Eminent Domain Report

A May 14 decision by the Ninth Circuit Court of Appeals clarifies the rules regarding when a plaintiff may sue for inverse condemnation in federal court.  In Adams Bros. Farming v. County of Santa Barbara No. 09-55315 (May 14, 2010), the Court rejected an inverse condemnation claim brought against the County, where the County allegedly effected a taking by improperly designating part of the owner's property as wetlands. 

The case involves a long, fairly tortured history that dates back to the late 1990's, when the County (apparently erroneously) designated about 95 acres of "Rancho ...

According to a San Diego Union Tribune article that was published over the weekend, the City of Encinitas has turned to the use of eminent domain to complete a $1.3 million drainage improvement project for an area impacted by flooding.  The article, "Encinitas to seize land for drainage work," reports that the city has reached a deal with six of the seven impacted property owners.  The hold-out property owner will face having a portion of its property condemned so the city can expand an already existing easement and install a drainage pipe under a horse trail. 

The hold-out ...

A decision this week by the California Court of Appeal holds that a purchaser of property suffering damages through government conduct may not sue for inverse condemnation where:

1. The buyer knowingly purchases property impacted by a government taking, and
2. The purchase price reflects the property’s condition in light of the government impacts.

In Ridgewater Associates, Inc. v. Dublin San Ramon Services District (May 11, 2010) __ Cal.App.4th __, it was largely undisputed that the District's waste water treatment facility caused water intrusion damage on a neighboring warehouse ...

In its April 2010 volume, the Yale Law Journal published a Note by Zachary Hudson titled Eminent Domain Due Process.  My first reaction was a bit odd.  Having spent many years as a practicing eminent domain lawyer, I rarely get the opportunity to spend time with pure, academic writing.  Just reading the Note instantly took me back many years to long hours spent in a small dark room at Boalt Hall (before all the improvements), trying to make sure all the hyper-technical "Blue Book" rules were being followed as I slaved away as Associate Editor of the California Law Review.  (It still ...

Yesterday, I chaired the International Right of Way Association Chapter 67 (Orange County) spring seminar, focused on the interrelationship between renewable energy, right-of-way acquisitions, and eminent domain.  It was a great success.  For those of you who were in attendance -- or for those of you that missed the seminar but would like a recap -- all of the speakers were generous enough to allow us to make their presentations available.

• Dave Kilpatrick's presentation, titled "Energy Independence -- the Impossible Dream?" [PDF], focused on our nation's overall ...

Next week, I'm speaking at the IRWA Chapter 67 Spring Seminar, which is focused on renewable energy issues.   So it was pretty timely when I came across an article this week involving efforts in Wyoming to curtail eminent domain power to address that state's push for increased renewable energy. 

According to a Casper Star-Tribune article by Dustin Bleizeffer, Wind boom inspires another look at state's eminent domain laws: Crossing private property, Wyoming has seen a wave of efforts to use eminent domain to acquire right of way for "collector lines," used to connect wind turbines to ...

We've previously reported on several cities contemplating the renewal of their redevelopment agencies' powers of eminent domain.  In the cities of San Pablo and Barstow, it appears that public outcry may have derailed those renewal efforts, at least for now.  Here's a brief update:

• We previously reported that the City of San Pablo was contemplating renewing its eminent domain powers for an additional 12 years.  According to a Mercury News article, "San Pablo dumps eminent domain plans," the City has dropped its redevelopment renewal plans after residents turned up with "a ...

According to a Contra Costa Times article, "Bellflower may expand redevelopment area, hopes to add $42 million to city coffers," the City of Bellflower has approved proceeding with a study to potentially expand its redevelopment area to include an additional 271 acres.  The City hopes that the proposed redevelopment -- through increased property tax revenues -- could generate over $40 million for the City over the next 45 years.

The article reports that a number of hurdles must be cleared before the expansion area is approved.  For example, the City would need to obtain approval from ...

