Eminent Domain originally was used only for public projects such as roads and schools. Today, that is no longer true. Cities routinely give developers condemnation powers in tax increment financing (TIF) areas or other city designated "blighted" areas. Typically, targeted properties are condemned for retail development in so-called blighted areas. In essence, private property is being condemned to be transferred to another private party, namely the private developer. This controversial practice has generated considerable litigation and publicity in recent years. Issues arising from this practice include the legality of the "blighting," challenges to the alleged public purpose, and the amount of compensation.
Protection of the property owner is the primary concern of the lawyers at Denlow & Henry. Call or e-mail us today.
Under recently revised laws in Missouri, condemnation can no longer be used solely for economic development. Furthermore, private development usually entails a blighting of the area to be developed. Under Missouri's revised law, the test for blighting becomes significantly more difficult.
With TIF or other city development areas, the cities are in a position to create "new rules" for valuation and relocation. At Denlow & Henry, we often approach the city to negotiate a revision of these rules, including restrictions on the use of eminent domain. 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. Owners should consult with an eminent domain law firm at the earliest opportunity when learning of a potential development affecting their property.
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