unanimously to adopt at Monday’s meeting, the city and Dick and Nancy Saha agreed to terminate all litigation between them, including the revocation of the eminent domain case.

Excluded from the agreement is a defamation suit filed by the Sahas against the city in May 2003 over a newspaper advertisement. That case is now being defended by the city’s insurance carrier.

According to the agreement, Saha will sell the city five acres of land along an abandoned railroad bed. The price was not disclosed, but Saha said it was less than the estimated $300,000 he spent on legal fees.

The city is expected to develop a series of nature trails on that land.

The agreement also calls for the Sahas to give the city an option to acquire up to an additional 32 acres if they ever decide to sell more of their 48-acre property.

The Sahas first learned of Coatesville’s plans for their land in April 1999, when city council approved condemnation of seven properties, some of which were located in Valley and West Caln, to make way for a municipal golf course.

Since then, the Sahas have been fighting the city in the court of law and public opinion, while periodically attempting to negotiate a settlement.

Saha said that last month’s departure of City Manager Paul G. Janssen Jr. was a major breakthrough in resolving the dispute.

He said Janssen’s second-in-command, now acting City Manager E. Jean Krack, was "easier to work with."

Janssen, who had championed the proposed 18-hole Iron Hawk Golf Course, resigned suddenly April 6 to take a job as municipal manager in Norristown.

Reached by telephone Tuesday, Janssen said that he was pleased to hear of the settlement and hoped it would bring some peace to Coatesville’s often turbulent political atmosphere.

"I’m very happy. I had said that I hoped that my stepping aside would make this possible," he said.

Janssen also expressed confidence in Krack’s abilities as city manager.

"Jean is doing a great job. He is the guy that can get it done and that is one of the reasons why I left when I did," he said.

City officials originally maintained that the proposed Iron Hawk Golf Course was essential to the success of the $60 million regional recreation center, the cornerstone of an ambitious redevelopment plan estimated to bring $700 million in private investment and thousands of jobs into the city in the next decade.

Councilman David DeSimone, who supported the condemnation and golf course project, said Tuesday that the settlement would bring stability to the city and its revitalization efforts.

"It was time to make sure that development happens," he said. "My concern was that there were certain factions out there that were willing to jeopardize and sacrifice the entire city’s revitalization for this."

DeSimone said he felt that everyone in Coatesville could breathe a little easier on Tuesday morning.

Saha has experienced the same uncertainty over the past six years.

"You don’t know how or when the court rulings were going to come down," he said. "You might wake up the next day and see bulldozers out there."

Councilman Edward Simpson,a longtime Saha supporter, said Krack was instrumental in negotiating the agreement.

"You could tell that (with Janssen) there was this animosity there," he said. "When he left, it opened up the door. Jean Krack took the initiative from day one. He extended an olive branch to Dick (Saha)."

Simpson pointed out that it took Krack about a month to accomplish what Janssen couldn’t do in six years.

Krack agreed that Janssen’s departure gave him an opportunity to re-establish an open dialogue with the Sahas.

"In any situation like this, you always carry a certain amount of baggage — whether you attend to it or not," he said. "He (Saha) worked with me. He negotiated and I respect that."

Krack attributed the settlement to simply "the art of negotiation and compromise."

"There is no winner on either side, we were finding some middle ground," he said. "People sat down and talked, but we talked about different things and that is what made the difference."

Krack also emphasized Tuesday that the settlement does not necessarily amount to a nail in the coffin for the golf course project.

He pointed out that if Saha ever chooses to sell his property, the city can obtain the acreage needed for the project.

Simpson said that while council has yet to take any official action on the project, at this point, it is obvious the 18-hole golf course is indefinitely on hold.

The regional recreation center, however, is still part of the big picture of the city’s redevelopment, he said.

But one thing is clear, as long as Saha retains his property, the city simply will not have the necessary space for the propsed golf course project.

West Chester-based developer Randy White, who plans to build a five-story apartment building on East Lincoln Highway, said he was glad to hear of the settlement.

"I’m very happy that the city has come to an agreement to put this behind them," he said. "I think it’s going to help the project move ahead at full steam."

White, of TR White Inc., said the eminent domain dispute had the potential to be a major obstacle to city’s redevelopment.

Developer Don Pulver, who plans to build a hotel and conference center at the intersection of Route 82 and the Route 30 Bypass, said he too, was pleased by news of the agreement.

"It’s great to get rid of the controversy," he said. "Now the main thing is to keep it (redevelopment) moving along."

