Maryland Purple Line Moves Forward

The Maryland Transit Administration now recognizes that more properties will be taken than originally contemplated as part of the Purple Line. The problem is not simply one of providing notices to those being taken, but leaving the remainder of the owners within the corridor uncertain as to whether they also will be acquired by eminent domain. Further, those who receive notices maintain special obligations should they decide to sell their property even if they find someone who is willing to buy a parcel slated for future condemnation. The acquisition is a major project, and leaving those near the proposed route with the uncertain prospect will create havoc in the market along the proposed route.

Washington Post

But which homes, businesses and yards are being eyed for condemnation remains mostly unknown. MTA officials declined to release the information, saying it includes property value estimates that could become part of future negotiations. According to the state, construction won’t begin until 2015 at the earliest.

Kay said the list will remain in flux during the next year of preliminary engineering, while the route — and the properties it would affect — continues to be refined.

Publicizing a list before then "gets people concerned needlessly because it can change the next day," Kay said. "There’s nothing to hide here, but until it’s really a fixed list, we’re not going to go out and notify every one of those people."

Kay said the MTA has notified property owners whose land or buildings can’t be avoided. But homeowner groups and local officials along the route said they need more information.

Variance Grants For Partial Takings

The Reading Eagle discussed the variance grant provided for a property sandwiched between two roads after a road widening. Variance grants are regular issues in the eminent domain process. One thing an owner wants to know is whether a variance will be granted when the parcel is rendered non-conforming after a partial taking. The second issue is whether the variance will exist for future development on the property or only for the term that the existing building remains on the property.

These are tough issues and have to be carefully dealt with in order to be fair to property owners.

Reading Eagle

The Cumru Township zoners voted 5-0 Tuesday to grant variances making way for the construction of a warehouse on a small lot sandwiched between Route 222 and Old Lancaster Pike.

Twiford Electrical Services Inc. plans to construct a 6,400-square-foot building to house electrical supplies for its on-call workers.

The zoners agreed to grant variances for lot size and setback requirements.

Twiford President Randy Quirin told neighbors at the meeting that the project would include a buffer of trees between their properties and the building, but that some existing trees would have to be cut to build storm water facilities.

Indiana Senator Seeks to "Rebalance" the Use of Eminent Domain

Doug Eckerty seeks to limit the acquisitions of Indiana businesses when universities desire to expand by providing for payment for lost income. The argument speaks well of business owners who lose their property. However, one has to wonder why it would be limited to only university expansions when others are hurt, yet not compensated.

Star Press

The real harm inflicted under the exercise of eminent domain comes when the property being taken is a business. The same procedure mentioned in the previous paragraphs applies and the university is only required to pay for the fair market value of the building and ground where the business is located.

No financial consideration is given to the business owner for loss of business income. Most small businesses are highly location sensitive and any movement to a different address can quite easily bring an end to the business, financial ruin to the owner and the loss of jobs to the employees.

In a fair open-market transaction when a business is to be purchased, the selling price is comprised of the land, building and a multiple of the earnings; usually on the order of three-to-five times the average of the net earnings of the business over the last five years. The seller receives the fair value of the business.

SB 54 seeks to level the playing field so that no business owner is ever unfairly subjected to the loss of their business, their ability to earn a living, their life's work and dream, all for the university wishing to add another building, statue, fountain, park bench or parking lot.

I will leave you with this thought. I am in no way opposed to universities expanding, so long as those they displace are treated fairly in the process.

The Rational Argument Supporting the Virginia Property Rights Amendment

Jeremy Hopkins, a lawyer with the firm of Waldo & Lyle in Norfolk, prepared an outstanding analysis of why the Virginia constitutional amendment should be supported.

This issue will be fought doggedly in the coming months during the Virginia legislative session. To be placed on the ballot, the proposed constitutional amendment must be passed by the legislature in two consecutive sessions. Already passed last year and in an overwhelming fashion, the legislature will be inundated with municipal and developmental lobbyists seeking to abrogate the rights of the citizens to vote on the issue. Potentially, citizens would not support the amendment. However, without the legislative authorization, the ability of citizens to make their own self-determination will be denied.

