6/18/2007

Eminent domain law paves way: Los Angeles CA Daily News, 6/16/07

Newhall upgrade planned

By Judy O'Rourke

The recent approval of an eminent domain law moved the city c[of Santa Clarita CA] loser to carrying out plans to upgrade downtown Newhall, though officials hope some landowners will willingly sell.

Anxious property owners on a block targeted for a $10 million civic library are taking a wait-and-see approach, but the city says the measure follows state laws and simply spells out its long-stated objectives to improve the rundown area.

"We primarily passed an ordinance that is identical to state law," said Chris Price, the assistant city engineer overseeing the redevelopment project.

A recent state law requires municipal redevelopment agencies to adopt such measures by July 1.

In Santa Clarita, the five-member City Council acts as the Redevelopment Agency. It's had authority to invoke eminent domain in the redevelopment zone since 1997, but the new measure formalized that power.

A contentious public hearing Tuesday on the proposed expansion plans for Henry Mayo Newhall Memorial Hospital overshadowed other items on the council's agenda, which included the eminent domain law. It drew no comments.

Should the council grant the measure final approval June 26 it will become law, taking effect a month later.

Backing the measure is the city's Senate Bill 53 program. It spells out the procedure for invoking eminent domain step-by-step.

While many aspects have been discussed before, the program includes provisions for what happens if negotiations fail and the city files a lawsuit to acquire property it has condemned.

"The Agency, when it files the condemnation action or later, may seek an order of possession so it can gain possession of the property while the litigation proceeds concerning the value of the property," the document says. If the court sides with the property owner, the city would have to pay his or her court costs, it says.

A letter sent by the city in April told Spruce Street property owners they'd be given a "reasonable opportunity to present relevant material the agency would carefully consider" if they were dissatisfied with purchase offers.

"If a voluntary agreement cannot be reached the agency will either institute a formal condemnation proceeding or in the alternative, decide not to acquire the property," the letter said.

The city snapped up a Union 76 gas station property at Lyons last year for about $840,000 and has said it would pay market rate for the handful of buildings on Spruce, a cul-de-sac parallel to San Fernando Road, bracketed by Lyons Avenue and Eleventh Street.

A review is planned next week for independent appraisals on the handful of Spruce properties, where the library is envisioned. In a closed-door meeting, the redevelopment agency would decide what happens next.

If the city buys the properties, details of the transactions would be made public.

Should the owners refuse to sell, nothing would happen overnight.

"We would probably continue negotiations for 45 to 60 days," Price said. "If that's unsuccessful, we would get further direction from the council."

A man with a plum spot on Spruce voiced concern Friday his property will be undervalued.

"The (high-profile property) always gets prime dollars but appraisers don't take that into account, they just compare similar-sized properties," said Tom Fitterer, whose building is occupied by a tattoo parlor and gallery.

Meanwhile, a needs assessment conducted by the county library suggests the Newhall branch should occupy some 18,000 square feet to 24,000 square feet, more than five times the size of the existing Newhall library.

City officials and county library chiefs who met earlier this month to discuss the library project did not reach a decision, said Pamela Broussard, a county library spokeswoman. The city's draft budget for the coming year earmarks $1 million to design a new library to replace the 4,842-square-foot Newhall branch some quarter-mile away.


Los Angeles CA Daily News: http://www.dailynews.com

Eminent domain bill's impact on blight in Lynchburg unclear: Lynchburg VA News & Advance, 6/16/07

By Conor Reilly

A bill yanking federal money from localities that abuse their eminent domain power recently passed the U.S. House of Representatives Agriculture Committee.

But it’s unclear if the legislation, co-sponsored by Rep. Bob Goodlatte, R-Roanoke, will impact an important tool used in Lynchburg to improve run-down properties.

Goodlatte said in a news release that the bill responds to the U.S. Supreme Court’s 2005 Kelo decision that allowed an economically depressed Connecticut town to take private land and give it to a private company.

“The court essentially erased any protection of private property as understood by the founders of our nation,” he said in a news release.

Called the Strengthening the Ownership of Private Property (STOPP) Act, Goodlatte’s bill would prohibit federal economic development assistance that “uses the power of eminent domain to obtain property for private commercial development or … for economic development purposes.”

The proposed law does not specifically allow localities to take a property because it is a blight, according to Goodlatte spokeswoman Kathryn Rexrode.

“It’s my understanding that local governments have other tools at their disposal to address blight,” Rexrode said.

Lynchburg and its housing authority are now looking into whether the bill will stifle the city’s “spot blight” program, designed to get run-down properties out of the hands of irresponsible owners and into the hands of responsible ones.

Lynchburg City Attorney Walter Erwin said Thursday that the language in the bill is muddy, but could possibly jeopardize key federal grant money used for projects, including the Bluff Walk Hotel, and funding for the Lynchburg Community Action Group and the Housing Authority.

“I just can’t figure out why the federal government wants to protect blighted properties,” he said.

While it is a concern, Erwin said that the bill does say that eminent domain would have to be used to further “economic development.” Spot Blight would likely not qualify under that definition, so the federal money might not be at risk.

The city began using its program in 1999 and has since dealt with 60 blighted properties in and around downtown Lynchburg. The city had to resort to eminent domain in seven of those cases.

Spot blight elimination, Erwin said, raised the assessed values of those 60 properties by $1 million.

Eminent domain was a hot issue during this year’s General Assembly session. Lawmakers ended up passing a bill that restricted localities’ ability to take property if the primary purpose is for private benefit.

City officials have said eminent domain is important because it can help preserve the historic character of the city.

Localities can already take and demolish homes when safety is a factor. But spot blight allows the city to intervene before the home must be razed.

Losing the threat of eminent domain could mean losing the last available method localities have to compel a property owner to take care of their property.


Lynchburg VA News & Advance: http://www.newsadvance.com

Targeting Target, property owners win one: Manchester NH Union-Leader, 6/17/07

By John Stossel

Opponents of eminent domain finally have something to celebrate. After a public campaign, Target Corp. has decided not to build a store on condemned property in Arlington Heights, Ill.

Five years ago, the village trustees declared the International Plaza shopping center and other properties blighted, setting the stage for condemnation under eminent domain. The business owners who were to lose their stores fought the "blight" designation in court but failed.

Yet they didn't give up. They and their supporters held protests at trustee meetings. They were aided by the Sam Adams Alliance and Foundation, which launched a letter, telephone and flyer campaign that threatened to boycott Target if the company went through with its plan to occupy property seized by the government.

In late May, the alliance triumphantly announced, "Target backed out of their contract with the Village. International Plaza tenants have saved the property from eminent domain abuse, at least for the time being."

The village attorney said pending lawsuits by tenants of the shopping center were one reason for Target's decision.

It's only a reprieve. The trustees smell big bucks, so they may try to find another major chain to be the principal retailer in the 35-acre development area. In the past, several retailers have been more than willing to build on stolen property. So the residents of Arlington Heights and the Sam Adams Alliance may need to launch another campaign.

Nevertheless, Target's announcement is good news indeed.

The "takings" clause in the Constitution's Fifth Amendment says government cannot take private property "for public use without just compensation." I object to anyone having his property taken by force, but at least traditionally this power of eminent domain ("superior ownership") was limited to the building of highways, bridges and parks - things meant for general public benefit.

But over the last 40 years, governments have redefined "public use" to include private use that they argue has public benefit. Towns began to condemn properties said to be "blighted" and hand them over to private developers, who promised higher tax revenues and jobs.

In 2005, the U.S. Supreme Court blessed this outrageous argument in the infamous Kelo v. New London case. Fortunately, a public backlash followed the ruling, and 41 states have put restrictions on eminent domain for private development. But many of these laws have loopholes for "blighted" property.

Blight is in the eye of the beholder. The Institute for Justice, a libertarian public-interest law firm, says that "the definition of 'blight' has become so broad and unprincipled that governments regularly target perfectly fine homes in ordinary neighborhoods for the wrecking ball."

The use of eminent domain for private profit is the tip of the iceberg of an unappreciated threat to individual freedom. States and municipalities routinely engage in economic planning that would make the old Soviet Union blush.

State and local planning boards manipulate the tax laws and hand out cash subsidies to favored retailers and manufacturers, while those without political connections bear the full tax burden or are shut out altogether. The favoritism escalates when governments feverishly compete with one another to attract an auto-assembly plant or a big-box store.

