Eminent Domain Report

According to an ABC news story, "Threat of Eminent Domain Raises Tempers at City Hall," residents of downtown Fresno are up in arms about the City's effort to extend its redevelopment rights.  While City Council members tried to assure residents that the use of eminent domain would be a "last resort," those in attendance at the council meeting were unappeased. 

In particular, residents complained that the City's plans are actually limiting efforts to improve the area because no one wants to spend money on a property or business when it is unclear what the City is going to do with the ...

One of the big issues in eminent domain over the past five years has been the role of blight in justifying eminent domain for redevelopment purposes.  The seminal decision (that started all the ruckus) -- Kelo v. City of New London -- involved the use of eminent domain for redevelopment purposes where the city did not even pretend it was acting to eliminate blight.

Kelo had little direct impact on California's eminent domain law, because even before the Supreme Court issued its opinion in 2005, California's law allowed eminent domain for redevelopment purposes only upon a proper showing ...

We've previously reported on the City of Vista's moving forward with the use of eminent domain to acquire the Riviera Motel and other properties in order to assemble property for an auto mall.  It appears that the eminent domain dispute has now reached a resolution, as the North County Times is reporting that Vista city council approved a settlement with the motel owner and another nearby property owner.

According to the article, "VISTA: City approves $3.2 million in property purchases," the Riviera Motel owner is receiving compensation of $1.65 million for the .71-acre ...

The City of Lodi held a special meeting of its City Council this week to talk about options for a revised Redevelopment Agency.  And, even though (1) the City has already enacted protections against using eminent domain for redevelopment purposes, and (2) the proposal includes no eminent domain authority, it appears residents are still up in arms over the issue. 

According to a June 10 article by Maggie Creamer of the Lodi News-Sentinel, "Eminent domain a major concern at Lodi City Council's redevelopment meeting," the public appears more concerned with the threat of eminent domain ...

We've previously reported on several cities contemplating the renewal of their redevelopment agencies' powers of eminent domain.  In the cities of San Pablo and Barstow, it appears that public outcry may have derailed those renewal efforts, at least for now.  Here's a brief update:

• We previously reported that the City of San Pablo was contemplating renewing its eminent domain powers for an additional 12 years.  According to a Mercury News article, "San Pablo dumps eminent domain plans," the City has dropped its redevelopment renewal plans after residents turned up with "a ...

According to a Contra Costa Times article, "Bellflower may expand redevelopment area, hopes to add $42 million to city coffers," the City of Bellflower has approved proceeding with a study to potentially expand its redevelopment area to include an additional 271 acres.  The City hopes that the proposed redevelopment -- through increased property tax revenues -- could generate over $40 million for the City over the next 45 years.

The article reports that a number of hurdles must be cleared before the expansion area is approved.  For example, the City would need to obtain approval from ...

The City of Milpitas plans to expand its redevelopment area to encompass more than 600 additional acres.  The County of Santa Clara, however, claims that the proposed expansion area has very little "blight."  Because of the potential for diversion of tax dollars and the significant financial impact the expansion may cause, this apparently has led to a brewing dispute between the County and the City.

According to a Milpitas Post article, "County to Milpitas: revisit RDA expansion plan or face lawsuit," the County has threatened the City with a lawsuit if the City moves forward with its ...

According to a Contra Costa Times article, "San Pablo tries to quell eminent domain fears with promise to residents," the City of San Pablo has promised residents that it will not use the power of eminent domain to acquire owner-occupied residences for purposes of private development.  The promise is a bit odd, given the fact that  Proposition 99, which Caifornia voters passed in 2008, is intended to prohibit exactly that use of eminent domain.  (We'll leave aside for the moment whether Proposition 99 really does effectively prohibit the taking of residential property for ...

There is an interesting story in today's North County Times about a political dispute brewing between members of a sub-committe of the Vista Redevelopment Agency.  The story by Cigi Ross, titled "VISTA: Member breaks rank with Vista redevelopment panel," explains that one of Vista's project area committee members, Jerome Hymes, has distributed a letter to about 35 downtown businesses warning that the agency may seize their property by eminent domain.  The other members are chastising Hymes, claiming the letter is filled with a "total laundry list of all the urban myths of ...

Marc Scribner of the Competitive Enterprise Institute published this week an article about the economics of eminent domain for economic development (i.e., for redevelopment purposes) entitled "This Land Ain’t your Land; this Land Is my Land."  I found the piece interesting, despite the fact that it seemed the author started from the conclusion "eminent domain is bad" and worked backwards crafting an analysis to get there. 

Ultimately, however, Mr. Scribner does provide some interesting insight.  He does not simply come out and say eminent domain for economic development is ...

In the past, we've reported on the San Francisco Redevelopment Agency's condemnation of the historic Hugo Hotel.  It now appears that city officials in Ukiah may utilize a similar playbook and reinstate the redevelopment agency's power of eminent domain in order to acquire the historic 119-year old Palace Hotel.  According to a Press Democrat article, "Ukiah seeks new life for Palace Hotel," the city may turn to eminent domain after decades of unsuccessfully nudging the hotel's Marin County owners to rehabilitate the historic vine-covered building in the heart of downtown. 

