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.

New Jersey Due Process

-New Jersey has a much-maligned rule that it can designate an area as blighted and ready for development. Under the rule, those individuals in the area must challenge within forty-five days or they forever waive their rights to challenge the condemnation. In Harrison, the City waited six years to designate specific properties. This raises substantial due process issues. To date, owners have been unsuccessful in their challenges to the New Jersey procedure, at least in State court.

Eminent Domain Sought For Ice House

The News Dispatch, January 19, 2008

MICHIGAN CITY - An obstacle in the city's plans to redevelop the North End could become moot soon after a lawsuit was filed to condemn two properties near Michigan Boulevard and Eighth Street.

Michigan City Redevelopment Commission Attorney Michael Bergerson said Friday he'd filed the suit last week in La Porte Superior Court 3.

The city wants condemned the Weber Sign property, 730 E. Eighth St., and property known as "the ice house," owned by Thomas and Florence Sobkowiak, 748 Michigan Blvd.

The city has tried for more than two years to purchase the properties - two of only three holdouts remaining in a string of properties needed for North End redevelopment.

Owners of Blocksom, a factory complex near Michigan Boulevard and Fifth Street, are in discussions with the city for an anticipated sale and relocation of the facility.

The Webers and Sobkowiaks, however, have refused to budge, as has the city. Bergerson's request for an eminent domain judgment, he said, is the last step in an arduous process.


The city is offering the Webers and Sobkowiaks $1 each for their properties. Bergerson said the offer is fair - in the eyes of the court - because the land under both properties is "highly contaminated."

"We can't pay for property that's also contaminated beyond its value," he said. "They can't sell it and they're living in a dream world if they think the taxpayers of Michigan City want to pay for a property and pay to clean it up."

Glenn Kuchel, the Hammond attorney representing Bill and Kathy Weber, the owners of Weber Sign, said Friday the offer of $1 isn't fair.

If condemnation is granted, an appraiser will settle on values for both properties and offer that amount to the owners. If the owners object to the price, the city will issue a deed and take the properties, but will still debate price with the owners.

-In reading the article and the claim of a “$1” value, one has to wonder whether the community fully understands the choices an owner has even with contaminated property. This is a court filing which was “rushed to judgment,” by the writer of the article, premised on comments of the community. Without question, the writer was not fairly notified of the owners' rights in this particular factual setting.

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.

Water Company's Rights

An Aqua Indiana customer on Windsor Road, Steger bought a water softener and replaced a dishwasher and garbage disposal because of the harshness of his water, he said.

But the somewhat graphic description of his water’s color is the most telling.

“I would take showers and the water would turn the gray hairs on my chest red,” he said.

But people like Steger – who complain about the company’s water service – are becoming rarer, at least according to the number of complaints received by the private utility. In fact, complaints about water color, poor pressure and other service problems dropped by a third on average from 2004 through 2006, when compared with the previous three years.

One of the city’s main reasons to take over the private northern system was to provide better water.

The city started an eminent domain action in 2002 to acquire the northern system. Last summer, the Indiana Supreme Court ruled in a 3-2 vote that the city can take the utility through eminent domain. Aqua Indiana is challenging the city’s $16.9 million appraisal of its assets, but has not yet publicly offered what it believes is a fair price.

Steger, 68, bought his home on Windsor with the promise his home was on City Utilities. Upon discovering the water was from Aqua Indiana, he installed a water softener for $500, which he said was necessary to make the water potable. Even with the softener, he said the water still comes out red or black at times. He said he pays about $18 a month for salt for the softener.

Even if the cost of acquiring the private utility comes in more expensive for the city, Steger said he would be willing to pay a premium to relieve himself of the hassles.

“I don’t mind paying for a quality product,” he said.

-This article serves as a harsh repudiation of the water company’s fair rights. Given that the case is to be tried by a jury of peers in the community, when the community offers phone numbers to call for “complaints,” one wonders how fairly the water company can be treated in this situation.

