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It's Bad Policy To Use Eminent Domain For Economic Development, Even If It Sometimes 'Works'
Forbes ^ | August 28, 2015 | George Leef

Posted on 08/28/2015 8:48:55 AM PDT by reaganaut1

recently discussed George Mason University law professor Ilya Somin’s excellent book on the infamous Kelo case and the abuse of eminent domain generally, The Grasping Hand.

The Wall Street Journal also ran a favorable review of Somin’s book by Harvard professor Edward Glaeser, which promptly drew a negative response from a professor who defended the use of eminent domain for “economic development.”

I’m an ardent opponent of governmental seizures of private property and maintain that the professor’s case is a complete failure – but see what you think.

In his August 5 letter to the editor, Wayne State University professor John Mogk took issue with Somin’s book and Glaeser’s review. He claims that they did not adequately weigh what he regards as a successful use of eminent domain to promote economic growth – that of Detroit’s Poletown.

The New London redevelopment project that cost Suzette Kelo her little pink house was, Mogk admits, a fiasco. But he says we shouldn’t paint all eminent domain cases with that brush. He wants to buttress the case that the public welfare can be enhanced by using eminent domain to obtain land needed for projects that are supposed to stimulate the economy and create jobs.

Mogk seems to think that the apparent success of Poletown saves the day for eminent domain enthusiasts.

Here are three reasons for believing that he is mistaken.

(Excerpt) Read more at forbes.com ...


TOPICS: Business/Economy; Government
KEYWORDS:

1 posted on 08/28/2015 8:48:55 AM PDT by reaganaut1
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To: reaganaut1

Which ever serves the interests and income of the area best.
Highest and best use.
They are supposed to allow payment and moves without tax consequences if they do it correctly.


2 posted on 08/28/2015 8:52:29 AM PDT by A CA Guy ( God Bless America, God Bless and keep safe our fighting men and women.)
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To: reaganaut1

House to house searches for drugs and weapons “works”. Doesn’t mean that trumps the constitution. And the negative affects are disastrous to personal freedom and the relationship between the state and the individual.


3 posted on 08/28/2015 8:57:21 AM PDT by cuban leaf (The US will not survive the obama presidency. The world may not either.)
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To: reaganaut1
Use of eminent domain by government as a lure to private developers is outright theft. The politicians responsible should be put in prison. It is interesting that in Kelo vs. City of New London, while the politicians prevailed and were able to take the property -- it was for nothing. The developers never did use the property and built elsewhere. Now, cash strapped New London owns this property that is growing weeds and paying no property taxes. It's called Karma and it serves these greedy politicians right.
4 posted on 08/28/2015 9:02:00 AM PDT by MasterGunner01 ( Barbara Daly Danko)
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To: reaganaut1

If the project is for the public good as a public work, like a school or hospital, then it is acceptable.
If a private developer wants to buy the property, they should have to compete on the open market to do so. They shouldn’t get to take the property on promises of big tax benefits to the city and not have to pay market rate for the properties.


5 posted on 08/28/2015 9:03:39 AM PDT by tbw2
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To: reaganaut1

I am of the opinion that any such use (abuse) should require that the original owner be paid 115% of the greater value of either current tax assessment or current fair market value. This will greatly reduce the desire for public entities to take anything.


6 posted on 08/28/2015 9:04:23 AM PDT by taxcontrol
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To: reaganaut1

Eminent domain is intended for necessary public infrastructure. The new Gordie Howe bridge over the Detroit river is a good example.

It will be a much needed bridge at the second busiest freight crossing on the continent. On the Canadian side the land is pretty much all clear now since they’ve wanted the bridge for decades. On the Detroit side is the DelRay neighborhood which is one of the worst in Detroit where $5000 would be considered a very high property value.

The fact that Canada is paying the entire cost of the bridge is a big selling point. Despite his liberal republicanism, Rick Snyder worked out one hell of a deal.


