FROM BLIGHT TO EMINENT DOMAIN 'LITE'

Western Cities Take Different Paths to Redevelopment

By Headwaters News, 10-30-06

Local governments’ use of eminent domain has been in the media since June of 2005 when the U.S. Supreme Court issued the Kelo decision. That ruling said local governments could not only use the power of condemnation for public projects, such as schools and highways, but also to clear the way for private economic enterprises. The key provision of that decision said that states had the authority to limit or restrict eminent domain as they saw fit.

Since that decision, many state Legislatures considered legislation that would limit the use of eminent domain, but in states where legislation actually passed the revisions were modest.

As developable land becomes more scarce, many towns and cities in the West are looking with interest at redeveloping areas within their existing boundaries. The move to mass transit systems, such as light rail in Colorado, has also made the use of the power of condemnation more likely.

Such is the case in Louisville. The Boulder Daily Camera today reports that that Colorado city’s officials are considering an urban revitalization plan centered on clearing the way for a FasTracks light rail line as well as mixed-use developments. Louisville officials have identified 230 acres of older homes, grocery stores and a proposed subdivision that contain nine of 11 possible blight conditions. Colorado’s current law requires that five such conditions, which include deteriorating structures, faulty layouts and health or safety hazards, be present for local governments to use condemnation powers.


At least 122 homeowners would be displaced under the revitalization plan as it is currently drafted, and some are questioning whether the “blight” designation, which makes it difficult for those interested in selling their homes, is truly necessary. Since the corridor is already slated for a light-rail project, city officials would not need the blight designation to clear the way for such a public project.

Just down the road from Louisville is Superior, where that Colorado city’s revitalization project is already a decade old. Superior officials condemned five properties 10 years ago to clear the way for a 91-acre redevelopment project. That parcel now includes a Costco, Wild Oats Market and SuperTarget..

The Boulder Daily Camera reports that city officials are now contemplating adding another five parcels to the redevelopment project, but officials said they won’t go the condemnation route for the additional parcels, citing the philosophical battles such condemnation actions cause. They do, however, stand by the city’s decision to use such powers initially, saying the redevelopment has stabilized property taxes and brought in tax revenue for improved utilities and senior water rights.

In Utah, the Utah League of Cities and Towns drafted a resolution to get limited use of eminent domain reinstated. Two years ago, the state Legislature passed a law that blocks cities’ use of eminent domain to clear the way for private, economic development.

The Salt Lake Tribune reports that the group’s resolution calls for reinstatement of the use of the power – if property owners, not the municipal governments ask that the condemnation power be used for redevelopment. While most Utah cities do not use eminent domain, there have been instances in the state where a majority of property holders in a blighted area have wanted a redevelopment project, but lone holdouts have led to the project being scuttled.

Under the resolution, at least two-thirds of the property holders representing at least one-half of the property under consideration must be agreeable to the redevelopment, and at least 67 percent of the city government’s officials are receptive to the project.

Utah Sen. Curt Bramble, who is a strong opponent of the use of eminent domain for economic development , said he believes the ULCT’s resolution is a search for common ground, but he wonders about how well the resolution attains that goal.

Bramble said he believed legislation on eminent domain would be introduced in the 2007 legislative session, since discussions on the issue have been ongoing for months and will no doubt increase as the 2007 Legislature gears up.

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