Airport Authority Board Delays


Crain’s Detroit Business, March 21, 2008

The Wayne County Airport Authority board delayed a vote Thursday on a controversial $3.6 billion, 20-year master improvement plan for Detroit Metropolitan Airport.

The authority, which governs the airport’s operation, cited public desire for more time to learn about the plan. There are mounting objections from local municipalities, especially the city of Romulus, that decry the displacement of homes, business and schools for a new 10,000-foot runway.

About 200 people, including residents and elected officials, gathered in a meeting room at the Westin Hotel in the airport’s McNamara Terminal in expectation of a presentation by the authority, local officials, and then a vote.

Eminent domain would likely be required to complete the expansion. About 800 residences would need to be demolished, including apartment buildings and single-family homes, to make way for the runway.

-The meaning of the delay and uncertainty will only create a blighting influence, both emotionally and physically, to the areas businesses and residents. It will be tough to transact business or sell a business or a residential parcel when one knows there is a condemnation just down the road.

Federal Power Line Plan

WASHINGTON (AP), March 6, 2008


New power line construction is more likely in the Mid-Atlantic States and the Southwest after the government on Thursday said it was pushing ahead with a plan to expand and modernize the electric grid in those areas.


The U.S. Department of Energy formally denied requests for a rehearing of a previous decision making it easier to build power lines in the designated areas, saying challenges by those who oppose new line construction were meritless.


The Energy Department has designated two "National Interest Electric Transmission Corridors" over the objections of many local and state officials.


The federal government's mid-Atlantic power corridor runs from Virginia and Washington, D.C., north to include most of Maryland, all of New Jersey and Delaware and large sections of New York, Ohio, Pennsylvania and West Virginia.


The Southwest corridor consists of seven counties in Southern California and three in Arizona.
In deciding to go forward with the two corridors, the department issued a statement Thursday saying the findings of energy congestion in the areas "are well-founded and based on data and studies."
In that event, a failure on transmission lines in Ohio set off a chain reaction that knocked the Canadian province of Ontario off the power grid, along with parts of New York, New Jersey, Connecticut, Michigan, Pennsylvania and Massachusetts.


If state authorities do not approve any construction after a year, the Federal Energy Regulatory Commission, or FERC, may intervene and approve a grid project if the new line is deemed necessary to satisfy national power needs. Such approvals could, in theory, include the use of eminent domain law to compel private owners to sell their property.


-The US government now views electric capacity as a federal rather than State issue. As such, it is strenuously pursuing a course of developing major corridors for future utility utilization of gas and electric transmission lines.

ITC Line: Genesee, Osceola, Hartland, Brighton, and Milford Townships

MPSC- Michigan Case No. U-14861, February 28, 2008

The MPSC issued an order denying a request by Hartland Township and several area homeowners for a rehearing in a case involving the construction of an overhead transmission line in Livingston and Oakland counties by ITC Transmission.

-An Opinion and Press Release, found under the MPSC filing, rejected the Hartland Township and owners’ challenge to the project. This is the final part of the proceeding with offers and the filing of the condemnation complaints for major transmission lines, which will destroy the aesthetic attractiveness to a number of communities in Livingston and Oakland Counties.

Belleville Development

Ann Arbor News, January 18, 2008

A major grocery store topped by a spacious public library is the centerpiece of a vision for downtown Belleville unveiled at a special meeting Wednesday.

At a joint meeting of the Belleville City Council and Downtown Development Authority started at City Hall, Rick Walker of Walker Developments, based in Montreal, said a national grocery store chain was interested in building downtown.

"(The grocery store) would be an economic boost and a reason for people to stop in Belleville,'' said Rosemary Loria, chairwoman of the DDA.

In addition to the grocery store, Walker Developments would build about 30,000 square feet of retail space on Main Street between Fifth Street and what is now Fourth Street. Housing and office space would be built above the retail.

The new construction would eliminate several buildings, including Chase Bank on the corner of Roys and Main streets. Loria said the bank would rebuild a smaller bank next to the new construction.