Private businesses play each government off against the others to get the most corporate welfare possible.

Who pays? The taxpayers and property owners who are forced to sacrifice for the "common good."

Why do we assume that politicians and bureaucrats know better what's good for the community than people themselves? Competition within free markets benefits everyone. Voluntary exchange is always win-win. Political schemes - which always require force - benefit some at the expense of others.

Many uninformed people think there can't be economic development without planning. That's another myth. Most of America's astounding economic growth occurred without government guidance.

The Arlington Heights story shows that big companies respond to public protests. There is a lesson in that. Governments will stop stealing private property from the powerless when businesses refuse to cooperate in this larceny.

So the next time one of those giants signs on to a development project made possible by eminent domain, give them an earful.


Manchester NH Union-Leader: http://www.unionleader.com

John Stossel is co-anchor of ABC News' "20/20" and the author of "Myths, Lies, and Downright Stupidity."

Governor Perry, Don’t Mess with Texans’ Private Property! Mexia TX Daily News, 6/17/07

By Gina Parker Ford

The right to own and enjoy private property is one of the most basic rights of our free society. The 80th Legislature clearly understood that in passing HB 2006, which provides owners of private property with necessary protections and checks against the government power of eminent domain. According to its author, State Rep. Beverly Woolley (R-Houston), the bill attempts to “make condemnation a level playing field,” since the current eminent domain laws are “tilted in favor of condemning entities and against property owners.”

Eminent domain, also referred to as condemnation, is the process by which government takes property from the private owner for a stated public use, such as the construction of a highway. The Texas Constitution qualifies the raw power of eminent domain with two requirements: lands that are taken must be put to “public use” and “adequate compensation” must be provided to the aggrieved owners.

Courts have watered down those protections through increasingly broad interpretations. The State Supreme Court, for example, has made eminent domain a cheaper and easier option for governments, to the detriment of Texans’ private property rights.

In 2005, the U.S. Supreme Court ruled in the Kelo case that economic development can serve as a “public use,” ? that is, businesses need not purchase their own properties; the government can just condemn property for them. In the dissenting opinion, Justice Sandra Day O’Connor warned, “Nothing is to prevent the State from replacing any Motel 6 with a Ritz Carlton, any home with a shopping mall, or any farm with a factory.”

Thankfully, HB 2006 rights those wrongs. By narrowly defining “public use,” the bill limits frivolous takings. Shopping malls are great, but they are not a “public use” that warrants seizing homes and businesses.

The bill requires that a government make a “bona fide offer” to purchase property before taking it. Sitting down eye-to-eye and face-to face before a condemnation is the adult way to solve things. Without a “bona fide offer” to purchase, eminent domain is nothing more than the bully kid on the playground - grabbing and pushing.

HB 2006 requires that courts consider all factors in determining “adequate compensation”. The bill also contains various measures of transparency so that when it comes to eminent domain, everything is conducted under the watchful eyes of interested individuals and voters.

Property owners’ sighs of relief, however, may be premature. Governor Rick Perry has threatened to veto HB 2006. The Texas Department of Transportation, it seems, has told the Governor that if the bill is signed into law, the cost of road construction will skyrocket. Despite the threats of TxDOT, HB 2006 does not stop transportation projects. HB 2006 simply reinstates and restores many of the rules that TxDOT operated under for decades. Roads were constructed before, and they will continue to be constructed.


Mexia TX Daily News: http://www.mexiadailynews.com

Gina Parker Ford, CEO of a dental manufacturing company and an attorney, is the National Eagle Forum Chairman for Judicial Reform. Mrs. Ford also served as a Bush and Perry appointee to the Texas Department of Licensing and Regulation. She serves on the American Family Radio Advisory Board (Texas), and she was both the former Republican Party of Texas Treasurer and Associate General Counsel. For more information: www.ginaparker.net

6/17/2007

Legislature Must Act Now to Stop Eminent Domain Abuses: Politics NJ, 5/29/07

[New Jersey state] Senator Diane Allen, (R-7), issued the following statement today after the release of a report by the New Jersey Department of the Public Advocate that states New Jersey law governing eminent domain use for private redevelopment is written in a way that leads to abuse.

“I am not surprised by the findings in this report. It is a fact that too many residents in modest homes, for which they have worked all their lives, fall victim to eminent domain abuse. Eminent domain was created to facilitate projects for the public good, like roads and schools. Recently use of eminent domain has mutated to allow grabbing of private property for private use.

The Public Advocate’s report also pointed out that many homeowners whose rights are violated lack the resources to engage in expensive litigation with towns. We will never know exactly how many people have had their homes wrenched from them by aggressive eminent domain actions. Home ownership is part of the American dream, but when a family loses its home, it’s not just the home that is stolen, but the family’s dreams, as well.

This abuse of eminent domain and the stealing of people’s homes by the government must stop. I have been working on this issue for a long time, and as a result of my research, have introduced several bills all of which I believe would go a long way toward putting an end to the rampant abuse of eminent domain. One of the pieces of legislation I sponsored would place a two-year moratorium on eminent domain used for private development. It has languished in the Senate Community and Urban Affairs Committee.

My other eminent domain bills would:

  • Specifically define blight, clearly indicate who would make the determination, and establish the precise criteria that would be used.
  • Ensure just compensation for both residences and businesses
  • Prevent an occupied and well maintained residence from being demolished for building developments such as a shopping center or non-public office buildings
  • Prohibit a municipal officer or employee who serves on a redevelopment or housing agency from voting on condemnation of any property for redevelopment purposes.

Sadly, not one of my eminent domain bills has even been scheduled for a hearing by the Chairman of the Senate Community and Urban Affairs Committee. The Trenton politicians have failed to respond to the cries of the people and have instead listened to promises of a quick tax fix that typically never appears.

The practice of seizing private property that is modest to replace it with high-priced private development is immoral and must be stopped. The Legislature must address this issue now.”


Politics NJ: http://www.politicsnj.com

Property rights: Rocky Mount NC Telegram, 5/29/07

North Carolina voters will be asked to decide whether the government can invoke eminent domain to condemn private property to make way for economic development projects under a measure approved last week in the N.C. House.

If the N.C. Senate signs off on the proposed constitutional amendment, the referendum could go before voters as early as this fall.

The measure, which was approved by a bipartisan 104-15 vote in the House, also ensures the right of a landowner whose property is condemned to receive a jury trial to determine just compensation.

North Carolina is one of many states to review eminent domain laws after the U.S. Supreme Court ruled that the town of New London, Conn., could condemn and seize property for use as a hotel and convention center. But the high court also ruled that states could ban such condemnations.

Lawmakers enacted a law last year that eliminated a few exceptions that allowed towns and cities to condemn land for economic development. The proposed amendment would make it harder for the loopholes closed last year to be written into future laws.

State and local governments have long held the power to invoke eminent domain to take private property for public use, but the Connecticut case set a bad precedent. Taxpayers are being asked again and again to foot the bill for huge economic incentive packages to help lure business and industry to North Carolina. They shouldn't have to worry that the next thing asked of them may be to forfeit their property.


Rocky Mount NC Telegram: http://www.rockymounttelegram.com

Monson to decide on land-taking act: Springfield MA Republican, 5/29/07

Monson to decide on land-taking act
By Lori Stabile

Robert E. Kaddy said he is pleased that Town Meeting voted to adopt the "private policy protection act" for Monson.

Kaddy went before the selectmen to make a case for the private property rights protection act last year, and selectmen voted to put the bylaw amendment on the May 14 Town Meeting ballot so voters could decide. The bylaw will protect taxpayers from land takings for private development.

"Who knows what's going to happen down the road," Kaddy said in a recent interview.

Monson is the second community in the state to adopt the act, Kaddy said. Scituate was the first, he said. The bylaw still needs approval from the attorney general's office, but he doesn't expect there to be any problems.

"There wasn't much discussion" at Town Meeting, "but I'm very happy that people approved it," Kaddy said. "It will protect them."

He became interested in the issue after reading about New London, Conn., where the city planned to take private homes through eminent domain proceedings, for a waterfront commercial development. The owners objected, but the U.S. Supreme Court sided with the city.