Just a reminder about two upcoming events that you may be interested in attending:

• On May 5, IRWA Chapter 57 (Riverside/Inland Empire) will hold its monthly meeting at the Riverside Convention Center.  The speaker is Carol Brooks, and her topic is "Conflict Management:  How to Stay Cool in the Heat of Conflict."  Sounds like an interesting topic for all you right-of-way folks and relocation consultants that regularly deal with property and business owners facing eminent domain and relocation.

• On May 11, IRWA Chapter 67 (Orange County) will hold its annual ...

An interesting battle is raging in the Santa Ynez Valley.  Mattei's Tavern, a "landmark" in Los Olivos for more than 100 years, is slated for a redevelopment plan by its owner.  A local activist group, known as the Valley Alliance, wants to stop the owner's plans.  And one arrow in their quiver has been to nominate the tavern for listing as a historical landmark. 

According to an April 29 article by Kathy Cleary in the Santa Ynez Valley Journal Valley Alliance Historic Landmark Nomination:  Eminent Domain Takeover?, the purpose of the nomination is to give the Historic Landmark Advisory ...

OK, before I get into this one, you should know that I've been sitting on this story for a week, trying to decide whether it warranted a blog post.  I still haven't quite figured out what happened, and I was just about to let it go, but then my colleague Brad Kuhn pointed out earlier today that the very fact that the whole thing is so odd makes it worthy of a discussion.  So here goes. 

Last week, the City of San Clemente appealed from an earlier ruling by an Orange County Superior Court judge that the City of San Clemente was liable for a taking that resulted when the City (apparently in secret) down ...

The City of Seal Beach announced that it is moving forward with plans that certainly do not sound controversial.  The City intends to improve a bike path, expand a park, and repave a parking lot.  But an adjacent property owner thinks the City's plans are infringing on its plans to develop its property.  Bay City Partners is currently involved in two related lawsuits with the City. 

The City filed a 2009 action to acquire 21,000 square feet of the property; the eminent domain trial is scheduled for October 2010.  Earlier this month, Bay City Partners sued the City, attacking its improvement ...

As we reported in an update yesterday, San Luis Obispo County adopted resolutions of necessity to condemn portions of three parcels needed for Nipomo’s Willow Road interchange project.  According to an April 21 Santa Maria Times article by April Charlton, "Board OKs use of eminent domain," the County is still negotiating with the owners, but was forced to start the eminent domain process now, or its risks losing key project funding:

[T]he county is required to show the state that the project is ready to proceed by the end of June to obtain millions of dollars in transportation funds ...

Over the past month, we have reported on a number of potential projects involving the use of eminent domain.  For anyone following these projects, here is a quick update:

• On March 19, we reported that the City of San Pablo was contemplating renewing the City's eminent domain powers for an additional 12 years while promising compliance with Proposition 99.  According to a Mercury News article, this week the City postponed reaching a decision on the renewal until at least May 3. 
• On March 24, we reported that the County of San Luis Obispo was contemplating authorizing eminent domain ...

The City of Milpitas plans to expand its redevelopment area to encompass more than 600 additional acres.  The County of Santa Clara, however, claims that the proposed expansion area has very little "blight."  Because of the potential for diversion of tax dollars and the significant financial impact the expansion may cause, this apparently has led to a brewing dispute between the County and the City.

According to a Milpitas Post article, "County to Milpitas: revisit RDA expansion plan or face lawsuit," the County has threatened the City with a lawsuit if the City moves forward with its ...

On May 11, Chapter 67 of the IRWA (Orange County) is hosting a half-day seminar focused on the interrelationship between renewable energy, right-of-way acquisitions, and eminent domain.  If tying renewable energy to eminent domain sounds like a bit of a stretch, you apparently haven't been following all the recent news about the struggle to entitle and build renewable energy projects.  Just yesterday, the White House Blog featured a profile on federal energy policies entitled Building a New Foundation for Energy and the Environment. 

Between the project facility itself and the ...

Several years ago, the Elsinore Valley Municipal Water District filed a "friendly" eminent domain action to acquire a portion of an unimproved "paper" street from the City of Lake Elsinore.  The property was to be used to construct a water pumping station to serve a nearby development, and the City had no objection.  The water district took possession, and began construction of the pumping station.  So far, this seems like a non-story, right?

