Subject: [ Saturday Gazette-Mail ] February 4, 2006

Eminent domain bill clears panel

By Tom Searls
Staff writer

Government's powers to condemn land and sell or lease it to a private developer would be curbed, but not eliminated, under legislation endorsed by a Senate committee Friday.

The compromise proposal (HB4048) still has to go through two more Senate committees -- Government Organization and Judiciary -- before being considered by the full Senate.

"This bill is probably not the panacea for any of the people in here," state Sen. Brooks McCabe, D-Kanawha, and chairman of the Senate Economic Development Committee, said after the meeting.

Concern about government’s powers of eminent domain surfaced across the nation after last summer’s U.S. Supreme Court ruling in a New London, Conn., case.

In that ruling, the nation’s high court said the city had the right to condemn and take private residences and hand the land over to a developer constructing upscale homes.

"That’s inappropriate", McCabe said.

Jonathan Nicol, a lobbyist representing some property owners in the middle of Charleston’s proposed Plaza East Redevelopment Project, said his initial look at the committee language appeared to be acceptable to his group.

"I believe what they passed will limit the use of eminent domain for private use", he said.

Those property owners had protested being included in a "blighted" area, which thusly subjected them to possible condemnation of their property. The bill allows for cities only to continue condemning "blighted" property, but when it encompasses an entire area each individual parcel would have to be proven blighted to be taken.

"That was the compromise we offered", Nicol said.

One amendment passed, offered by Sen. Jeff Kessler, D-Marshall, limiting urban renewal authorities to municipalities only. The state Farm Bureau wanted that guarantee.

Bob Williams, Farm Bureau executive director, said the bill seems to ensure "the language in blight doesn’t affect rural areas."

His organization was still looking at the bill Friday and said there is plenty of time to make changes to it.

A state Municipal League lobbyist said it appeared acceptable to her organization. "It looks like that our authority has been retained for urban renewal," Lisa Dooley said.

Recalling when he was mayor of Weirton, Sen. Ed Bowman, D-Hancock, wanted to retain eminent domain powers for cities. Cities will have to make a written finding that a piece of property is blighted before condemnation proceedings, if the bill ultimately passes as is.

The bill also allows governmental entities and utility firms using eminent domain powers to make a "good faith" offer for property, as opposed to the current "fair market" value.

Sen. Roman Prezioso, D-Marion, said a constituent whose property was taken previously felt he did not get a fair shake because the rental property made a profit.

McCabe said the "reasonable offer" change allows entities condemning property to offer more than "fair market" value and could take care of those types of problems.

Even Delegate Cindy Frich, R-Monongalia, who introduced a much stronger bill that would virtually take away governmental entities’ eminent domain powers, could see some merit in the proposal.

"It’s better than what it was, but I would prefer that [blighted] exemption not be in there," she said.

Putnam County resident William Bennett Jr., who spoke before the committee previously, said he opposes any legislation that allows public entities to condemn private property because of blight.

Bennett said he is a member of the Castle Coalition, a national group fighting eminent domain powers.

McCabe expects the legislation to undergo more changes in the next two committees, then emerge on the Senate floor.

To contact staff writer Tom Searls, use e-mail or call 348-5192.