Washington Times

It has been more than 100 years since the Virginia General Assembly took a hard look at property rights guarantees in the state constitution. As our lawmakers begin a historic debate about how and whether to safeguard those constitutional protections, it is apparent already that the arguments against property rights protections have a distinct deja vu quality.

In 1902, those who opposed efforts to give Virginians more security in their homes, farms and businesses against eminent domain abuses made the same kind of doom-and-gloom predictions that are heard by opponents today. Opponents argued that the amendment would doom Virginia as an economic backwater, discourage out-of-state investment, drown the courts in lawsuits and bind Virginians to their horses and wagons and to their steep hills and valleys because rights of way would become prohibitively expensive. They claimed increased protection for property rights would cause progress to come to a screeching halt. Despite this parade of horrors, Virginians amended their constitution in 1902 to correct the rampant property rights abuses of that time.

With more than a century of hindsight and a perennial ranking as one of the top states in which to do business, Virginians must conclude that those arguments are as quaint as they are wrongheaded.

But that has not stopped the heirs of the same governmental and corporate interest groups from mounting a stout defense of the status quo, claiming the proposed constitutional amendment to strengthen property rights is "flawed." A closer look reveals that the flaw does not lie in the amendment, but in the main arguments against it:

Flaw No. 1. The amendment will "hamper economic development." No, it will put a permanent end to the use of eminent domain to turn over someone’s home, farm or business to a corporate giant promising an economic windfall. While it will stop Kelo-type takings for "economic development," it will not stop local governments from using their many tools and powers to foster new jobs and investment. Private developers build large neighborhoods, industrial sites, office parks and shopping centers without the power of eminent domain and without other powers, such as the authority to grant concessions, give tax breaks or approve rezonings. This amendment does not stop local governments from doing the same thing; it simply ensures that everyone in the marketplace plays by the same rules, government included.

Flaw No. 2: The amendment "will cost taxpayers dearly." For this to be true, the opponents would have to admit that condemning authorities have been acquiring land at below-market prices by force, in effect systematically shortchanging property owners and denying them the "just compensation" they are promised by law. The government should not get a discount. Property owners deserve to be made whole for what they have to give up.

Flaw No. 3: Businesses are not entitled to "lost profits" because the calculations would be too speculative. Virginia law allows persons to recover business losses in other areas of the law. There is no reason why property owners should not likewise be reimbursed for lost profits when they prove the government’s taking caused lost profits. For example, if the government takes a restaurant owner’s entire parking lot for two years to store equipment and materials, why should the owner not be reimbursed for profit losses caused by this taking?

Flaw No. 4. It will make it harder to use eminent domain for roads or utilities. The amendment will require that every taking be for a truly public use. If a road is available to the public, no court would hold that a road is not for a public use. With regard to utilities, the amendment specifically allows private utility companies to take property for utilities. It is doubtful that courts will interpret this language to prohibit public bodies from doing the very thing it allows private entities to do. Plus, the legislature could simply add local governments to the list of public utility corporations when those governments are acting as public utility corporations and providing utilities.

Northern Virginia is home to the commonwealth’s most valuable real estate. So, it is as surprising as it is disappointing that so many of its city council members, supervisors, delegates and state senators want to preserve the status quo, a system that guarantees Northern Virginia property owners never receive just compensation.

In the end, despite the myths and misinformation spread by the opponents, the amendment will simply restore fairness and equality in an area that has been dominated by injustice and abuse. It will stop government from taking one person’s property to give it to another, and it will require governmental and corporate entities exercising the power of eminent domain to reimburse owners for the damages caused by a taking.

http://www.courier-journal.com/article/20120118/NEWS02/301180116/clark-county-airport-judgment?odyssey=nav%7Chead

The Clark County, Indiana airport condemnation offers some interesting issues.

The issue of replying in a timely fashion to a Summons and Complaint is specific to each jurisdiction. However, the notion of whether the appropriate service is given may be an issue of Due Process. One can expect the Clark County case to be litigated not only as to the value, but whether the appropriate process for the eminent domain action has been provided and not responded to by the owner.

