Showing posts with label eminent Domain abuse. Show all posts
Showing posts with label eminent Domain abuse. Show all posts

Monday, February 10, 2014

Eminent domain abuse


In 2005, James Dupree bought a dilapidated warehouse and garage. Today, after almost a decade of steady investment and physical labor, the once-blighted space is now a vibrant 8,600-square-foot studio showcasing over 5,000 pieces of art.
In a Philadelphia neighborhood marked by vacant houses and parking lots, Dupree’s studio is a bright spot of entrepreneurship and esteemed cultural value. His paintings have won numerous awards, are displayed at the Philadelphia Museum of Art, and sell for upwards of $40,000 each. He has hosted and taught public art classes at his studio, and plans to launch a mentorship program for inner-city youth that focuses on fostering entrepreneurial and aesthetic appreciation skills.
However, “I definitely want a grocery store,” says Councilwoman Jannie L. Blackwell. And, decided the city council, a nice location for this grocery store would be on Dupree’s lot. While the building plan itself is essentially undetermined, with no potential tenant even identified yet, the city sent Dupree a letter to condemn his successful studio.
He has two choices. He can accept the pitiful sum – slightly over ¼ of its most recent appraised value–the city offered and painfully watch his decade of investment be bulldozed away, or he can fight.
He chose the latter. “I built this place up myself,” says Dupree. “I’m not just going to roll over and die.”
The letter was sent in December 2012. To this day, he continues to fight, and he recently painted on his studio’s exterior a mural featuring a grotesque human hand reaching for a building, with a warning below: “HANDS OFF My Business.” The mural and his story have, rightfully, captured national attention, as well as a renewed interest in the greater issue at stake – eminent domain.
Eminent domain is the process through which government is allowed to take private property to benefit the public use after providing just compensation to the original owner. Traditionally, this process would apply to largely undisputed investments such as a much-needed road or a new school. However, increasingly throughout the 20th century and even still today, far too much of this property is taken from individual property owners (often small businesses or homeowners) and being handed to other private entities, primarily corporate developers.
In essence, the government is abusing its eminent domain power by picking and choosing value among true property owners and wishful ones. All too often, bureaucrats decide if your property is worthy to withstand their own plans.
Eminent domain was, fortunately, scaled back a bit in the last few years, in light of the infamous Kelocase in 2005. There, the Supreme Court outrageously held that local officials can subject private property to eminent domain solely because they can imagine some alternate use for it that might possibly generate greater tax revenue. Suddenly, according to that logic, all homeowners were in danger. Legislation immediately reflected this public outcry and disgust, with 45 states quickly rewriting their eminent domain laws to provide more sound protection for property owners. Of course, such property grabbing was also slowed down by a sluggish economy in the past several years.
However, as the economy has begun to pick up, so has eminent domain. Last year alone, a number of new property-grabbing techniques have sprung up from California to New Jersey. Increased administrative capacity and regulation have contributed to this resurgence of eminent domain, and Mr. Dupree’s property is a perfect example.
“Seizing James Dupree’s art studio is not only unconstitutional and a gross abuse of eminent domain, it is unconscionable,” said a letter signed by a diverse group including members of the Philadelphia art community, the ACLU, and the conservative Americans for Prosperity. It’s unconstitutional, of course, because the potential grocery store is a private entity, and because the city’s compensation is far from “just.” It’s unconscionable because it’s absurd. Dupree has teamed up with the Institute for Justice to urge the city council to reconsider its plan.
In this highly partisan age, the diversity of Dupree’s supporters is promising, and truly speaks to the salience of the issue at hand. The resurgence of eminent domain as a modern civil liberties issue presents a new opportunity for millennials to consider the value of personal property and home ownership, as many of us are first entering the job and housing markets ourselves.
Millennials should be concerned.
I belong to this generation, one which has been oft-cited as the most entrepreneurial generation to date. While job prospects are sluggish and many in my generation face staggering student debt, many millennials continue to capitalize on new technologies by creatively juxtaposing this with their own innate talents to create start-ups, small businesses, and independent sources of income. Creative entrepreneurship is, perhaps, the truly 21st-century face of the American dream.
Therefore, Dupree’s property becomes a celebrated symbol of American success for my generation, and the issue becomes one to be all the more outraged about. This isn’t just art – it’s also capital. Not only did Mr. Dupree follow his passionate and talent for art, but he managed to substantially enrich his own property value, generate a high amount of revenue, and culturally enrich his community. He’s a success story. And yet, how is he rewarded?
Arbitrarily condemning creative entrepreneurship sends a message that bureaucracy has little respect for individual entrepreneurs and small business. It seems to contradict any sense of reason that in a blighted neighborhood, the city would want to demolish the block containing one of the most successful and celebrated cultural highlights of the neighborhood.
Not only is private reshuffling of property by government unconstitutional, but it’s disrespectful to any hardworking individual who falls victim to such poor policy. It’s time that bureaucrats stop restricting private entrepreneurs from flourishing by stripping away their fairly earned property rights. It’s time to celebrate property investment and entrepreneurship, not condemn it.

