Friday, March 26, 2010

Last Post in Series on Eminent Domain

Eminent Domain Abuses
Read this article about the 60 Minutes show in 2004 about eminent domain abuses by government.

http://bit.ly/YdiJ1

The Institute for justice in October 7, 2009 cited a report on NY State eminent domain abuses.

http://bit.ly/3s1euE

There are groups formed in various states acting as watch dogs for eminent domain actions by state and local government. Why have I devoted a week to eminent domain? Eminent domain abuses have been going on for a long time and in my opinion will start to become more and more of a problem.

In 2003, I was involved in an eminent domain action hired as an expert by the property owner. The local government classified the property as “blighted” and was proceeding with eminent domain proceedings if the land owner refused to sell. The local government wanted a grocery store on the property – it wasn’t zoned for that use and the property owner was proceeding with a “use by right” project. By the way, the property was vacant and still called blighted! In the end, the property owner sold the property to local government so they could partner with a grocery store chain.

Remember, it is all in the land. I believe we will see more and more eminent domain abuses because local and state governments have to generate new revenue from commercial, retail, industrial and business uses. Residential does not have a positive impact on local government budgets. Local governments have been and will continue to compete for revenue producing uses, uses that generate jobs, and uses that are sustainable. Government will use eminent domain to control and guide development patterns at the expense of the private property owner. In essence, government will eventually become the developer! Outside of the box thinking is not far off! Remember – it is all in the land.

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