Eminent Domain Report

The City of Visalia's road widening project at the Mooney Boulevard and Walnut Avenue intersection depends on the acquisition of a strip of private property necessary to relocate power poles.  According to the Visalia Times-Delta article, "Power poles, land acquisition trip up Visalia's plans for transforming Mooney/Walnut intersection," the necessary strip of land belongs to the owners of the Peachtree Shopping Center.  Those owners do not want the power poles on their property, and Visalia's City Council has therefore approved the use of eminent domain.

According to the owners ...

Yesterday, I spoke at the Appraisal Institute's 42nd Annual Litigation Seminar.  As usual, it was a great event, well attended by many of the top eminent domain appraisers in Southern California.  I spoke about recent developments in a presentation entitled "Eminent Domain: Where Are We, and Where Have We Been?"  [PDF] 

While I am confident that anyone in attendance would tell you I was brilliant, I want to focus today on some issues that arose in Ted Whitmer's presentation entitled Legal Instructions, Litigation & Appraisal Institute Standards.  Ted's firm, Appraiser Defense

With recreational travelers bound for Las Vegas and Laughlin combining with commuter traffic and freight movement, the junction of Interstate 15 and Interstate 215, known as the Devore interchange, likely qualifies as the the worst bottleneck on the I-15 in San Bernardino County.

And as Dug Begley reports today in a Press-Enterprise article titled Devore Interchange Discussed Today, the San Bernardino Association of Governments in planning to do something about it:

The interchange, a well-known bottleneck near where traffic enters and exits the Cajon Pass to the High Desert, is ...

Last night, the Riverside City Council approved the use of eminent domain to acquire the land necessary for the Five Points intersection project.  The project includes widening La Sierra and Hole avenues and Pierce Street, adding left turn lanes, and closing Bushnell Avenue off as a cul-de-sac at La Sierra.

According to the Press Enterprise article, "Riverside to spend $5 million on Five Points parcels," the City expects the acquisition to cost $5.4 million in order to compensate 15 property owners for land, furniture, and equipment.  Three landowners have reached deals, while the ...

The City of Corona has announced plans to extend its eminent domain authority in a downtown area which Corona feels is blighted.  The planned extension could impact businesses in the area, but Corona is carving out residential properties.  According to Riverside Press-Enterprise reporter Leslie Parrilla, in her November 16 article, "Public hearing on eminent domain area":

Hundreds of businesses are in the Main and Sixth Street area covered by the action. Not included would be residential properties within the Merged Redevelopment Project Areas.

Corona's current plans do not ...

With the completion of the I-5 widening project in Orange County north to the Orange County-Los Angeles County line, motorists cruised along the new, spacious lanes until they hit the County line, at which point an abrupt bottleneck brought them to a halt.  Now, the I-5 widening has commenced again, as the project moves north into Los Angeles. 

Across the county, the other major freeway connecting Orange and Los Angeles Counties, Interstate 405, could face a similar future.  The Orange County Transporation Authority has plans to widen the 405 freeway north from the 73 freeway to the ...

In 2003, the County of Riverside and the cities within western Riverside County formed the Western Riverside County Regional Conservation Authority (commonly known as the "RCA").  They delegated to the RCA the task of acquiring approximately 153,000 acres of privately owned property deemed necessary for habitat conservation under the Western Riverside County Multiple Species Habitat Conservation Plan (the "MSHCP").

Many property owners whose land falls within the MSHCP conservation area find themselves with few options:  generally, they can either ...

According to the November 13, 2009, Desert Dispatch article "City seeks to reinstate eminent domain powers," the Barstow city council will decide next month whether the Barstow Redevelopment Agency's power of eminent domain should be reinstated after expiring last year.  The Redevelopment Agency believes the use of eminent domain may be necessary to remove blight in the area along East Main Street bordering the Marine Corps Logistics Base. 

The article reports that the Redevelopment Agency's chair, Tim Silva, believes eminent domain is a valuable tool, although he'd hate to ...

In 2006, what seemed to be a simple real estate transaction occurred:  the Jurupa Community Services District sold 4.3 acres of property it didn't need to Stadium Properties, which planned to re-zone the property and develop it with a mini-storage facility. 

The problem was that the Community Services Distrcit sold the property without first offering it to other public agencies, a requirement under California law (Government Code section 54222).  More problematic was that the Jurupa Area Recreation and Park District had purportedly been expressing interest in the property for ...

Why would this (or any other) blog need another post about Kelo v. City of New London.  It probably doesn't, which is why this will be short. 