The DDA would buy the property for the municipal lots, but would not do so through eminent domain, Loria said. The DDA would have to borrow money for the parking lot projects. It already plans to borrow about $5.5 million for a major reconstruction of Main Street that is planned to start this summer and may have to borrow up to $5 million more for the parking and other aspects of the redevelopment project, Loria said.

-This is an example of what protections offered by the recent Michigan constitutional amendment were intended to do. That is to protect owners' rights to property and allow the market to determine value for property rather than the an uncertain court process forcing owners to accept a government offer.

Ramada Inn on Belmont

WYTV, January 16, 2008

Township officials say developers have already bought the land at the old Ramada Inn on Belmont Avenue for an unspecified project that may bring in major retailers.

Now all they need to get the deal through is this fifty foot strip of land, where developers want to put in a stop light. The only problem is the owners do not want to give up that piece of land, saying they're afraid the project might decrease the property value.

But township officials say the project is too important for Liberty to give up on. Pat Ungaro, Liberty Twp. Administrator says a compromise between the developer and the owner is close to being made, but if it's not worked out, the township is prepared to use eminent domain to push the project through.

-The safety needs of a community will outweigh the individual detriment to an owner. However, the future taking should not bar the owner from being fairly treated.

Oceana Airport

Airport Business, December 27, 2007

Faced with the possibility of losing state money for land acquisition at the airport, the Oceana County Board has approved a resolution authorizing the acquisition by Eminent Domain if necessary.

A local consultant, in airport acquisitions, commented that cases usually settle through negotiation.

While airport development always sounds attractive, one has to wonder whether, on a purely cost and benefit basis, this project makes sense. There are a number of decent airports within a half hour drive.

Blue Water Bridge Expansion: What you really need to know

thetimesherald.com, November 20,2007

Mike Connell recently posed a Q and A in his article to address, in his opinion, possible issues with the Blue Water Bridge expansion. However some of the questions and answers are flawed. For example, Mr. Connell quotes the MDOT as stating that owners are better off selling the property because they obtain 125% of their own value. The problem is that the offer may be far less than 100% of the value. The 125% applies to the total amount paid, whether by settlement or trial or a simple deed. Mr. Connell forgets the rights of individual owners can be protected.

The intent of the article is to show that the government will take the property, and the owners have no rights to challenge the amounts.  Further it appears from the article owners should simply succumb to the governmental desires.  This is simply wrong!

There is no question about public use for the International Bridge, nor is there a question that we must secure our borders. However, there is still the requirement of "just compensation" in both the Michigan and United States Constitution.

What to do when facing Eminent Domain

The Monroe News recently published a very informative article on what to do when you are faced with eminent domain.

If you're approached by an oil company, gas company, or any other utility, eminent domain attorney Alan Ackerman says there are a few things you can do to ensure you're treated fairly.

Mr. Ackerman first suggested retaining a lawyer or at least consulting with one throughout the process. In most cases, he said, the entity attempting to obtain land or get easements will be responsible for homeowners' legal fees under Michigan law.

However, those who shy from attorneys also have options:

• Keep quiet, get the offer in writing and figure out what the basis for the offer is. Keeping quiet at this stage is important, said Mr. Ackerman, since whatever you say can be used later.

• Figure out exactly where the pipeline, wires, etc., are being installed. How will this affect the property next year? In 20 years? Does it destroy the farm tiles?

• Make sure you know what your local government mandates.

• Get everything in writing, make sure you can understand it and make sure it's specific. Do not sign anything until you have read it thoroughly and understand it.

• Keep the property well maintained.

• Keep in mind the people who come to negotiate the use of your property are professionals at this.

• Get an independent assessment.

• Get exact definitions.

• Beware of the tactics.

Marthon Pipeline Construction

UPDATE:  Right of way agencies are once again contacting owners.

Detroit News, September 19, 2007

City Council members grilled officials from Marathon Petroleum on Tuesday over the environmental impact of its $1.5 billion refinery expansion proposal and put pressure on the company to commit to hiring more Detroiters and minorities.

The project, which could bring up to 1,200 construction jobs and close to $9 million a year in taxes as well as increase gasoline supplies.

But some residents and environmental groups fear it would increase air pollution and say their southwest Detroit neighborhood is already overburdened with industry.