Costs may outweigh the benefits

Tri Cities, November 27, 2007

BRISTOL, Va. – Despite a recent favorable court ruling, city leaders may opt to abandon the controversial Mendota Trail project.

The proposed hiking and biking trail from the city limits to the Scott County, Va., line has already cost the city more than $600,000, City Manager Bill Dennison said. The council is expected discuss the stalled project at its next meeting.

"An item is on the agenda for Tuesday’s meeting," Dennison said. "It’s a terribly convoluted, complicated, very expensive proposition. Continuing a project, with no end to the expenses in sight, doesn’t seem very prudent to me."

In the nearly seven years since, the city has invested about $635,000 to acquire the land and in legal and engineering fees, amid a six-year legal battle with property owners along the proposed route.

After a number of landowners tried to claim ownership in 2001, the city sued all 180 people with potential claims. Less than 20 are still engaged in the lawsuit, which has not yet gone to trial.

One solution could involve asking the Washington County Board of Supervisors to condemn the property, Mayor Jim Rector said, adding he didn’t know if county leaders would cooperate.

Any decision also needs to include an estimate of the cost of completing the trail, Rector said.

"A half-million dollars will not touch what needs to be done to that trail and that doesn’t include annual maintenance," Dennison said.

The city previously estimated trail construction could cost up to $1 million.

Establishing a trail would involve clearing the land, removing buildings, fences and other obstructions, building bridges, replacing at least one trestle damaged by fire and pouring the base material, Dennison said.

-Sometimes, communities realize in time that they should withdraw from projects rather than obstinately pressing forward without a full analysis of the costs and benefits. Substantial title problems on ownership of property and uncertain expenses can lead to unanticipated obstacles.

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.

Land Taken for Road

Washington Post, November 23, 2007

Maryland highway officials and the philanthropic Eugene B. Casey Foundation are battling in court over the state's decision to seize 405 acres of the foundation's land for the intercounty connector, even though the land is seven miles from the highway's planned route.

The state has taken the wooded, rolling hills in Boyds, and has offered to pay the foundation $3.44 million, to replace some of the parkland and mature forests that will be bulldozed to build the six-lane toll highway between Gaithersburg and Laurel. The Montgomery County parcel is part of the Maryland State Highway Administration's "environmental mitigation" plan, which received federal approval.

Environmentalists say the Casey land is too far away to help the wildlife in the more than 900 acres of forests, wetlands and parkland that the 18.8-mile highway will destroy. The bigger issue: The foundation, its attorney said, doesn't want to sell and thinks the state has no right to the property.

The Casey Foundation is one of the Washington area's largest philanthropic organizations, with a net worth of $166 million, according to its 2005 federal tax filing. Eugene B. Casey, who died in 1986, was a developer and one of upper Montgomery's largest land owners. Betty B. Casey, 80, his widow, lives in Potomac, according to voter records.

The state took ownership of the foundation's property in May, after the trustees declined to negotiate a fair market price, said Melinda Peters, the intercounty connector's project director. Upon seizing the land, the state deposited its purchase offer of $3.44 million with the Montgomery Circuit Court and filed a condemnation case against Betty Casey and other trustees. A judge is expected to rule in spring on whether the state has the right to seize the land.

If the state wins the court case, the land would be turned over to the county's park system. But, Park said, the foundation might then appeal because Maryland has no case law on the state's rights to seize land far outside a project's right of way.

Full construction on the highway began last week, after a federal judge in Greenbelt rejected two lawsuits that alleged that the project violates federal environmental laws. The intercounty connector, estimated to cost $2.4 billion, is scheduled to fully open by 2012.

A ruling on the extent of the state's eminent domain powers could have far-reaching ramifications. Such "environmental mitigation" packages to replace wetlands, forests and other habitat have become commonplace, particularly on large, controversial projects.

