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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
- 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
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
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.