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Eminent Domain

From 1998 to 2002, more than 10,000 properties across 41 states faced condemnation — only for the land to be handed to private developers

What Is Eminent Domain?

  • Allows the government to seize private property without the owner’s consent
      • Requires just compensation
      • Must be claimed for public use
      • Grounded in the 5th Amendment
    • Public use includes
      • Constructing roads & freeways
      • Municipal buildings & schools
      • Preservation of historic sites
    • Private use that benefits the public
      • Railroads
      • Utilities
      • Renovation of “blighted” sites
    • Just compensation requires payment at the current market value
      • Many property owners can negotiate a higher price — with help from legal counsel and expert appraisers
        • In Chicago, 75% of owners settle at 100-150% of the original offer
  • How Often Is Eminent Domain Used?
    • Most states don’t report the use of eminent domain — making it difficult to track
      • In 2020, Texas reported 224 cases of eminent domain being employed by the government or private entities
        • 5 agencies fail to meet state requirements to report their use of eminent domain
      • In 2019, Missouri’s Department of Transportation acquired 608 parcels of real property
        • 430 resolved by negotiation
        • 178 donated
        • 2 required a condemnation lawsuit
      • The state reported 54 condemnation filings

“Our cities and states have become like real estate speculators, securing land owned by their own citizens on behalf of politically connected private interests”
— Scott Bullock, Institute of Justice

Abuses of Eminent Domain

  • Famous Cases Of Eminent Domain Abuse
    • Las Vegas, NV — mid-1990s:
      • A widow inherited her husband’s commercial building, intending to use the rent to fund her retirement
      • The city claimed the area was blighted and seized the property after the owner failed to attend a hearing she didn’t know about
    • Toledo, OH — 1999:
      • The city declared a neighborhood of 83 well-maintained homes and 16 businesses were blighted to secure land for a Chrysler plant
      • After granting Chrysler millions to build the plant-based on a promised to create 5,000 new jobs, only 2,100 people were hired
    • Hurst, TX — early 2000s:
      • The city used eminent domain to remove 127 homeowners, making way to expand a private mall
      • Only a handful resisted the offers and filed lawsuits, all were overruled and forced from their homes
    • New London, CT — 2005:
      • The city’s use of eminent domain to seize property for a private office building was challenged in the U.S. Supreme Court
      • The court determined that public use could include projects that would “create jobs and increase tax revenues”
    • Dakota Access Pipeline — 2019:
      • The Iowa Supreme Court rejected the 2005 Supreme Court decision, saying the economic development did not justice public use
      • However, the court argued that the pipeline served the public more impactfully than an office building
  • The Impact Of Eminent Domain Abuse
    • In areas where eminent domain was used to obtain property for private development residents are more likely to be from racial minorities, poorer, and less educated
    • Eminent domain used for private development

      Surrounding areas

      58% minority residents

      48% minority residents

      $19,000 median income

      $23,000 median income

      25% living in poverty

      16% living in poverty

      34% less than a high school diploma

      24% less than a high school diploma

      9% bachelor’s degree

      13% bachelor’s degree

      58% renters

      45% renters

    • From 1949 to 1963, urban renewal displaced at least 177,000 families and another 66,000 individuals
        • Only 48,000 new housing units constructed in the same period
          • Just 20,000 were low-income housing
      • 78% of those displaced were racial minorities

Property owners are rarely successful in stopping the government from taking their land — But that doesn’t mean you’re powerless

When The Government Wants Your Land In Kentucky

  • What To Expect
    • Property owners will receive a notice of intent by mail
    • An appraiser will assess the size and condition of the property
    • A purchase offer is made based on the appraised value
    • Before accepting an offer consult a lawyer for help understanding the process
      • Consultations are usually free
  • Negotiating A Better Price — With Help From Legal Counsel
    • Most owners are in a good position to negotiate a higher price
    • The property owner and counsel review appraisal and offer to determine
      • Is the appraisal an accurate accounting of property?
      • Does it reflect the property’s highest value and best use?
      • Can the property be rezoned to increase its value?
      • How does the offer compare to comparable sales?
      • If only part of a property is claimed, does it reduce the value of the rest?
      • Are your neighbors’ properties needed for the project as well?
    • If Negotiations Fail
      • If you cannot agree on a price, a condemnation lawsuit will follow
      • A jury will determine the amount of just compensation owed
      • During proceedings, you can contest the sale by presenting expert testimony
      • You may be able to prove the project doesn’t need as much land as estimated or that the appraised value was inaccurate

Know Your Rights Before You Give Up a Property

If you need to speak to a Kentucky eminent domain lawyer to understand you rights, call now at (859) 630-0666, connect with us via our live chat or email us using our FREE online case submission form here, and we can begin advocating for your rights as a landowner today.

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