Eminent Domain Report

Earlier this month, we reported on the Governor's budget proposal, which includes the bold plan to "disestablish" (my new favorite word) redevelopment agencies as part of his plan to shore up California's budget.  We then told you about how the budget proposal interacts with Proposition 22, passed last November. 

Not surprisingly, the story is far from over.  A January 21 article in the Los Angeles Times by Patrick McGreevy, "Cities may sue governor over his redevelopment proposal," reports that earlier today, more than 100 mayors and city council members came together to condemn ...

We noted in our 2010 year-in-review E-Alert that the stimulus dollars were starting to make their way towards local agencies so infrastructure projects could be built.  2011 is now off to a fast start:  according to a recent Caltrans press release, the California Transportation Commission has announced the allocation of $1 billion towards 107 California transportation projects, including $838 million from Proposition 1B bond funds (which was approved by voters in 2006).

Here are some of the highlights as to how these funds will be utilized:

• $46.55 million to install rail ...

The large pool of tax increment revenue flowing to the state’s 400-plus redevelopment agencies has long made a tempting target for a cash strapped State.  Time and again Sacramento has dipped into this pool to offset budget deficits.  Local interests have fought back, both at the ballot box (e.g., 2004's successful Proposition 1A "Protection of Local Government Revenue"), and in the courts.  Sometimes local interests gained the upper hand and sometimes the advantage went to the State.

Proposition 22, approved by the voters in November, was intended by its backers to be the ultimate ...

In U.S. politics, mudslinging -- or negative political campaigning -- is "as American as Mississippi mud."  Just recently, I'm sure everyone recalls the heated back-and-forth between Governor Brown and Meg Whitman.  Usually, the attacks die down after the election is over.  And rarely do the attacks center on eminent domain issues.

That brings us to Palm Springs.  Mayor Steve Pougnet unsuccessfully challenged U.S. Representative Mary Bono Mack for the 45th Congressional District in November.  Months after the election, the debate continues between the two.  

According to a recent ...

It should come as no surprise that the budget proposal issued by Governor Brown today contains some painful cuts.  California remains in the midst of one of the worst economic cycles in history, and its budget shortfall has reached historic proportions.  According to the Governor, as he takes office, California's budget shortfall totals $25 billion - yes, that's Billion, with a "B." 

For me, I am particularly disturbed by proposed cuts to education; the UC system, which provided me with both my undergraduate and law degrees, may face numerous cuts, including a general ...

In case you missed it, in the news last month was a big story about the San Diego County Sheriff's Department torching a residence in Escondido as the only safe way to destroy a giant cache of explosives found in the house.  The house was burned to ashes in an effort to destroy the extremely volatile chemical compounds which could detonate at any second.  The house has since been dubbed, simply, the "Bomb House."

So what does this have to do with eminent domain?  Interestingly, the individual responsible for the explosives was a renter (who is now in jail), and the property owner -- who had no idea ...

New subway lines don't come around every day.  They are expensive, complicated projects that take years to plan, finance, and build.  But it looks like major cities on both coasts are working towards new major new subway projects. 

In New York, the Second Avenue Subway Project is the first major expansion of New York's subway system in more than half a century.  The MTA started studying the project in the mid-1990's, issued an Environmental Impact Statement in 1999, and finally broke ground in 2007.  Construction is now well underway. 

In Los Angeles, the proposed project making most of ...

We recently wrapped up assisting with the acquisition of several part-takes of commercial and residential properties for a public transit project.  One of the big issues involved with each of the acquisitions centered on whether the project provided the impacted properties with benefits that would offset the potential severance damages.

By way of background, when only a portion of property is acquired through the use of eminent domain, the acquiring entity is required to pay not only for the portion of the property acquired, but also for any decline in value the remainder ...