And Saha could not agree more.

He said he was fighting eminent domain abuse, not the city’s redevelopment.

In total, the city spent about $8 million on land acquisition and legal fees associated with the golf course and regional recreation center, but Saha said his family has invested the most.

"When we started out, our lawyers gave us a 5 percent chance of winning. They didn’t think we’d last this long," he said. "But I just hope that it gives hope to people who find themselves in the same position. Not false hope, but some hope."


Chester Daily Local: www.dailylocal.com

Park South waits, worries: Albany (NY) Times-Union, 5/11/05

Fearing eminent domain, residents are hesitant to improve their properties

By Brian Nearing

Dennis Bagley still doesn't have an answer to the question foremost in his mind. Whose homes and businesses in the troubled Park South neighborhood may be demolished under one of the city's most ambitious rebuilding plans since the Empire State Plaza was created in the 1960s.

Bagley, 37, invested more than $70,000 to renovate 94 Morris St., a two-story home he bought two years ago after it was damaged during a fire next door. He's proud of his bright and airy apartment, with skylights, a new kitchen and polished marble shower. He rents two apartments on the first floor to help cover his mortgage.

He was going to replace the building's ugly and faded facade, which still includes the name of a long-gone plumbing supply shop barely visible through a thin coat of whitewash. But he decided against spending the $15,000 it would take. He's going to wait.

"It doesn't make any sense for me to do that before I know what's going on," said Bagley.

Many people like Bagley are waiting to see what the city is going to do in Park South, a nine-block, 26-acre swath between Washington Park and Albany Medical Center that has sagged in recent years under the growing weight of poverty, crime and neglectful landlords.

Uncertainty has hovered over the neighborhood since the city announced nearly two years ago that it was hiring a Baltimore consultant to recommend a rebuilding plan to revitalize Park South.

In March, the city declared the area blighted under state law, which gives the city the power of eminent domain. That means the city can seize private property for public use — or even for private development, if it benefits the public.

Sometime this summer, the city will put either Boston-based Winn Development or a local team headed by BBL Development Group in charge of the multimillion-dollar project. A third group also made an offer but was rejected. That group included State Street Partners LLC, XO Projects and the Albany engineering firm of Hershberg & Hershberg, city Development and Planning Commissioner Lori Harris said.

While the city insists eminent domain will only be used as a last resort, the developers have tiptoed around the issue.

Creation of a mix of new offices, shops, apartments and homes, including housing for up to 400 students, would be one of the largest development projects in the city. However, exact plans that will detail which buildings will stay and which will go will emerge only after the city chooses the developer. Then, it could be 18 months or more for a groundbreaking.

But longtime neighbors who have weathered years of decline fear they could lose their homes and receive little compensation in return, because property values have sagged, said Pat Kelly, coordinator of the Park South Walk and Watch. She has lived in a Dana Avenue apartment for 43 years.

"It wouldn't be fair to people who have stuck it out here for so long," Kelly said. She said the city needs to help residents by tougher enforcement of laws and building codes. "A lot of people want to stay here."

Some residents are looking to a Washington, D.C.-based think tank, Castle Coalition, to assist in their fight.

The not-for-profit group offers legal help and other support to property owners threatened with eminent domain. According to an April 2003 report by the coalition, there were nearly 10,300 cases of eminent domain for private development filed or threatened in 41 states between 1998 and 2002.

"It's an insidious alliance between tax-hungry municipalities and land-hungry developers," said Steven Anderson, the group's coordinator. Eminent domain laws are so vague that they can be applied to any neighborhood, he said.

Peter Rinne, who has lived on Morris Street for decades, said while things can be bad in the neighborhood, they aren't as bleak as the city maintains. He accused the city and the media of orchestrating a "propaganda campaign" at the expense of the neighborhood.

If the city decides to take property, it should give former owners a chance to buy back in, based on how well they've taken care of their property, Rinne said.

Lou Hacker owns 20 apartment units on Morris Street. Since buying the properties starting in 1998, he's invested tens of thousands of dollars in improvements, like new floors and appliances, and worries that he'll take a bath if the city takes his property.

"I'm almost 60 years old. This is my retirement," said Hacker, a former regional sales manager for a Michigan-based publications company. "I've already had tenants decide against taking apartments after they hear where it is. They say, 'That's the place they're going to tear down.'"