Company officials said they are committed to hiring Detroiters. They have scheduled job fairs and have set aside money for technical training and scholarships. The project will generate 135 permanent refinery jobs.

"The focus clearly is on Detroit residents," said Angelia Graves, a company spokeswoman.

-Marathon is still working to establish a plan, allowing for more temporary construction jobs and a number of permanent jobs. There is much to face in both the acquisition as well as construction process.

Detroit Heavy Oil Upgrade Project

Monroe News, September 22, 2007

The old real estate maxim is proving itself once again - this time when it comes to installing an oil pipeline.

 

Although some property owners don't want any kind of expanded oil pipeline running through their yards, others are okay with it - sort of.

For Gary Doubler, location has been the sticking point in his negotiations with Marathon Petroleum on behalf of his in-laws' farmland in Frenchtown along N. Custer and Raisinville Rds.

The project is being referred to as the Detroit Heavy Oil Upgrade Project (DHOUP) and would run from Samaria up to Detroit.

At this point, the project is proposed; no definitive plans have been secured. The new line would follow an existing line about 70 percent of the time. The other 30 percent of the time, it would run near the existing line but has had to be rerouted in places because of easement requirements.

The new line would be a wider (24-inch) pipe that would allow more viscous Canadian crude to flow.

Chris Fox, spokesperson for Marathon Oil on the DHOUP project, said the company has been in communication with all of the property owners along the route and has been working to secure the easements since last summer.

Deborah Brown, who owns land in Frenchtown, said the money Marathon was offering was laughable.

Ms. Fox said the company still is committed to working openly with people.

 

-The real problem is the pipeline right of way agents are negotiating either knowingly or negligently proceeding. This is becuase there is a very specific legal process in Michigan which requires that an appraisal or statement of value be provided to an owner prior to negotiation and purchase. The oil company agents are violating a condemnation procedure intended to protect owner’s whose properties may be take for public use in this State! I understand the process may be different in Oklahoma, but that does not mean the lack of knowledge of our fair procedure should bar owners of their rights.

Detroit News Opinion

Detroit News, September 18, 2007

Hartland Township residents have enlisted state legislators in their battle against a plan to build overhead electric transmission lines through the county, but that's not an appropriate way to deal with the issue.

Officials in the Livingston County community and some residents have been protesting a state-approved plan for more than a year that allows ITC Transmission to install 95-foot tall power poles for the delivery of electricity to the growing area.

It is not, however, the state Legislature's job to micromanage the affairs of local communities or the companies that provide power and other services to meet their needs. That rests with the MPSC, which has already approved the project.

ITC addressed the issues and followed a MPSC request to change the route, which will add an estimated $2.2 million to the project. If forced to bury the lines, project costs will increase anywhere from $15 million to $40 million, ITC officials say. Those costs will be passed on to consumers.

-The author of this blog frequently agrees with the Detroit News Opinion page on land use. However, this time around, one is bound to disagree.

One of the few outlets we have to respond to land acquisitions is to seek relief via the legislative process. We should not be upset if the owners in this area are successful. The alternative would be no opportunity to respond to the actions taken by franchises granted by the government!

Marathon Pipeline Slows

Detroit News, September 4, 2007

Marathon cleared a hurdle this morning toward a proposed $1 billion expansion of its Detroit refinery.

The expansion would add 135 jobs at the refinery and increase gasoline supplies in Michigan.  The project would also create 1200 construction jobs.

Several city council members have said they have serious questions about the project's impact on the neighborhood.

-Apparently Marathon has slowed down its acquisition attempts in Monroe and Wayne Counties. Marathon is awaiting a final determination of which community will obtain the pipeline.

There are concerns about the negative impact on the neighborhood of the refinery. However, the station vis a vis the community and the brownfield cleanup may offset these concerns.

One thing is for certain, with a billion dollar proposed expansion, even if only a half tax occurs, an economic boom will occur in the local area.

The eminent domain proceeding, consisting of the condemnation necessary for the pipeline, would shift into high gear.

Sturgis ITC Line

Sturgis Journal, August 29, 2007

ITC representatives made a return visit to Colon Township to offer an update on the proposed 138,000-volt transmission line.

