MoDot spending $2.3 million to get bridge right-of-way that city sold for $2

Lake Expo Online

ST. LOUIS -- At least two years after engineers selected the route of ramps for a new Mississippi River bridge, a city agency agreed in 2003 to sell publicly owned land in that path to a developer for $2.

The blighted property north of downtown, once used by a trucking company, fell in the LRA's hands in a tax sale. It sits along the east edge of Interstate 70, just west of Broadway, in a neighborhood of worn commercial buildings and vacant lots.


The site attracted the interest of Archview Storage, an enterprise owned by several businessmen who include Randy Heil, who operates a tool-and-die shop nearby, and Daniel McGuire, president of McGuire Moving & Storage.

The purchase of a property for over $2 million dollars from an owner that purchased the property a few years before for literally $2.00, poses an interesting question. Bridge and road projects are so uncertain, is there not a time in which a local community is better off taking the risk there will be no project and allowing development wherever and whenever it can occur in the area. A conflict between development at the community's assistance and a future public need draws a hazy line. Clearly, neither the community nor the Missouri Dept of Transportation wanted the result. However, there is also an owner here who would likely prefer keeping and maintaining the property after taking a risk in development.

Expansion of the Cunningham Storage Field Located in Pratt and Kingman Counties, Kansas

Many utilities have arrived at a conclusion that their storage fields effectively “leak”, or “travel outside the original contemplated storage area.”  We can find a number of recent filings such as the Pratt and Kingman County example above in which the gas storage companies are required to expand its area which serves as a “buffer” in order to protect its gas interest.  This occurs where there is other gas or oil facilities in nearby areas, raising the question of whether the gas is spread so as to allow other producers to utilize the stored gas and production as part of the producer’s production.  This can frequently be determined by what are called “markers,” which serve to determine whether the gas has migrated from the storage area to other nearby production areas.  The process is one which results in owners of nearby mineral rights to lose the respective resource asset, often resulting in an eminent domain proceeding.
 

Although the list of owners is “confidential”, it can be obtained with the agreement that the information will remain confidential.  This is in line with many state FOIA requirements of confidentiality barring communications with owners in a proposed right-of-way

Head I win, tails you lose

 

Oakland Press

Consumers Energy says it plans to implement an interim natural gas rate increase of $89 million next month.

The utility says the change would increase a residential customer’s bill by about $3.50 a month, but because of lower natural gas costs the average monthly bill will be slightly lower than last winter.

The comment that Consumers successfully increased rates when the summer prices turn out to be lower than the winter prices is fascinating. Is this sort of a “head I win, tails you lose" situation?

The utilities are avaricious in their desire to have gas storage, receive a gate fee as the gas comes in and out, and singularly jockey a little extra money along the way. Is this really what is contemplated in the pro-utility federal legislation allowing FERC to provide condemnation authority in both the state and federal courts?

 

Texans' dislike of eminent domain

Star Telegram

On Nov. 3, Texans will have to decide just how much power government should have at its disposal to take private property for a "public good." Proposition 11 would, in theory, limit the power of the state to forcibly take a resident’s property.

Sounds like a good idea. But the apparent high level of support for the proposition, contrasted with our track record, makes me question just how sincere we are or if we’re trying to take the easy way out of the debate.

There are numerous examples of eminent domain abuse that, despite some vocal opposition, ultimately came to fruition with both government and public support: Cowboys Stadium, Rangers Ballpark at Arlington, Texas Motor Speedway and the Trinity River Vision, to name a few. Our distrust of the state’s power to take our property seems to wane when it comes to big, shiny edifices.

The Star Telegram opinion espousing eminent domain for private development misses the point. The baseball and football stadiums could have been built with private funds. However, we can make these franchises instant billionaires by building their stadiums and letting them control all the concessions. Somehow, the politicians are worked over enough by these franchise owners to succeed in allowing all the public revenue go to the owners without the owners being at risk. The real argument is that there are times in which no other recourse but the eminent domain process will allow or without eminent domain, the liability of the community is impeded.  A prime example of this is the power of eminent domain over leaseholds with the old Trusts in Hawaii.