However, as development grows denser near projects, highway officials said, they have had to find replacement land farther away. As part of rebuilding the Woodrow Wilson Bridge, for example, regional highway officials created or preserved 100 acres of wetlands in Stafford County and planted river grasses at the mouth of the Chesapeake Bay to replace those lost to the larger bridge.

-This article deals with the issue of true intent in a taking by an acquiring agency.  Is the intent of the acquiring agency to find the easiest way out of a required mitigation project?  The acquiring agency may totally fail to repair the harm of a project or simply mitigate this situation by replacing the acquisition with something available elsewhere.  It is possible the statute, requiring mitigation for forestland taken for a roadway project, has no relationship to the project area affected. 

 

County Purchases Another Utility

Shorelines, October 11, 2007

St. Johns County Utility is ready to finalize a deal to buy intercoastal Utilities. Some people still think the price is too high.

Appraised at $24.5 million, the aging water and sewer system serves about 4,500 residents in Ponte Vedra Beach and Palm Valley.

At a Palm Valley Community Association, meeting residents complained the appraised value is too high.

Whether or not no the county acquires the utility, it will have to pay the company’s legal fees for the past year.

-Many governmental agencies are attempting to take water and other utilities when they fear there is an environmental issue, a safety constraint, or inability to develop in an appropriate fashion in the future. However, this community should not think that their rates will go down simply because the utility is being purchased by the County.

Clarksville May Condemn Peddler's Property

News and Tribune, October 4, 2007

The town of Clarksville says it may condemn a portion of the Peddler's Mall property in order to pursue a revitalization project on Easter Boulevard.

The condemnation being discussed would not affect the building but would lay claim to about 25 feet of road frontage.

The plan is to add new lanes, landscaping and sidewalks.  

- One of the things apparent in Clarksville is that the owners do not necessarily have to respond to the government.  Owners have no obligation other than to provide the condemning agency with materials which may serve as the basis for valuation.  

Crude-Oil Pipeline: Pontiac to Patoka

Pantagraph, October 1, 2007

LeRoy attorney and political activist is recruiting clients to fight an eminent-domain request to build a crude-oil pipeline from Pontiac to Patoka in Southern Illinois.

Millions of dollars in payments to landowners hang in the outcome of Enbridge Inc’s request from eminent domain.

Enbridge spokesperson has repeatedly said eminent domain is a last resort.

 

-It is good to see an activist fight the condemnation process. However, each landowner should protect their individual interest on the damage claims. The same attorney can do this, but each owner should look to the individual claim that they may present. Otherwise, they may find themselves in front of a group of special masters who have no understanding of the issues at hand and face the possibility of no just compensation.

 

The Value of a Mile

Columus Dispatch, September 29, 2007

When Canal Winchester offered Richard "Pete" Stebelton $9,249 for a 1-mile strip of his property, Stebelton thought the payment was too low.

This month, a Franklin County Common Pleas jury decided the village should pay the farmer and used-car dealer $595,625. 

Canal Winchester wants the land to link a bike path between Rager Road and the village swimming pool. It used eminent domain to take a strip of Stebelton's 80-acre property and hired an appraiser who determined that the $9,249 would be enough compensation.

Stebelton was the only one of eight property owners who didn't agree to sell his land to the village for the path. Instead, he went to court to challenge the village's valuation.

The jury decided Sept. 20 that the land the village wants, along the northern edge of his property, is worth $37,000. But the jury also decided that by taking it, the village was closing off a back entrance to the property and damaging the value of the rest of Stebelton's land by $558,625.

-In many jurisdictions, even after the jury=s verdict, the condemning authority can withdraw from a condemnation.  This offers great risk to owners who may face a second condemnation, with not as decent results.

In this situation, it looks like Mr. Stebelton had the opportunity to face a community which may walk away, but at least pay his fees.  The process can be maddening indeed!


 

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.

$17 Million to Relocate and Vacate

Long Beach Press Telegram, August 17, 2007

Then city of San Pedro will pay a petroleum storage company $17 million to vacate 12 acres of waterfront property in the Port of Los Angeles.