But, for anyone who still wants more of the story behind Kelo, the soon-to-be-closed Pfizer facility, or the heated arguments they engender, the New YorK Times ran an extended piece, A Turning Point for Eminent Domain? on November 12 that contains a number of different, high-level views on the subject.  (It also contains plenty of less than high-level views, as the story had generated 55 comments within just a few hours of its posting.) 

And, for anyone ...

Just a few weeks ago, we reported on Tulare County's plans to condemn a number of properties to facilitate the widening of Road 80.  Now, Visalia Times-Delta reporter Valerie Gibbons reports that Tulare County is considereing condemnation for four additional parcels, this time to facilitate the widening of Road 108 (or Demaree Street) between Visalia and Tulare. 

The November 11 article, "Board of Supervisors moves to seize land for Road 108 project while still in property negotiations," explains that both the Road 80 and Road 108 projects raise the same concerns from property ...

As mentioned in the Whittier Daily News article from last week, "Two property owners protest La Mirada plans for Valley View underpass at BNSF Railroad," the City of La Mirada and the City of Santa Fe Springs have moved forward with filing condemnation actions to acquire the necessary property for the Valley View Grade Separation Project.  The project will result in an underpass at the BNSF Railroad crossing.

The City of Santa Fe Springs' November 9 City Council Agenda discusses the adoption of a resolution of necessity for each of the necessary acquisitions.  It appears a few ...

Today, I attended the IRWA Chapter 67 monthly lunch meeting.   The speaker was Philip Law, Corridors Program Manager for the Southern California Association of Governments (SCAG).  He came to discuss SCAG's 2008 Regional Transportation Plan.  The plan is intended to coordinate efforts to implement transportation improvements through Southern California.  It involves a $531.5 billion, 25-year long range plan of needed improvements.

The Plan's Executive Summary [PDF] describes in detail the various plan components, including ...

Government agencies often require developers of large projects to build the necessary infrastructure to accommodate those proposed projects.  Examples include building a new roadway to reach the project, widening an existing roadway due to the project's adding extra trips to the daily traffic, and installing improvements for utilities and flood control, among other things.  But how do developers acquire the right-of-way when the necessary property is privately owned? 

The proposed Merriam Mountains residential development project in north Escondido is a ...

The impetus for one of the most infamous eminent domain cases in U.S. history was the City of New London, Connecticut's efforts to utilize a massive Pfizer plant as the basis to revitalize the surrounding area.   (The common myth that Pfizer was itself the intended beneficiary of the Kelo property is not correct.) 

The decision, Kelo v. City of New London, triggered a nationwide backlash against eminent domain when the Supreme Court ruled that economic growth, by itself, qualifies as a public purpose sufficient to satisy the right to take property by eminent domain.

The tale of what ...

Eminent domain lawyers who practice in Los Angeles County Superior Court are all familiar with LA County's detailed local rules on eminent domain -- "Chapter 16."   Chapter 16 is the chapter in the Los Angeles County local rules that deals specifically with eminent domain, and it contains meticulous procedural rules for the conduct of condemnation cases in Los Angeles.

Key provisions involve an elaborate "First Pretrial Conference" requiring a substantial, joint written submission to Department 59 (the LA County eminent domain department), along ...

On Tuesday, the City of Lake Forest voted unanimously to move forward with plans to condemn a 6.11-acre parcel to use as a land swap with the County of Orange.  The property will likely end up being incorporated into Whiting Ranch Wilderness Park. 

According to Orange County Register reporter Erika I. Ritchie, in her November 4 article "City moves forward with seizure of family's land," the property's owner, the Hernandez family, has resisted all efforts by the City to acquire the property voluntarily.   But the City needs the property to complete a land swap with the County that will ...

In an October 31 article for the North County Times, "VISTA: City wants to redevelop motel property," reporter Cigi Ross writes about the City of Vista's plans to acquire a motel property as part of a plan to redevelop the area:

The owner of a downtown Vista motel is accusing the city of trying to kick him out of his business and his home.

City officials announced Monday they're trying to purchase the Vista Riviera Motel as part of a redevelopment project along Vista Village Drive and Vista Way that could include a new car dealership. 

While the City's efforts currently involve a voluntary ...

There are any number of property rights advocates who believe eminent domain is always wrong, and should never be allowed.  As an eminent domain lawyer who sees how eminent domain works both from a landowner and from an agency perspective, I find it hard to understand that extreme viewpoint.   Does eminent domain abuse occur?  Of course.  Are there situations where agencies condemn things they should not condemn?  Absolutely.  Would the infrastructure needed for modern society exist without eminent domain?  Maybe not.  And thus, the story of a world without eminent domain:

Nancy was ...