Courier-Journal

Clark County Attorney Greg Fifer argues in a motion filed Tuesday that Margaret Dreyer filed her disagreement with appraisals on her property too late to get the additional money that a jury says she is due.

John Mead, Dreyer’s lawyer, said in a telephone interview Wednesday that he is confident his client ultimately will receive the judgment she was awarded, plus interest.

"She didn’t get the required notice," Mead said, explaining that the state law Fifer based his motion on says a landowner must receive a notice by certified mail saying property is being taken by eminent domain and what the property owner will be paid for it.

Conflicting Claims in Wisconsin Mall Condemnation

Stevens Point, Wisconsin filed a condemnation action to clear out a blighted mall. The owners claim that the City caused the blight and have no right to use eminent domain. The City stated that the original eminent domain action was approved by the owners.

This is a case that is ripe for infinite amounts of litigation!

WASU News

The city condemned the mall in October as part of a plan to turn the property into the new downtown campus for Mid-State Technical College.

Judge Thomas Flugaur could decide whether to strike down the condemnation or whether to block the city from any development until the lawsuit is settled.

Third Court also claims that redeveloping the mall into a college campus would violate an existing agreement that requires the mall to be run as a first class retail shopping center.

In legal briefs, the city argued that the former owners have publicly supported its plans to redevelop the mall and buy it out. The city offered $910,000 as the final condemnation price but Third Court rejected the offer.

Acquisition of Subdivision Restrictions

Lake Oswego was unable to negotiate the termination of subdivision restrictions with the owners near a drinking water treatment plant.

Frequently, the smell of these plants are simply overwhelming. The City may shortly determine that just compensation includes the damages created by the loss of the subdivision restriction.

Lake Oswego Review

But Lake Oswego needs to have restrictions on four Mapleton Drive properties removed to proceed with its plans. Today, those parcels are limited to residential development.

Efforts to negotiate with subdivision property owners to remove those restrictions have been unsuccessful, leading the city to take legal action. Lake Oswego’s agreement with Tigard calls for new facilities to be operational by July 2016.

"The city wants to ensure that the public pays a fair price for any property interests, and also construct the project efficiently and economically," Lake Oswego City Manager Alex McIntyre said. "Following the process outlined in state statutes ensures this happens."

How to Acquire the Wrong Way

The Florida School for the Deaf and Blind carries on a public use. However, the way that the school treated prior properties that it acquired affects how those who own nearby property view any right to expand in the future.

Had the school been a "good neighbor", it would not see itself embroiled in the present fight.

First Coast News

A bill before the Florida legislature could give the Florida School for the Deaf and Blind in St. Augustine the power of eminent domain, which enables the school to buy any property it wants without the owner's consent.

The school is surrounded by historic neighborhoods and on one side, along San Marco Avenue, a commercial area.

George Gardner, who lives just a block away from the FSDB and is a former St. Augustine mayor, is concerned he and his neighbors could lose their homes years from now at the school's whim.

A few years ago, the FSDB renovated a building on the edge of campus on Nelmar Avenue next to homes. However, the school did not abide by city codes, which angered some neighbors.

But the current St. Augustine mayor, Joe Boles, said because FSDB is a state school, it does not have to abide city codes.

Indiana Senator Seeks to Limit University Power to Acquire

A Yorktown, Indiana state senator proposed legislation to require the universities to pay more than other condemnation authorities in Indiana.

What is especially bothersome is the expansion of the universities into surrounding neighborhoods. Frequently, the properties in the surrounding neighborhoods have special value inherent in being adjacent to the university. One would think this bill would be unlikely to pass, yet one also must recognize that there are special adaptabilities which must be or should be considered.

The Star Press

Senate Bill 54 would require public universities using eminent domain to acquire property including an operating business to pay the business owner the value of estimated future earning after acquiring the property.

That is in addition to the current requirement that universities pay the owner of the property the fair market value of the property and any other damages.

Will Virginia Legislature Allow A Kelo Amendment To Be Voted On?