The settlement comes after five years of negotiations in which the port threatened to condemn the property over various environmental and safety issues. Clean up, which may take several years, is organized by the city and the port.

-As in so many other communities, San Pedro has determined that the burden of cleanup costs and just compensation far outweigh the value to the community of an industrial use in an area attempting to de-industrialize. This is of major public policy import because there will soon be a day which there simply is not enough land to maintain industrial uses. Further, the environmentally sensitive uses being placed by gasoline type companies will inevitably change to higher and better uses such as high-rise residential, commercial development and intensively used port facilities.

 

Ridge Water District Looking to Acquire Neighbors

Chico Enterprise, August 18, 2007

Paradise Irrigation District has been in talks about collaborating with its neighbor, Del Oro Water Co., to chare water from a proposed pipeline.

PID officials announced they are looking at an alternative. They would like to acquire Del Oro’s two districts covering Lime Saddle and Old Magalia.

Del Oro maintains its districts are not for sale.

If PID presses ahead with the acquisition process, it will have to seek approval from the Butte County Local Agency.

-The article is a classic example of the desire to obtain a new “economy of scale” in purchasing franchises, thereby expanding the business viability and opportunity. As part of this taking, the proposed acquirer would best review its statutory authority. See Grosse Ile Township v. Grosse Ile Bridge Company, 727 Mich. 593 (2007).

Wilmington Riverfront Fight

Delaware Online, August 23, 2007

Business owners in Wilmington are fighting the city’s plan to take their property using eminent domain.

Wilmington officials want to redevelop the riverfront, a plan 35 years in the making.

The city promised local business owner Ed Osborne and others fair market value and to relocate them to a business park near Garasches Lane.

-Clearly, communities need to redevelop blighted areas. The problem in Wilmington is that its citizens who are reasonable and responsible businessmen owning property in an area which is at least partially blighted. Then, the owners face the massive majority, such as that expressed in the Delaware Online article of the News Journal, in which it seems that the whole notion that there is nothing unfair in the process runs contrary to reality.

In the article, one of the questions raised was whether the owners were protected from abuse of authority.  The only answer is "no," they are not fully protected. The courts will hold that the government has the right to take the property unless there is a clear abuse of discretion in the governmental activity. This action is unlikely to be found in a situation where a major portion of the area is blighted. At the same time, the notion that owners will be protected just does not meet with the reality in which owners do not get paid for business interruption and other damages. Lost profits will be difficult to obtain, and the value of the businesses may not necessarily be paid.

LaPorte County Airport

Post-Tribune, August 5, 2007

Northwest Indiana is a prime piece of the national shipping puzzle.

A 3,000 acre parcel in LaPorte County is the potential site future site for a huge transportation hub.  The site is close to nearly all major interstates in Northwest Indiana.  

If the property owners of the tract do not respond soon to offers, eminent domain maybe used to kick them off their property.  Governments have the power to force private property owners to sell their land for the public use or for private use where there's a substantial public benefit.

-The location is a prime example of the highest and best use assembled by the government.  There is a reasonable argument that maintains that the government is the only source to assemble, but there is also an argument that part of the special value of the location should be for the benefit of the owners.

Atlanic Yards

Brooklyn Daily Eagle, August 3,2007

Plaintiffs are challenging the use of eminent domain to build the planned Atlantic Yards Project.

Plaintiffs are property owners and rent subsidized tenants located in the footprint of the planned 22-acre development project.

Under the Fifth Amendment to the US Constitution, "private property shall not be taken for public use, with just compensation."

-The Atlantic Yards case is a difficult case and will have little opportunity for success given the presence of Kelo precedent.  However, it may be in the United States Supreme Court where we visit the issue.  If the Supreme Court does reverse the Kelo decision, it will only be due to misuse and abuse of the power by local communities that put us all in this horrible position.

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.