Saturday, March 10, 2007

Master of the "Domain"


Since the U.S. Supreme Court upheld the practice of eminent domain as an economic development tool, people have been simultaneously outraged and confused. Eminent domain is an important process governments can use to assure that the public good is pursued.

In its basic way, eminent domain is what allows a city to purchase the needed land for a new and needed freeway. Instead of a landowner holding the city hostage by refusing to sell the final piece of land, the city can purchase the property owner’s property at fair market value. There are lots of advantages to this system. It saves taxpayer’s money in assuring that the city acquires land at a fair price. Fair market value is frequently reflected in the taxes the property owner paid. In other words, the property was assessed and valued at $50,000. Property taxes to support the schools, county, and other governments, were paid based on the property being worth $50,000. So, now that the city needs to acquire the land, why shouldn’t it be purchased for $50,000? Isn’t that fair?

The problem with eminent domain is that its use has been distorted. Cities frequently invoke eminent domain to put together pieces of land that will then be turned over to a private developer. The logic is that certain economic activities will generate more taxes and will be a greater benefit to the whole. Frankly, if the purpose of an eminent domain action is to provide property to a private developer, it should not be allowed. Eminent domain should only be used as a direct public good (like a school, a road or a park).

I agree that eminent domain should not be used as an economic development tool. It is wrong and people should not stand for it. Of course, as conservatives are prone to do, they have framed the eminent domain issue as one of government “taking” people’s property. This is a gross overstatement. Government cannot take a person’s property without compensation. The Constitution assures this point.

My plea to my conservative friends is to stop overstating your case. Abuse of eminent domain is wrong. However government CANNOT take property without compensating the property owner. Eminent domain is a vital process in the acquisition of land to create a public good and must be maintained. Do we really want a school district to NOT be able to acquire the needed property for a new school? Or do we only want a system that would require the district to acquire the land if it pays well above market value? That’s not a wise use of taxpayer money.

No comments: