-Caveat Lector-

[Note:  Abuses of eminent domain are just on of numerous examples of how
corrupt government will, not perhaps but will, become if not strictly
controlled. - Tony]


Monday, July 30, 2001
Copyright © Las Vegas Review-Journal

EDITORIAL: 'Unconstitutional taking'

Courts across the country moving to curb abuse of eminent domain

http://www.lvrj.com/lvrj_home/2001/Jul-30-Mon-2001/opinion/16636514.html

Finally, a number of courts around the country are starting to set limits
on the municipal use of eminent domain to favor one private property owner
over another.

Eminent domain, of course, is supposed to be used to seize private property
(subject to payment of full compensation) only in the case of a true
"public use" -- for roads and firehouses, things like that.

Las Vegas has its own examples of abuse of this authority, as when private
property downtown was seized and turned over to new private owners -- the
Fremont Street Experience -- under the now-debunked theory that this was
justified by redevelopment statutes. (The courts found the statutes
actually require that land owners such as Carol Pappas be allowed to submit
alternative redevelopment plans, and to participate in redevelopment
projects through ground leases. The courts ruled the city broke its own law
and must return the property. The case is on appeal.)

But in an encouraging trend, a federal judge in Manhattan recently blocked
the city of Port Chester, N.Y., from condemning rental property and turning
it over to a grocery store for use as a parking lot. And the Mississippi
Supreme Court in May blocked condemnation of a huge tract of land to make
way for a Nissan Motor Co. plant, holding authorities there appeared to be
taking land "substantially in excess of the immediate needs of public use."

"What you're seeing is courts finally setting some limits to the exercise
of eminent domain," David L. Callies, a professor of property and land-use
law at the University of Hawaii law school told The Wall Street Journal
last week.

The recent rulings "mean that what was once an unquestioned power is now in
doubt -- a change that could affect the thousands of takings cases filed
around the country each year, particularly those related to redevelopment,"
reports the Journal.

In Lancaster, Calif., a city of some 130,000 about 45 miles from Los
Angeles, city officials appeared dumbfounded when the courts permanently
blocked their action in condemning a 99 Cents Only Store to make room for
the expansion of the discounter's bitter rival and next-door neighbor,
Costco Wholesale.

Costco demanded the city shut down the new competitor and turn the space
over to it for an expansion "almost immediately" after the 99 Cents Only
Store opened, U.S. District Court Judge Steven V. Wilson found. When Costco
threatened to close down and move to nearby Palmdale, the city obliged its
major tenant, voting in June 2000 to condemn the 99 Cents Only site.

Their justification? The area had been declared "blighted" back in 1983,
before the shopping center opened.

But Judge Wilson dismissed the city's contention that it was seeking to
block "future blight" which might occur should Costco pull up stakes,
instead ruling: "The evidence is clear beyond dispute that Lancaster's
condemnation efforts rest on nothing more than the desire to achieve the
naked transfer from one private party to another. Such conduct amounts to
an unconstitutional taking purely for private purposes."

"It's a troubling trend," grumbled Lancaster city attorney David McEwan. "I
don't know where the courts are going with it. 99 Cents produced less than
$40,000 (a year) in sales taxes, and Costco was producing more than
$400,000. You tell me which was more important."

Actually, what's more important, Mr. McEwan, is the proud tradition of
private property ownership on which this nation's freedom and prosperity
was built. If we can't depend on government to defend those property rights
-- if our land can be seized the first time a fatter cat casts a covetous
eye upon it -- then where's the incentive for anyone to save, invest,
maintain a property and pay taxes on it?

If you want to see what a country looks like when the politicians can seize
and reassign ownership of anything they want to their most powerful
backers, go take a tour of elegant and charming Smolensk.


[Forwarded For Information Purposes Only - Not
Necessarily Endorsed By The Sender - A.K. Pritchard]

------------------------------

A.K. Pritchard
http://members.ll.net/chiliast/

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The Freedom Revolution (Regency)

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