Examples of Municipal Economic Development Projects Involving Eminent Domain David Parkhurst, Principal Legislative Counsel (parkhurst@nlc.org) June 20, 2006
Municipalities Use Eminent Domain as a Last Resort � High political, social, and financial cost � State municipal league survey results (late 2005): COLORADO. Of the 40 urban renewal authorities currently active in Colorado, 30 have not used their powers of eminent domain at all in the past five years. GEORGIA. From 2000-2005, only six cities (out of 37 responding) used eminent domain to condemn 15 parcels. Of that total, 13 were condemned to clear title for utility-related needs because of absentee property owners. MAINE. Of 315 municipalities responding, only nine reported exercising eminent domain since January 2000. � The prudent use of eminent domain — exercised in the sunshine of public scrutiny — remains an essential tool for municipalities because it helps local governments create positive outcomes for the entire community.
Eminent Domain is a Key Tool for Economic Development � Economic Development is a “Public Use” � Economic Development helps revitalize local economies, improve public amenities and infrastructure, and create much-needed housing and jobs.
NEW YORK, NEW YORK � Times Square became national showcase for urban decay and blight in the 1970s � With help from eminent domain, Times Square today boasts: • More than 33,000 residential households • One in four jobs based in Midtown Manhattan • 200 percent increase in pedestrian traffic, which is good for restaurants and retailers Before After
SAVANNAH, GEORGIA � The City used the Georgia Urban Redevelopment Law (O.C.G.A. 36-61-1 et seq.) to revitalize the Cuyler-Brownsville neighborhood, redeveloping vacant lots and dilapidated structures into affordable housing for low and moderate-income households. � The Cuyler-Brownsville properties were abandoned, overgrown, and contributing to blight, disinvestment, criminal behavior and crime. � Without eminent domain, there were no buyers for the property and little or no chance to obtain financing to develop the property. Before After
DENVER, COLORADO � In the early 1980s, Montgomery Ward closed its store just south of Denver’s central business district, leaving an 850,000 square-foot building vacant for nearly a decade. � The Denver City Council established the site as an urban renewal area in October 1992. � Today, the site is a 42-acre retail center with 40,000 square feet of retail space and 2,185 parking spaces. The Broadway Market Place rejuvenated the South Broadway retail area. Before After
INDIANAPOLIS, INDIANA � The City used eminent domain to transform a neighborhood once nicknamed “Dodge City” because of its blight, crime, and deterioration into Fall Creek Place, a mixed-income community. � Private enterprise could not overcome these conditions due to the breadth of physical and social deterioration and its lack of influence over adjacent substandard and abandoned housing units and vacant lots. � Designation as a redevelopment area allowed the City to use only the threat of eminent domain to stimulate economic development in this neighborhood, which is a ten-minute drive to downtown. Before After
LOUISVILLE, KENTUCKY � The Louisville-Jefferson County Metro Government used the power of eminent domain to condemn the Big Four Bridge, an abandoned railroad bridge that connects Kentucky with Southern Indiana. � The bridge was the last part of a master plan of the Waterfront Development Corporation’s development of the award-winning, 85-acre Waterfront Park. � The Park, which averages more than 1.5 million visitors a year, includes a children’s play area, riverwalk pathway, a café plaza, an amphitheater, docks for boaters, and an area for a new rowing facility for school and community rowing groups. River Walk After Before After River Walk Before Courtesy Hargreaves Associates, John Gollings
PHILADELPHIA, PENNSYLVANIA � APM Supermarket, the first supermarket built in North Philadelphia in 30 years, reclaimed blighted parcels and transformed them into a commercial anchor for residents in this community. � Built in collaboration with Puerto Ricans on the March and made possible through the Philadelphia Redevelopment Authority’s prudent use of eminent domain. Before After After
The Future for Eminent Domain? � Eminent domain, a state-derived power, is not “one-size-fits-all.” � States are better suited than Congress to govern its use. � The long-term impact from anti-eminent domain legislation that prohibits/severely restricts its use could include: • Downgraded state/local credit quality • Diminished local “curb appeal” • Competitive disadvantage against other communities both here and abroad for new residents, jobs, and capital • Increased costs to govern effectively
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