The citizens in Virginia are pressing the Legislature to again support placing an amendment limiting eminent domain activity. The State Legislature must pass placement of the issue on the State referenda ballot in two consecutive sessions. It is easier to support the legislation the first time around, because one knows that it will not be on the ballot with the first vote. However, this is the time for the Virginia legislature to take the citizens’ desires seriously.

Leesburg Today

While typically the town hall meeting with Loudoun's delegation to the General Assembly in advance of the annual session has brought only a handful of residents and activists, Wednesday night's meeting was attended by several dozen people who asked the delegates and senators to support the issues most important to them.

One issue that drew a lot of attention was the constitutional amendment that would reduce the government's ability to take private land through eminent domain that the constitutional amendment must pass during the 2012 session with the exact same language approved last year before it can go to a voter referendum. Speakers Wednesday night used the example of Crooked Run Orchard near Purcellville, and the land taken by the town for the Southern Collector Road, as an example of abuse of eminent domain powers by governments.

Anti-Utility Activity Hits Wall

As in so many other jurisdictions; i.e. Detroit with the DRIC project, an attempt to modify the Public Service in New Hampshire’s desire to acquire property by eminent domain has been limited. After passing the House, a Senate committee would not send a bill out of committee despite massive support in the State.

Part of our democracy is premised on electing officials in a republican form of government, leaving decisions to those we elect. Generally, we have no vote on specific legislation. That is for referenda in those States that allow referendum votes. Sometimes it may not provide a response to what the majority of a community wants, but that is why we are a republican democracy.

Concord Monitor

On Dec. 8 the Judiciary Committee met again to straighten out the mess. The result was nothing short of farcical. The committee, composed of supposedly intelligent adults, could not seem to understand the words, "or a participant-funded (private) transmission facility," added to a statute forbidding the use of eminent domain for the construction of a generating facility. Committee members did, however, agree to substitute a three-page amendment filled with instructions enumerating the procedures needed to take private property. So, they turned a bill meant to protect our private property from corporate, for-profit taking into an instruction manual on how to take our property.

PSNH representatives were at the hearing and were most certainly pleased with the outcome. They should be, for they have been oh-so-generous with campaign donations to the senators who submitted the how-to amendment.

Partial Taking of Award in Missouri

The Missourian reported a recent award, likely the largest in Franklin County history, for a partial taking. Simply taking 10% of the land does not mean there is only 10% of diminution in value. The article describes how the effect of a taking of part of a parcel may destroy the value of the remaining portion.

The Missourian

Washington Attorney Steve Kuenzel, who represented the property owner, said the damages encompassed the actual taking of about 2.6 acres, the economic loss to the remaining 26 acres in the parcel, an area taken for a temporary construction site during the construction of the highway project and the economic damages associated with the loss of a billboard on the property.

"Our position was that in today’s world, all retailers want two entrances to their site for fire and safety reasons and so if there is an accident, and one of the entrances is blocked, the shopping center isn’t shut down for business. The state took the position that the placement of the connecting road where we had it was not practical according to its engineers," Kuenzel explained Friday.

Changes in Texas Eminent Domain Law

Aimee Hess wrote a very concise outline of the change in Texas eminent domain law amendments which took effect on September 1, 2011.

The statutory changes should be closely reviewed by utility and oil counsel.

Texas Attorney Blog

There is a new arrow in the quiver of Texas oil and gas attorneys who represent land and mineral owners! Specifically, there are significant changes to the Texas eminent domain statutes, which went into effect on September 1, 2011. Oil and gas companies can still acquire easements across private property to build pipelines. If the pipeline is a private pipeline, the pipeline company must obtain the voluntary agreement of the property owner. If the pipeline is going to be a common carrier, and the pipeline company and property owner cannot agree on easement terms, the company can commence condemnation, or "eminent domain" proceedings, in which panels of commissioners appointed by a court decide the easement terms.Another portion of the statute allows landowners to construct roads over the pipeline, although the pipeline company may still impose restrictions on things like the size and road material.

