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Tuesday, May 27, 2008

The Self-Defeating Nature of Eminent Domain

When a city or town announces a plan for redevelopment of an area, the goal is usually to increase economic activity in an area that is either stagnant or "blighted." However, the effect is often the opposite. Once a city announces a plan, people become reluctant to invest in improvements when they are unlikely to receive full compensation for that investment in the event the city actually follows through with an eminent domain taking.

And sometimes it can take years for a condemning authority to make up its mind. Consider the plan by Fresno, California, to build a mixed-use development around its Multipurpose Stadium, a concert venue and home of its AAA baseball team. The project was approved in July 2004, two years after the stadium opened, but the city has still not decided whether to utilize eminent domain to take land for the project. The proposed developer, Forest City Enterprises, is still conducting its site analysis, and has at least one more year to go to complete the process. Forest City has developed numerous commercial, residential, and mixed-use properties from coast to coast, including the Suncoast Lakes development in Pasco County, Florida; redevelopment of the former Stapleton Airport in Denver, Colorado, and University Park at MIT, and has a reputation of being unfriendly to small businesses. The threat of a Forest City redevelopment is keeping locals from investing in the South Stadium area.

Another example is the Murdock Village redevelopment, which is stalled because the city exercised its eminent domain power before finding a developer, and now is struggling to conclude on its plan.

In these circumstances, one wonders whether native redevelopment might not be more effective in providing the desired economic stimulus, rather than utilizing eminent domain in the service of huge developers.

If your property is threatened as part of an urban redevelopment plan, contact an experienced eminent domain attorney the Florida Eminent Domain Law Firm today for a free initial consultation.

posted by Patti at 12:03 PM

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