Eminent Domain
California’s state and local governments sometimes purchase private property in order to build public transportation, schools, parks and other public facilities. Most of these purchases are negotiated between private property owners and public agencies. But, when the owner does not want to sell or does not agree with the price offered, the public agency may use ‘eminent domain’ to acquire the property.
Essentially, eminent domain is the power of governments to take private property for a public use as long as the government provides fair compensation to the property owner. Public uses could include schools, roads, government buildings, parks, and public utility facilities. In addition to building facilities for public use, governments occasionally take property for a variety of other public purposes – for example, to eliminate public nuisances (such as drug houses or hazardous buildings), to correct environmental problems or to enhance tax revenues by developing new businesses in blighted areas.
The following activities have been considered public uses:
- Promoting downtown development by acquiring and transferring property to construct new hotels, stores, etc. This may involve transfer to private owners (e.g., developers).
- Reducing urban blight by transferring sub-standard apartments to a nonprofit housing organization. This could also be a private entity.
- Securing public control of utility services by acquiring private utility systems and placing them under government ownership.
Current law does not restrict how a public agency may use property acquired through eminent domain or require the agency to return the property to its previous owner if it no longer uses the property for the original purpose. Although owners can challenge the government’s right to take their property, it is difficult for them to win and keep their land since the courts often defer to the government’s findings.
Important legal background: The U.S. Supreme Court, in Kelo vs. the City of New London held that the government may use eminent domain to take property from its owner for the purpose of transferring it to a private developer. This decision helped drive both initiatives on the June ballot.
The Fremont Chamber of Commerce
39488 Stevenson Place, Suite 100,
Fremont, California 94539
www.fremontbusiness.com ::
fmtcc@fremontbusiness.com
510/795.2244 :: fax 510/795.2240
