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Wednesday, November 08, 2006
John Stossel :: Townhall.com Columnist
Property theft in America
by John Stossel
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Do you live in a blighted home in a blighted neighborhood? You might without even knowing it.

But don't worry, your local politicians will be happy to tell you -- as soon as some land developer decides your neighborhood would be a great place to build swankier homes or shops.

Don't want to leave your home? Tough luck. Once the politicians, in their superior wisdom, decide that the development project will produce more tax revenue or jobs than you and your neighbors do, you'll have to go. Oh, they'll pay you something for your home, maybe less than it's worth -- but you'll have no right to say no and stay where you are.

That's called progress, and it's how things go in America today. The working class is under threat of expropriation for the benefit of the well off.

Shockingly, last year, the U.S. Supreme Court said that was just fine. (Eminent domain is permitted by the Constitution for "public" uses, such as roads or post offices. Using it for private development is a fairly new practice.) After the public backlash against that ruling, over 20 states restricted the use of eminent domain for private economic development. But the protection of homeowners is less than perfect. There's always an exception for "blighted" neighborhoods.

But blight is in the eye of the beholder, and the judgment of those beholders who wield power counts more than yours.

According to the Institute for Justice (IJ), the public-interest law firm, "the definition of 'blight' has become so broad and unprincipled that governments regularly target perfectly fine homes in ordinary neighborhoods for the wrecking ball. Nice homes with spectacular oceanfront views in vibrant neighborhoods can be condemned for reasons like 'diversity of ownership,' meaning that each home is owned by a separate family -- something that should be a point of pride for Americans rather than an excuse to take what rightfully belongs to a homeowner. If owning your own home means your house is blighted, whose house isn't blighted?" (IJ LINK: http://www.ij.org/private_property/longbranch/backgrounder.html)

IJ lawyers are currently defending property owners in Long Branch, N.J., whose homes are threatened by politicians and developers who want to build expensive condominiums in their place. It's odd that the politicians now call these homes "blighted" because only a few years ago, Mayor Adam Schneider praised the condition of the beachfront homes in the middle-class MTOTSA neighborhood. "If the whole area looked like [MTOTSA], we would not be doing [redevelopment]," said the mayor at the time.

Now, all of a sudden, the area needs to be leveled so developers Applied Companies and Matzel & Mumford can provided badly needed condos for the rich.

The homeowners tried to challenge the legality of the condemnations, but a court dismissed the complaint.

It's bad enough the politicians want to steal the homes of these working and retired people. But according to IJ, the city led the residents to believe a way might be found to save their homes even after they had promised the property to the developers. Says IJ: "[T]he MTOTSA homeowners took the mayor up on his offer, promising to cooperate with the city and help with neighborhood improvements. Rather than work with the homeowners, however, the city dismissed them ... " -- demanding elaborate plans for expensive infrastructure improvements.

"To save their homes, in other words, Long Branch expects 93-year-old Al Viviano and his few dozen neighbors to spend hundreds of thousands of dollars on consultants and specialized urban redevelopment plans," says IJ. "[T]he problem with MTOTSA is not blight; it is that it has 93-year-old retirees, not rich and trendy professionals."

Mayor Schneider insists the residents knew the redevelopment plan already was in place and were told the chance of saving their homes was slight. And anyway, he said, he couldn't really see how the few homes in good repair could be integrated into the development plan.

Americans have long prided themselves on their homeownership. It has been seen as the key to the independence and freedom that made America what it is.

Now ownership is subject to arbitrary rule by arrogant politicians.

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About The Author
John Stossel blogs at http://blogs.abcnews.com/johnstossel/ is an award-winning news correspondent and author of Myths, Lies, and Downright Stupidity: Get Out the Shovel--Why Everything You Know is Wrong.
 
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Eminent Domain, Or...?
I refer to it as "communist domain" personally. You'd think a bunch of law graduates would know the Revolution was fought largely over property rights.

let's call it what it really is
tyranny!!