Preakness Safeguard

 

Hometown Annapolis

A new Maryland law allows the state to use eminent domain to seize the Preakness, in the event of a deal to take that race out of the state. Magna International, the current owner of Baltimore's Pimlico Race Course, contends that this is unconstitutional - and Magna might be right.

But, unconstitutional or not, the law is starting to seem like a very good idea.

Magna is in bankruptcy proceedings and has asked a judge for permission to sell its Maryland racetracks - Pimlico and Laurel Park - on condition that buyers promise not to move the Preakness from Maryland. The schedule requested by the company allows the 60-day review period called for by the law, which would let the state step in if there were any threat of such a move.

The Preakness, which dates back 136 years and has been run in Baltimore every year since 1909, is a nationally known pillar of the state's wobbling horse-racing industry, and one that Maryland simply cannot afford to lose. The state's attempt to apply the legal doctrine of eminent domain to an annual sporting event may be too broad - but, given the U.S. Supreme Court's outrageously expansive interpretation of the concept in Kelo v. City of New London (2005), who is to say?

Although Magna has reserved the right to challenge the law, it's in a financial hole right now and can't quibble. So all the bidders for Pimlico will have to pledge to keep the Preakness where it belongs. That's as it should be.

The Hometown Annapolis newspaper sounds so pleasant, the community says, "we want to keep our historical racetrack in the community despite the question of its profitability.  If the racetrack owner wants to sell somewhere else for the higher amount, shame on him and he cannot move!" The reality is that fair market value might have to be paid if they ever got to the point of having the State of Maryland condemn the Pimlico Race Course. The problem here is that this diminishes the right of private entrepreneurship. Further, if Maryland would have given the race track a half square deal on the casino licensing, as it was supposed to, none of this would have come to fruition. With the licensing, there would have been a very successful race track and a very successful casino, with the State collecting taxes all the way to the State Capitol.

 

St. Louis: inviting bad deals

 

St. Louis Dispatch

O'Fallon-based McEagle Properties wants the rights to rebuild much of a 1,500-acre swath of north St. Louis. To get the project off the ground, it wants $391 million in tax-backed financing.

Aldermen will be considering a 102-page agreement that is similar to one the city's Tax Increment Finance Commission recommended last month. It forbids the use of eminent domain without a separate bill by aldermen and provides some benefits for people who are moved to make way for the project. It requires that McEagle find a co-developer for at least one-fourth of the land. It breaks out the project into four phases and sets the table for a separate finance agreement for each.  

 

This is an invitation to milk future city councils and an annuity for future alderman when there vote to condemn is required.  To state that future decisions to condemn are at the discretion of the government inivites bad deals and litigation for all.

 

Same conclusion, slightly more deliberate

Dallas News

In 2005, the Legislature enacted additional limits on the practice. Now, Proposition 11 on the Nov. 3 ballot would go further by writing restrictions into the Texas Constitution, ensuring that property-owner protections could not be easily undone.

The proposed amendment makes clear that land can be taken only for public use. The government must own, use and "enjoy" the land after acquiring it, not sell it to a private entity to raise tax revenues or spur development.

In short, the government couldn't take your land without a plan for its use or to simply resell it for a profit. The amendment also would limit the Legislature's ability to grant the power of eminent domain to other entities, requiring two-thirds votes in both houses.

Finally, Prop 11 would prevent the government from clearing entire neighborhoods in the name of battling blight. This would force the evaluation of each parcel and protect the homeowner of a tidy house who has the misfortune to be surrounded by rotting properties.

Because this amendment largely reinforces existing law, its approval should not derail existing plans requiring land acquisition, such as efforts to build Texas reservoirs or Dallas' work to assemble land for redevelopment.

On balance, this proposition is good for property owners. But the haphazard process of writing and rewriting legislation yielded some awkward language within the amendment – for example, how to define the government's "enjoyment" of land. That leaves open the possibility of legal challenges that could stymie proposed projects. If unintended consequences result, the Legislature can't simply clean up the language once it's in the Constitution.

The Dallas Morning News is slightly more deliberate and scholarly in arriving at the same conclusion as the Houston Chronicle.

Houston Chronicle Editorial Favors Restriction on Takings for Private Use

Houston Chronicle

Respect for private property rights runs deep and wide across Texas. When a growing number of Texans came to believe those rights were threatened by a 2005 U.S. Supreme Court decision based on a Connecticut case, the response was decisive: Create a state constitutional amendment to block the threat.

The result, four years later, is Proposition 11 on the Nov. 3 ballot, which would prohibit “the taking, damaging, or destroying of private property” for purposes of economic development. The Houston Chronicle urges a vote for Proposition 11.

It was for good reason that the high court ruling in Kelo v. City of New London alarmed many property rights advocates here and elsewhere. It upheld the taking by right of eminent domain of private residences by the Connecticut city for purposes of economic development and expanding the tax base. Proposition 11 would prevent takings of property for either of those reasons.

I am not saying the Kelo Court was correct in rejecting specific language of the Fifth Amendment but apparently, Federalism does work!  The above is an excerpt from Houston Chronicle Opinion in support of a constitutional restriction in Texas.

The Public Use Balancing Act

Star Bulletin

Suzette Kelo should have won. Taking a perfectly good single-family house in order to "economically revitalize" a neighborhood is neither good policy nor good law. However, neither that case nor the Hawaii case that preceded it should have resulted in the recent Hawaii case overturning a government taking for a very public road. Nor are any of the three quite as described by Rob Thomas in his recent review of the book "Little Pink House" ("Story behind court ruling resonates in isles," Star-Bulletin, Sept. 20).

First, as Thomas suggests, the U.S. Supreme Court relied on its earlier Hawaii Land Reform Act decision in deciding Kelo. But the Act does not permit the use of eminent domain by landowners. A state agency - the Hawaii Housing Authority - condemned the land under single-family homes. No court has ever authorized the use of condemnation by private citizens.

Second, the Connecticut government redevelopment agency in the Kelo case condemned the Kelo property in order to economically revitalize an entire neighborhood - not "to entice a major pharmaceutical company to relocate to New London." The relocation was already a fact of life.

The government concluded that such economic revitalization was for a public purpose (not public use like a road, a park, a school, and so forth - a critically important distinction). Given where Thomas goes next - that the private client which his firm represented was similarly a small and powerless victim of an essentially private and pretextual condemnation at the behest of a large and powerful private developer, devoid of any public merit or use - the juxtaposition is hardly surprising.

Simply not true.

First, the road in question for which the County of Hawaii condemned Thomas' client's land is, was, and always was meant to be a public bypass road designed to relieve highway traffic congestion in South Kona. The road commences at one point on the highway, virtually parallels the highway for nearly five miles, and then ends at another public road near the same highway. Does this sound like the county "(took) land from Hokulia's neighbors for a road to service the (Hokulia) project"? Such a road is a classic use by the public.

Second, the county had planned for such a public bypass road for decades, but could not afford to acquire the necessary land and build it. Enter Hokulia, which agreed to both acquire the land and construct the road at a cost exceeding $50 million in exchange for the guarantee of its existing zoning for 20 years in order to complete its approved resort-residential project. Hokulia did not "order" the county to do anything. It simply told the county that it was going to be well nigh impossible to fulfill their agreement to finish a very expensive public bypass road if the county didn't condemn a hold-out private landowner in the path of the highway. Does this sound like the county "sold the decision whether to exercise eminent domain to the developer"?

Third, Thomas prefaces his version of the Hokulia case by observing that "eminent domain dispossess(es) the politically powerless of their land and business in favor of moneyed private insiders," presumably attempting to cast his client in the role of the powerless and Hokulia as the private insider. But Thomas' client is a well-known and well-off local family. Politically powerless? Hokulia the private "insider"? Not likely.

Fourth and finally, until the recent decision of our state Supreme Court, courts held that only government condemnations - of private property for a public purpose (redevelopment, economic revitalization) might be "pretextual" - for private, and not public, benefit.

There are two vitally important points: First, the pretext argument had - until now - never been applied to a condemnation for use by the public like a public road, but only to condemnations for sometimes ill-defined and mixed (public-private) purposes.

Second, the handful of successful pretext cases - until Hawaii's - are all extreme examples of government takings for transparently private purposes, like a government agency condemnation of a 99 Cents store next to a Costco at Costco's express direction in order to prevent competition.