Any eminent domain takings in Monson have to be approved by Town Meeting, and officials here said they didn't think that what happened in Connecticut could occur here. Still, Kaddy persisted, and talked with state Sen. Stephen M. Brewer, D-Barre, about the proposal.

The act does not get rid of eminent domain provisions entirely. It does not prevent eminent domain when it comes to widening roads, or rights of way for sewer and water lines, or other public uses.

Kaddy, who moved to Monson five years ago from West Springfield, said Monson has great potential. He has some other ideas in the works, but said they are still in the beginning stages.


Springfield MA Republican: http://www.masslive.com/hampfrank/republican

Applaud Passage Of Eminent Domain Bill By Legislature: Texas and Southwestern Cattle Raisers Association, 5/29/07

The Texas and Southwestern Cattle Raisers Association [TSCRA] applauds the Texas Legislature and especially thanks Senator Kyle Janek (R-Houston) and Representative Beverly Woolley (R-Houston) for passing H.B. 2006 relating to the use of eminent domain by governmental entities.

“H.B. 2006 helps level the playing field for landowners who are condemned and ensures that they are justly compensated for the damage done to their property,” said Jon Means, TSCRA President. “We’re confident that Governor Perry, who strongly supports private property rights, will sign this bill when it reaches his desk.”

H.B. 2006 resulted from lengthy negotiations between legislators and stakeholders and an interim study by the Legislature. The bill defines “public use” in a way that is intended to prevent condemnation for economic development purposes, which was the subject of much controversy after the U.S. Supreme Court’s decision in Kelo v. City of New London. It also requires a condemning authority to make a bona fide offer to the landowner prior to condemnation and share all appraisal reports.

“TSCRA is hopeful that this legislation will encourage condemnors to make fair offers to landowners, which will ultimately reduce litigation and costs to the taxpayers of Texas,” said Jon Means.


Texas and Southwestern Cattle Raisers Association: http://www.cattlenetwork.com

Say no to home wreckers: Los Angeles CA Times, 5/29/07

Since a Supreme Court case ruled against homeowners in 2005, protections against eminent domain abuse are making their way to the ballot
Editorial

THE SUPREME COURT'S 2005 Kelo ruling upholding government power to seize peoples' houses and turn them over to private developers sent a chill through homeowners. It also sent a thrill through property rights activists who saw an opportunity to hitch the more radical parts of their agendas to ballot measures advertised simply as protection against home-stealing developers and politicians.

Last November, for example, California's ballot included a measure to block Kelo-like eminent domain but also, by the way, to effectively end basic zoning and environmental regulation. Fortunately, voters saw Proposition 90 for the Trojan horse that it was and rejected it.

But there will be other Kelo-fighting measures on at least one of the all-too-many California ballots next year. One proposal likely will pair protection against eminent domain abuse with a phaseout of rent-control laws. Rent stabilization would apply to current tenants but would elapse once they vacated their apartments. Voters must deal with that one, when the time comes, with eyes open and full awareness of its effect.

Meanwhile, Assemblyman Hector De La Torre (D-South Gate) has proposed a more modest ballot measure that directly takes on the Kelo threat without attempting to turn it into a broader, and unwarranted, political revolution. The language is not yet final and must get legislative approval before proceeding to the ballot. But its principles are sound: It would bar state or local government from condemning an owner-occupied home and transferring it to another private party.

The virtue of De La Torre's plan is that it recognizes the special status our society places on a home. No amount of money can adequately compensate for the emotional investment in a home, especially when it is lost to a government that has determined, for whatever reason, that some other private owner is better suited to have the real estate.

Small businesses would be able to choose between staying on as part of a revitalization plan, receiving the value of the business or receiving relocation funds and the full value of the property. Investment properties, of course, should also be protected from eminent domain abuse. In the end, though, their loss can be monetized and the owner compensated.

The details of this proposal are still taking shape, and those details may tell volumes about whether it deserves to become law. It should escape no one's attention that one of its sponsors, the League of California Cities, represents governments that use, and sometimes abuse, eminent domain. But its narrow, targeted approach is worthy of support.


Los Angeles CA Times: http://www.latimes.com

Eminent domain not likely in Loudoun: Louden Times-Mirror, Leesburg VA, 5/29/07

Letters

By Taylor Jarnagin, Sugarland Run

In the past few weeks I have heard a lot of buzz generated by Supervisor Mick Staton, Sugarland Run District, about the potential for the use of eminent domain to condemn private property in the "poorer" areas of eastern Loudoun County and replace the seized property with "town center" developments.

I heard Mr. Staton speak at the Sugarland Run HOA board of directors meeting in early May where he voiced this viewpoint. I also attended a Planning Commission meeting in Leesburg where I heard Mr. Staton downplay the eminent domain issue somewhat but still stress the threat of "redevelopment" (a bad thing) while praising "revitalization" (a good thing.)

Last week, I contacted the Loudoun County Zoning Department and asked them if there were any plans to use the power of eminent domain for economic redevelopment in Loudoun County. I was informed that there were no such plans that have been proposed.

If a developer in fact wished to conduct such a redevelopment, they would first need to submit a formal plan to the Loudoun County Department of Building and Development for review. The Planning Department, Planning Commission (appointed by the Board of Supervisors), Zoning Department, Transportation, VDOT, Health Department, etc. would all get to comment on the proposed development before there were public hearings and the matter voted upon by the Board of Supervisors.

May 21, during the public comment section of the Planning Commission meeting, I directly asked the members of the commission if any of them would support the use of eminent domain and vote to approve such a plan to the supervisors. Not one indicated that they would support such a use of eminent domain.

Clearly, there is no imminent threat that eminent domain will be used to seize private property in eastern Loudoun, western Loudoun - or anywhere else in the state of Virginia. I also found information on the Internet that indicates "in April 2007, the state of Virginia joined 37 states that have passed protection from the U.S. Supreme Court's very unpopular Kelo decision which allowed a city to take well cared for homes and make them available to a private developer to bring in more taxes and jobs." See http://www.vapropertyrights.org/.

Doesn't this action at the state level render the possibility of the use of eminent domain in Loudoun County a moot issue?

In this election campaign, we should all be sure to ask our current supervisors, as well as all who seek to replace them, what their views on eminent domain and private property rights are. We as voters need to be informed about the issues. I don't think we need to be stampeded by rumors of dire consequences by politicians seeking political gain.


Louden Times-Mirror, Leesburg VA: http://www.timescommunity.com

Port of Tacoma may take 140 acres of private property: KNDO/KNDU, Yakima WA, 5/30/07

Associated Press

The Port of Tacoma has decided to use its power of eminent domain to force the sale of 140 acres of privately owned property on the Tideflats.

The port wants the land to develop marine cargo terminals.

The commission says it will continue to negotiate with owners but would condemn the property if needed.

Yesterday's decision affects 22 property owners with businesses that have about 680 jobs.

Some of the affected businesses had representatives at yesterday's meeting and 1 of them said the decision is already hurting business. Gary Kehler of Graymont Limited says employees are worried about how long their jobs will last. The company brings in limestone by barge and sends processed products out by rail and truck.


KNDO/KNDU, Yakima WA: http://www.kndo.com

6/16/2007

For Attorney John C. Murphy The Fight Against Eminent Domain Is Going Right At Last: Baltimore MD City Paper, 5/30/07

By Charles Cohen

John C. Murphy finds himself in his favorite lunch spot, a little Centre Street joint that smells of cold cuts and coffee, pinned against the wall by a stranger waiting for her order and a reporter. For a moment, at least, he is still, an unusual sight given his relentless campaign against what he sees as the abuse of the power of eminent domain by the city of Baltimore.

But instead of talking about his recent successes in the Maryland Court of Appeals, the state's highest court, in cases that may change the way Baltimore uses eminent domain, Murphy wants to talk about the book he's reading - Robert Moses and the Modern City: The Transformation of New York, edited by Kenneth T. Jackson and Hilary Ballon.

Moses, the late public-works czar of New York, is both praised and vilified by historians and urban planners for his imprint on that city's five boroughs. Between the 1920s and 1960s, he oversaw the construction of 481 miles of highways and $27 billion in construction projects, which, adjusting for inflation, is about $125 billion today, according to a recent article in Newsday.