Not to beat a dead horse...
...but I would like to give kudos to Branch Bankng&Trust (BB&T) here in North Carolina. The bank let it be known that it would not lend any financial support to developers involved in this type of eminent domain abuse. The amount of money that they lose out on may be small, but they at least took a stand against the unfair practice that the SCOTUS has decreed to be just fine.

Follow the money
How much money is going to come in, under the table, and end up in the pockets of the concerned public officials? They know that they are going to be ravaged in the press and may not get re-elected because of their actions, so there has to be somethng in it for them personally.

It is...
unfair and heart breaking and frankly un-American, but sadly it is not really surprising. The only surprise is how long this country lasted before politicians figured out how to abuse eminent domain for their own benefit.

Done under Republican watch
Yes and this new land-grabbing scope of eminent domain, which should really be called THEFT, was put in place during the Republican watch!

The vast number of Republicans we have now are NOT conservative, instead they are Rockefeller Republicans. VERY different indeed. Conservatives need to get their heads screwed on straight and understand that our party has been hijacked, AGAIN. We need true conservatives... the ones that more closely align themselves to Barry Goldwater's ideology (which means we adhere to the Constitution), rather than Rockefeller's socialist,globalist, commie agenda.

Do you understand that we have a President in office now that referred to the Constitution as a "GD piece of paper"???!!!!!!!!!!!! Does that not matter to anyone?

I fear for my country.

Violent overthrow??
When will the time come when the sheeple have had enough?

Over the decades since WWII basic rights of the mass of Americans have been eroded (McCain-Feingold, Brady bill, invented taxes, affirmative action etc.etc.)while new 'rights' have been discovered for certain approved groups (minorities incuding women, illegal immigrants, native blacks, immigrant blacks, sexual deviants of all stripes, felons, drunks, handicapped etc. etc.)

When and how will we end it?

Where can I call home?
I've been living overseas for the last six years because my wife is Irish and all of her family are from Ireland. However, being the type of person that I am, I've tried to stay up to date with all that happens back home in the States. As well, living in Europe has given me a greater appreciation for the country I moved away from (all for a woman!!!). However, when I read about incidents like this it truly disheartens me. I always imagine moving back to the States when I reach retirement age (or when I'm about to die so that I can be buried there), but, with the way things are changing, I feel like my true home is lost. Where the hell is my country going?

Breaking Point
Eventually someone will be pushed over the edge, and there will be another episode like the 1991 Killeen, TX Luby's Restaurant massacre, which was touched off by an incident involving the Bell County Clerk's office. I just hope that the innocent are spared.


eminent domain abuse
Too many conservatives are far more concerned about gay marriage than eminent domain abuse, which is an absolute travesty and encroachment on civil (property) rights.

If and when gov't attempts to pull this on me, they will have to carry me out of my home in a body bag. Radical? No, our forefathers defended their rights and property just as zealously.

Re: Done under a Republican Watch
True, but done by liberal politicians, attorneys, and judges.

The three Bush-appointed judges (meaning appointed by either President Bush, 41 or 43) sided with Kelo against New London in the eminent domain case.

BTW, in Michigan yesterday, voters who re-elected a failing Democrat Governor and a do-nothing Democrat US Senator voted 80% to 20% to outlaw the kind of eminent domain takeover described by Stossel in this article. The measure also requires the government to pay a homeowner 125% of the fair market value in cases where private property is taken for true public use, and establishes a higher standard for establishing an area as "blighted".

The people of the United States are not going to sit still for this.

Re: Done under a Republican Watch
True, but done by liberal politicians, attorneys, and judges.

The three Bush-appointed judges (meaning appointed by either President Bush, 41 or 43) sided with Kelo against New London in the eminent domain case.

BTW, in Michigan yesterday, voters who re-elected a failing Democrat Governor and a do-nothing Democrat US Senator voted 80% to 20% to outlaw the kind of eminent domain takeover described by Stossel in this article. The measure also requires the government to pay a homeowner 125% of the fair market value in cases where private property is taken for true public use, and establishes a higher standard for establishing an area as "blighted".