7 posted on 08/28/2015 9:05:04 AM PDT by cripplecreek (Pride goes before destruction, and a haughty spirit before a fall.)
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To: A CA Guy

RE: “highest and best use”

Having lived in CT during the state’s confiscation of Kelo’s land, I can tell you that it was sheer abuse of power, and like all too many gov’t endeavors turned out to be an expensive development failed misadventure.
Although the people’s republic of California real estate law places great virtue of “highest and best use” of land, an inconvenient question asks:
Who determines “highest and best use”, the property owner, or the government?
Also, what if the property owner does not want to sell or vacate their land, regardless of state compensation offers?
Does potential gov’t tax revenue trump a property owner’s right to possess and enjoy their land and dwelling?


8 posted on 08/28/2015 9:05:57 AM PDT by MarchonDC09122009 (When is our next march on DC? When have we had enough?)
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To: A CA Guy
Highest and best use.

The Constitution mentions nothing about the "highest and best use." The Fifth Amendment is clear on this: "...nor shall private property be taken for public use, without just compensation."

There's nothing in the Constitution about taking private property from one and selling it to another. Nor is Kelo the taking of private property for "public" use.

9 posted on 08/28/2015 9:20:26 AM PDT by IYAS9YAS
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To: reaganaut1
Ultimately property rights and personal rights are the same thing.

-Calvin Coolidge
10 posted on 08/28/2015 9:27:02 AM PDT by cripplecreek (Pride goes before destruction, and a haughty spirit before a fall.)
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To: MasterGunner01

Regardless of the outcome, by principle, eminent domain is wrong. The right to own property and be able to decide its use seems fundamental to our rights of life, liberty, and the pursuit of happiness.


11 posted on 08/28/2015 9:31:57 AM PDT by glabbe
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To: MasterGunner01
Now, cash strapped New London owns this property that is growing weeds and paying no property taxes. It's called Karma and it serves these greedy politicians right.

I'm sure that is very comforting to Suzette Kelo.

12 posted on 08/28/2015 9:40:56 AM PDT by Bloody Sam Roberts (Democracy is not freedom. Democracy is simply majoritarianism. It is incompatible with real freedom.)
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To: glabbe
You are absolutely correct. Your property is your property. If someone makes you an offer to purchase it, it is your decision whether to accept or not. The politicians’ offers are always below market value because they can invoke eminent domain to steal your property from you. This is truly evil because it comes down to a David (you) vs, Goliath (them) fight. The politicians have taxpayer resources and you don't.
13 posted on 08/28/2015 10:34:56 AM PDT by MasterGunner01 ( Barbara Daly Danko)
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To: reaganaut1

Something tells me Donald Trump would disagree.


14 posted on 08/28/2015 10:55:31 AM PDT by Reaper19
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"In 2005, however, Trump was delighted to find that the Supreme Court had okayed the brand of government-abetted theft that he’d twice attempted. “I happen to agree with it 100 percent,” he told Fox News’s Neil Cavuto of the Kelo decision.
Source
15 posted on 08/28/2015 10:55:43 AM PDT by D-fendr (Deus non alligatur sacramentis sed nos alligamur.)
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To: glabbe

>> Regardless of the outcome, by principle, eminent domain is wrong <<

Then why did the Founding Fathers, in their wisdom, allow it in the Constitution?


16 posted on 08/28/2015 1:25:52 PM PDT by Hawthorn
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To: reaganaut1

I wonder how many people on FR would support the government taking their guns as long as they are justly compensated?

Private property is private property. Rights are rights. The right to own a firearm assumes the right to own private property.


17 posted on 10/07/2015 5:57:21 PM PDT by magellan
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To: Hawthorn
Then why did the Founding Fathers, in their wisdom, allow it in the Constitution?

They didn't allow it as applied to Kelo.

18 posted on 10/07/2015 6:12:14 PM PDT by Starstruck (I'm usually sarcastic. Deal with it.)
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To: Hawthorn
Then why did the Founding Fathers, in their wisdom, allow it in the Constitution?

They didn't allow it as applied to Kelo.

19 posted on 10/07/2015 6:12:14 PM PDT by Starstruck (I'm usually sarcastic. Deal with it.)
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