Moses produced Lincoln Center and the United Nations as well a network of roads and bridges that stretches up to Niagara Falls. He transformed Long Island into the prototype suburb with the "ribboned parkways" known now as the Long Island Expressway. He also favored high-rises over brownstones, created the public-housing tower, and razed many poor neighborhoods to create his monumental works.

In his Moses biography The Power Broker, historian Robert Caro argues that Moses left a dual legacy of stunning achievement and damaged communities. He dubs Moses "the greatest builder in the history of America, perhaps the greatest builder in the history of the world," but notes that he also "tore out the hearts of a score of neighborhoods, communities the size of small cities themselves, communities that had been lively, friendly places to live."

Rumpled in his suit, Murphy leans over the wobbly table, his gray curls springing into the air. More than one observer has likened him to Columbo, the perplexed 1970s TV detective, perpetually running his fingers through his hair before launching a knockout question that catches a culprit unawares.

"The cover is great," Murphy says of Robert Moses and the Modern City. "It's a picture of Moses standing on a girder towering over Manhattan, his hands on his hips. He has this determined look on his face, daring anyone to get in his way."

Plunging back into the street, Murphy paraphrases one of Moses' more famous quips: "Critics never built anything." Repeating the phase, Murphy says, "In a way maybe he was right. Modern New York would be impossible without Robert Moses. You have to admire his ability to get things done. You have to admire that."

Murphy 67, freely acknowledges that he's never built anything, other than a 40-year law career. If Moses were working in Baltimore today, however, Murphy would be sparring with him every step of the way. Murphy's the guy who once went to a judge's house in 2000 to get him to sign an injunction to stop a developer who had started demolishing two Redwood Street buildings in the middle of the night. Murphy made a quick documentary film about the historic but down-and-out department-store district along Howard Street, got it shown in the Senator Theatre to the right people, and won preservationists some public leverage to prevent the wholesale tearing down of the west side of downtown.

If Murphy isn't arguing in court for an immigrant or minority's right to stay put and be part of a neighborhood's renewal, he's arguing for an old building that's being condemned for demolition. From Memorial Stadium (now a YMCA and senior housing complex) to the Rochambeau Apartments (now a rectangle of green sod on North Charles Street) to a line of historic St. Paul Street rowhouses (recently torn down to make room for a Mercy Hospital expansion), Murphy has been involved in some of the most high-profile preservation battles in Baltimore, losing more often than not. But he doesn't give up.

Murphy remembers driving around his native Washington with his father, looking at old buildings. Frederick Murphy was an architect who designed a building for the Vatican on D.C.'s Embassy Row, a number of buildings at Catholic University, and founded the architecture school at CU. The most prominent artwork hanging in Murphy's North Charles Street office is an architectural drawing of the Pantheon in Rome; it was willed to Frederick Murphy by his teacher at the Ecole des Beaux Arts in Paris. "If you have an usual building, err on the side of preservation," Murphy sums up. "It is in my blood."

Murphy is concerned with more than bricks and mortar; as much as he frets over the fate of an old building, he worries just as much about small businesses being shoved aside by developers, often through city-exercised eminent domain. "The city is coming along saying, `We're going to take your business away and give it to some other business,'" Murphy says. "It's insulting to them - that somehow you're not up to snuff. That's the whole issue of eminent domain for economic development, that is why it's so fraught with conflict."

Despite the setbacks, despite the lost battles, Murphy is starting to make some progress in his perennial fight. This past February, Murphy, in a rare occurrence, got the state's Court of Appeals to overturn an eminent-domain case; the decision also provoked a judicial rebuke on the way the city has been going about its business, from its planning to how it condemns property. This action follows a what many see as a national shift in public sympathies regarding eminent domain in the wake of the 2005 Supreme Court decision in the case of Kelo v. City of New London, a decision that upheld a city's use of eminent domain but galvanized property-rights activists who had been out on the fringes yelling for attention. Now the nation is beginning to listen, and in Baltimore, more than anyone else, John C. Murphy represents the growing backlash against eminent domain - and is poised to take advantage of it.

"John for a long time was a voice in the wilderness," says Garrett Power, professor emeritus at the University of Maryland School of Law, who has invited Murphy to speak to his classes in the past. "Then he came out of the woods and got the attention from the Maryland Court of Appeals and brought about profound change on how the city will go about using eminent domain."

Murphy's office is a notorious mess. Stacks of overstuffed file folders teeter as precariously as houses of cards. Should he open a window to let in a fresh breeze, he risks sending yellow legal sheets of scrawl fluttering.

"My wife couldn't believe I was going have you guys up here," he says, his tie askew. "`Couldn't you meet them somewhere?'"

Asked what he envisioned when he started New York University School of Law, he gruffly replies, "I didn't envision anything." Then smiles and adds, " I maintain law school is worth going to whether you want to be a lawyer or not. It's a very mind-broadening education. The trouble is it makes you want to be a lawyer."

While Murphy was in law school, he worked part-time as a steamfitter, laying pipe for heating systems. He says his co-workers told him, "Good thing you're going to become a lawyer because you'll never make it as a steamfitter." Nonetheless, Murphy's appreciation for hard-working folk was firmly established.

After graduating in 1965, he signed on with a law firm in Baltimore: Cross, Shriver, Bright, and Washburne, now Ober, Kaler, Grimes, and Shriver. For five years he worked with seasoned attorney Nick Shriver, whom Murphy describes as "a real tiger in the courtroom." Among the many lessons large and small that Murphy picked up from his mentor, he saw how Shriver used most of the clock to work for his clients and had a soft spot for small businesses.

Six years later, Murphy became an assistant attorney general, learning the intricacies of zoning law under George Nilson, who was then deputy attorney general. Nilson is now Baltimore's city solicitor, which means that when Murphy files one of his suits against a project involving the city, he often faces his old boss or his team of lawyers across the courtroom. Asked how he feels about facing his contemporary in court, Nilson says, "Obviously we have very different perspectives on a number of condemnation issues, but we agree to disagree in a collegial way, I think."

Murphy says his evolution into the anti-eminent domain point man in Baltimore was more an accident than the focused drive of a crusader. As an attorney, specialization often just happens, he says, based on the clients: "Lawyers sort of fall into a situation."

Maybe, but there seems to be a theme of preservation, or at least appreciation of the endangered, running throughout Murphy's career. When he began his own practice in 1979, he helped start an anti-sprawl group, then a new concept, in Carroll County. In the mid-1990s Murphy found himself representing a group of Fells Point residents in an ill-fated battle against the construction of the Wyndham Hotel, now the Baltimore Marriott Waterfront, which basically opened the door for what is now booming development in Inner Harbor East. Murphy took two cases concerning the hotel to the Court of Appeals, both of which were heard on the same day and both of which he lost.

John Cannan, Murphy's assistant from 1996 to 2000, recalls working on briefs and digging through piles of papers, and then delivering copies of documents to swank offices with modern furniture and sweeping views of the harbor. "You got a sense that it was David vs. Goliath, but I think [Murphy] sort of revels in taking the big guys to task," Cannan says. "It's like in the movies, trying to get the reprieve to keep your client out of the death chamber, and he's driving to the prison with a stay of execution in his hand."

Despite the defeats, his reputation as a scrapper spread, and businesses facing condemnation started contacting him.

Murphy says that in his first eminent-domain cases, his clients were focused on getting the biggest payout they could from the city when it sought to take their property, and with good reason. When he first started looking at the law that underpins the city's condemnation power, Murphy says, he saw his own situation as a litigator as "hopeless - hopeless. I said to myself, The one thing I've got to do is to stay out of court. You're going to lose in the end."

Murphy can zero in on the moment when he sensed that change was coming. One day in 1999, his office was packed with local businesspeople from the west side of downtown clutching condemnation notices they had just received from the city, which had recently announced its sweeping west side revitalization plan. Murphy recalls going into his spiel that he would try to get them the best deal for their property when a woman cut him off. "`You don't understand,'" Murphy says, recalling the woman's words. "`We don't want to go. We don't want to leave.'" His clients didn't want to take the money and get out; they wanted to stay and reap their share of the renaissance promised by the redevelopment efforts.

"That really gave me my marching orders," Murphy says. "I didn't dream this [anti-eminent domain movement] up, I was told this by my clients." Since then Murphy's law practice has gone from two eminent-domain cases a year to dealing mostly with condemnation.

Standing in his office, Murphy starts talking about the deep connection that people have with property, and how his own Irish ancestors had their property confiscated by the British in the 17th century. A later sale of that land eventually financed the construction of Dublin's Trinity College. A few weeks before meeting with a reporter, he had escorted his youngest daughter to a college fair and spotted a Trinity College booth.

"My kids, I embarrass them so much," he says. "I go up to this lovely young lady sitting there. `You seized our land about 300 years ago - would it be fair if you gave [my daughter] a scholarship.'"

The notion of the government taking private property for the public good goes all the way back to English common law. When a string of British colonies became the United States, the founders retained the notion, although the Fifth Amendment of the Constitution specifies that the government can't exercise what would come to be called eminent domain "without just compensation."

Before the 1950s, eminent domain was invoked primarily to secure land for roads and railroads. In Baltimore, however, the use of eminent domain for economic benefit goes back to the city's early days. The University of Maryland's Garrett Power found that eminent domain was employed along the Jones Falls at what is now known as Lake Roland in the 1831 case Bellona Gunpowder Co. v. the Baltimore Susquehanna Railroad. The railroad wanted to build a line up to Pennsylvania's farmlands to bring produce to market, but needed to run the track along the falls, dangerously close to the gunpowder company. Something had to give, and the court ruled that the railroad was "important to economic development," Power says, and granted it the right of way. Bellona Gunpowder had to go.

During the last half of the 20th century, eminent domain morphed into the legal engine for "urban renewal," an attempt by federal, state, and local governments to inject economic and social life into distressed city neighborhoods, often by destroying neighborhoods and effectively starting over with a blank slate.

Baltimore has been a major player in urban renewal and using eminent domain to get there ever since the development of Charles Center in the 1960s. The '70s brought eminent-domain battles over Little Italy's fears that Harborplace would destroy its restaurant business, and the protests that stopped various highway projects from plowing into the city and decimating Leakin Park, Fells Point, and Federal Hill.

According to the Institute of Justice, a libertarian public-interest nonprofit law firm, Baltimore is now one of the most frequent users of eminent domain in the country, in a league with cities like New York and Chicago.

"I can't remember a time when there wasn't eminent domain going on in Baltimore," says Dana Berliner, senior attorney for Institute of Justice. "In most cities that's not necessarily true. There may be a few years when there's a project and a few years when there is nothing going on."

City Solicitor George Nilson takes issue with the characterization that Baltimore is a ramped-up eminent-domain machine. "We have a very active, very healthy redevelopment program in the city, so acquisition and condemnation inevitably is a major part of life in Baltimore," he says. "But I don't think we're significantly different than other comparable cities."

Nilson contends that Baltimore can't reach its full potential without sweeping aid from eminent domain. "We would not have the significant development that is already taking place on the west side," he says. "Nor would we have any prospect for the kinds of major developments [we have], without using eminent domain to gather up property, creating a footprint large enough to attract developers."

The west side of downtown has busied both the city and Murphy for the past nine years. The initial plan, announced in 1999, called for demolishing most of the buildings in the city's old department-store district, a prospect that propelled groups such as Baltimore Heritage and Preservation Maryland to hire Murphy. He and his clients found a powerful ally in former Baltimore state senator Barbara Hoffman, then chairwoman of the Senate's Budget and Taxation Committee, who held up funding for the restoration of the Hippodrome Theatre until the city drafted a plan to save the historic structures. Meanwhile, Murphy met with stunned business owners in the area and began to realize there was more at stake than buildings.

More than 220 of the properties in the project area are to be spared demolition, according to the preservation plan. Business owners haven't fared as well. Murphy says he's been able to help about seven of his 20 business clients in the area stay put so far, but others have gone out of business or just given up amid the uncertainty. Murphy says that one of his clients who lost his business quipped, "They like that building, they just don't like me."

Nonetheless, Nilson points to historic west side buildings full of recently converted condominiums as a sign that the area's fortunes are turning. "The city felt that the west side was not going to prosper, over the short or long haul, if it were just a collection of miscellaneous individual merchants without some real large momentum," he says.

M.J. "Jay" Brodie, president of the quasi-public Baltimore Development Corp., knows all too well that he and his organization are seen by some as a force that disrupts the city as much as it aids it. "I don't want this [to be], `Jay Brodie is about to destroy the city of Baltimore,'" he jokes. In fact, as Brodie stands in the lobby of BDC's South Charles Street office before a massive model of downtown, he can literally point to the city's development success stories: the Inner Harbor, Charles Center, the Giant grocery store on East 33rd Street, a supermarket project planned for Liberty Heights.

"In terms of looking at this model and looking out this window and saying what a different city this would be, this stuff would literally not exist" without eminent domain, Brodie says. "The city had to assemble sites, re-create streets, move utilities, find a developer. Without the power of putting sites together, none of that happens."

Older cities like Baltimore are landlocked by surrounding counties and can't grow by annexing land, Brodie says, and so they have to creatively recycle land that they already have. "We need to reassemble sites within this 80 square miles which is Baltimore or else we're going to die economically as a city," he says. Without the power of eminent domain, Brodie adds, the city could end up facing inflated prices set by holdout owners.

"If the sky is falling, it's not because of the history of abuse of government domain," says Joshua Auerbach, a former assistant city solicitor who in November faced Murphy in the Maryland Court of Appeals over Baltimore Development Corp. and an open-meeting law. "I don't think there are dozens and dozens of cases where the justification of the use of eminent domain were not very good. There certainty aren't in Baltimore. There are close cases, maybe, but when eminent domain was used in Baltimore there was a serious need."

Yet even Brodie recognizes a new era has dawned in the use of eminent domain. "One of the changes in the climate is there are more challenges to the city's right to take," he says. "That rarely took place before."

Here he might as well be talking about Murphy, and about the decision known as Kelo.
On June 23, 2005, the U.S. Supreme Court ratcheted up government power to condemn property for economic development in a decision regarding the fate of the waterfront in New London, Conn. It always has been agreed that, constitutionally, the government can take land to build roads and other necessary infrastructure, and the idea of taking property to pass on to developers has been sanctioned by the high court in its 1954 decision in Berman v. Parker. But in that case, the property was condemned to get rid of what was then called "slums and blight." But the court's decision on Kelo v. City of New London took the concept further and said eminent domain could be used for economic development even if it wasn't being used to turn around depressed communities. In a heated 5-4 decision, the court said it was sufficient that New London had a clear plan that promised to create jobs.

Justice Sandra Day O'Connor warned in her minority opinion, however, that "nothing is to prevent the state from replacing any Motel 6 with a Ritz-Carlton, any home with a shopping mall, or any farm with a factory."

In the two years since the Kelo decision, 42 state legislatures have made it more difficult to use eminent domain for economic development. Maryland's legislature wrestled with 42 bills during its 2006 session before rejecting them all.

"The decision encountered a tidal wave of opposition and made people so much more aware of this issue than before, it really shocked people," says Dana Berliner of the Institute of Justice, which argued for the plaintiff before the Supreme Court. "It certainly surprised me, and people like me, who are students of the Constitution and taught constitutional law. We recognize that the jurisprudence is such that the Supreme Court had permitted this kind of activity." While Kelo confirmed government's eminent-domain power, Berliner adds, "what has changed is this tremendous groundswell that government has not paid enough attention to property rights."

Just as significant as any legislative action or local court decision is the fact that the masses know about Kelo. People like James Gillin understand that eminent domain for economic development is getting a second look by lawyers and lawmakers alike. As the owner of J.M. Gillin, a fabricator of steel electrical enclosures, he is facing his second eminent domain-compelled move in 22 years. He was moved out of a South Baltimore location in 1985 to make way for a football field at Southern High School (it was never used for football). Now located across the street from the Poe Homes housing project, a block away from Edgar Allan Poe House and Museum on Amity Street, his business stands in the way of the Poppleton Project, an urban-renewal plan that calls for the condemnation and demolition of more than 500 homes and businesses in an area just to the west of Martin Luther King Jr. Boulevard to develop a new community to complement the under-construction University of Maryland biotech park. Gillin has put himself in Murphy's hands in hopes that the fallout from the Kelo case is the best thing that could have happened to him.

