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Eminent Domain and its Abuse

the interaction between government use of eminent domain and low-income neighborhoods

What is eminent domain?

The concept of eminent domain comes from the Takings Clause of the Fifth Amendment of the United States Constitution. The clause states "nor shall private property be taken for public use, without just compensation". 

This clause implicitly allows government entities to take private property for public use but requires the government pay the owner just compensation for the property. 

This is also known as the takings power. Ralph Nader & Alan Hirsch, Making Eminent Domain Humane, 49 Vill. L. Rev. 207, 207 (2004).

What is eminent domain abuse?

Courts have interpreted the "public use" requirement of government takings very broadly giving governments the power to take private property for as little as speculative economic development and removal of blight. Ralph Nader & Alan Hirsch, Making Eminent Domain Humane, 49 Vill. L. Rev. 207, 207 (2004).

Examples:

  1. A couple who owned a small auto repair shop 300 yards from a Chrysler manufacturing plant had their business condemned and taken in favor of the plants landscaped green space plans. 
  1. The city council had a closed-door meeting and voted to allow the city to use its eminent domain powers to condemn and take 800 acres of the city for a redevelopment project, one day prior to then governor, Jeb Bush, signing a state law preventing that type of eminent domain use.  
  1. Iowa supreme court allowed the Iowa utilities board to use eminent domain to grant the Dakota Access Pipeline easements through individuals farmland despite the Iowa residents reaping no benefits directly from the pipeline.

Who is affected most by the use of eminent domain?

Article connecting the decline of Detroit to the city's use of eminent domain takings. 

Law review article discussing the lack of social justice considerations in government takings cases, especially in economic development and blight removal takings.

Alternative solutions for blight removal and economic development.

Article suggesting Place-based laws that direct economic resources to low-income neighborhoods help existing residents remain in place and improve those areas.

Article proposing that homeowners should not be subject to a redevelopment plan until the majority of those who would be covered under the plan have ratified it. It also argues that they should be given the right to continued occupancy of the redeveloped community by being offered replacement housing within the community.   

Landmark cases

1. Kelo v. Cty of New South London, 545 U.S. 469 (2005).

  • Allowed government takings and transfer of private property to another private entity for the purpose of economic development but also allowed states to set stricter guidelines for the use of eminent domain. 

2. Berman v. Parker, 348 U.S. 26 (1954).

  • Held that eliminating blight qualifies as public use. 

State eminent domain laws

Every state has their own rules for the use of eminent domain. The Supreme Court set a floor in Kelo v City of New South London but allowed states to make their own guidelines more strict. Below is a short list of examples.

South Carolina:

  • Allows the county to condemn and take private property for the purpose of highways, bridges, and ferries.

Florida:

  • Requires just compensation be made available to the private owner prior to the taking and restricts the use of eminent domain to give property to a private person or entity except as provided by general law passed by a three-fifths vote of the membership of each house of the Legislature.

Iowa:

  • Allows the use of eminent domain in areas designated at least 75% blighted. 
  • Grants pipeline companies with a pipeline permit the ability to exercise eminent domain powers to the extent necessary as approved by the board.

Ohio:

  • Grants every board of county commissioners eminent domain powers for purposes of county renewal projects for addressing blight.