In sum, the national 48-state backlash following the condemnation of Suzette Kelo's little pink house is a predictable reaction to government overreaching in aid of economic revitalization. However, government must have and exercise its condemnation power to acquire private property for facilities classically used by the public - like public roads.

So much as suggesting such condemnations can be pretextual is just plain wrong, both in terms of public policy and law.

———

David Callies is an elected member of the American College of Real Estate Lawyers, an elected Fellow of the American Institute of Certified Planners, and the Kudo Professor of Law at the University of Hawaii, where he teaches land use and real property law. The author of "Public Use and Public Purpose after Kelo v. City of New London," he also filed a brief in the Kelo case supporting Kelo, on behalf of 13 law professors.

The complete article is attached because it speaks to the logical relationship between eminent domain and Public Use.  Condemnations can be necessary for public use, and Professor Callies provides an insightful synopsis.

Trying to Stop the Animal Already Loose

WAAYTV.com (Northern Alabama)

On Monday night, the Decatur City Council took it's first steps towards fighting against a potential fuel depot. They passed a unanimous resolution giving the mayor's office and Decatur Utilities their full support in fighting the depot. They also say they're willing to pay any legal fees that may come along in the fight, and authorized the use of eminent domain to protect the water supply. 

 

In Alabama, the City of Decatur has decided to threaten the use of eminent domain to limit an otherwise valid use of property.  What the City does not understand is the dangerous economic peril it places on the community when it contemplates condemnation of an otherwise valid exercise of private property ownership.

Been there and done that

 

Grand Rapids Press

What litigation?

The DeVries Company acquired 38 Front Street in 1997 for approximately $850,000. In 2001-02, DeVries filed suit against the Michigan Department of Transportation, claiming that the S-Curve reconstruction had moved the highway so close to the building that it was now unusable as a multi-purpose facility. In 2002, a Kent County Circuit Court jury agreed with Mr. DeVries and awarded the company $578,000 in compensation for the diminished value of his building. At trial, it was determined that the building and property had been worth $2.3 million but were now worth $1.732 million.

What is the property worth today?

2009 State Equalized Value for taxation purposes is $751,000 (one-half of $1,502,600).
Grand Valley has offered to purchase the site for $2.3 million, based on a recent third-party appraisal.

 

Here we go again.   A local paper is attempting to abort a fair trial for a property owner in the name of the “public good”.  The writer should know that tax assessments are not admissible and frequently totally unrelated to value in eminent domain proceedings.  Local papers should spend more time looking at public officials conduct instead of attacking owners simply in the way of the proposed project

 

Is the Problem Due to Condemnation?

 

KIDK

REXBURG - A Rexburg homeowner feels like they are being taken advantage of by a company using Eminent domain to drill for gas on his property in Oklahoma.

These are photos of an 80-acre property in Oklahoma.

The Stephen's Group is drilling for natural gas on the Larsen's property against his desires.

"In 1775 a gentlemen named Paul Revere jumped on his horse at midnight warning people that the British were coming. I feel the same urgency about this. But it's not the British who are coming, it's actually the elite Americans, the ultra rich," said Royce Larsen.

Because of a Supreme Court decision in 2005, "Kelo V. City of New London," Private enterprises can utilize land from other private users as long as it is of public interest.


This is an interesting synopsis of an Oklahoma TV station comment on a drilling project.  If one looks at the facts closely, the investigator might just find that the owner's predecessor in title (prior owner) gave up their rights, agreeing to the future entry, which is apparently now occurring.  If not, we have another fat company at it again, acquiring the interest for pennies on the dollar!

 

Hutchison gets Texas Farm Bureau endorsement

My Fox DFW

Citing concerns about private property rights, the Texas Farm Bureau endorsed U.S. Sen. Kay Bailey Hutchisonfor governor Monday, abandoning Gov. Rick Perry.

The farm bureau endorsed Perry in his previous two runs for governor, but has been at odds with the Republican incumbent over what the bureau says is his lack of action in curbing abuses of eminent domain and protecting private property rights. Farmers have vocally opposed Perry's Trans-Texas Corridor toll road network that threatens to take farm and ranch land.

