Local Governments using the power of Eminent Domain

CONDEMNING PRIVATE PROPERTY

There's a very dangerous and accelerating trend taking place in the country: local governments are using the power of "eminent domain" to condemn private property, in order to sell that property to private developers.

This ensures the developer that he does not have to pay market value for the property. It deprives the owner of the property fair market value, as he is not able to negotiate with the buyer. According to Forbes magazine, a large developer in New York city wants to assemble a land package large enough to do some major development. Negotiations with the owners apparently were too tough, so the government condemns the property and resells it to the developer.

The case in New York involves a property on 8th Ave. near Time Square. The Empire State Development Corp., a state agency, has condemned 11 properties "housing dozens of small businesses and handing the land over to the New York Times Company and a private developer." According to Forbes, the city of San Jose, Ca. this summer approved the designation of areas housing an astonishing one-third of the city's 900,000 as subject to possible condemnation for private use. It's called the "Strong Neighborhood's Initiative."                                                                               .

Last December, the Riviera Beach, Florida city council approved a plan that could lead to the  condemnation of 1,700 houses and apartments, displacing over 5,000 residents. The redeveloped area will feature luxury shops, a hotel, and a conference center and new yacht club, according to Forbes.

Originally, the power of "eminent domain" is to be used for "public purpose." What is so public about a private company making hundreds of millions of dol1ars in profit from a development project, but not allowing the free market to work?

The developer of course would say that the owners are asking too much because they know that there is a buyer who really wants the property. Well, if this principle were applied to the stock market, institutions that may wish to buy a million shares of a stock would say that it's difficult for them to assemble such a large amount of shares without bidding up the price an unreasonable amount: Therefore, the government should step in, and force the owners of the stock to all sell it at one low price to the institution.

That's not capitalism, but communism, or theft. The power of "eminent domain" should not be used for the benefit of a private party.

In my opinion, city councils everywhere should be abolished. In many cities, this is the seat of utmost political corruption. In Honolulu, several city council members already have been indicted or are in prison. If you have a city council in your city, keep your eyes on them.

International Brotherhood of Electrical Workers

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