Jim Garrettson
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to MKNA Legislative Committee
Eminent Domain: Taking Property for Public Use
The Government's Power of Eminent Domain
Eminent domain is the power of government to take private land for
public use. This power is limited by the federal Constitution and by
state constitutions -- when the government does take private property
for public use, it must fairly compensate the owner for the
deprivation. Sometimes the operation of eminent domain is a
straightforward matter, with the government providing the landowner a
fair price, and the landowner yielding the property to public use. At
other times, however, government and the landowner may disagree over
whether a taking has occurred, and how much compensation is due.
History of "Eminent Domain"
The law of eminent domain derives from the so-called "Takings Clause"
of the Fifth Amendment, which states, "[N]or shall private property be
taken for public use, without just compensation." The men who created
the Constitution were, for the most part, landholders with a certain
mistrust of government power. To protect private landholders from
abuses by government, the Founders limited the government's power to
take property. At that time, the government action they likely
envisioned was seizure of the land and its occupation by government.
As the country's population continued to grow, however, local
governments began to place increasing controls on the use of land.
Where landowners believed that these restrictions impeded their use of
the property, or damaged its value, they began to argue that these
restrictions also constituted a taking of their land requiring
adequate compensation. At first, the courts were reluctant to hear
these claims. Over time, however, courts began to recognize them,
adding a new dimension to the law of eminent domain.
The Fifth Amendment "Takings" Clause
The "Takings" Clause of the Fifth Amendment has several important
components. First, it applies only to private property. Should the
government decide to change the use of some piece of public land, i.e.
build a bus terminal on what had been a public park, that action would
not compel the government to pay citizens who used the park. It's
possible, however, that the new use might infringe the rights of
neighboring landowners so much that they could sue anyway, equating
the infringement of their property rights with an outright taking of
their land. This process, known as an inverse condemnation proceeding,
is discussed below.
The second requirement under the Fifth Amendment is that the land be
taken for public use. This limitation prevents government officials
from taking private land for their own purposes. For example, a member
of Congress could not take the home of a private citizen for his or
her own use under eminent domain. Sometimes, however, courts have
upheld takings that ultimately resulted in a private party possessing
the land. This has occurred, for example, to allow expansion of an
auto plant felt to be beneficial to the local economy, and in
instances of urban renewal, where a new neighborhood goes up in place
of an old and dilapidated one.
"Just" Compensation
Finally, the Fifth Amendment requires just compensation. Fair
compensation is typically determined using the market value of the
land, that is, the price for which the landowner could reasonably
expect to sell the land to some other buyer. What the land is worth
depends on many things, including the size of the property and the
buildings, crops, or timber upon the land. For permanent takings,
courts use one of several methods to determine market value. Where the
government's use of or encroachment upon the property is of limited
duration or scope, the calculation of value may be trickier.
The Eminent Domain Process
In the classic case of eminent domain, the government determines that
it needs certain privately owned land to create some public benefit,
such as construction of a new highway. The government may offer the
landowner a price to which he or she agrees, or it might initiate what
is called a condemnation proceeding, when they cannot agree on value.
The property owner has a right to notice of the government's decision
and an opportunity to respond, and to just compensation for the land
taken. The government pays the landowner, the landowner leaves the
property, and the government builds the road.
Inverse Condemnation Proceedings
Sometimes, however, the government will deny that it has taken
anything from the landowner. Thus, the landowner will commence an
action, called an inverse condemnation proceeding, seeking
compensation from the government. This situation can arise in a
variety of ways. For example, the government might engage in conduct
that destroys the landowner's ability to use and enjoy the property,
such as by building an airstrip next to the property and flying planes
over it, or cutting off or polluting the flow of water to the land.
The government might also obstruct the landowner's access to the
property with water or debris, as where dynamiting operations block
the road to the landowner's property.
Public Use Requirement
An eminent domain action requires that the government's taking of
property be for a "public use". A public use is generally one which
confers some benefit or advantage to the public. The term does not
necessarily imply -- and is not confined to -- actual "use" by the
public. Moreover, the purported benefit to be derived from the taking
of property need not be available to the entire public; it may benefit
a smaller sector of members of the public in a particular locality,
i.e. a subdivision of the general public. In other words, it is not
necessary that the intended users be all members of the public;
rather, it is the purpose for the taking that must be for the public,
and not for the benefit of any particular individuals.
The use (purpose) must be a needed one, which cannot be surrendered
without obvious general loss or inconvenience. However, the parameters
of such needed public use move along a spectrum, and defy absolute
definition because of factors such as changing needs of society,
increases in population, and developing modes of transportation and
communications.
In Kelo v. City of New Landen (2005), the U.S. Supreme Court was
called upon to determine whether that changing parameter was broad
enough to include for-profit development of real estate which would
ostensibly result in needed economic growth for the community. In a
decision that surprised many, the Court agreed.
Justification or Necessity Requirement
It is the legislature that has the power to determine the necessity of
taking property for public use, as well as the amount of property to
be taken. Most takings must comport with legislative language that
mandates under what circumstances such an action is justified or
necessary.
Government Condemnation Power
If a local government deems certain property to be a hazard to the
public, e.g. a health or safety risk, it may condemn the property as
unfit for human occupancy following formal inspection and assessment.
Usually this is accomplished by citation of violations involving local
ordinances, building codes, or federal public safety regulations.
During the time between condemnation and bringing the property back
into conformity with relevant laws, a landowner is generally not
entitled to compensation, even though a deprivation of property rights
has occurred.
"Excess Condemnation" Actions
A formal court action objecting to the taking of property that is not
strictly needed for public use -- or for taking more property than
needed for public use -- is generally referred to as an action for
"excess condemnation."