"Sen. Hutchison has been a leader in the U.S. Senate on agriculture and property rights issues," said Kenneth Dierschke, president of the Texas Farm Bureau. "For the future of Texas, we call for new leadership, new ideas and a new vision."

He also praised Hutchison for supporting the elimination of the estate tax and the deductibility of the state sales tax on federal income tax returns.

Perry's spokesman, Mark Miner, dismissed the farm bureau endorsement as "political payback" for Hutchison because the bureau operates an insurance business and Hutchison voted for the bailout a year ago of the financial and insurance industry.

The sitting Governor of Texas can make whatever claims he desires, however he is  coddling the special interests that propound taking for personal benefit has come to hurt him.  Governor Perry has promised to modify private benefit takings, which did not occur on his watch in major part due to his disengagement.  It is sad indeed that a Public Private Partnership, which makes so much sense, will fail because of his unwillingness to recognize the state decision granting power under Kelo.

 

 

MSU: East Lansing Fights for Eminent Domain

 

So, when Mr. McGinty says that the judge "found (my legal arguments) to be without merit," he was, quite simply, lying.

There is no way that Mr. McGinty could have innocently "misinterpreted" the judge's very clear and precise statement - whether the city had "standing to file the request for demolition. . is not an issue before me." What could be more clear? And why lie about something so important?

I know this word is not very "lawyerly," but I can only think of one word to describe the city's action in this entire City Center II controversy - including the public statements of the mayor and the city attorney in this "demolition-of-historic-homes-we-don't-own" example: bizarre.

I have filed a new appeal, and I'm going to keep fighting this, because if the city can get a permit to demolish historic properties they do not own, then every property owner in every historic district in the city of East Lansing may very well face a very serious challenge to their property rights.

I would like to add a special warning to the fraternities and sororities that recently had their houses declared to be part of a special historic district. If you think threats of eminent domain are a horrible problem - think FarmHouse and East Village - add the threat of demolition to that abuse of power and things will be much worse

The City of East Lansing has planned its community to place student housing in clear and separate areas of Michigan State University.  The decision is one of public policy and not this scrivener.  However, one wonders if the Hathcock decision prohibiting takings for third party transfers and the reaction to Kelo passed by the citizens of Michigan prohibiting these types of condemnations will bar the taking when it is finally filed.

 

The Spoof : South Side of Chicago Still Smoldering After Pre Mature Demolition of 'Olympic Site' funny satire story

Chicago, Il/ Urban Renewal News - The South Side of Chicago is still a 57 block smoldering pile of rubble after pre mature demolition was carried out on the property taken by 'eminent domain' by Chicago Mayor Daley in anticipation of the 2016 Olympic games being awarded to "Bam" Town!

Reporters trying to find out what happened have been met with silence as the Mayor and his entire staff have not been seen since roughly 10:30 a.m. EST last Friday when Chicago was the first city eliminated from Olympic consideration

 

The article is an absolute spoof (please read it in its entirety, the notice is at the end).  However, when it comes to eminent domain activities intended to generate an economic boost, the sadness of the failure and the harm to the citizens of the area as well as the community as a whole is often far too underestimated.  Planners jumping the gun have an opportunity to cause great harm when there is a premature condemnation.

Validity of uncertain taking

SD Journal

The DM&E’s new owner, the Canadian Pacific Railroad, has no immediate plans to build the line. The railroad has dropped lawsuits in Wyoming seeking condemnation authority there.

Delaney indicated he is inclined to remand the appeal to the Transportation Commission.

If the land isn’t needed for public purpose in the foreseeable future, Delaney said it raises the question of the necessity for condemnation.

“That must be considered by the board before me,” Delaney said.

The article raises two interesting condemnation issues. 

First, is a delay or uncertain future completion of the project mean there is not necessity?  States have different rules on whether a taking is appropriate when there is a time delay or project uncertainty. Some States reject the validity of the acquisition, others maintain if the proposed use is a public use, that is enough. 