He said uncertainty causes many owners to delay improvements. "I should repair the stonework in front of my place over there," he said, pointing to units at 99 and 101 Morris St. "But that work could cost me thousands. Is the city going to give me that if they end up wanting the property, just because it has nice stonework?"

Winn Development Project Director Gilbert Winn said his company, which has developed more than $1.5 billion worth of projects across the country, has never been involved with eminent domain before.

"We don't want to upset the community," he said. "Before we start, we spend a lot of time meeting with residents, getting them on our team."

He said housing for senior citizens is a possibility, but the firm has not begun mapping the Park South area, a process that would identify the key areas for rebuilding.

"Right now, we have no possible way to tell what will be there at the end of the day," Winn said last week at a City Hall meeting with several Common Council members and about a dozen Park South residents and property owners.

The president of BBL Development Group, Peter Cornell, told the meeting, "There are times when eminent domain could have to be embraced," although it is too early to say if that will happen in Park South.

Cornell added that condemnation might be needed in cases of "landlords with unsavory tenants in buildings with ridiculous price tags."

"A scattered site approach will not lead to successful revitalization," said Dan Sitler of Saratoga Associates, which with BBL is teaming up with Conifer Realty LLC, Einhorn Yaffee Prescott and Columbia Development Cos. "We need to aggregate parcels and chunks of land. A house here, a house there, will not be noticed."

Andrew Harvey, president of the Park South Neighborhood Association, said he preferred Winn's philosophy. "It's more of a scalpel approach," he said.

Common Council President Pro Tempore Richard Conti, who heads a council committee that will recommend a developer, urged people not to prejudge the plan. "I don't think this is going to be as big a project as people are afraid of," he said.

The Common Council opened the possibility of eminent domain in March, when it named Park South as an urban renewal area under state laws that target blight.

Meanwhile, a real estate bubble may be forming in Park South as sellers and buyers are trying to benefit before the project starts.

Last year, the average selling price for real estate increased more than 40 percent from the previous year to more than $70,000, according to figures compiled from the state Office of Real Property Services. Compare that to 2003, when the average sale prices were up just 3 percent.


Albany Times-Union: http://timesunion.com

5/10/2005

Eminent Domain Battle: New York Newsday, 5/8/05

When David Meets Goliath

By John Riley

When it all started in 1997, Claire Gaudiani was the president of Connecticut College, a specialist in French literature and philanthropy who had become a flamboyant and fabulously successful fund-raiser at the pricey school on a hill overlooking this economically depressed old whaling port.

She saw it as her social obligation to spearhead an ambitious redevelopment plan - a Pfizer pharmaceutical headquarters anchoring a waterfront hotel, upscale new housing, and retail and office space - that would revitalize the city's tax base and give hope to those less fortunate.

"It was a very idealistic vision," said Gaudiani, now a lecturer at New York University, in a recent interview.

But Susette Kelo was in the way. She had just bought an inexpensive little pink Victorian with views of Long Island Sound and the Thames River in Fort Trumbull, the peninsular low-income neighborhood with a smelly sewage plant in its midst that was the target of Gaudiani's idealistic raze-and-rebuild vision.

Kelo was no college president, just a nurse, a daughter of two factory workers who had grown up in the neighborhood. And her vision was that she, her disabled husband and her kids would continue to live where they wanted to live.

"Nobody ever pushed my mom around," Kelo said. "Nobody ever pushed my grandmother around. It's a long line. I've never liked being told what to do."

Eight years later, in the shadow of a gleaming new Pfizer research facility, Kelo's pink Victorian and the houses of six neighbors are still standing with defiant "Not For Sale" signs in the windows amid the rubble of an otherwise demolished neighborhood. And the clash between one woman's stalled civic vision and another's property rights has become the focus of a U.S. Supreme Court case that could change the face of American land use law and alter development projects from Brooklynto California. The issue: The Constitution allows government to seize private property for "public use" as long as it pays "just compensation," a power called "eminent domain" that has traditionally been used to clear the way for such projects as public roads, prisons and reservoirs. But in New London and many other cities and states, the power also has been used to take property and flip it to private, for-profit parties - companies with jobs, or developers of projects for the affluent that will enhance the tax base and thereby assist the public goal of economic development.

Nine states currently prohibit such takings under their state laws. But in Connecticut, New York and elsewhere, the approach has been used prolifically. From 1998 to 2002, according to a Washington institute helping the New London homeowners, there were more than 3,700 takings of homes and small businesses nationwide for the benefit of parties ranging from auto dealers, raceways and condominium developers to The New York Times, Costco and Nissan Motor Co.

