Eminent Domain Update

Many places are not happy with the five-month old decision by the Supreme Court allowing a Connecticut city to seize private property for a private development. Since then several states have lined up to ban or restrict the practice and dozens of others are expected to follow suit early next year.

Ohio Gov. Bob Taft last week signed into law a 14-month moratorium on the use of eminent domain when the primary goal is economic development. Legislatures in Alabama and Texas have also banned the practice, and Michigan is considering a constitutional prohibition against seizing private property for private economic development.

A measure was introduced this year in the Illinois General Assembly to prohibit eminent domain for economic development, unless approved by the Legislature. But the bill failed to pass before the Legislature adjourned.

I understand people's concern about this Supreme Court decision. From my assessment, most local governments are not prepared to handle this new authority correctly. This is a desparate time in many communities across America. Our economy is not in good shape, despite what the White House has to say, and state and local government finances have not been such a mess in a long time. There is reason to question how they might use the authority at this time.

What we might consider instead is starting an open dialogue about how to better balance public and private interests when it comes to development. That is a meaningful thing for national professional associations representing the economic development, community development, planning, and public administration practitioners might consider.

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