Private Development Using Eminent Domain
When a city or other local government teams up with private developer to use eminent domain for goal of commercial redevelopment the attorneys at Denlow & Henry can help. These types of projects often victimize property owners who have done nothing wrong. Many have the opinion that it is eminent domain abuse when a city hands over its power to take private property to a private developer. The laws governing blight in Missouri are so loose, that virutally any area can be called “blighted” even for thriving areas. At Denlow & Henry, our attorneys have represented Missouri property owners facing these circumstances for more than 40 years. Often we will fight these types cases by challenging the finding of blight or the failure to follow legal procedures. If needed, we help property owners fight for the compensation they deserve under the law.
Private Developer with Eminent Domain Powers
Originally, eminent domain was used only for public projects such as roads and schools. Today, that is no longer true. Local governments routinely give developers eminent domain powers through the use of blight. One common example is called tax increment financing (TIF) which includes additional financing by redirecting property and sales taxes into a developer’s pocket. By designating an area “blighted,” the city then allows the private developer the right to remove the blight through eminent domain and then build a for-profit development. Cities and devlopers effectively team up against property owners who have done nothing wrong.
When eminent domain is used for private redevelopment, the local government invokes this “blighting” process to meet the Constitution’s requirement of using eminent domain for a public purpose, namely, the removal of the blight. Targeted properties can be condemned for retail development or other private uses in so-called blighted areas. In essence, private property is being condemned to be transferred to another private party. This controversial practice has generated considerable litigation and publicity. Issues arising from this practice include the legality of the “blighting,” challenges to the alleged public purpose and the amount of compensation.
Changing the Playing Field with Eminent Domain
In addition to challenging blight, Tax Increment Financing (TIF) or similar laws, at Denlow & Henry, we often approach the city to negotiate a revision of these rules, including restrictions on the use of eminent domain or an expansion of compensation or relocation benefits. When faced with a private developer who has joined forces with a city to condemn properties, property owners and businesses must take steps to protect their interests by contacting an experienced eminent domain attorney.
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There is no charge for an initial consultation to discuss your situation. Our telephone numbers are 314-725-5151 or toll free 888-566-5151. Ask to speak with an attorney in our office. You can also contact us by e-mail. All communications between you and the members of our firm are confidential.