Not a public use
Until now, most lawyers thought the Supreme Court had assented to that extension of the condemnation power. But Kelo and her fellow holdouts have challenged it, arguing that taking their homes to help attract Pfizer and create an upgraded, privately developed, tax-rich neighborhood was not a "public use." And the court's decision to hear the case, with a ruling expected in June, indicates at least some justices may be interested in reining in the power.

"There is no limit on eminent domain if that is permitted," said Scott Bullock, of the Institute for Justice, the Washington public-interest law firm representing the Fort Trumbull holdouts. "Every business produces more tax revenue than your home. Every larger business produces more tax revenue than a smaller business."

Indeed, in Supreme Court arguments last month, lawyers for New London were unabashed in telling the court that, hypothetically, they believed a city could condemn a Motel 6 and give it to Ritz-Carlton to increase tax revenues. The city and a panoply of supporters - including New York State, New York City, and backers of developer Bruce Ratner's proposed basketball arena in Brooklyn - warned the court in briefs that if it restricts the power, cranky property owners would be able to stall projects such as the original World Trade Center, and the redevelopment of Times Square and Baltimore's Inner Harbor.

"It would be a serious realignment of the way city and county governments do their economic development," said Edward O'Connell, the lawyer for New London's development authority. "A city like New London would not be able to rejuvenate itself despite its best efforts."

New London's project was designed as a lifeline for a city that for decades had suffered from shrinking population, high unemployment and a declining school system, and lost another 1,400 jobs in 1996 when the Naval Undersea Warfare Center in Fort Trumbull closed. Pfizer, which had run out of expansion space in Groton across the river, seemed like a golden opportunity.

The Pfizer Global Research headquarters, built on a city-owned site adjoining Fort Trumbull that was once the site of a linoleum plant, was opened in 2001, and has already boosted New London with 2,000 new jobs. But the hotel, upscale housing, offices and retail shops once imagined by the company and civic leaders remain a dream. The redevelopment authority controls more than 95 percent of Fort Trumbull's 90 acres and 100 of its 115 lots, but have accomplished little aside from demolition.

'Poster child' for effort
Gaudiani still defends her vision. "I understand the complaints, but I was looking at a city with no more developable land, no industry, and 75 percent of the kids on public assistance," she said. "It's a problem for me to keep raising millions of dollars for a swanky liberal arts college while doing nothing for all these low-income kids. There's a really deep moral issue here. Do you just say, 'Who cares if these kids get a break?' "

As residents fought to save their homes, one of Gaudiani's published comments - "Anything that's working in our great nation is working because somebody left skin on the sidewalk" - became a symbol of the alleged callousness of the effort. That, combined with a high-voltage personality and her marriage to a Pfizer executive, made her what she called "the poster child for the monster."

But three years after leaving New London, Gaudiani still makes the same point in different words. "There are circumstances in which the one gives to the many," she says. "E Pluribus Unum. We always want to protect the one. But the expectations for the one have to be looked at in terms of the many lives that will be helped."

A historic view
Kelo and her fellow holdouts in Fort Trumbull don't buy that logic. "They act like you should get out for the greater good of the community," said Bill von Winkle, who owns several rental properties that he bought with the profits from a lunch deli he ran for workers at the now-departed undersea warfare center. "I'm not sure why the homeowner has to do that."

They see the battle through the prism of class and history. Matt Dery, a circulation manager at New London's daily newspaper, said his family settled on their little corner lot in Fort Trumbull more than 100 years ago, when it was an enclave for new Italian immigrants. His parents, both in their 80s, live next door, and two adjoining properties are rented. They don't want money, he said, they just want to be left in peace.

Somehow, he said, government's grand civic visions always skip over the homes of millionaires, and target people of modest means as the ones who have to sacrifice for the many.

"They thought they could steamroll us because we're undereducated, lower-middle-class people," said Dery. "They looked at our view of the river and said, 'This isn't the highest and best use.' We're going to take it. . . . The only thing that protects anyone is being rich or politically well connected."

The history of the project provides at least some support for such bitterness. The smell from the sewage plant, for example, was long ignored by the city - until Pfizer came and insisted that it be fixed. The only structure in Fort Trumbull spared from condemnation was the squat, one-story Italian Dramatic Club, a hangout for local and state politicians.

And Kelo pointed to recently published remarks by lawyers for the city, acknowledging that they hope refurbished housing will attract young professionals from Pfizer to Fort Trumbull - people with "leadership qualities to remake the city."