Well, to the water district's surprise, a nearby property owner appeared in the action and challenged the water district's ...

According to a San Diego Union Tribune article,"City ready to acquire land to widen Plaza Boulevard," National City has adopted resolutions of necessity in order to use eminent domain for the widening of a 1.1-mile stretch of Plaza Boulevard.  37 properties are impacted, although the City has reached agreements with a majority of the property owners.

The expansion project will widen Plaza Boulevard from four to six lanes between Highland Avenue and Euclid Avenue, including a section under the 805 freeway.  The City says widening its busiest commercial corridor will ...

Recently, the State of Utah has been making eminent domain news as it seeks to condemn property from the federal government.  Now, one California County is looking at a less drastic means of gaining some control over federal property. 

On April 6, the San Benito County Board of Supervisors voted 4-0 to reopen 25 miles of previously closed County roads.  While deciding to reopen its own roads might normally garner little attention, this decision is interesting because the roads are located within land owned by the federal Bureau of Land Management.   The roads were closed in 2008 when the BLM ...

Over the years, the approval process for development projects in California has become more burdensome, more difficult, and more time consuming.  The project proponent -- whether a private developer or a public agency -- spends months, and usually years, addressing environmental issues, processing entitlements and, for bigger projects, often facing court challenges.  But what does this have to do with eminent domain?

Well, property owners and business owners typically become aware of potential government projects very early in the planning process.  And while the ...

If you are an eminent domain attorney, a right-of-way agent, or an appraiser working in Southern California, you will have ample opportunities to expand your horizons (or at least your networking circles) in April.  Here's just a sampling of what's coming up locally:

• April 12-13:  CLE International is holding its 12th Annual Eminent Domain Conference at the Millennium Biltmore in Los Angeles.  If you're looking for two full days of hearing about eminent domain . . . you probably need help.  But if you are, this is a great program, with a number of top speakers.

• April 13:  IRWA Chapter 67 ...

A fundamental premise underlying eminent domain laws is that the owner is treated fairly under principles of just compensation.  This means that the owner receives fair market value for the property being condemned.  And, where there is an active, relevant real estate market with ample comparable sales data, this premise can be upheld through traditional appraisal methodologies.

Unfortunately, not all markets include legitimate, open market transactions from which to gather comparable sales data.  This is especially true where market conditions have deteriorated; in other ...

According to a Pasadena Star-News article, "Pasadena may use eminent domain to seize historical building," next month the City of Pasadena will consider authorizing the use of eminent domain to acquire a historical building designed by California's first prominent female architect, Julia Morgan.  The building, located at 78 N. Marengo Ave. near City Hall, was built in 1921, making it one of the earliest historical structures in Pasadena.  Pasadena is apparently ready to turn to eminent domain because the historical site has been fenced up and abandoned for more than a decade.

So ...

Last week, my colleague Rick Rayl blogged about the Ninth Circuit's issuing an order granting an en banc hearing of the Guggenheim case involving the City of Goleta's mobile home park rent control ordinance.  If anyone is interested in a more in-depth analysis of the issues of that case, how the en banc process works, how politics come into play, and how the Ninth Circuit may ultimately come out on the regulatory takings issue, Rick and I prepared a more in-depth article that addresses those issues.  The article, "9th Circuit Revisits 2009 Trailer Park Opinion," was published in the Daily ...

According to a Santa Maria Times article, "Eminent domain decision delayed," the County of San Luis Obispo is currently in the process of acquiring property for the Nipomo's Willow Road Interchange project, which will extend Willow Road from Hetrick Road to Highway 101, and will also include constructing new onramps for access to Highway 101 from the extension.  While it appears the County has successfully negotiated the property acquisitions so far, the County may utilize its eminent domain powers to condemn other necessary properties.

One impacted property -- a ...

After a flurry of post-Kelo activity, cries for eminent domain reform seem to have quieted in California in the past couple of years.  Now, public utility companies are seeking to step into the calm in an effort to roll back some of the reforms that did occur.

