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Many property owners are concerned with issues like property taxes
or upkeep. Government seizure seems an unfounded concern. However,
after the Supreme Court's ruling in the Kelo v. City of New London
case, it may not be an outlandish scenario. In this case, the Supreme
Court upheld New London's right to seize 15 private properties to
later be developed into hotels, offices and a conference center
by private developers. The city was able to seize the land by using
eminent domain laws, which allow governments to seize private property
for public use. The land in New London was seized regardless of
that fact that, according to reports, none of the property owners
wanted to sell and that the city would not maintain ownership of
the land, instead choosing to transfer it to private developers.
In a recent letter to newspapers across the state, Matt Greller,
Executive Director of the Indiana Association of Cities and Towns,
stated that he believed that the ruling in the Supreme Court case
is good for Indiana and will allow local governments to "bring
jobs and a vibrant economy to cities and towns." In reality,
this ruling further expands the already vague definition of what
exactly "public use" means. The original intention of
eminent domain laws was for the government to fairly compensate
private property owners and obtain their property for public projects
such as courthouses, highways, and bridges. In light of this ruling
any newly-established or expanded commercial entity could potentially
be deemed "for the public good," since the commercialization
could increase the tax base and possibly provide jobs. In her dissent
Justice Sandra Day O'Connor said, "Nothing is to prevent the
state from replacing any Motel 6 with a Ritz-Carlton, any home with
a shopping mall, or any farm with a factory." While I fully
support economic development and job creation, local government's
seizure of land to be privately developed should not be considered
to be in the best interest of citizens. The goal of government should
be to serve the people, not to turn a profit.
In his letter, Mr. Greller also makes note of the positive use of
eminent domain laws in the expansion of the AM General plant in
Mishawaka. The land which the plant wanted to expand onto was occupied
by 51 privately owned homes. The St. Joseph County Redevelopment
Commission, on behalf of the company, announced that they would
make a decision as to whether or not the land would be considered
"blighted." This would allow them to condemn the homes
and transfer the property to AM General. Prior to the commission's
decision, AM General was able to negotiate with enough of the homeowners
to begin the expansion and several months later was able to reach
agreements with all of the homeowners. Therefore, eminent domain
laws were not necessary in this case. Property owners should reserve
the right to negotiate with the state or commercial entity seeking
their land and turn down that offer if they so choose.
This example points out another flaw in the process of using eminent
domain to acquire property. In many states, including Indiana, land
must be considered "blighted" in order to be eligible
for seizure through eminent domain law. While this may seem like
a safeguard, the definition of blight is much too vague to prohibit
the government from actually seizing land if they choose. In fact,
there are numerous examples of areas being considered blighted or
condemned after property owners refused to sell their property to
the government. According to a report by the Castle Coalition (www.castlecoalition.org),
the homes in the Mishawaka example were "well maintained, decidedly
middle-class homes." Yet, the area redevelopment commission
was going to rule on whether or not they should be condemned. The
condition of only seizing supposedly blighted areas does not protect
property owners from having their land taken from them. In the last
session of the legislature, I attempted to more clearly define the
concept of blight and will continue that work in the next session
of the legislature to ensure that eminent domain laws are not abused.
I agree with Mr. Greller in that eminent domain laws are not new
and do not provide the government with any "new" powers,
so to speak. What I want to make clear is that there is a growing
national trend of local governments abusing their ability to acquire
private land for development. They are consistently using eminent
domain laws that were intended to provide public good to turn around
and sell the land to commercial developers. As shown in the New
London case, local governments are becoming bolder in their seizures
and looser in their definitions of "public good." One
of the most fascinating pieces of this story is that the public,
for which these seizures are supposed to do good, overwhelmingly
disagree with the decision made by the Supreme Court. In fact, an
online poll on MSNBC.com, while not scientific, indicates that 98%
of people surveyed believe that developers will gain from this decision
and private property owners will lose. At the time this piece was
written over 119,000 people had responded.
Local governments and the Indiana Association of Cities and Towns
along with their legislative allies are the major proponents of
these laws, not the citizens of Indiana. Eminent domain, as it currently
stands, does not ultimately serve the citizens of Indiana. The government
should stand to protect the rights of citizens, not take them away.
I sincerely urge you to contact your state legislators with your
views on this issue. The study committee dedicated to further considering
this issue will be meeting during the second week of August. Should
you have any suggestions or concerns regarding eminent domain or
for further information on the committee meetings, please contact
my office at 1-800-382-9841. Please know that I will continue to
vehemently fight against the abuse of eminent domain and the vague
language that protects it in our state laws.
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