Wrestling with property rights

Rarely does a Supreme Court decision end up hurting the party it declares the winner. Such has been the case, however, with the narrow decision last year to allow a city in Connecticut to condemn private property and give it to a private developer.

Not only has New London, Conn., not carried out the condemnations (the city worries about removing homeowners who have sued), the decision prompted many states to pass laws that prohibit the taking of property for private developments. Perhaps the most creative response came from citizens of Weare, N.H., the home of Supreme Court Justice David Souter. They petitioned to allow the town's voters to condemn Souter's farmhouse so that an inn known as the "Lost Liberty Hotel" could be built. Residents finally rejected that idea in favor of simply asking state lawmakers to make such takings illegal — but the point had been made.

Here in Utah, lawmakers are ahead of the game. Last year they passed a law taking away the power of condemnation, or eminent domain, from redevelopment agencies. Incredibly, however, a recent legislative audit recommended returning that power in order to help cities assemble properties for development and force the hand of speculative property owners. That would be a mistake.

Utah has seen its share of RDA abuse through the years. In some of these cases, owners have held out successfully, winning lawsuits. But in each case, they have had to endure years of turmoil and stress, both financial and emotional. In the case of one homeowner in Ft. Union, a development was built, squeezing the home against a wall, before the homeowner finally prevailed in court.

In principle, RDAs are supposed to help cities renew blighted ghettos. In practice, however, Utah cities have used them to attract developers to vacant land or to condemn homes or businesses that just happen to be in the way.

State lawmakers have been good to stand up for private property rights. In addition to removing eminent domain powers, they set up the office of a property rights ombudsman, whose job is to hear complaints from property owners and inform local government officials when they are breaking the law.

This year, a bill sponsored by Sen. Curtis Bramble, one of the champions of private property rights, clarifies RDA rules and is a step toward helping cities put together reasonable projects. But Bramble was quoted as saying he won't favor bringing back the power to condemn private property for a private development. That's a good thing.