The people of the United States are not going to sit still for this.

Republican Watch
Of all the stupid comments I have read on this site, that one is about the worst. It was done by the courts and by the local authorities. Are you saying that once the courts ruled, the president should have ordered the army to arrest the courts and the community leaders?

Come on folks, this is not a liberal, conservative, Republican, or Democrat issue. This is an issue of people against godlike bureaucrats. Get a grip for heaven's sake.

A consequence of losing
Probably the worst consequence of beating ourselfs yesterday will be the judges that won't get appointed, and those that will.

Bush won't be able to get any conservative judges on the bench. The best he will be able to get are going to be a few centerists with liberal leanings.

On another thread, DavidMac wrote to the effect that now is the time to write to the surviving republican legislators and ask them if they got the message.

REMEMBER -
WITHOUT PROPERTY RIGHTS
THERE ARE NO HUMAN RIGHTS.

Kelo vs. New London
Trends, not elections or polls, determine our future. The trends affecting America are not new. Many of them contributed to the eventual demise of the Roman Empire.

Concentration of wealth and property occurred at the highest levels of Roman Society. A small percentage of Roman Society owned most of the real estate and property. Property ownership was concentrated in the hands of members of the Senate and wealthy large estate owners. Large land owners bought additional smaller properties and got even bigger.

To distract the people from what was going on,the government staged "circuses", and created more holidays.

Kelo vs. New London only gave legitimacy to a practice which had already been going on for a long time. The trend will continue. Outsourcing of jobs,massive,cheap,illegal immigration, elimination of pension plans by large private sector employers to compete globally,inflation, and limited pay increases will continue to pressure the middle class.

All together, these trends will reduce and whittle-down the middle class over time. Democrats are now on the road to owning the government. If they stay in power for decades, they would become decadent and America would suffer the dual insults of higher taxes and loss of some of their traditional freedoms. Well-connected democrat developers will steal (condemn) more prime residential real estate.

In a couple more generations, the only place you will see a single family residence in our cities will be in very wealthy neighborhoods and in museums. By then, most people will live in apartments or condos. There is safety in numbers. It will become harder to condemn whole high rises. For additional insurance against eminent domain theft,add a couple of penthouses.

A different take
I deplore the taking of well-maintained property in established communities for redevelopment for commercial interests, but I thought I'd note the other side.

I became aware of this when I ran into my college economics professor while soaking at the local hot springs. While she agreed with me that morally this taking is wrong, she saw another side of the economics of it.

"Established communities are economically stagnant," she explained. You bought a house 40 years ago and you've paid off the mortgage. Except for real estate taxes, you aren't paying anything for the house. This leads to stagnation. From a community planning perspective, this can be a good thing (the city just needs to maintain utilities, roads, etc) or it can be a bad thing. If the residents of the larger community are asking for infrastructure development, stagnant communities are bad. So, tear them down and redevelop them in a more tax-rewarding way. This has the added benefit of forcing all those people who have paid off their mortgages to go out and get another house and another mortgage. This has economically stimulating properties. Also, a middle-class community with children requires schools, which are a revenue sinkhole, while a development of upscale condos may not allow children, thereby reducing the costs of local government while at the same time increaing their tax revenue.

I'm not saying it's right. I think it's very wrong! But, it is the reasoning of the city councils that are permitting this theft. They see it as a good thing because it stimulates the local economy.

My former professor, who is very conservative for a university employee, believes it will actually be injurious to the wider economy in the long run because it forces older people to enter the debt market for loans they won't live long enough to pay off. Their children will inherit debt rather than property and that has far-reaching consequences. However, she calls herself a "long-view economist" as opposed to the "short-view economists." Some people simply don't care about where things will lead in 40 years so long as the economy is stimulated over the next 20.

