Arizona's Proposition 207 will block government abuse of eminent domain which seizes private property under the guise of claiming it "slum and blight," when it isn't.
Proposition 207 would stop governments from taking private property for private use, keep governments from condemning entire neighborhoods because of blighted conditions existing on individual properties, and allow property owners to seek just compensation when they suffer from the imposition of arbitrary land-use regulations ("regulatory takings"). Responding to the popularity of these reforms, opponents of Prop 207 have propagated several myths about the reform.
Myth : The courts already protect property owners from eminent domain abuse. Arizona property owners won in 2003 when the Arizona Court of Appeals kept the City of Mesa from taking Randy Bailey's brake shop and giving it to the owner of a hardware store.
Reality : In last year's Kelo decision, the U.S. Supreme Court declared that states could allow cities to use eminent domain to take people's houses and give them to developers. Further, the courts have done nothing to prevent whole neighborhoods from being condemned for "slum and blight" due to conditions existing on individual properties.
Myth : The regulatory takings issue is better handled through the courts.
Reality : Under current case law, government has to entirely destroy the value of an owner's land in order for the owner to receive compensation. If an arbitrary government regulation destroys half the fair market value of a parcel of land, that is not enough to trigger compensation.
Myth : City governments and developer interests are in favor of the eminent domain provisions of Prop 207, but are concerned about regulatory takings.
Reality : The cities and their politically-connected developer friends do not favor any part of Prop 207. Rather than looking at their words, we should look at what the politicians actually do: they take people's land give it to private developers, using the rationales of "redevelopment" and "slum and blight."
Myth : Prop 207's eminent domain reforms would keep cities from implementing wise planning decisions.
Reality : Cities have not proved to be very wise. Many redevelopment projects have been failures, and in some cases properties condemned years ago sit vacant-except for weeds and trash.
Myth : Prop 207's regulatory takings provisions would result in lots of litigation-just like Oregon's Measure 37, which has generated roughly $5 billion in claims against governments in the state.
Reality : Oregon's Measure 37 was retroactive, meaning that property owners could go back in time and sue cities. All but $47,000 of the $5 billion in claims stems from the retroactive features of Measure 37. Prop 207, by contrast, is explicitly prospective.
Myth : Prop 207's regulatory takings provisions would prevent cities from implementing necessary regulations for the public benefit, such as regulations protecting military bases from encroachment by housing developers.
Reality : Prop 207 contains exemptions that allow cities to continue to regulate in the public interest, without having to compensate property owners. Among the many exemptions are land-use laws for the protection of the public's health and safety, fire and building codes, sanitation, transportation or traffic control, solid or hazardous waste, and pollution control.
Myth : People will be able to sue for compensation when their neighbors get upzoned.
Reality : Prop 207 does not allow compensation for land-use changes that do not directly regulate an owner's land.
Myth : Taxpayers will pay more, because cities will have to pay compensation.
Reality : Compensation under Prop 207 is based on fair market value, so an individual who complains about a land-use change related to a military base (or anything else) is going to have to make the case his land value was damaged. If the city negotiates and allows the owner a use that is just as valuable, he will have no case. Further, cities always have the option of granting the property owner a waiver from the regulation.
Myth : Prop 207 is going to win easily, so Arizona property owners can relax between now and November 7.
Reality : In a recent poll, Prop 207 had 53 percent support. The battle to secure our property rights will be a close one, and we need all the support we can get.
vc@aztaxpayers.org
http://www.aztaxpayers.org
Read more articles by Chad Kirkpatrick & Tom Jenney
