WHAT ARE YOUR VIEWS ON EMINENT DOMAIN?

Eminent domain is a highly charged topic in the real estate industry, but commentator Timothy Duggan, chair of law firm Stark & Stark's condemnation group, as well as many respondents to this week's poll, took a moderate position on the subject. About 73% replied that eminent domain is necessary only in certain cases. Seventeen percent of respondents believe eminent domain has no place in modern society, and only 10% believe it's a great, important tool. Here are Duggan's thoughts on the subject:

"You have to look at two types of development here: one is economic redevelopment and the other is public projects like schools and roads. In New Jersey, the courts have gone too far in allowing various types of economic redevelopment projects to be approved, which entitles the municipalities to use the powers of eminent domain. The pendulum has swung too far in favor of the government allowing the taking of private property for economic redevelopment projects. If eminent domain was limited to truly blighted areas, I wouldn't have a problem with it. When this power gets too expanded, then it becomes abusive.

"In terms of public projects, the legislature has to make improvements on relocation benefits and the compensation paid to people. The benefits haven't been looked into in years. Some of the values go back to 1971, and it doesn't really allow the property owner to become whole. The legislature has to be provided with specific details of people who have ended up on the short end of the stick in the relocation scenario.

"Eminent domain is a necessary tool, but because it's so powerful, it really needs to be subject to high scrutiny. Roadways and schools are necessary, and the government needs to have the tools to build the roads and schools. With economic redevelopment, if it's truly a blighted area, the government needs to be able to turn those areas around. Eminent domain is a necessary tool for taking really bad areas and trying to attract private investment. Redevelopment's really the only way to bring back some of these cities. So, on one side, eminent domain's necessary, but because of the Kehlo vs. the City of New London case and governments allowing eminent domain to be used for economic redevelopment, you need to keep a close eye on it and limit the powers.

"It's a highly charged issue, but a lot of the problems with eminent domain would go away if the compensation was better. If people were well paid and relocated to a comparable home, there would be fewer problems.

"There are other issues that need to be addressed: certain businesses have to stay in an area, but after redevelopment, sometimes they can't afford it. So there are people who benefit when an area comes back, but there are others who are put out of business or out of their homes. That's what makes it such a difficult issue in the economic redevelopment realm: there are so many competing interests, the state wants to bring back cities and keep the economy strong and do public projects, but on the flip side, there are individuals who have constitutional rights and the government's taking their property. There are so many competing interests it's hard to balance them. Giving fair compensation would definitely help get rid of a lot of objections."

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.