The new law applies to condemnation lawsuits initiated on or after September 1, 2011. These changes strengthen a landowner’s right to defend against eminent domain from both the government and private companies. One of the landmark changes to the eminent domain law is a new "bona fide offer" requirement, which means the purchasing entity must give a written offer for the property 30 days before the final offer is made. Additionally, a certified appraisal of the property in question must accompany the final offer, and that final offer must be of equal or greater value than the appraisal figure. The landowner now has 14 days to respond to the final purchase offer. The new law also allows landowners to obtain relevant information concerning the proposed easements from the potential purchasers.

Prior to the effective date of these new legal requirements, the number of condemnation proceedings surged in those areas of Texas that are experiencing increased oil and gas production. This has especially been the case in South Texas because of the Eagle Ford shale, where natural gas production nearly quadrupled and oil production increased tenfold between 2009 and 2010. According to an article in the Wall Street Journal, at least 184 lawsuits against landowners had been filed already between January and August 2011 in just four South Texas counties, compared to only 24 lawsuits in all of 2010. A district court judge in Lavaca County indicated that the number of lawsuits filed this year is "highly extraordinary." That county alone registered 62 such lawsuits by August, 2011, compared with only 18 in all of 2010.

These pipeline cases are important to everyone involved, so there is incentive to make the process equitable and fair for all parties. Texas oil and gas companies employ thousands of workers and contribute to a healthy and growing economy. The boom in oil and gas production has also brought prosperity to many areas of Texas. However, it is equally important to consider the rights of private landowners whose property is affected by the pipelines.

It may take time to determine the total impact of revisions to Texas eminent domain law. Hopefully, the original purpose of the law will be fulfilled: giving landowners more knowledge and influence in negotiations with pipeline companies. These companies are going to face more significant hurdles in exercising their eminent domain rights than in the past, especially when this new eminent domain law is combined with the recent Texas Supreme Court decision in Denbury (read our recent blog entry on this case here). The Denbury decision essentially affirmed that there must be a reasonable probability that the pipeline will serve the public before a pipeline company can use eminent domain.

The Uncertainty of Eminent Domain Price

Fort Wayne’s decision to purchase Aqua Utilities without any understanding of the cost leaves the citizens of the community at great risk in future years. Finally, the Fort Wayne Journal Gazette article notes that this uncertainty will be determined by the courts, and likely a jury, at some future date. The final decision may come long after the city mayor is still in office, but the cost will exist for the residents of the community long after the mayor is retired, or resigns or loses an election.

The Journal Gazette

The case deals with something of a quirk in state law that led to the deal in January 2008 for the city to take over Aqua Indiana for $16.9 million, with the understanding that a court could change the price. The Indiana Supreme Court had ruled that the city has authority to declare eminent domain and take over the private water and sewer utility – though the final price was subject to court review.

The city said independent appraisers valued the company at $16.9 million, a price Aqua Indiana claims is too low. So the utility immediately challenged the price in the courts, and the case has been languishing most of the time since.

In the coming months, the appeals court will decide whether the case ultimately goes to trial. The losing side could appeal. So an actual trial, if it happens, is likely at least a year away, most likely even longer.

Common Carrier and Environmental Constraints Inhibit Pipeline Filing

The twin issues of whether a pipeline is a "common carrier" under Texas law and if a very important pristine migratory preserve would be affected, has caused the pipeline to modify its route. All utilities do not have certain and complete eminent domain powers despite their belief otherwise.

Houston Chronicle

ETC NGL Transport LLC's proposed Justice pipeline was set to run through the 144-acre Clear Creek nature preserve, a favorite stop for migratory birds and a remnant of a disappearing habitat.

Vicki Anderson Granado, an ETC spokeswoman, said the company has reached an agreement to reroute the pipeline through a nearby golf course.

ETC had threatened to condemn a portion of the preserve, asserting the right of eminent domain as a "common carrier," or an open access transporter, under state law. Lawyers for the trust that owns the Clear Creek preserve argued in court filings that the company is not a common carrier because it cannot show that the proposed pipeline would transport a product to the public or for public hire.