NM: Getting Eminent Domain Reform Right

Gov. Bill Richardson vetoed legislation that, in the name of reforming use of eminent domain by local governments, would have hamstrung environmental conservation and transit projects throughout the state:

Richardson said the bill's "ambiguous language may stop public projects that encourage environmental conservation, mass transportation and smart urban development, simply because private entities play a role in the project."

Richardson wants to set up a commission to draft alternative legislation that would address community concenrs about eminent domain abuses, while not shutting down vital uses of the planning tool for community revitalization. As writer and urban development analyst Neil Pierce has written:

[F]or every case of abuse, there’s an example of condemnation that makes highly valuable projects possible. Baltimore’s sparkling Inner Harbor is one example. Another is the revival of Smyrna, Ga., where condemnation made possible a new city hall, library, community center and green space that lured developers to buy nearby land and revitalize a decaying downtown. Eminent domain should be used “sparingly and with surgical precision,” says Richard C.D. Fleming, president of St. Louis’ Regional Chamber and Growth Assn. But he notes how critical it’s been for the city to gain control of long-empty or underused historic buildings and adjacent lands, making possible the dramatic $3 billion turnaround that the long-depressed downtown is presently experiencing. For older suburbs in trouble, says Fleming, timely use of eminent domain powers often enables strategic early intervention, “avoiding a massive downturn that would require massive public intervention to turn around later.”

Richardson has the right idea-- step back from the current flurry of legislation, often driven by rightwing groups hostile to urban development, and develop legislation that addresses the real concerns of communiites. Instead of flat prohibitions on creative uses of eminent domain, real reform would focus on alternative approaches, including:

• assuring that homeowners get a premium above fair market value to make up for the hassles of having to relocate;
• banning political contributors to local government from receiving land taken through eminent domain to avoid "pay to play" corruption; and
• requiring a vote by an elected body, such as a city council, for each individual use of eminent domain to assure public accountability for all uses of eminent domain.

Right now, conservative groups are taking advantage of justified unhappiness with some of the eminent domain abuses that have occurred to railroad through rigid bills that gut local home rule planning powers. Instead, we need approaches that directly shut down the corruption and back room deals that anger citizens, while preserving the core powers of local government to economically revitalize their communities through judicious use of eminent domain.