hb 434 eminent domain march 2017 - pft legal |...

What you need to know about proposed changes to Georgia’s Eminent Domain Law With only a few days left in Georgia’s legislative session, House Bill 434 continues to garner little public interest and less debate inside the Capital. House Bill 434 would amend the law of eminent domain in Georgia by dramatically expanding the meaning of “public use” to include the removal of “blights.” Blights are not strenuously defined by the bill, but the bill’s sponsor, Representative Willard, has argued that allowing the State to condemn property that diminishes property values will mean the ability to condemn and remove “crack houses” and the like, and raise tax revenues. Perhaps the most radical change posed by this bill is the ability of private developers to petition superior courts to use eminent domain. Once a private developer establishes through an application process that a particular property or areas is a “blight” in the community, the developer can introduce its own plan for the property. If the plan is deemed by the governing authority to be an “economic development” capable of increasing tax revenues, the tax base, or employment, then the petition will be granted after a hearing which all interested parties will be given notice to attend. Ever since the United States Supreme Court ruled in Kelo v. City of New London in 2005 that a government entity can define “public use” to include the removal of slums, most state governments as well as counties and cities have reacted by passing legislation deliberately limiting a government’s use of eminent domain. Georgia followed suit, enacting The Landowner's Bill of Rights and Private Property Protection Act on the last day of the 2006 session. The Act made significant changes to Title 22 under the Official Code of Georgia Annotated, including prohibiting the use of eminent domain authority "unless it is for public use." Today, HB 434 is a dramatic step away from that policy by expanding the definition of public use to allow for economic development as a "secondary or ancillary public benefit of condemnation." Ultimately, the definition of “blight” in the bill could lead to judicial determination of what constitutes “blight” and a review of which properties are negatively impacting their communities to warrant seizure and conversion of title to such properties to private developers. For more information on this article contact: Christian Torgrimson, Managing Partner and Eminent Domain Attorney, Pursley Friese Torgrimson, at [email protected]. Legislative Alert | March 27, 2017 House Bill 434 Seeks to Expand Eminent Domain Powers

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Page 1: HB 434 Eminent Domain March 2017 - PFT Legal | …pftlegal.com/.../03/HB-434-Eminent-Domain_March-2017.pdfEminent Domain Powers Title Microsoft Word - HB 434 Eminent Domain_March 2017.docx

WhatyouneedtoknowaboutproposedchangestoGeorgia’sEminentDomainLaw

WithonlyafewdaysleftinGeorgia’slegislativesession,HouseBill434continuestogarnerlittlepublicinterestandlessdebateinsidetheCapital.HouseBill434wouldamendthelawofeminentdomaininGeorgiabydramaticallyexpandingthemeaningof“publicuse”toincludetheremovalof“blights.”Blightsarenotstrenuouslydefinedbythebill,butthebill’ssponsor,RepresentativeWillard,hasarguedthatallowingtheStatetocondemnpropertythatdiminishespropertyvalueswillmeantheabilitytocondemnandremove“crackhouses”andthelike,andraisetaxrevenues.Perhapsthemostradicalchangeposedbythisbillistheabilityofprivatedeveloperstopetitionsuperiorcourtstouseeminentdomain.Onceaprivatedeveloperestablishesthroughanapplicationprocessthataparticularpropertyorareasisa“blight”inthecommunity,thedevelopercanintroduceitsownplanfortheproperty.Iftheplanisdeemedbythegoverningauthoritytobean“economicdevelopment”capableofincreasingtaxrevenues,thetaxbase,oremployment,thenthepetitionwillbegrantedafterahearingwhichallinterestedpartieswillbegivennoticetoattend.

EversincetheUnitedStatesSupremeCourtruledinKelov.CityofNewLondonin2005thatagovernmententitycandefine“publicuse”toincludetheremovalofslums,moststategovernmentsaswellascountiesandcitieshavereactedbypassinglegislationdeliberatelylimitingagovernment’suseofeminentdomain.Georgiafollowedsuit,enactingTheLandowner'sBillofRightsandPrivatePropertyProtectionActonthelastdayofthe2006session.TheActmadesignificantchangestoTitle22undertheOfficialCodeofGeorgiaAnnotated,includingprohibitingtheuseofeminentdomainauthority"unlessitisforpublicuse."Today,HB434isadramaticstepawayfromthatpolicybyexpandingthedefinitionofpublicusetoallowforeconomicdevelopmentasa"secondaryorancillarypublicbenefitofcondemnation."Ultimately,thedefinitionof“blight”inthebillcouldleadtojudicialdeterminationofwhatconstitutes“blight”andareviewofwhichpropertiesarenegativelyimpactingtheircommunitiestowarrantseizureandconversionoftitletosuchpropertiestoprivatedevelopers. For more information on this article contact: Christian Torgrimson, Managing Partner and Eminent Domain Attorney, Pursley Friese Torgrimson, at [email protected].

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