On November 16-17, CLE International is holding one of the biggest eminent domain events of the year, its 11th Annual Conference, Eminent Domain:  Appraisal to Appeal.  The conference is being held at the Stanford Court hotel.  Registration is currently open.

Many top eminent domain attorneys and appraisers are scheduled to make presentations.  I am speaking with my partner, Gale Connor, at 3:30 p.m. on November 17.  We will be talking with Norman Hulberg, MAI, about ...

One of the oddities of California's public utility system is that private companies own and operate many of them, yet they behave very much like governmental entities, especially when it comes to eminent domain.  Major examples include Southern California Edison and Pacific Gas & Electric ("PG&E"); both are private companies functioning as public utilities, delivering electricity to their constituents, and both are overseen by the Public Utilities Commission. 

Occasionally, an actual governmental entity will seek to replace the private utility company.  Such is the case ...

On November 18, the Southern California Chapter of the Appraisal Institute is hosting its 42nd Annual Litigation Seminar.  This full-day event features a great panel of speakers, and has been approved for eight hours of both Appraisal Institute and Office of Real Estate Appraisers ("OREA") continuing education credit. 

It is being held at:
Embassy Suites Hotel
11767 Harbor Blvd.
Garden Grove, CA 92840 
714-539-3300

I will be speaking at 3:45 p.m. on "New Cases & What’s Happening in Eminent Domain."  I understand that I am the last speaker of the day, and that you will ...

When LifeChoices sought to expand its rehabilitation center in 2002, the City of San Jose rejected the proposal, citing its plans for a future Berryessa Bay Area Rapid Transit ("BART") station, which would require freeway interchange improvements on the property.  According to John Woolfolk's October 23 Mercury News article, "San Jose to pay $2 million to acquire parcel and settle lawsuit," five years later LifeChoices' owner, John Licking, filed suit, challenging the City of San Jose's denial as constituting discrimination against the disabled.

Now, San Jose has agreed to pay ...

This is the question John G. Ellis, MAI addressed at the IRWA Chapter 1 Fall Seminar last Tuesday. Mr. Ellis divided his presentation into four distinct questions:

1. What is the current state of the market;
2. How did we get to where we are now;
3. What are the trends looking forward; and
4. Have we hit bottom yet?

The picture painted by Mr. Ellis [PDF] was befitting of the Halloween season, and in some cases was downright depressing. Most submarkets are demonstrating reduced sales volumes, lower rents, higher cap rates, and lower sale prices. Mr. Ellis demonstrated how a 1.25% increase in the ...

In an October 23 Los Angeles Times article, reporter Ronald D. White describes a lawsuit filed by the NRDC against a proposed project to replace the aging, seismically unsafe Schuyler Heim Bridge with a new modern bridge that will also bypass three existing stoplights and five existing railroad crossings. 

This is not the first project designed to ease traffic congestion and to facilitate the movement of goods in and around the Port of Los Angeles, and while the lawsuit alleges potential environmental problems with the project, it ignores the vast benefits projects like these ...

According to Visalia Times Delta reporter Valerie Gibbons, in her October 20 article "Tulare County now wants 11 more parcels on Road 80," Tulare County is moving forward with condemnation plans for 11 properties in order to widen Road 80:

The county has been trying to acquire properties — many of which are in 40- to-60-foot-wide strips, and about a mile in length — since the beginning of 2008. Eighty-five other property owners along the route have reached sale-price settlements.

The widening project, designed to ease congestion between Dinuba and Visalia, has been planned ...

This week, the City Council for Long Beach approved using its power of eminent domain to acquire a nearly 10,000-square-foot strip of land north of Second Street in order to widen Pacific Coast Highway for a right-turn lane.  The property is behind City National Bank and in front of Hof's Hut restaurant.

Paul Eakins reports in his Long Beach Press Telegram article "Council OKs eminent domain for PCH turn lane" that the City offered $655,000 to the property owner, which offer had been rejected.

Yesterday's IRWA Chapter 1 seminar in Los Angeles was a great success, with an outstanding panel of speakers.  The morning started with an informative presentation by Dave Guder of Southern California Edison about the Tehachapi Renewable Transmission Project and renewable energy sources in general. 

The liveliest discussion, however, centered around a narrow issue that triggered some surprisingly animated responses.  The issue involved a condemning agency's use of one appraiser for the initial eminent domain offer and deposit of probable compensation, and another appraiser ...