One of the recent changes to California eminent domain law involves the procedures for obtaining prejudgment possession.  Before Kelo, agencies could almost guarantee possession quickly.  In fact, they could obtain orders for possession ex parte, meaning they didn't even have to provide owners with notice that they were seeking ...

According to a Contra Costa Times article, "San Pablo tries to quell eminent domain fears with promise to residents," the City of San Pablo has promised residents that it will not use the power of eminent domain to acquire owner-occupied residences for purposes of private development.  The promise is a bit odd, given the fact that  Proposition 99, which Caifornia voters passed in 2008, is intended to prohibit exactly that use of eminent domain.  (We'll leave aside for the moment whether Proposition 99 really does effectively prohibit the taking of residential property for ...

We reported earlier this week about the Ninth Circuit's March 12 order to hold an en banc hearing of its decision in Guggenheim v. City of Goleta.  The case involves a regulatory takings challenge to the City's rent control ordinance involving mobile home parks. 

On March 15, the California Court of Appeal for the Fourth District (San Diego) issued its opinion in MHC Financing Limited Partnership Two v. City of Santee (March 15, 2010, Case No. D053345).  The court rejected plaintiff's regulatory takings claim involving a City of Santee rent control ordinance, concluding that the as ...

There is an interesting story in today's North County Times about a political dispute brewing between members of a sub-committe of the Vista Redevelopment Agency.  The story by Cigi Ross, titled "VISTA: Member breaks rank with Vista redevelopment panel," explains that one of Vista's project area committee members, Jerome Hymes, has distributed a letter to about 35 downtown businesses warning that the agency may seize their property by eminent domain.  The other members are chastising Hymes, claiming the letter is filled with a "total laundry list of all the urban myths of ...

According to the Alameda Corridor-East Construction Authority's ("ACE") Spring Newsletter (which was published yesterday), ACE plans to start construction of three major grade separation projects this year.  The three projects include:

• The Baldwin Avenue grade separation project in El Monte, which involves creating a roadway underpass beneath the Union Pacific Railroad tracks at the Baldwin Avenue crossing;
• The Nogales Street grade separation project in the City of Industry, which involves lowering Nogales Street 20 feet below the railroad tracks; and
• The San Gabriel ...

The Appraisal Institute and Chapter 1 of the IRWA are holding their annual joint meeting on March 23.  It is being held at Steven's Steakhouse in Commerce.  Here are the details:

Steven's Steak House
5332 Stevens Place
Commerce, CA 90040

March 23, 2010
11:30 - Registration & Check-in
12:00 - Lunch & Presentation

The speaker will be Greg Angelo, Director of Real Property Management & Development at Los Angeles County MTA (Metro).   Mr. Angelo will talk about current Metro projects, including Expo Corridor Phase 1, Orange Line to Chatsworth, and I-405 Sepulveda Pass.  He will also talk ...

Last fall, we reported on the Ninth Circuit's decision in Guggenheim v. City of Goleta, a regulatory takings case that generated considerable interest.  The Ninth Circuit Court of Appeals held that the City of Goleta's rent control ordinance constituted a taking and ordered the City to pay just compensation to the owner of a mobile home park. 

The Court concluded that the ordinance crossed the line because it had the effect of transferring as much as 90 percent of the property's value from the owner to the mobile home park's tenants.  The holding was significant not only because the ...

I'm a California eminent domain attorney.  I work in Orange County, Los Angeles County, Riverside County, San Bernardino County, etc.  I don't work in Utah.  I'm not even licensed in Utah.  Why, then, would I bother to blog about what is going on with eminent domain in Utah?

Quite frankly, because it amuses me.  The Utah Senate has now approved a law that authorizes the state to condemn property from the federal government.  You may wonder how can a state give itself the power to condemn property from the federal government.  The answer:  it probably can't --and Utah knows it.  

According to a ...

We've previously reported on some of the major renewable energy projects currently underway, such as Southern California Edison's Tehachapi Renewable Energy Transmission Line Project and GE's plans to design the largest wind farm in the world.  After a major planning effort, it appears that another renewable energy project -- the Sunrise Powerlink project -- may be moving forward as well.  

