What is the #1 thing to do if a company wants to acquire land, but eminent domain authority is nebulous?

If an entity wants to acquire land, and may or may not have the power of eminent domain, how does the entity acquire land?

By offering above market value for land. At least, that’s what Texas Central Rail is offering to avoid eminent domain.

Community Impact | Rural residents, high-speed rail proponents clash at community forum

Compensation for unusual lands. Valuing Mineral Rich Land near UFOs. 3 Key Points on Just Compensation for Unique Land.

What land near UFOs is there a pre-eminent domain negotiation for value? The Groom Mining Land near Area 51

What value does the property owner appraisers give the land?  $44 million and $116 million

What’s the offer from the federal government? $333,300 with a final offer of $5.2 million

What factors do the property owners say factor into the land’s value?

  • The land is the only privately held land with a view of Area 51
  • An appraiser found the federal government will gain $444 million (and) $2 billion per year by acquiring the land
  • The land has been in the family, and mined by the family since 1889

Las Vegas Review Journal | Family accuses Air Force of lowball price estimate on land it seized near Area 51

LOCAL TREND: Sharing Economy Partner Agrees to Track Property Owners. Legislature Bans all Short term Rentals.

Where is this happening? New York City

What’s happening? Short term rental company, AirBnB, agreed to track property owners who have are renting out multiple locations

Why does this matter?  2 reasons:

1.  It typifies local ordinance quagmires over short term rental ordinances.

  • Property owners like the free market principles of short term rentals to use their property as they see fit.
  • Local governments, like NYC, want to address issues like exacerbating a lack of affordable housing

2.  NY Legislature making short term rentals illegal by requiring all rentals to be for 30 days or more. The bill awaits the Governor’s signature.

New York Times | Airbnb Proposes Cracking Down on New York City Hosts

Land Use Regs v.s Urban Growth. 3 Points from the Economists.

The Wall Street Journal looks at the tie between land use regulations and 

  • land use regulations drive up the cost of construction
  • higher construction costs limits new construction to luxury construction
  • the result: urban economic segregation

What protections do local governments say land use regulations provide:

  • preserve the historic charm of neighborhoods
  • ensure sunlight and fresh air can reach the streets
  • limit congestion on sidewalks, streets and public transportation

Wall Street Journal | As Land-Use Rules Rise, Economic Mobility Slows, Research Says

TREND. Swing States Unite for Property Rights. Private Entities Be Wary.

Which 2 swing states are propping up property rights? PA in Robinson Township v. Commonwealth & OH in Kinder Morgan utopia v. PDB Farms 

How are these states at the forefront of property rights trend? Courts in each of the state’s have denied private businesses from using eminent domain when no public benefit exists

What’s the kicker on public benefit? Both of the projects denied eminent domain authority were moving goods over a common carrier to Canada with no facilities in the state in which eminent domain was sought

What to watch: 

  • Do these lead to overturning Kelo as we’re dealing with economic interests in each case?
  • Do these cases give rise to more suits against private companies utilizing eminent domain as a pretext for profit making?

Washington Post | Volokh Conspiracy | Victories for property rights in Pennsylvania and Ohio state courts

Legal Trend. Ohio Follows Pennsylvania–a phrase not just for Presidential Elections.

An Ohio Court has stopped the power of eminent domain for a pipeline in Ohio based on this rational:

  • The pipeline is benefiting 1 manufacturer, not a common good
  • The pipeline benefit is in Canada and not in Ohio

Sandusky Register | Ruling could help farmers battling pipelines

Eminent Domain on the Radar. Far West Texas.

The project that seeks the authority of eminent domain:  A new stadium in El Paso

What a real estate developer says:

  • The City of El Paso holds all the cards in the negotiation
  • The property isn’t valued for its future value but is valued based on current value without regard to future development

What the city says:

  • Doesn’t think eminent domain will be used

ABC 7 KVIA | Real estate broker, property owner shed light into eminent domain process

CBS 4 El Paso | Council passes arena project site, possible use of eminent domain

+1 Denial of Eminent Domain. No Public Use in Exports.

Where: Ohio

Who or what denied eminent domain authority? A state judge

What project was denied eminent domain authority? A pipeline that would move natural gas froma  shale region in Ohio to a facility in Canada

Why wasn’t public use of benefit met? Because the benefit from the poeject was found to be the end point of the pipeline in Canada. The jobs created in Ohio were not persuasive to the court.

The Toledo Blade | Wood County judge nixes pipeline builder’s eminent domain plans