Typically, regulatory takings litigation generates a lot of noise and gnashing of teeth but, at the end of the day, rarely are government agencies bitten with an order that they pay compensation. However, a new opinion from the federal 9th Circuit Court of Appeals, Guggenheim v. City of Goleta (Sept. 28, 2009, Case No. 06-56306), demonstrates that regulatory takings litigation can have teeth. In Guggenheim, the 9th Circuit holds that the city of Goleta's rent control ordinance on mobile home parks went too far and that the city will have to pay the park's owners just compensation ...

On October 20, Chapter 1 of the International Right-of-Way Association is holding its Fall Seminar.  The event is being chaired by one of my partners, David Graeler, and it has a good line-up of speakers. 

One of the more interesting discussions may be the 10:50 session looking at eminent domain from both an agency and a landowner perspective.  The speakers for that session are Michael Thornton, from my firm's San Francisco office, and Gary Kovacic, from Sullivan, Workman & Dee in Los Angeles ...

There was an interesting discussion at the IRWA Chapter 57 seminar last Friday, and it’s one that I have seen play out many times in many contexts, so I thought it was worth a short discussion here. The issue was when the illegal gift of public funds doctrine comes into play in the context of an eminent domain case (the text appears in Article XVI, section 6 of the California Constitution). The concept is simple: The government cannot give away public funds to a private person or company. The eminent domain scenario is all too frequent: A proposed settlement is for more than the property’s ...

In June 2005, the United States Supreme Court issued its now infamous decision in Kelo v. City of New London.  That decision made eminent domain and condemnation household terms (imagine my shock at hearing my previously unknown, niche area of practice discussed in normal, day-to-day conversations).  The decision sparked tremendous controversy, as the Court ruled that the City of New London, Connecticut could condemn properties for redevelopment purposes for purely economic reasons. 

In other words, the City did not even pretend that it was acting to eliminate blight (the ...

The Inland Empire chapter of the International Right-of-Way Association is holding its 2009 Education Seminar and Fundraiser (Casino Night) on October 16, 2009, at the Eagle Glen Golf Course in Corona.  The event starts with lunch at 11:30 a.m. and goes through a raffle at the end of the casino night at 9:45 p.m.

The education program is entitled "Looking Forward in a Backward Right of Way World," and it features Bruce Norris of The Norris Group, talking about foreclosures, followed by three moderated panels, one on acquisitions, one on relocations, and one on eminent domain.

One ...

San Francisco's 99-year-old, historic Hugo Hotel, famed for furniture hanging off its outside walls, has been acquired by eminent domain by the San Francisco Redevelopment Agency.  

Kaleene Kenning's October 3, 2009 article, "Furniture on the Outside," explains that the historic site was purchased by the Patels in 1964 for $400,000, but when the Redevelopment Agency came knocking, they wouldn't sell for less than $7 million.  The Redevelopment Agency's $3.25 million offer was not accepted and an eminent domain action was filed.  The owners were eventually awarded ...

The City of San Ysidro, a community on the border of San Diego, is currently contemplating whether it should extend its eminent domain powers, which expired last year.  The backlash from the Supreme Court's decision in Kelo v. City of New London appears to still be taking its toll, as the City's advisory committee, the San Ysidro Project Area Committee, is currently deadlocked on the topic.

Liam Dillon covers the story in a Voice of San Diego article, Masters of Their Domain, which provides some great examples of the positives and negatives of the City's use of eminent domain.

For ...

I attended the IRWA Chapter 1 (Los Angeles chapeter) lunch meeting today, and listened to my partner, Rick Friess, speak about the Pitfalls of Prejudgment Possession [PDF]. The most lively part of the discussion centered on the requirement that condemning agencies offer the property owner $5,000 to obtain his or her own appraisal, and whether the agencies can condition that money on anything. There was clear agreement on the fact that to date, no case has interpreted the requirement, and that there is at least some ambiguity about what, if any, conditions may be imposed.

Typically ...

In his September 16 article entitled DWP outmaneuvered on Kern County land purchase, Los Angeles Times reporter David Zahniser described a story full of political intrigue. It seems someone with ties to Mayor Villaraigosa acquired a property out from under the Department of Water and Power (DWP), only to immediately offer to sell the property to DWP at a hugely inflated price. While the article focuses mainly on the political aspect of the situation (e.g., did the buyer know about DWPs plans for the property when it purchased it, etc.), the eminent domain angle is also interesting.

The ...

One of the odd things about a blog is that it is often difficult to determine who the authors really are – and whether any reason exists to listen to what they have to say about a particular topic. The lawyers in Nossaman’s Eminent Domain and Valuation Group are among the top eminent domain and inverse condemnation lawyers in California. We practice together out of three offices: in Orange County; Los Angles; and San Francisco. Collectively, our attorneys have over 100 years of eminent domain experience. We have been shaping California eminent domain law for years, having been ...