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Eminent Domain: How It's Used and How It Sometimes Mobilizes a Community

By
Real Estate Agent with Howard Hanna Cleveland City Office

Run Down ShackHave you experienced the rancor that can develop when a local government decides to exert it's powers to declare a portion of the community Blighted and use it's powers of Eminent Domain? Traditionally, State and Local governments can use Eminent Domain when there is a public purpose, something that is seen as a benefit to the community as a whole. Examples of this would be: schools, libraries, freeways. Even utility companies can get into the picture and purchase or acquire homes for the future development needed to sustain the utility. The freeway 'taking of houses' can get dicey when new entrance or exit ramps are desired and all of a sudden your house sits where they want the highway exit ramp to be! Even dicier though, is when governments started allowing the use of Eminent Domain for the building of private development, like condominiums or town homes. In order to do this, for private development purposes, an area has to be declared Blighted, which means deteriorated. You might think a home has to look like the shack on the left to fit this category, but that is not the case.

So what does Eminent Domain mean, officially? It is the acquisition of private property, usually with compensation to the owners of that property.  This issue became a full blown, rancorous event in the City of Lakewood Ohio, resolved only about a year ago. Lakewood is a dense inner ring suburb with about 56,000 residents. What it does not have in abundance, is build able land. There was a proposal put forth to blight an area in western Lakewood so that a large new construction project of mixed use development could be built. It wound up garnering the support of a large group of people, including elected City officials - and I believe our local Board even chimed in it's support. Not everyone was pleased! Especially the people in the 'blighted' area, who had homes that were definitely NOT of the falling down in shambles variety!  Lawyers were hired, a long drawn out debate ensued.  In the end, this area was not declared blighted, eminent domain was not declared, and the project did not move forward.  Linda Davis made a comment on one of my posts about turning lemons into lemonade, and that applies here as well.  What this issue DID do, was mobilize the community.  I believe because of this issue, a grass roots group of people got together and formed a terrific organization called Lakewood Alive! What prompted me to write this post was getting another email from them today. They are now active in making all of us aware of what is going on in Lakewood.  There is a meeting scheduled to talk about land erosion on Lake Erie in Lakewood and how it will affect Cleveland as well. They promote the meetings occurring on school renovations; new business plans; historic preservation. It certainly let everyone know that regardless of where they stood on the issue of Eminent Domain in Lakewood, we all need to be active in our communities so we know what our governments are proposing.

I'm wondering if any of you have had similar experiences, especially with regard to the issue of the taking of land to build new construction projects; did it work? Did it not work? How was it handled.  I suspect this issue is a big deal in areas just like Lakewood where build able land is either non existent or at a premium. I'm just glad that now the Lakewood Community can be more involved in what happens with their City so that no one is blind sided by any proposals, and so that residential and commercial property owners alike can be a part of what happens in Lakewood.  Isn't that the best solution for all communities? And how do you feel about Eminent Domain?

Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Carole, I have not had any experience in this but do know that eminent domain is being abused. And unfortunately, it's usually the folks that can least afford to lose their homes that are taken advantage of. This law needs to be changed. Taking someone's property for private use is theft. 
Nov 16, 2006 12:01 AM
"The Lovely Wife" The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

"The Lovely Carole"

MDF...Excellent topic you know. I feel like I just did a refresher course on Eminent Domain (ROAR)...Sorry, it just kind of slipped out that whole Domain thing makes me do that...Why? Because it is Eminent...

But, seriously at some point these laws have to go. It is theft, what's worse than that it is also completely unjust. And yes, this is another "hot button" for me. So, me and my mouthy mouth must move on before the mouth takes over and puts a blog on your "pretty post"...

TLW "The Lovely Wife"...Great Hot Topic Here...ROAR!

Nov 16, 2006 11:56 AM
Carole Cohen
Howard Hanna Cleveland City Office - Cleveland, OH
Realtor, ePRO
Thanks Broker Bryant and MDF TLW, I appreciate the comments. It's not a sexy topic but it is one that to me takes away someone's basic right to property and if it happens it should be for a damn good reason, not new construction.  Just my 2 cents.
Nov 16, 2006 12:58 PM
Brian Brady
Matthews Capital Markets - Tampa, FL
858-699-4590

 It's not a sexy topic but it is one that to me takes away someone's basic right to property and if it happens it should be for a damn good reason, not new construction.

Good comments,  Carole.  And good post.  Would you place this is the economics group? (look for the pic of Friedman and Greenspan)

Dec 05, 2006 04:11 PM
David Petrovich
S.P.O.C.H. a 501c3 Charitable NP - Oakhurst, NJ

I'm from a part of the country (NJ) and County (Monmouth) where several cities are embroiiled in Eminent Domain issues.  The City of Long Branch, the City of Asbury Park, Neptune, as well as others.

