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.
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.
