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Congress vets private property rights
Thursday, Sep 8, 2005

By Samantha Young
Stephens Washington Bureau

WASHINGTON - Fearful that farmland, small businesses and homeowners could be displaced by more profitable industrial parks and high-rise condominiums, lawmakers on Wednesday explored ways to bolster individual property rights.

New bills in Congress aim to discourage local communities from taking land from unwilling sellers in light of a Supreme Court ruling in June that expanded government powers to do so.

"Part of the American dream is to own your own property - something no one can take from you," said Rep. Henry Bonilla, R-Texas, who has sponsored legislation curbing government powers on property takings.

Congress has turned its focus on the powers of eminent domain following the court's 5-4 decision. In Kelo v. the City of New London, Justices ruled in favor of a Connecticut city that wanted to buy up a depressed area for a pharmaceutical complex.

The power of eminent domain -- the taking of private property for just compensation -- could be used to advance a public good beyond the traditional land takings for public schools, roads, hospitals and libraries, the court said.

While the ruling was a win for local government efforts to revitalize blighted communities, property rights advocates blasted the decision, saying it effectively would hand government the property deeds of unwilling sellers.

"Cities may now bulldoze private citizens' homes, farms and small businesses to make way for shopping malls or other developments," said Bob Goodlatte, R-Va.. chairman of the House Agriculture Committee who called a hearing Wednesday on the practice.

Since the ruling, local governments in Freeport, Texas, Sunset Hills, Mo., and Oakland, Calif., have proceeded with plans to condemn houses and evict businesses from prime real estate, said Dana Berliner, an attorney with the Institute for Justice, which represented Connecticut homeowners.

Some farmers are concerned their land may be next.

"While agricultural lands are vital to the nation because they feed our people, they do not generate as much property tax revenue as homes or offices or any other use," said American Farm Bureau Federation president Bob Stallman.

"There is nothing to stop farms that have been in families for generations from being taken for industrial developments, shopping malls or housing developments," Stallman said.

Although eminent domain law is largely defined by a patchwork of state laws, federal lawmakers are looking for methods to discourage local governments from buying property for private use.

The federal focus comes a week after an Arkansas legislative panel approved studying whether state private property laws should be strengthened.

In Congress, the most sweeping proposal would withhold federal loans and grants from local governments that use eminent domain powers to take private property from one entity and give it to another.

"While Congress can't overturn the Supreme Court, we can provide carrots and sticks to prevent local governments from unfairly taking property from landowners," said Rep. Stephanie Herseth, D-S.D.

But at least one lawmaker warned that legislation could backfire in areas like New Orleans where governments will want to rebuild after the hurricane.

"It looks to me like we get ourselves in a situation where we tie the hands of state and local officials where they can't rebuild," said Rep. Collin Peterson, D-Minn., whose constituents lost homes in the 1997 Mississippi River flood.



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