"Even though the Supreme Court decision wasn't to my favor, it woke people up," says Gillin, who relishes the role of mainstay in a neighborhood that has resisted three previous urban-renewal attempts. "It made people aware of what is going on in this country."

Gillin's property has been listed for condemnation in the urban-renewal bill approved by the City Council, but he has received no official condemnation notice. Currently, Murphy is trying to work something out with the developer, New York-based Le Cité Development.

Murphy agrees about the importance of Kelo. "Ten years it was just, boom--eminent-domain ordinance, you're out of here," he says. Thanks to Kelo and the public sentiment that followed, Murphy says, "government and the courts are forced to slow down and look at the people they are displacing."

Up until a few months ago, the only thing Murphy and other local lawyers could realistically contest was the amount of money the city offered to pay their clients. Murphy would invariably challenge the city's assessment of the property's worth and hope that a jury would hand the owners more than the city's original offer.

But in February, Murphy and Rockville-based attorney James Thompson challenged the city's right to take the Magnet Bar, an establishment on the 1900 block of North Charles Street owned by George Valsamaki. The Baltimore Development Corp. had lumped together the Magnet Bar with 19 other properties in an attempt to create a large enough tract of land to bring in developers as part of its plan to revitalize the Charles North neighborhood.

When it condemned the property in March 2006, the city used an aspect of eminent domain known as a "quick take" condemnation. Quick take accelerates the normal condemnation process to a little over a year. (An ordinary eminent-domain condemnation can take nine months to come to trial and appeals can drag on for several years.) Quick-take condemnation gives the city immediate possession of the property without first having a hearing; if the property owner doesn't file an appeal within 10 days, a judge automatically signs the title over to the city. If the owner files an appeal, he or she gets a hearing within 14 days.

If the business owner appeals and objects to the dollar amount the city gives him or her for the property and manages to get a jury trail, the jury is normally bussed out to view the property. Seeing an empty building compared to a business in operation makes a big difference in what the jury awards the owner. "Generally the place is sort of a shambles," Murphy says. "The fixtures and cabinets have been taken out - the place looks terrible."

When appealing the quick take on Valsamaki's behalf, Murphy was able to convince the court that the city of Baltimore was going to extremes by using quick-take powers. The Magnet Bar wasn't deteriorating or on the verge of collapsing, so where was the "immediate need" for the quick take, the judges asked. Court of Appeals Judge Alan M. Wilner criticized the city's open-ended planning system throughout the court's 58-page decision. "Even had the case involved the use of regular condemnation, the evidence presented below of public use was sparse," he wrote in part. "The City has only shown that the Property is to be acquired for renewal purposes to assist in a `business expansion' in the area."

Two months later, a Murphy-originated case was back in the Court of Appeals. Murphy had been hired to represent Robert A. Sapero, owner of the Chesapeake Restaurant. The one-time landmark on the corner of Charles and Lanvale streets, just south of the Charles Theatre, has been closed for almost two decades; the Baltimore Development Corp. asked the city to do a quick-take condemnation on the property to aid in revitalizing a block where nightlife has blossomed in recent years. Murphy appealed the quick take in Circuit Court and lost, but attorney Alan R. Engel appealed the case the Court of Appeals, which ruled in Sapero's favor. Again the court's decision admonished the city for not demonstrating the urgency behind using quick take.

Murphy loves the Valsamaki case in particular, the way a poker player loves drawing a king to fill a royal flush. "To use a hackneyed phrase, it leveled the playing field," he says. "You can't use quick take unless you can demonstrate a real need to have immediate procession." Murphy contends the city's whole way of planning - gathering up bits of property through eminent domain so they can offer up a fat tract to developers - can now be questioned in court.

Nilson and Brodie believe that Baltimore's eminent-domain power is still very much intact, although they agree that adjustments must be made. Brodie points to the recently completed $80 million Centerpoint project on North Howard Street and notes that BDC was able to negotiate with property owners to amass the land needed for the site without using condemnation powers. "If we didn't have that power of eminent domain, would they be negotiating?" Brodie says. "Could we assemble a Centerpoint without eminent domain? No."

Murphy's most recent Court of Appeals victories against the BDC were preceded by another in November 2006. Murphy was hired to represent Carmel Realty Associates of Philadelphia, which owns the Woolworth's and McCrory's buildings along the 100 block of West Lexington Street, in the heart of the west side Howard Street/Eutaw Street corridor that the city has spent nine years trying to revitalize and where Murphy has about 15 clients. Carmel Realty had asked the BDC if it could redevelop its own property as well as an adjacent building. When the BDC choose New York-based developer Chera Feil Goldman Group, Carmel Realty wanted to see the records of the meeting. As a nonprofit, BDC argued it was a private entity and didn't have to abide by the same open-meetings law that requires governmental bodies to make their decisions in public meetings, not behind close doors. Carmel Realty filed suit.

Presented with Murphy's case, the Court of Appeals unanimously agreed that BDC was acting on the city's behalf, with city employees on its board, and was therefore subject to the open-meetings law. Murphy contends that the fact that BDC was negotiating condemnation cases with businesses over the economic future of the city was a major deciding factor. "If this agency was overseeing parking garages," he says, "I don't know if it would have drawn as much concern from the courts." The Court of Appeals sent the case back down to the Circuit Court, where it will be heard again in July. Murphy says he's looking to "invalidate the meeting" where BDC picked the Chera Feil Goldman Group.

More than once, Murphy advised a reporter not to do a story about him. "They'll be bored to tears reading about me," he said. "They'll want to read about the clients. That's where your story is." In some respects, he's right.

Over on North Schroeder Street stands St Mary's Holiness Pentecostal Church, Otis Roger McKoy, pastor. McKoy is a forceful figure in his white robe and gold sash; his shaved head gleams. His gray late-model Cadillac idles in the alley behind his tiny rowhouse church, where he packs in 40 worshippers on metal folding chairs and a few pews on a good Sunday. Despite being in the neighborhood since the 1930s, the church is earmarked for condemnation as part of the Poppleton Project. While the condemnation wears on his congregation, McKoy mines the situation for sermon material .

"I don't believe that God is going to let all this happen, because whatever they've got, He's bigger," McKoy says. "Everything belongs to God. He just let us use this for a while."

McKoy is also putting his faith in Murphy. Murphy plans to invoke the second clause of the First Amendment and the Religious Freedom Restoration Act passed by Congress in 2005 - the same law that the Roman Catholic Archdiocese of Baltimore used successfully against him in September 2006 in deciding the fate of his beloved Rochambeau Apartments. The act protects religious institutions from zoning laws and historic-preservation strictures, and so the archdiocese was able to tear down the 100-year-old apartment complex, which it owned, to make way for a prayer garden for the adjacent Baltimore Basilica. In the suit he plans to file, Murphy hopes to use the act to protect McKoy's church.

Outside the J.M. Gillin facility, two older men drink from paper bags amid two-story housing projects and boarded-up rowhouses. Inside, nine workers feverishly punch out a sheet-metal utility box. In the back, among the sheen of stainless-steel cabinets, Gillin pulls on cigarette after cigarette and talks to Murphy, who's wearing his going-to-court gray suit.

"I remember the first meeting we had right here," Murphy says. "Right in this room, and I said, `Well, things are changing in eminent domain. I'll make an effort to keep you here, to keep you in this area, but there's no guarantee whatsoever. In all likelihood, I won't be successful and you'll be condemned, you'll have to find a place to relocate to.'"

But Murphy has found a promising avenue in just talking to the city and the developer, La Cité, regarding a deal that would allow Gillin to move nearby. Although nothing is finalized, Murphy points out that the possibility itself indicates a new era of eminent domain.

"I don't want to sound philosophical," Murphy says, "but I got a lot out of reading that [Robert] Moses book." He goes on to say that urban renewal started out to address America's slums, which were seen as "cancers, and had to be eradicated," he says. Since then, urban renewal has been trained on the downtown areas of U.S. cities. It's the same approach, basically: Move out the riffraff and bring in something new.

"Maybe urban renewal, instead of serving the public interest, does a lot of damage by getting rid of people like [Gillin]," Murphy continues. "He may not be a beautiful, glitzy development, but you look at the social worth of a guy like him, it's off the charts. He's not a cancer that has to be eradicated."