Tuesday, February 4, 2014

Eminent domain abuse revisited


‘Kelo’ Revisited

Tuesday, January 21, 2014

The business of government is political power and stealth money


NEW YORK OFFICIALS MOVE TO SEIZE WWII VET’S PROPERTY – AND WITH TAXPAYER DOLLARS


World War II veteran Frank Whitney is fighting taxpayer-funded attempts by a New York village to seize his private property.
New York Officials Move to Seize WWII Vet’s Property – and With Taxpayer Dollars
Frank Whitney, left, is fighting official efforts to seize his private property. (Image source: YouTube)
Officials in the village of Saltaire on Fire Island, N.Y., are trying to take Whitney’s Saltaire Market grocery using eminent domain so they can build a municipality-owned market, the New York Post reported.
And in an attempt to get their hands on the 88-year-old’s property, which was damaged in 2012 by Superstorm Sandy, village officials may try to raise the $2.5 million needed to buy and refurbish his grocery store by increasing the area’s property taxes.
Whitney said he has means and the money to fix the damaged store, which he has owned and operated for 25 years, but he said Saltaire officials are preventing him from repairing his property.
“Our choice was to rebuild,” Whitney said in a video his family put together in an attempt to draw attention to his situation. “It’s not fair. What they did is not fair.”
The village’s board of trustees voted Aug. 31 to pursue an eminent domain proceeding against Whitney’s property, leaving some scratching their heads over the ordeal.
“There is almost nobody I have spoken to in the town that supports this eminent-domain action,” David Fisher told the Post.
It’s “disgraceful, absolutely disgraceful,” Kathleen Butle added.
In a statement, the village said it has “been trying, without success, to engage the Whitneys in substantive discussions” about renovating for the past year.
“[A]t various times they have clearly stated their inability or unwillingness to undertake the renovation requirement and despite statements to the contrary, no building plans or architectural drawings of any kind have ever been presented to the village for review,” it said.
But here’s where the story becomes particularly frustrating for Whitney: Four engineers, including two commissioned by the village, reviewed the storm damage on the market and ruled that it was not “substantial,” the store owner’s son, Scott, said.
“The repairs that are required due to the flooding . . . do not appear to me to be substantial improvements as defined in the building code,” one of the village-commissioned reports reads.
Nevertheless, despite the findings in the reports, village officials continue to argue that the damage is too much for Whitney to handle. Officials also said the veteran’s submitted plans for repairs are insufficient or incomplete.
New York Officials Move to Seize WWII Vet’s Property – and With Taxpayer Dollars
Aerial view of Saltaire Market grocery (image source: Google Maps)
The village applied Aug. 12 for a $1.5 million New York state waterfront-improvement grant to acquire Whitney’s property, the Post reported. The New York State Department of State denied the village’s request this month.
Perhaps in anticipation of this ruling, village trustees voted three weeks after submitting the application to pursue eminent domain against Whitney.
Here’s a video of Frank Whitney recalling his years in the United States Air Force during WWII:
Saltaire Mayor Robert Cox III said that if the village’s condemnation moves forward, “it would be paid for by raising village taxes, floating a bond or selling off village property,” the Post reported.
The fight between Whitney and village officials continues to this day in the Appellate Division in Brooklyn.
Neither the Whitney family nor village officials responded immediately to TheBlaze’s request for comment.

Thursday, October 24, 2013

Is this the government participating in real estate speculation?


By Glen Morgan | Freedom Foundation

Seattle’s city council voted unanimously Monday [1] to use eminent domain to take private property. They say they must seize the private property, which is currently being used as a parking lot, in order to turn it into … a parking lot. (Here is the link to the original notice [2]). Local station Q13Foxnews discussed this story here [3].
In addition to eminent domain abuse, the City of Seattle has recently been in the news for hiding public records [4], and sinking the farm boat. [5] The common thread among all three of these stories is that, in Seattle, central planning takes priority over people [6]. In this case, they decided it was critically important to seize a parking lot from its 103-year-old owner so that it can be a parking lot. At least this is their stated justification.
Read more at Freedom Foundation. [7]


Wednesday, September 11, 2013

Politicians know how to solve every problem just give them control. Eminent domain abuse and crony capitalism all in one