The use of Eminent Domain is lawful.  ED abuse is a matter of interpretation. Were We to have a voice, We would say that the taking of private property by a governmental agency in the name of progress, and then handing it over to a private developer for private gain is wrong.  The fact is, We did have a voice way back when the NJ Rddevelopment Act of 1985(?) was enacted into law.  But who really knew much about it?  You can bet the construction industry did.  By 'industry' I include lawyers, engineers, developers, etc.

                                                                          EMINENT DOMAIN ABUSE

Strategies for winning the fight to STOP Eminent Domain Abuse!

 Step #1:    Do not ignore any letter you receive from the Government!

The Specter of Condemnation
By SCOTT BULLOCK
June 24, 2006
Wall Street Journal

 

Feb 22, 2007 03:39 AM
Anonymous
Debbie

Husband left a socialist government 34 years ago to avoid this among other things.  Go figure, it happen in the good 'ole U S of A.  I guess we should be grateful that we went buried in shallow unmarked graves.

Fighting Goliath
Pittsburgh Tribune-Review
August 20, 2007 Monday

Every once in a great while, government, as a land-grabbing Goliath, gets thumped by the most diminutive David, especially when the former fails to follow its own policies.

That may cost Philadelphia $497,230 in damages, plus the plaintiffs' legal fees.
It began when Ed and Debbie Munoz, in pursuit of the American dream, put up their New Jersey home and borrowed $1 million to buy a grocery and garden center in Juniata Park. Afterward the couple learned -- secondhand through customers -- that their business was in the footprint of a planned housing development.

For more than two years, the Munozes sought answers from the city but said they received none. In 2004, with declining sales -- allegedly because of government's imminent land grab -- and Ed Munoz's declining health, the couple declared bankruptcy. The city picked up the property at a sheriff's sale.

The Munozes went to court.
City officials said it wasn't clear through 2004 whether the Munozes' lot would be needed. Yet an April 2003 letter from the developer asked the city's Redevelopment Authority to acquire the property.

Even the U.S. Department of Housing and Urban Development reportedly warned city officials in 2005 that Philadelphia violated federal relocation law.

So, all's well that ends well? Not quite. Goliath plans an appeal.
Here's hoping these Davids, and all the other Davids facing similar battles for their rights, won't give up the fight.

Sep 05, 2007 10:12 AM
#6
Carole Cohen
Howard Hanna Cleveland City Office - Cleveland, OH
Realtor, ePRO

David, I apologize, I did not know you had commented here. You make a point that is so valid, about the issue of transparency, and how it should apply to legislation as well. It's been a few months since you commented, I'm wondering how things are progressing? I truly appreciate your thoughts and comments.

Debbie: That is the saddest of stories. Again, the government is not being transparent, or up front about what they want or are doing. To me there is no excuse for that. At least in Lakewood (the story above) everyone knew what was going on.  Judging from the Pittsburgh article you so graciously included here, the home owners might have to spend more money on lawyers to wind up winning. I know one thing, if I was a voter in Pennsylvania and the people (public officials) involved in that type of tactic were exposed? I would make sure to do everything I could to get them out of office. Thank you so much for your comments. And luckily, all local governments do NOT act this way! 

Sep 05, 2007 10:40 AM
Carole Cohen
Howard Hanna Cleveland City Office - Cleveland, OH
Realtor, ePRO
David, PS: Sometimes it takes a court decision to wake everyone up and make good changes which it seems is the potential here. I checked out the site you included here, thanks for doing that!
Sep 05, 2007 10:43 AM
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Carole, Everybody gets up in atms when some community abuses this "right" but you don't hear nary a peep when it is used properly.

We (in San Diego) had a blighted downtown in 1980. Now it is beautiful with all the new construction in and around the Ball Park area. Eminent Domain did what it is supposed to and nobody that I know of was hurt. The property owners in the blighted area had nothing but a liability. Now everybody is happy. Tourism is way up, downtown living is once again attractive and tax revenues are way up.

Bill Roberts

Sep 06, 2007 05:28 AM
Carole Cohen
Howard Hanna Cleveland City Office - Cleveland, OH
Realtor, ePRO

Bill, appreciate your comments. It's always true isn't it, when things are going well no one says much. But when you get right down to it, our system of government has always been reactive. Legislation is spawned from complaints just as frequently as it is from new ideas.

I'm glad ED spawned good results in your area. The Lakewood issue I discussed above became quite incendiary however, because the homes marked blighted were not blighted in any way shape or form. The problem Lakewood had was, not much free land for large scale development. So they decided in not such infinite wisdom to declear a stable, well kept western portion of the city blighted. Needless to say that did not go over well.

 

Sep 07, 2007 04:26 AM