With that Murphy shakes hands and is off. Gillin takes his cigarette to an open side door. He, too, recognizes the difference this time around compared to 22 years ago when he was told he had 30 days to get out. Nobody cared then that he was faced with eviction thanks to eminent domain, he says. Now every day someone on the street asks about his case. And now he might get the developer to make a deal with him, businessperson to businessperson, instead of fighting a condemnation from the city.

"If that happens," Gillin says, "it will be bigger than Kelo."


Baltimore MD City Paper: http://www.citypaper.com

Report details eminent domain abuse: NorthJersey.com, 5/30/07

Report: Eminent domain abuses and remedies

By John Brennan

A "jaw-dropping" case in Passaic and a controversial proposal to seize two trailer parks in Lodi were cited by the state's public advocate Tuesday as classic examples of governmental abuse of eminent domain.

"People can lose their homes without real evidence that their neighborhood is blighted, without adequate notice or hearings and without fair compensation," Ronald K. Chen - who first issued a statewide eminent domain analysis last May - declared in his 31-page follow-up report.

A call for change
Public Advocate Ronald K. Chen said in a report Tuesday that three urgent changes are needed in New Jersey's eminent domain law:

  • Tightening the definition of "blighted area" to prevent what Chen called "bogus blight" designations.
  • Making the eminent domain process more open and transparent.
  • Requiring more realistic levels of compensation to allow people to remain in their communities.


Chen cited Passaic's 2004 issuance of a default judgment enabling it to take Charles Shennett's Summer Street property - unbeknown to Shennett, because the condemnation notice was not handed over in person, as required. Also, the address on the mailings was incomplete. An appellate court voided the condemnation in February, but the case remains in litigation.

"They clearly knew what his address was, because they had sent his tax bills there every year," said Chen, who is seeking enhanced notification rules for targets of eminent domain. "It's mystifying as to why they couldn't give him notice of the taking of his land. It's jaw-dropping."

Lodi trailer park residents Kendall Kardt - president of the Save Our Homes coalition - and Judy Kuchenmeister were featured in separate vignettes within Chen's report, detailing what he called "startling injustices."

The borough declared the trailer parks to be "in need of redevelopment" in 2003. To replace them, the borough proposed a project that supporters said would generate 10 times the tax revenue.

Kardt, a musician, told the Public Advocate's Office he found the idea of displacing 240 residents "disgusting."

"This isn't just about trying to make your town look like a picture on the postcard," Kardt said. "This is about people's lives. The people who live here are mechanics, janitors. They do something useful."

Kuchenmeister, a resident of Brown's Mobile Home Park for more than 30 years, said she feels like she's always "walking on eggshells" because of the ongoing litigation. A trial court in September 2005 dismissed the recommendations of the Lodi Planning Board, but the town appealed. The Public Advocate's Office sided with the residents before an appellate panel in Hackensack this year.

"Sometimes, it feels like this will never be over," Kuchenmeister said in the report. "It's the trailer park today - your house tomorrow."

Harvey Pearlman, Shennett's attorney, said that a trial court last week refused to turn the Passaic property back to Shennett - leaving its ownership in dispute. It was bought by a business owned by former City Councilman Wayne Alston for $60,000 - or four times what Shennett was offered for it in 2004. A two-story house was built on the property in 2005.

"I'm not surprised the public advocate picked that particular case, because of how outrageous it was," Pearlman said. "This is not the way the system is supposed to work."

Chen urged the state Senate to pass a version of a bill sponsored by Assemblyman John Burzichelli, D-Gloucester, that passed in the Assembly last year. The bill would clarify the definition of "blighted" in designating areas for redevelopment, Chen said.

"The current law's vague and broad definition ... could apply to virtually any property in New Jersey," Chen wrote.

That bill - endorsed by the state League of Municipalities and by Governor Corzine - also would ensure that homeowners and business owners are kept informed of the process and would mandate fairer levels of compensation for those displaced, Chen said.

Sen. Ronald Rice, D-Essex, also is sponsoring an eminent domain bill. But Chen said he wants the bill to be beefed up to match Burzichelli's version.

State Senate President Richard J. Codey, another Essex Democrat, said he had not yet read Chen's report. He said sarcastically that it was "interesting" that the report was released directly to the media.

"It's easy to pick out some abuses of eminent domain that clearly did occur, and we've got to stop those," Codey said. "But mayors also are concerned that this power still can be used to help them rebuild cities the way Jersey City or New Brunswick were rebuilt. By Jan. 1, we'll reach a compromise on a bill that does away with the abuses, while at the same time allowing [eminent domain] to be used as an effective tool for those that desire to revitalize."

Assemblyman Kevin O'Toole, R-Cedar Grove, said he supports the proposal by state Sen. Peter Inverso, R-Mercer, to amend the state Constitution to allow eminent domain "for essential public purposes only," as opposed to private development.

Other cases cited by Chen in the report:

  • An effort to condemn three dozen modest beachfront homes in Long Branch.
  • Paulsboro's attempt to develop on 63 acres of wetlands.
  • Perth Amboy's inclusion of a light manufacturing building in a blighted footprint.
  • Bloomfield's use of the same attorney to represent the township, the Zoning Board and the Planning Board.
  • An attempt in Edison to condemn a school bus property for what a court ruled was "purely for private use."



NorthJersey.com: http://www.northjersey.com

S.D. gets top grade for eminent domain laws: Sioux Falls SD Argus Leader, 6/16/07

A nonprofit law firm that sues the government in civil liberties cases has given South Dakota a top grade when it comes to protecting people from having their property taken away by government.

According to the Institute for Justice, South Dakota has one of the strongest laws in the nation when it comes to eminent domain.

The Arlington, Va.-based institute said a 2006 South Dakota law prevents cities and counties from seizing private property for transfer to business interests. The law also requires condemned land that is not used for its original purpose within seven years to be offered for sale to the previous owners at market prices.

The Institute for Justice says states that passed the strongest reforms protecting property owners are Florida, Michigan, Nevada, New Mexico, North Dakota and South Dakota. States ranking at the bottom were: Arkansas, Connecticut, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, Oklahoma and Rhode Island.


Sioux Falls SD Argus Leader: http://www.argusleader.com

Eminent domain bill is shot down : San Antonio TX Express, 6/15/07

By Janet Elliott

An eminent domain bill that opponents said could make road construction prohibitively costly was among 49 bills vetoed Friday by Gov. Rick Perry.

...

The eminent domain bill, HB 2006, had enjoyed Perry's support until an amendment was added late in the session that state and local officials said could cost taxpayers billions of dollars. It would allow property owners to sue for "diminished access" to their property because of new roads or road construction. Current law requires property owners to show "material or substantial damages" before seeking compensation.

Another provision would allow the recovery of damages for changes in traffic patterns and visibility of the property from the road. Texas courts have long disallowed this practice because it would make some public projects too expensive to build, Perry said.

He said the bill would create "a new category of damages that are beyond the pale of reason."

Perry said he had alerted legislators who handled the bill to his concerns. House author Rep. Beverly Woolley, R-Houston, said she feared there wasn't time in the last days of the session to work out compromise language.

Sen. Glenn Hegar, R-Katy, who offered the amendment Perry opposed, said he was stunned by the reaction from local officials. He said the amendment was identical to a failed bill he carried but that "no one testified against it, no one came to visit me, no fiscal implication (was added to it)."


San Antonio TX Express: http://www.mysanantonio.com

Bills work to correct abuse of eminent domain laws: Chillocothe OH Gazette, 6/16/07

Letter to the Editor

By John Torres

The right to own property is a fundamental right of which this country was founded. As Americans we should all be proud to live in a country that understands the importance of personal property.

However, Ohio has seen a trend recently of government entities not respecting personal property and abusing their power of eminent domain. There are two bills that passed the Ohio Senate that work to correct this problem and protect personal property for all Ohioans. These bills are SB 7, introduced by Senator Grendell; and SJR 1, introduced by Senator Coughlin.

It stands to reason that if the government wants to exercise the power of eminent domain and take your property that the bulk of the burden should be placed on them. However, that has not been the case in Ohio. Ohioans are forced to spend their hard-earned money to try and save their property, or at the very least get a fair price for it.

SB 7 and SJR 1 work to correct this problem in Ohio. SB 7 limits the number of government entities with the power of eminent domain and forces them to pay the landowner's attorney and appraiser fees if a jury awards the landowner 125 percent of the government's original offer.

