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Wednesday, April 20, 2011

Broward County School Board Used Eminent Domain to Make $25 Million Mistake

At the time the project designated "Elementary School C" was begun, it was somewhat necessary. The nearby Hollywood Central Elementary was crowded in 2003, and on the basis of that, the school board approved a project to build a new elementary school to take up the extra students.

In 2005, extra seats were added to Hollywood Central, so that the school was only overenrolled by 33 students. Acquisition of necessary properties were being carried out at this time, and the school district could probably have backed out of the project at this point if it had realistically considered the enrollment trends it was seeing. But it did not, and it ended up spending $6.3 million to acquire 54 neighborhood homes including the acquisition of 9 properties through eminent domain proceedings. These forced removals and the expense of paying full compensation, at least could have been avoided. Although the average compensation per property was only about $117,000, some of those removed through eminent domain received compensation in excess of $300,000.

Instead, the school board proceeded and ended up spending $25 million on an 834-seat school in a district that currently has over 25,000 empty seats.

Many public officials seem to have forgotten that eminent domain power should be used sparingly, and examples like this may make it easier to defend your property against eminent domain actions. If your property is being threatened by a superfluous eminent domain project, the eminent domain lawyers of the Florida Property Rights Law Firm, PA can help. Please contact us today for a free consultation.

posted by Katie at 1:42 PM 0 comments

Wednesday, April 13, 2011

Pfizer Abandons New London Research Center

Pfizer has announced that it will close its New London research facility, the site that was the cause of the eminent domain case that became Kelo v. New London. An Institute for Justice attorney who argued the case in favor of the homeowners said the announcement "demonstrates the folly of government plans that involve massive corporate welfare and that abuse eminent domain for private development." He also noted that if changing business conditions are to blame, it "is all the more reason why taxpayer dollars should not be put at risk in speculative and risky development schemes."

One thing people often neglect in considering these types of projects is the fundamental character of the two types of tenants opposed. On the one hand, the current owners of homes and businesses in a condemned area are generally local entrepreneurs and homeowners. They are generally loyal and can often be counted on to continue giving to the community for many years. One of the residents lived in a home that had been bought by her family more than 100 years before. She was born in the house and wanted to live out the rest of her days there. Overall, two-thirds of the properties at issue in Kelo v. New London were occupied by their owners or family members of the owners.

On the other hand, you have a multinational corporation that has no real loyalty to the area. They are here for the money and will only stay as long as they don't have a better offer. In many cases, corporations get more than they give, and the incentives a community uses to bring them represent a net loss for the people of the area.

If your home or business is being threatened by eminent domain, stand up for yourself and your community with an eminent domain lawsuit. The lawyers at the Florida Property Rights Law Firm, PA can help you protect your property or make sure you get full compensation. Please call or email us today for a consultation.

posted by Katie at 1:40 PM 0 comments

Friday, April 8, 2011

Development near SeaTac: an Improper Use of Eminent Domain?

A major development in SeaTac, the suburb surrounding the Seattle-Tacoma airport, includes a controversial eminent domain action. The city is planning to use eminent domain to condemn a parking lot so it can build a parking garage. The owners of the parking lot have rejected the city's "good faith" offer (which is $2 million less than the owners paid for the parking lot), and have submitted their own proposals to the city, which have been rejected.

In response, the owners not only filed a lawsuit against the city of SeaTac, but also hired a PR firm, and published a full-page ad in the local newspaper asking residents to call the council members and resist the action. In response to the negative publicity, the city is offering to withdraw the eminent domain action if the owners will return to negotiations and drop their lawsuit.

The significance of this fight goes far beyond the area of SeaTac, since it highlights one of the major problems with the use of condemnation in support of development projects. Should a city, county, or condemning authority use eminent domain to destroy an existing (and successful) business to gamble on a development project that may or may not yield the promised revenues? Critics note that most eminent domain-supported projects saddle a city with large amounts of debt, and if they fail, the city is in bad shape financially for many years to come.

If your business is being threatened with condemnation for a risky or foolhardy development project, resisting it is not only in your best interest, but in the best interest of your community. The eminent domain lawyers at the Florida Property Rights Law Firm, PA can help you fight eminent domain, or, at least, get full compensation for your property. Please contact us today to learn how we can help you.

posted by Katie at 1:36 PM 0 comments

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