According to a March 7 San Diego Union Tribune article by Onell Soto, the 123-mile, $1.88 billion Sunrise Powerlink project has obtained approval from the Public Utilities Commission ...

Over the weekend, someone posted a comment on an earlier piece involving the City of Vista's Efforts to Assemble an Auto Mall.  The comment referred to potential tax advantages to owners facing condemnation, and was probably more timely than the person commenting realized.  Here is the main point of the comment:

I have read that Owners forced to sell property though eminent domain have tax advantages on any gain as opposed to if they sell voluntarily.

The comment refers to Internal Revenue Code Section 1033, which provides tax deferral for "involuntary conversions" of ...

In February 2009, the city of American Canyon filed an eminent domain lawsuit in Napa County Superior Court to acquire vacant property on which the city intended to build two water storage tanks.  According to a Napa Valley Register article, "AmCan settles deal for water tank property," the city has now settled the lawsuit for $542,909.  In return, the city obtained 3.2 acres of unimproved land and an additional four acres for permanent and temporary easements.

It appears that the settlement was prompted by the court's recent ruling that the property owner was not entitled ...

Marc Scribner of the Competitive Enterprise Institute published this week an article about the economics of eminent domain for economic development (i.e., for redevelopment purposes) entitled "This Land Ain’t your Land; this Land Is my Land."  I found the piece interesting, despite the fact that it seemed the author started from the conclusion "eminent domain is bad" and worked backwards crafting an analysis to get there. 

Ultimately, however, Mr. Scribner does provide some interesting insight.  He does not simply come out and say eminent domain for economic development is ...

On March 9, 2010, Chapter 67 of the IRWA is holding its monthly lunch meeting.  The meeting is being held, as always, at the Santa Ana/OC Airport Holiday Inn.  This month's speakers are Patrick A. Hennessey and Michael H. Leifer, who are presenting "Inverse Condemnation: It's a Mad, Mad, Mad, Mad World."   MCLE credit is available for attorneys. 

You can RSVP to Hospitality Chair Joe Munsey at Jmunsey@semprautilities.com (it's $15 if you RSVP, or $20 at the door).   Here are the details:

Santa Ana/OC Airport Holiday Inn
2726 South Grand Ave.
Santa Ana, CA 92705

Meet & Greet:  11:30am ...

In December, we reported on Sierra Madre's decision to allow voters to decide whether the City should possess the power to condemn property for redevelopment purposes.  On April 13, 2010, voters will decide the issue by ratifying or rejecting City Ordinance 1304, but for now, the measure has triggered some colorful debate. 

On February 27, Susan Henderson offered a Mountain View News article "Eminent Domain Measure -- Yes or No?"  She purports to analyze the measure in the broader context of recent eminent-domain-reform efforts, including California's Proposition 99, passed in ...

In the past, we've reported on the San Francisco Redevelopment Agency's condemnation of the historic Hugo Hotel.  It now appears that city officials in Ukiah may utilize a similar playbook and reinstate the redevelopment agency's power of eminent domain in order to acquire the historic 119-year old Palace Hotel.  According to a Press Democrat article, "Ukiah seeks new life for Palace Hotel," the city may turn to eminent domain after decades of unsuccessfully nudging the hotel's Marin County owners to rehabilitate the historic vine-covered building in the heart of downtown. 

The City of Placentia has a large redevelopment area, and ambitious plans to redevelop an industrial neighborhood in south Placentia.  But the City has responded to the outrage over eminent domain and, in particular, eminent domain for redevelopment purposes.  The City apparently has no power to condemn property for private redevelopment. 

Yet, this lack of authority has not stopped some property owners in the redevelopment area from complaining that the "threat" of eminent domain has decimated their property's value.  According to a February 17 Orange County Register article by ...

We reported back in October that the Long Beach City Council approved the use of eminent domain to acquire nearly 10,000 square feet of property to widen Pacific Coast Highway.  Now in February, the City Council is once again considering the issue.  So why, nearly four months later, is the issue back before the City Council?  According to a recent Costa Costa Times article, the reason is because the project description has changed.

Back in the "pre-Kelo" era, agencies would routinely proceed with planned eminent domain despite minor changes to the project description.  However ...