California city backs plan to seize negative equity mortgages



RICHMOND, Calif (Reuters) - Richmond, California's leaders approved on Wednesday morning a plan for the city to become the first in the nation to acquire mortgages with negative equity in a bid to keep local residents in their homes.
The power of 'eminent domain' allows governments to seize private property for a public purpose. Critics say the plan threatens the market for private-label mortgage-backed securities.
Richmond's city council voted 4 to 3 for Mayor Gayle McLaughlin's proposal for city staff to work more closely with Mortgage Resolution Partners to put the plan crafted by the investor group for the city to work.
Richmond can now invoke eminent domain if trusts for more than 620 delinquent and performing "underwater" mortgages reject offers made by the city to buy the loans at deep discount pegged to their properties' current appraised prices to refinance them and reduce their principal.
A mortgage is under water when its unpaid balance is greater than its property's market value.
MRP has failed to get similar plans approved by local governments elsewhere - most recently in North Las Vegas, Nevada and earlier this year in San Bernardino County in Southern California - as the mortgage industry and local real estate businesses rallied against them.
But in Richmond, MRP found an ally in a Wall Street-bashing Green Party mayor of one of the San Francisco region's poorest cities who sees working with the investor group to acquire mortgages as a public purpose if it makes the loans more affordable, averts foreclosures and alleviates blight.
Richmond's residents have been "badly harmed by this housing crisis," McLaughlin said, defending the plan and partnership with MRP during an often contentious city council meeting that began Tuesday evening and ended early Wednesday morning. "Too many have already lost their homes."
City council members opposed to the plan countered that using eminent domain would put Richmond at risk of expensive lawsuits that could destroy the city's finances.
"A 1 percent chance of bankruptcy from this program is a deal-breaker for me," Councilman Jim Rogers told a crowd of about 300 people at the meeting, moved to a city auditorium from the council's chamber.
Other council members warned of a backlash from financial institutions, noting Richmond had no takers last month when the successor to its redevelopment agency put $34 million of bonds up for sale to refinance previous debt. The eminent domain plan had been disclosed to the U.S. municipal bond market.
While housing advocates urged support for the plan, realtor Jeffrey Wright warned that going through with eminent domain could prompt a clampdown in mortgage lending in Richmond or push up mortgage interest rates in the city of about 104,000 residents.
Responding to the plan, the Federal Housing Finance Agency recently said it would press Fannie Mae and Freddie Mac to limit or cease its business where such proposals get approved, effectively closing off most mortgage financing there.
Investors holding the mortgages targeted by Richmond dispute altruism motivates the plan and charge the city would lend its eminent domain power to San Francisco-based MRP to split profits from refinancings.
The investors have sued through trustees Wells Fargo & Co and Deutsche Bank AG in U.S. District Court to block the plan, which they say relies on them swallowing losses. The two sides square off in court in person for the first time on Thursday.
McLaughlin's proposal directs city staff to work with other local governments interested in the plan, calls for city staff and MRP to resolve its legal issues and confirms the city council would hold votes to seize mortgages by eminent domain if necessary. That would require a supermajority vote of the council.

Wednesday, July 31, 2013

The rule of law and the Constitution are being debased as we watch. Totalitarianism arriving on the wings of doing good.


Richmond Threatens Eminent Domain To Address Foreclosure Crisis


RICHMOND (KCBS) – Richmond city leaders were moving ahead with a plan to head off the foreclosure crisis, a plan that is not without controversy.
The city has offered to buy more than 600 underwater mortgages at below the homes’ current value.
“If they are unwilling to negotiate a sale of the loans, which we want them to do, then we will consider using eminent domain as another option to purchase these loans at fair market value,” said Richmond Mayor Gayle McLaughlin.

Richmond is the first city in the country to take the controversial step of threatening to use eminent domain, the power to take private property for public use. But other cities have also explored the idea.
Banks, the real estate industry and Wall Street are vehemently opposed to the idea, calling it “unconstitutional” and a violation or property rights, and something that will likely cause a flurry of lawsuits.

Richmond has partnered with San Francisco-based Mortgage Resolution Partners on the plan. Letters have been sent to 32 servicers and trustees who hold the underwater loans. If they refuse the city’s offer, officials will condemn and seize the mortgages, then help homeowners to refinance.
Richmond resident Morris LeGrande, who is currently underwater on his mortgage, said the foreclosure crisis continues to have a big impact on the city.
“We have a large percentage of homes here that are underwater and the effect that it’s having on the community is kind of devastating in the fact that we are always behind in what we need in terms of revenues for our city,” he said.
Mortgage Resolutions Partner will receive a flat fee per mortgage and has said it will handle all legal costs.