Is the county working toward acquiring real estate for "development?"

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Greene County Messenger - Pennsylvania

From the Other Desk, by Daniel I. Morris

July 29, 2001


This land was your land, and now it's my land…

What was once blighted, is now in my hands…

(Woody Guthrie must be rotating.)

"It's my land and I'll do with it what I want," said an irate citizen when zoning was discussed for Center Township. Evidently that person had slept through American Government or Civics classes—if they were offered. Real issues of land owners’ rights don't get much coverage in the classroom these days.

Can the government take your land? Of course it can! All that is required is an eminent domain proceeding. After your lawyers make money and their lawyers make money, your land is their land. After you pay attorney's fees, the settlement check for your blighted, undesirable land may be scant compensation for what may become a valuable real estate development.

Definition: Government exercise of eminent domain— condemnation power, "public use"= "public purpose" — Berman & Hawaii Housing hold that government can take private property for private persons if for public purpose.

Private Property

The first element requires that the property taken be private. Private property includes land as well as fixtures, leases, options, stocks, and other items.

Taking

The second element refers to the taking of physical property, or a portion thereof, as well as the taking of property by reducing its value. Property value may be reduced because of noise, accessibility problems, or other agents. In the case of the land near I-79, one of the funding plans for the new Wal-Mart development is to declare the area undesirable and blighted. The land is already labeled "a white elephant" and "will require extensive site preparation to be useful."

Public use

The third element, public use, requires that the property taken be used to benefit the public instead of specific individuals. Whether a particular use is considered public is ordinarily a question to be determined by the courts. Originally, public use meant roads, water lines and other public infrastructure. Recently it has been more loosely described. Developers of shopping centers argue that the public will use their facilities and the public good is served by the resulting economic stimulation.

Just Compensation

The last element mandates that the amount of compensation awarded when property is seized or damaged through condemnation must be fair to the public as well as to the property owner. The issue is settled in the courts. The owner must participate in the proceedings, which can impose an emotional and financial burden. Large land developers are willing to expend vast financial resources where financial gain can be significant.

The measure of compensation is often the fair market value of the property harmed or taken for public use. If tax relief is to be given under a "tax increment financing (TIF) district” declaration, the property must be declared undesirable and blighted.

Trying to prevent land grabs

Land-owners are advised not to rely on the protestations of denial by public officials or the opinion of developer’s attorneys that this isn't what is intended, or statements that it couldn't happen here. Because eminent domain land grabs are so common, State Reps. William Robinson, D-Allegheny, and Daryl Metcalfe, R-Butler, announced on Feb. 13 that they introduced legislation (House Bill 507) in the state House of Representatives that would protect private property rights by restraining government's abuse of eminent domain proceedings.

The lawmakers outlined legislative measures that would tighten the definition of blight in Pennsylvania's Urban Redevelopment Law and prohibit government from seizing privately held land only to turn it over to another private concern.

"Eminent domain is a powerful weapon at government's disposal," Robinson said. "Pennsylvania's current law allows almost any property in Pennsylvania, from thriving downtown business districts to peaceful residential neighborhoods, to be designated blighted and subject to government seizure.

Two bills related to curbing eminent domain acquisition are being considered in the House Urban Affairs Committee. They may encounter a rough time, since they are opposed by wealthy real estate developers.

Another way

Eminent domain is not the only way land can be added to development tracts. As land is developed and the surrounding real estate that was once undesirable and blighted suddenly becomes highly desirable. Next the tax man moves in to assess its value. Large mall and store owners are protected by tax abatements and development deals of various sorts. Local property owners are often forced to sell out because they can no longer afford to own "highly valuable" and very taxable real estate.

In accordance with Title 17 U.S.C. Section 107, any copyrighted work in this message is distributed under fair use without profit or payment for non-profit research and educational purposes only. [Ref. http://www.law.cornell.edu/uscode/17/107.shtml]

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