The ISSUE

The PROBLEM

The SOLUTION

“Blight” definition

Definition is too broad, leading to abuse of eminent domain power and unfair taking of private property

Strictly define blight; link it to local economic activity and rehab or development efforts by landowner

Appraisals and fair compensation

Appraised value is based on current use or local market activity, not on planned or intended use, which results in artificially low value and unfairly low compensation

Clarify appraisal standards.  Condemned property must be appraised according to intended use and landowners must be compensated fairly.

Appraisal standards

Unit rule and some other appraisal rules are arbitrary, strictly theoretical, and do not conform to empirical evidence against them, resulting in artificially low appraisals

Legally change appraisal standards, or at least allow for different valuations

Partial condemnation

Only a small part of a property may be condemned, but the taking may render the residual far less valuable or may eliminate a business value, which is patently unfair

Landowners must be compensated for loss of business value (where applicable), and for the net result or impact of a condemnation on the whole and residual property

Prior capitalization in redevelopment projects

(current owners)

Current landowners bought property long ago, and have in effect capitalized current redevelopment projects (at artificially low values), but they are unfairly compensated after condemnation

Give landowners the option of being a silent equity partner in any redevelopment project.  This protects landowners and will ensure that only highly valuable and clearly publicly beneficial projects move forward.

Procedure and process must be clear and structured.  Eminent domain must be the action of last resort, and transparent.

Procedurally deficient eminent domain actions lead government to wrongly label and then target innocent landowners.  Landowners who are trying to improve their properties should not be subject to eminent domain unless they are clearly doing nothing.

Better rehabilitation and redevelopment codes for inner cities, more historic tax credits, and low-interest loans are examples of how landowners can be improving their properties or trying to make progress.  Measure landowner performance.

Clear and high standard for using eminent domain

Aside from definition of blight, in general the standard for applying eminent domain is too loose

Tighten the standard to allow on projects that have a clear public benefit, like roads, schools, sewage treatment plants.  For-profit projects can proceed only in clearly blighted areas and where landowners are given the option to participate as equity partners, etc.

Need for creative use of eminent domain

Lack of creativity with eminent domain leads to unnecessary conflict and less than ideal results

Provide leeway for agencies to meet multiple goals simultaneously, e.g. condemn development rights on farmland adjoining a new road for scenic corridor, or condemn the land in fee for a scenic corridor