Those comments, she said, reflect the social snobbery driving a plan that could more easily have been executed by renewing the neighborhood around the houses of those who didn't want to sell.

"They don't want us rubbing elbows with the bow-tie boys from Pfizer," she said. "It has been a class issue from the start - we're uneducated and poor, and it's OK to do that to the poor."


New York Newsday: www.nynewsday.com

Clear the Way, Fellows. The Yellow Brick Road Is Coming Through: The New York Times, 5/8/05

By Peter Applebone

In this corner we have what's certain to become the greatest thing to hit upstate since the Erie Canal: DestiNY USA, the developer Robert Congel's ever-elastic field of dreams. To be picky, three years after construction was to begin, it doesn't yet exist. Still, at the moment it promises the biggest, greenest most enviro-friendly mall and entertainment project in the galaxy and the first 21st century "technology cluster," which will be to this century what Silicon Valley was to the last one: 250,000 jobs! $65 billion in taxes created over 30 years! 100 percent fossil-fuel free! "The most visited single leisure destination on earth!"

And in this corner, we have Tim Follett of Brannock Device Company, which makes those things they use to measure your foot at the shoe store; Robert Strutz of Butch's Automotive and Transmission; Brian Osborne of Syracuse Crank and Machine; and more than 20 other businesses, most of them in low-rise buildings in Salina, near the intersection of the New York State Thruway and Interstate 81 near Syracuse.

So it may turn out Syracuse will be home to the biggest tourist draw in the world, and removing 29 little businesses through eminent domain, by which the government can forcibly buy private property for "public use," is a small price to pay for DestiNY's proposed $2.67 billion research and development park announced in February.

But when Mr. Follett, Mr. Strutz, Mr. Osborne and others met at Sposato Floor Covering on Friday, you had to wonder. The most immediate question is the fairness of uprooting or destroying businesses people have poured their souls into for the latest twist in a project that so far hasn't delivered much more than an empty moonscape.

Another question, now before the United States Supreme Court, is what constitutes "public use" anyway. It once meant highways and schools; now it's as likely to mean big-box stores and megaprojects. "Everything I and my family have worked for over the past 25 years is at stake because of the way eminent domain is being abused in this state and across the country," Mr. Osborne said. "And I'm not going to sit back and watch it all go up in smoke because the government drank this guy's Kool-Aid."

This guy is Mr. Congel, one of the richest men upstate, who has produced either a marvel of visionary planning or a Taj Mahal of hype. Mr. Congel, who has left behind some huge developments and ugly controversies in the past, unveiled plans for DestiNY USA in 2001.

It was the successor to an earlier, somewhat less grand plan to expand his existing Carousel Mall. It envisioned a project with the square footage of two Empire State Buildings, including 400 stores, 4,000 hotel rooms, a saltwater aquarium, a 65-acre park under a Biosphere-like dome and a miniature Erie Canal. Price tag: $2.2 billion, with construction to start in July 2002.

Except, despite Gov. George E. Pataki's appearance at a ceremonial groundbreaking that July, nothing has been produced other than more and bigger proposals, each one requiring more land and tax breaks.

The technology park is the newest and most urgent proposal, one so pressing Mr. Congel needs 325 acres, including the existing business property just about this instant, even though nearly all the properties are supposed to be in the project's third phase, to happen years from now.

Many brilliant lawyers are arguing over how eminent domain should play out, but any fool could look at the Salina 29 and see three things you might want before the government takes away one person's business for another's: it should be absolutely necessary for a project with a big public payoff; it should be for a project with a near certainty of happening; and uprooted businesses should get not just the value of their property, but enough to reopen elsewhere.

The Salina 29 think DestiNY flunks all three. DestiNY officials and a key local ally, Onondaga County Executive Nicholas J. Pirro, did not return calls for comment.

The truth is, upstate desperately needs big ideas and big investment, and it's likely no one will ever again come up with something that promises so much. "It's like Las Vegas," Mr. Follett said. "You're down to your last 10 bucks. Why not roll the dice and see what happens?"

But the Salina business owners also say they deserve more than being swept away with the trash, and that at the very least, DestiNY should show some results before gobbling up more land.

"Here's the difference," said Philip Jakes-Johnson, who owns Solvents and Petroleum Service. "We're here. We pay our taxes. We built companies and run them without tax breaks. So we don't have what he has. We have something better."


The New York Times: www.nytimes.com