The City of Placentia has a large redevelopment area, and ambitious plans to redevelop an industrial neighborhood in south Placentia.  But the City has responded to the outrage over eminent domain and, in particular, eminent domain for redevelopment purposes.  The City apparently has no power to condemn property for private redevelopment. 

Yet, this lack of authority has not stopped some property owners in the redevelopment area from complaining that the "threat" of eminent domain has decimated their property's value.  According to a February 17 Orange County Register article by ...

I mentioned in an article last week that many redevelopment agencies are facing budget issues; the city of Imperial Beach is facing a similar, but slightly different, problem:  after investing over $8 million in bond money for redevelopment of the Miracle Shopping Center, the economic climate has made it impossible for the city to find an interested developer. 

Nevertheless, the city decided to raise more funds, and purchase the shopping center anyway, hoping the city's ownership would make the site more attractive to developers.  With city ownership now in ...

For years, Cathedral City has been acquiring property by eminent domain as part of its 23-acre Eastside Downtown Area redevelopment plan, which seeks to redevelop downtown Cathedral City into a 39-unit commercial center.  Our firm has also been involved in the project for years, having assisted several property owners impacted by the redevelopment agency's plans. 

According to a January 26 Desert Sun article, "Cathedral City council votes to pay $535,000 in eminent domain land deal," Cathedral City recently approved a $535,000 settlement with one of the final remaining ...

In November, we reported that the Barstow City Council would be deciding whether to reinstate the redevelopment agency's power of eminent domain.  According to a January 20 Desert Dispatch article, "Eminent domain issue sparks fear among residents," the City Council has decided to table the issue until May. 

According to the article, the redevelopment agency sees its eminent domain power as a necessary tool to remove blight in the area northwest of Interstate 15 near the outlet malls.  But like most redevelopment efforts, the issue is drawing much public debate.

At the City ...

The City of Rosemead has a vision of its future that transforms the city into "a small town in the heart of a metropolis."  That, according to San Gabriel Valley Tribune reporter Rebecca Kimitch, is the goal of the city's new strategic plan.  Ms. Kimitch's article, "Rosemead defines itself as small town in the big city," explains:

The to-do list is ambitious: landscape medians and plant trees along sidewalks; demolish dilapidated vacant buildings; develop new neighborhood parks; remove graffiti; expand community classes and develop a community computer lab; create a civic center at ...

I previously reported on a political discussion taking place in a San Diego community, San Ysidro, with respect to whether the city should reinstitute its expired power of eminent domain.  While San Ysidro contemplates this issue, another San Diego community -- this time Chula Vista -- is in the process of drafting its five-year redevelopment plan, which could include expansion.

Like San Ysidro, Chula Vista recognizes the public concern over the city's wielding its condemnation power, especially for redevelopment purposes.  Chula Vista, therefore, has sought public ...

Sierra Madre will allow its citizens to decide whether the city can use the power of eminent domain for private purposes.  According to a Pasadena Star-News article, "Sierra Madre resident[s] will vote on eminent domain," the city council agreed to put a proposed measure on the April 2010 ballot which would prevent the city from (1) condemning property and turning it over to a private developer, and (2) funding or cooperating with any other city agency using eminent domain (such as the Redevelopment Agency).

According to the article, City councilman John Buchanan is ...

Everyone knows the sad tale of America's automotive industry:  companies operating only through government subsidies and dealerships shutting their doors across the country.  So when the City of Vista came up with a plan to "create a second downtown car dealership and boost sales tax revenue," one would think the public would embrace it. 

But like many bold plans, this one has a wrinkle.  While most of the property needed to facilitate the plan is available for purchase, including the existing North County Ford site, one additional parcel is needed.  

According to North County Times ...

The City of Claremont voted 4-1 to extend its redevelopment agency's eminent domain authority for another 12 years.  In a November 29 Inland Valley Daily Bulletin article, Claremont renews its eminent domain power, reporter Wes Woods, II writes that the the City's redevelopment agency amended its redevelopment plan to prevent its eminent domain authority from lapsing in December. 

The use of eminent domain is often controversial, but especially so when it is for redevelopment purposes.  And, when redevelopment requires condemnation of residential property, the public tends to ...

It seems most commentators on eminent domain generally, and on the use of eminent domain for redevelopment purposes in particular, adopt an extreme stance.  The loudest voices, especially in the "post-Kelo" world, tend to be property-rights advocates who denounce virtually any use of eminent domain, especially for redevelopment purposes. 

A good example of this appears in a recent San Diego News Network article by Brian Peterson, president of the Grantville Action Group:  "What we Learned at a Redevelopment Conference:  Don't do E-mail."  The article summarizes two ...

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 ...

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 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 ...

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 ...