 

The second is the deference the Federal Court will give to the state agency making the original eminent domain necessity finding of a public use.  There may be situations where the courts may find an action appropriate or inappropriate without returning the case to the local agency for a determination of the validity of the eminent domain action.   This may be such a situation.

Camden must move on "blight"

Camden Post

State lawmakers gave Camden a legal tool five years ago to do something about this problem. The Abandoned Properties Rehabilitation Act of 2004 gives municipalities in the state the ability to wipe out or transfer tax liens or to use targeted eminent domain to take over blighted, empty buildings. The buildings can then be either torn down, or handed to a nonprofit organization interested in rehabilitating the structure.

This is a powerful tool. Yet the city is not using it nearly enough. The City Council authorized using the act soon after it passed in Trenton, but city administrators never followed through after that

There are times when a public use is simply to take out a blighted or blighting property.  Public use does include police power protections, simply protections to eradicate unsafe conditions for the general community.  Camden’s use of the appropriately delegated statute to eradicate blight is such an example.

Vital Infrastructure

 

DBusiness

Posted from DBusiness.com  on October 05, 2009

When Warren Mayor Jim Fouts called Detroit’s aging infrastructure a “ticking time bomb that’s ready to go off” earlier this year, he was referring to the state of Southeast Michigan’s water and sewer system; revealed as vulnerable and outdated in the wake of a challenging winter that induced 107 pipe breaks in Warren in one month alone. While Mayor Fouts was expressing an understandable frustration with the literal nuts and bolts of the less visible parts of the region’s infrastructure, his comments highlight an important point: dramatic civic improvements to Detroit’s urban infrastructure are a vital ingredient to both day-to-day stability and long-term economic prosperity. From bridges to airports to high-speed rail, Detroit is in need of an upgrade.

The availability of stimulus funding and the renewed national focus on the need to upgrade urban infrastructure presents Detroit – and cities like it – with a real opportunity to make headway on the kind of game-changing projects that can have a significant impact on the city’s fortunes. Large-scale urban infrastructure improvements like those that have been proposed (and some that are already in the works) can facilitate trade, improve transportation and connectivity, and make a lasting improvement to the quality of life for citizens and area businesses alike. Large-scale infrastructure projects are often politically and logistically complex, as the necessities of construction often require restructuring of neighborhoods and, at times, the government exercising the right to eminent domain. Along with political and business leaders, eminent domain attorneys are at the forefront of these issues; often forced to defend themselves and their clients a second time in the court of public opinion and refute the common misperception that they want condemnations to occur. The unavoidable fact is that projects that are ambitious enough in size and scope to make a real regional difference are inherently complex; space constraints mean that the process of designing and executing a large project in the midst of an urban environment is virtually impossible to do without making some strategic short-term sacrifices in the name of long-term gain for the city as a whole. Striking that balance and protecting the individual rights of businesses and private citizens, while understanding the value of legitimate and important civic improvements, is critical. And as most informed observers realize, the value of these projects to Greater Detroit and Southeast Michigan would be nearly incalculable.

The Detroit Regional Chamber leads the chorus from local businesses, government groups, non-profit organizations and private citizens who understand that, for Detroit, it is critically important to remain competitive in the national and global marketplace, and that upgrading transportation infrastructure is the best way to do that. A report released earlier this year by John Austin, Director of the Great Lakes Economic Initiative and a senior fellow at the Brookings Institution, supports the view that the region’s border transportation infrastructure is in dire straits. The report reinforced the notion that 21st century infrastructure is a prerequisite if Detroit hopes to become a competitive participant in the global economy, and compared The Motor City’s existing infrastructure unfavorably with the high-speed rail and new bridges, roads and transit upgrades in cities cities like London, Paris and China. As Austin explained to the Michigan Business Review earlier this year: “There's no reason why we can't and shouldn't have a high-speed rail interconnector between Toronto, Detroit and Chicago to link our economies and allow, in addition to this auto supply and manufacturing supply chain, which is highly integrated...the ability for venture capitalists and researchers and medical technologists and financiers to work together across these boundaries...And that needs to be accomplished by the infrastructure.”

