Justices' ruling favors cities in use of eminent domain

Inevitably, there are always a few hold-outs, whether it is the longtime resident or a seller who wants to avoid federal capital-gains taxes by having their property condemned.

The ruling will probably cause very little change in Utah, said Robert Rees, associate legislative general counsel.

Cities and state agencies can still exercise eminent domain outside an RDA, although that will generally be limited to infrastructure improvements such as water lines or widened roads that have long been accepted as necessary for the public good.

"I think it will have relatively minimal impact because the parameters of eminent domain are pretty well-defined," Rees said.

While it may not be allowed currently, eminent domain has been used by cities in recent years to push major economic development projects. Should the Legislature revise the laws to allow it again, this ruling would gives cities greater muscle to push economic development while pushing people out of their homes.

"This hits us square between the eyes," said Randy Hunter, a deputy attorney general who specializes in constitutional "takings" law. Hunter said Utah's Redevelopment Agency Act has been used to literally change the face of downtown Salt Lake City, with various blocks of run-down properties transformed into the Gallivan Center, the Grand America Hotel and, more recently, The Gateway.

Thursday's ruling by the Supreme Court involved a case brought by residents of a working class neighborhood in New London, Conn., who were fighting city officials who wanted to raze their homes for a riverfront hotel, health club and offices. The residents argued it was unfair for the city to take their land and sell it to another private owner to simply improve the tax base of the area, since it would primarily benefit the developer and not serve the public good the same way a road or school would.

Writing for the court's majority in Thursday's ruling, Justice John Paul Stevens said local officials, not federal judges, know best in deciding whether a development project will benefit the community. States are within their rights to pass additional laws restricting condemnations if residents are overly burdened, he said.

"The city has carefully formulated an economic development plan that it believes will provide appreciable benefits to the community, including — but by no means limited to — new jobs and increased tax revenue," Stevens wrote.

The power of eminent domain stems from a long tradition dating as far back as biblical times, when a king reserved the right to take as he needed, which grew into the concept of takings law.

Hunter said Utahns need to keep in mind that their rights as property owners are not absolute. "We have to realize in this country just compensation is an option," he said.

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Contributing: Associated Press; Linda Greenhouse, New York Times News Service

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