Eminent Domain Report

I wanted to provide a quick update on a couple of cases we've reported on earlier. 

The first case is the dispute between the City of Seal Beach and Bay City Partners over 10.7 acres of waterfront property.  The city wanted the property preserved for the public, while the owner wanted to use it as part of a new oceanfront development.  According to a March 29 article in the Orange County Register by Roxana Kopetman, Seal Beach and developer agree on waterfront property, the parties agreed this week to a settlement that will result in leaving about 70 percent of the property open to the public. 

In return, the city will pay the developer $2 million, far less than the amount the owner thought it was worth.  But the agreement may be a win-win if it opens the door to the owner's planned development of 48 homes on the remaining property.   

The second case is the ongoing court battle over National City's redevelopment plan and the youth boxing facility that could stand in its way.  In that case, the Institute for Justice is representing the boxing gym's owners, claiming that the city failed to meet the post-Kelo requirements for making blight findings when it extended its redevelopment plan.  The city, in turn, claims that it made proper blight findings.  And in response to the owner's claims that the lawsuit is all about stopping eminent domain abuse, the city argues that it has no plans to condemn the property.

Trial commenced March 14, and closing arguments took place last week.  The parties are now waiting for a ruling from Judge Steven R. Denton.  We'll let you know what happens when the judge issues his ruling.  (Meanwhile, of course, as the overall fate of redevelopment agencies in California hangs in the balance of the ongoing budget dispute, the potential importance of this decision is unclear.)