SJR 1 will allow all Ohioans to be protected from eminent domain abuse. It will remove eminent domain as a home-rule power and keep consistent eminent domain procedures throughout the state.

How the 127th General Assembly defines "blight" is important in ensuring the power of eminent domain is no longer abused in Ohio. SB 7 has a clear and strict definition for blight, however, the eminent domain bill introduced in the House, HB 5, has a vague definition of blight. In fact, the definition is so vague that almost any property could be considered blighted. Simply having a mouse on the property would cause your property to be viewed as "vermin infested" thus making it a blighted property. In addition, HB 5 only requires that 50 percent of the parcels be blighted in order to exercise eminent domain, whereas, SB 7 requires 90 percent.

The opportunity for eminent domain reform is very rare. I want to urge other Ohioans to join the hundreds who have already voiced their support of SB 7 and SJR 1. Make sure your state representative and senator know that you support these bills and you believe in the right to own property without having to worry about being taken away at a whim.


Chillocothe OH Gazette: http://www.chillicothegazette.com

John Torres is Organization Director of the Ohio Farm Bureau Federation for Fairfield, Hocking, Pickaway & Ross Counties

5/28/2007

Supreme Court hears St. Louis eminent domain case in upscale area: Legal Newsline, 5/25/07

By Rob Luke

The Missouri Supreme Court has started mulling the idea of "blight" as a relative term.

At issue is whether St. Louis redeveloper Centene Plaza Redevelopment Corp. (CPRC) can seize properties in Clayton, a wealthy St. Louis area, through eminent domain to demolish them. The developer intends building part of a $190 million mixed-use corporate plaza on the land.

The development has been held up by five property owners since 2005, despite the fact that local businesses support the 600,000-square-foot project. The Clayton City Council had declared the five properties on the construction site "blighted."

Justice Richard B. Teitelman seemed especially amused by the idea that anything in Clayton, known for its corporate HQs and fine dining, could be considered blighted.

"If that area is declared blighted, every part of the state of Missouri would be blighted," the AP quoted Teitelman at Tuesday's opener.

One of the property-owner holdouts, Gerard Carmody, told the Supreme Court that the blighted buildings pose no problem. But CPRC attorney Thomas Weaver countered that the buildings' advanced age caused "social and economic liabilities" that constitute blight.

The buildings in question are empty despite occupying some of St. Louis's best-located retail property. The five owners helped form a local pressure group, Committee to Stop Abuse of Eminent Domain, aimed at stopping the Centene development.

Some local residents were already annoyed at the tax breaks already given Centene by the City of Clayton.


Legal Newsline: http://www.legalnewsline.com

Developer Wolstein Testifies In Flats Eminent Domain Case: Newsnet-5, Cleveland OH, 5/25/07

By author

The eminent domain saga involving developer Scott Wolstein's vision for the east bank of the Flats [in Cleveland OH] continued in court Friday when Wolstein took the stand.

The developer wants to put up condos, shops and restaurants, but some of the Flats property owners aren't budging, saying the offer to sell to Wolstein isn't fair.

Wolstein on Friday pushed his case to revitalized and rebuild the Flats in a $230 million project, but the court case is far from over, reported NewsChannel5's Alicia Scicolone.

Wolstein was grilled by defense attorney Ken Seminatore about the Wolstein Group's history. Wolstein didn't know most of it because back then his father was in charge of the company.

"You obviously know more about this than I do, so why don't I ask you the questions?" Wolstein said.

It wasn't until an hour into questioning that Wolstein said something.

"The reason we are here is because the property owners that haven't accepted offers. Some have, and some of those offers in settlement are far in excess of my opinion of fair market value, but we're willing to pay them," he said.

But the remaining landowners said they don't think Wolstein and the Cleveland Cuyahoga County Port Authority's price for the land is a fair one.

Port Authority is suing those nine owners and are trying to take the land by eminent domain.

"This particular group of property owners have demanded many multiples of fair market value, and that's why there isn't a willing buyer that's willing to pay the price that a willing seller is willing to accept," said Wolstein.

It is up to the probate court to determine whether the city can force out the remaining landowners.

If that happens, it will be up to a jury to decide the value of the properties.

The case could take a few more weeks.


Newsnet-5, Cleveland OH: http://www.newsnet5.com

'Reform' that's worse than doing nothing: Orange County CA Register, 5/24/07

Editorial

Government-backed measure on reining-in eminent domain would do little good

No one should be shocked by dishonesty in the political process, but an effort by the League of California Cities and other big-government organizations to supposedly restrict the abuse of eminent domain is so dishonest that it's worthy of caution.

Consider: The groups that over the years have zealously defended the use and abuse of eminent domain by governments to transfer properties from private owners to big developers to enhance tax revenue are proposing this "eminent domain reform package." That, in itself, should cause Californians to pay careful attention to the details. It's not hard to find their motive. Property rights advocates who support true reform are promoting a measure for the 2008 ballot after the defeat last November of Proposition 90.

Prop. 90 would have restricted eminent domain for nonpublic uses and required compensation for owners whose property loses value because of changes in government regulations, such as growth restrictions. The latter protection turned out to be controversial and hobbled the campaign; the new measure does not include it.

Fearful of this new initiative are the League of Cities, the California Redevelopment Association, the League of Conservation Voters and other groups that lobby for maximum government control over private property. So instead of just opposing it, they have offered an alternative. They intend to confuse voters by pretending that their initiative offers real protections. It does appear to offer some protections, but it includes loopholes for government so broad that it renders any such protections useless.

Here's the key description of the measure, ACA8, from its proponents: "Prohibit government from using eminent domain to acquire a small business to transfer to another private party, except as part of a comprehensive plan to eliminate blight and only after the small-business owner is first given the opportunity to participate in the revitalization plan."

California law already requires a blight finding before using eminent domain. Blight is a wide definition. Most of the egregious abuse cases we have written about in California over the years – i.e., taking church property to build a Costco, taking businesses and giving them to a developer, etc. – could continue if this initiative passes, because in those cases officials found a consultant to declare "blight."

The initiative applies only to owner-occupied homes, not apartments. It defines small businesses in a way that only a small number of them would be protected. It does not protect churches, farms, investment property, vacant land and homeowners who have not lived in their house for more than a year. When we questioned the League about these problems, we received a rebuttal that argued: "It is not easy for a city to determine that blight exists. A city cannot simply declare a neighborhood blighted." So, proponents admit, that their initiative continues to allow for the taking by government of "blighted" properties, which is the current, unacceptable standard.

ACA8 offers a few tweaks that would protect some homeowners and increase compensation for some small business owners, but passing it would be worse than passing nothing. It would convince the public that reform has taken place, while changing nothing of substance. That is the goal of proponents. Fortunately, there's likely to be a good alternative on the ballot. More on that in coming months.


Orange County CA Register: http://www.ocregister.com

Eminent domain 'reform' a scam by backers of status quo: San Diego CA Times-Union, 5/24/07

Opinion

By Chris Reed

It could not be more obvious that California needs to reform eminent domain laws, which are often used to punish homeowners and businesses out of favor with City Hall and reward well-connected firms. So I welcomed news that another eminent domain reform initiative had surfaced in Sacramento.

Unfortunately, it turns out to be a sham:

The initiative applies only to owner-occupied homes, not apartments. It defines small businesses in a way that only a small number of them would be protected. It does not protect churches, farms, investment property, vacant land and homeowners who have not lived in their house for more than a year.

When we questioned the League about these problems, we received a rebuttal that argued: "It is not easy for a city to determine that blight exists. A city cannot simply declare a neighborhood blighted." So, proponents admit, that their initiative continues to allow for the taking by government of "blighted" properties, which is the current, unacceptable standard.

ACA8 offers a few tweaks that would protect some homeowners and increase compensation for some small business owners, but passing it would be worse than passing nothing. It would convince the public that reform has taken place, while changing nothing of substance. That is the goal of proponents.

That's from an Orange County Register editorial, which has this nice, sharp, terse description of the initiative's sponsors:

... the League of Cities, the California Redevelopment Association, the League of Conservation Voters and other groups that lobby for maximum government control over private property.


San Diego CA Times-Union: http://weblog.signonsandiego.com