High-speed rail is just one piece of the infrastructure puzzle, however. Pulling Southeast Michigan out of its economic doldrums will require a multifaceted long-term commitment to improving transportation infrastructure and upgrading facilities on the U.S.-Canadian border. While a rapid transit system for the city of Detroit may be some way off, resolving the political and economic disputes over the competing publicly and privately funded bridge proposals and executing a span across the Detroit River that is worthy of the city’s past and a bellwether indicator for its future will not only be a big step toward improving international trade and commerce, but will also have a vitalizing impact on Southwest Detroit. In addition, adding a new parallel runway to Detroit Metropolitan Airport will help guarantee that DTW remains a competitive hub for international airport traffic.

All of these projects will require funding, as well as political will, and all demand a combination of private enterprise, public support and civic ambition to have any chance of success. But for the City of Detroit, that success may make the difference between a future of economic prosperity and a future as a second-tier city. As Southeast Michigan moves toward that future, it will be up to experienced condemnation attorneys to ensure that the City of Detroit fulfills its obligations and responsibilities toward private citizens, while educating and informing the public about the benefits of infrastructure improvements. Land acquisition costs for the projects in the pipeline for Detroit are fractionally tiny compared to the development costs, and these particular projects would not require a particularly large condemnation component. Faced with a future where public transportation needs, electric and utility grid expansion, and petroleum and natural gas storage and supply infrastructure will continue to emerge as hot-button issues, the field of condemnation and eminent domain law will remain not only relevant, but pivotal. And while a handful of business and property owners faced with property seizure or condemnation may encounter some challenges in the near term, the boost from more construction jobs will be a much-needed economic bump for Detroit, and every business and citizen of the city and the region will ultimately benefit in the long run from these sorely needed urban and transportation infrastructure improvements.

Posted from DBusiness.com  on October 05, 2009

 

Schizophrenic problems with water: Does government really want to condemn?

Cincinnati.com

From Northern Kentucky to Cincinnati's northern suburbs, more than 230,000 homes and businesses get their water from Greater Cincinnati Water Works.

But this fall, a change that could affect the future of the utility, worth nearly half a billion dollars, is up for a vote - but only by Cincinnati residents.

The city wants to spin off the 170-year-old system, which provides water to 85 percent of Hamilton County as well as to 50 other jurisdictions, into a regional water district. The district would pay the city back for the next 75 years.

Water districts have the power, thanks to state law, to levy taxes and use eminent domain. Their revenue also can be used for other government operations, while the city utility's currently can't.

City Manager Milton Dohoney also says more and better access to water attracts economic development - and the more new customers a district recruits, the less water could cost because the price would be borne by more billpayers.  

 

While communities such as Nashua, New Hampshire with Pennichuck Water, attempt to acquire their private water utilities, others seek to semi-privatize in the form setting up “Commissions” to control water activity.  With these commissions, there is  great opportunity to fulfill patronage needs.  Further, the actions of the Commission will likely be far less transparent or responsive to the community will.  The Commissions all too often think they know more than the facility users and simply do not respond.  Ask your friends in the know, how much the appointed road commissions listen to the community.

 

Big surprise: Interference with use of parcel near an airport

Highline Times

Cutts told lawmakers the city's station area plan could generate an additional $2.1 million a year in city revenue and create more than 2,700 jobs.

The city plans include a 1,000-space public parking garage on the Cassan property.

In his testimony, Cassan sought to counter claims that the Cassans are risk adverse and lack development experience.

"We are not risk adverse. But we are not imprudent," Cassan said. "Where have the Staff been while Washington Mutual collapsed? While Wall Street imploded? And while the ability of developers to obtain capital and loans have gone into deep-freeze?"

Cassan added that that he and his wife put together a Mercer Island mixed-use development that won an award as best mid-rise development of the year.

Deputy Mayor Gene Fisher said he was conflicted about his vote but he wanted to arm the staff with the necessary tools to go forward with economic development.

Councilman Tony Anderson was the only lawmaker to vote against the condemnation. Councilwoman Terry Anderson was absent.

Tony Anderson urged the council to delay action until after the November general election when "the face of the council will become more clear." 

What a surprise!  The Airport Authority knows more about what an owner should do with a property than the owner. Sea Tac is in for a real experience on highest and best use and the notion of private land use, even around an airport facility