ITC is trying to resolve ownership of the old railroad bed north of M-86.

ITC proposes if the railroad bed does not work, they will ask MDOT to follow.

ITC does have the right of eminent domain to condemn property ad does not need a site plan review before the township planning commission.

-The recently published article by Terry Katz in the Sturgis Journal raises more questions than the utility seems to be willing to answer. What approvals have been made to date? The utility must know that they have to offer a plan and present notice prior to initiating any action.

Does the utility intend to go around the Michigan Public Service Commission?

How will the electric company utilize the railroad right of way? Will it attempt to claim that there was no effect on the adjacent parcels if the structures are placed only within the right of way?

Setting aside the frequently challenged research of whether high voltage power lines have an effect on health, ITC must recognize that the power lines will clearly have an effect on value, whether for known or unknown fear. An article was written on this by Michael Rikon and published in an ABA Real Property Section book about ten years ago.


Michigan Citizens for Water Conservation v. Nestlé Waters of America, Inc, 479 Mich. ----; --- NW2d ----

Michigan Citizens for Water Conservation v. Nestle Waters of America, Inc, 479 Mich. ----; --- NW2d ---- , is a case in which both the majority and dissent have arrived at a logical decision making approach premised upon the underlying public policy that legislation is to be read purely for and restricted to its writing versus the legislative intent. What needs to be done for this legislation to be read in the broader sense than environmental policies are to be protected and all of the public has the right to such protection is that legislation should simply state that. All that is needed is something along the lines of: "Individuals have a right to seek relief under this Act", then the issue would be moot. However, even without such language, one can read the present legislation as contemplating individuals, even those indirectly affected, have a right to seek the environmental protections of the Act.

Road Widening at Sterns and US-23

Monroe News, May 15, 2007

Monroe County Road Commission is looking at right of way issues and options to improve safety at the Sterns Rd.-US-23 interchange where a large travel center is planned. The board of County Road Commissioners heard a presentation by road agency staff on a private traffic impact study Monday night. The board took no action on the study...

The issue of using eminent domain to acquire land for widening or moving Sterns arose during the board's discussion.

Eminent domain is a legal step that allows government to acquire private land for the public good. 

On April 3, the zoning board okayed a variance for Flying J to install signs at the interchange in excess of the township ordinance. 

-  The US-23/Sterns interchange is an excellent example of a situation in which economic development requires improved roadways.  Part of the question here is whether this kind of road improvement should be an expense of the government or paid by those who are the sole beneficiaries of the improvement, in this case namely Flying J.  Read Full Article

Detroit Renaissance

The Detroit News , May 3, 2007 

A group of civic and business leaders unveiled 11 strategies that will help strengthen Metro Detroit’s economic redevelopment.

Detroit Renaissance’s strategies include developing an aerotropolis, or airport city, on land around Detroit Metro and Willow Run airports, and providing business help and financing to develop a creative corridor along Woodward that will nurture musicians, designers, artists and innovators.  Read Full Article                          

-The notion that an aerotropolis will work in Detroit has the opportunity to promote a great success, or unmitigated failure. Properly planned and recognizing individual rights, Detroit Renaissance is leading with a rational plan to do something in a community badly needing leadership.

Charlotte Municipal Airport Expansion

The Lansing State Journal, May 13, 2007

Abut 200 people attended an April 30 forum in which Mead & hunt employees presented their final studies for the airport relocation.  The two proposed plans for Fitch H. Beach Municipal Airport are as follows. 

  • A north/south expansion at the airport's current location requires rerouting, closing or adding a traffict tunnel to Island Highway, a primary county road.  Cost is estimated between $38 million and $63.5 million.
  • A relocation of the airport to Eaton Township would involve purchasing 15 homes and occupying 360 acres of farmland.  An estimated cost is $35.5 million.  

The expansion would extend the runway from 3,500 feet to 5,000 feet.

-This is illustrative of how difficult it is to place an airport. Charlotte desires to move to a "regional" program, but faces the conflict of being less than 30 miles from the recently enlarged Lansing Capital City Airport. Being between Battle Creek and Lansing on I-69 makes it difficult to come to a final decision as to not only what to build but where to build it.