Our office received notice yesterday afternoon that due to the current fiscal crisis, the Los Angeles County Superior Court is closing Department 59, effective February 22.  Everyone who practices eminent domain in Los Angeles knows about Department 59, the Department designated for eminent domain cases in Los Angeles County. 

Commissioner Mitchell has been handling eminent domain cases in Department 59 for many years, and his knowledge of this unique area of law has made pretrial procedures in Los Angeles run smoother than anywhere else in Southern California.   Even for those ...

I will be speaking February 11 at the Sacramento IRWA Chapter's lunch meeting (Chapter 27).  My presentation will be about avoiding pitfalls under the new eminent domain prejudgment possession rules.   This topic has received considerable attention over the past couple of years, and will undoubtedly be the focus of more attention over the next few years as appellate decisions involving the new rules start to appear.  

The meeting details are as follows:

La Provence
110 Diamond Creek Place
Roseville, CA 95747
(916) 789-2002

Board Meeting: 10:30 a.m.
Registration/ Meet & ...

Next week, Chapter 67 of the IRWA (Orange County) is holding its annual Past Presidents' lunch.   The lunch will feature speaker Randall S. Stamen, an International Society of Arboriculture Certified Arborist -- and an attorney.  In case the really long title is slowing you down, I think that means he is a tree expert and, in particular for the IRWA's purposes, that he has expertise in dealing with relocation and valuation of trees impacted by eminent domain actions.  

Though it seems at first glance like a fairly odd topic, tree issues do arise with some regularity in condemnation cases ...

We have previously reported on Tulare County's efforts to acquire right of way for its Road 108 widening and its Road 80 widening.  Now, the County is considering condemning four additional parcels for the Road 108 project. 

In a February 1 article in the Visalia Times Delta, Eminent domain on county board's agenda, Valerie Gibbons reports that the County will decide tomorrow whether to file four more eminent domain actions, which would bring the recent total to 25.  Ms. Gibbons reports that the County's apparent rush to proceed has "had residents up in arms in past meetings."

But the County ...

I mentioned in an article last week that many redevelopment agencies are facing budget issues; the city of Imperial Beach is facing a similar, but slightly different, problem:  after investing over $8 million in bond money for redevelopment of the Miracle Shopping Center, the economic climate has made it impossible for the city to find an interested developer. 

Nevertheless, the city decided to raise more funds, and purchase the shopping center anyway, hoping the city's ownership would make the site more attractive to developers.  With city ownership now in ...

Yesterday, Professor Gideon Kanner, a well-known eminent domain scholar, wrote a critique of my post about Avatar on his "Gideon's Trumpet" blog.  It is an interesting response, in that it spans two full pages of printed text, and his fundamental point seems to be that he agrees with my premise that Avatar is not a film about eminent domain.  

How, then, does he spend two pages responding to my January 26 post, "Is Avatar Really a Political Commentary on Eminent Domain Abuse?"  Well, he begins by "trumpeting" the fact that he writes from an "unabashedly property-owner oriented" ...

On February 3, Chapter 57 of the International Right of Way Association will hold its next lunch meeting.  The speaker will be Barry McDaniel, the CEO at Overland, Pacific and Cutler.  Barry is a well-recognized -- and very successful -- relocation consultant.  He will be speaking about "Move Planning." 

The meeting details are as follows:

Riverside Convention Center
3443 Orange Street
Riverside, California

The meeting starts at 11:30 and should be over by around 1:00.  The cost is $16.00 if you RSVP in advance, and $20.00 at the door.  You can RSVP to Chapter 57 Communications ...

For years, Cathedral City has been acquiring property by eminent domain as part of its 23-acre Eastside Downtown Area redevelopment plan, which seeks to redevelop downtown Cathedral City into a 39-unit commercial center.  Our firm has also been involved in the project for years, having assisted several property owners impacted by the redevelopment agency's plans. 

According to a January 26 Desert Sun article, "Cathedral City council votes to pay $535,000 in eminent domain land deal," Cathedral City recently approved a $535,000 settlement with one of the final remaining ...