Private Property?
Liberty, can you not stop the hate? This has absolutely nothing to do with being Democrat or Republican. If you took the time to do a little research you would know that this has been going on for longer than either of us has been alive but has increased considerably in the last decade or so.

Private property is the cornerstone of wealth. Without the ability to OWN something of value there is no such thing as individual wealth. Without individual wealth there is only collective wealth. In other words there is only socialism. Which as we all know is the basic Democratic platform, redistribution of wealth.

Eminent domain
The town of Long Branch wants to take oceanfront homes and give them to Hovnanian, the developer to build condos.
They offered 30 cents on the dollar to the homeowners.
People cannot sell their homes and must shell out more than 60k for lawyers!

The town has been paid off (by the developers) and so has the local judges who ruled, on all counts, in favor of the city.

The Supreme Court let us down! They permitted legalized property theft!! NJ is one of the last states to pass any Eminent domain law!! This has to be stopped!


to rw:
Dear rw... I am equal opportunity. I dislike the traitors on both sides of the aisle. As far as your insult goes about "doing a little research", surely you are aware, sir, that Kelo occurred during the Bush administration. That was the ruling that changed the name of the game where it comes to eminent domain.

As far as your last statement about private property being the cornerstone of wealth, etc. --- I agree with you wholeheartedly.

Why is it that so many Republicrats cannot SEE when someone in their OWN party is going against the Constitution and conservative ideals? The vast majority seem to go to sleep, when someone in their own party is in power. A traitor is a traitor, regardless of political party.




Private Property?
Liberty, can you not stop the hate? This has absolutely nothing to do with being Democrat or Republican. If you took the time to do a little research you would know that this has been going on for longer than either of us has been alive but has increased considerably in the last decade or so.

Private property is the cornerstone of wealth. Without the ability to OWN something of value there is no such thing as individual wealth. Without individual wealth there is only collective wealth. In other words there is only socialism. Which as we all know is the basic Democratic platform, redistribution of wealth.

Re: Fletch
In your evaluation of aurorawatcher's comments you seem to not have completly read and or understand what the professor was saying. If I am to understand you correctly, you are saying that a well established communities are not stagnant because money in the form of remodeling, increasing property values, and the natural spending of homeowners (goods and services). I think the biggest problem is the word stagnant, because the word refers to no action, a better word might be lathargic.
I say this because the professor was right that a developer will bring in more immediate reenue and taxes to a city. This is beacause construction cost more than remodeling. Also if one home sits on a two acre lot lets say worth $250,000 a developer could easily put four $150,000 home on that same lot with four families needing four times as many goods and services.

Now while I find the act of eminant domain deplorable it is not for the economic reasons but for the fact that working hard to own your own home should be rewarded not punished just for a little extra money for the city.

Baltimore County Eminent Domain
Several years ago in Baltimore County, MD there was an attempt by the state legislature to statutorily permit Baltimore County to seize property and transfer ownership to another private owner. This was forced into referendum and the voters knocked it down. Under this new law the county would have been able to just take the property and the owner would have no recourse. The owner could not have accessed the court nor negotiated a price. It would have been written in stone. The only justification was the lack of significant property taxes.

Theft
A point not mentioned is that , were it not for the threat of legalized theft by the local fascists ( in its definition sense ) , these small home owners are quite wealthy . They bought excellently located properties years ago which have now appreciated to market values in the millions of dollars .

That's why the thieves are targeting them .

If the developers were forced to offer fair market prices for the properties , say 10 , 20 , 30 million apiece , plus perhaps fully paid condos in the new development , at some point they could like make a free market deal . Of course their project wouldn't make the killing they are looking for their cronies to facilitate , but THAT is the balance capitalism dictates .


Attention, Developers:
If you want something that someone else owns, you go to the owner, tell him your interest in it, and try to negotiate a price for it. If you can agree on a price, great. If you cannot, you walk away and pursue something else. You don't call in the government and get them to force the owner to sell at some price of your liking.

Think about it
"If you can't own (and use) property, you are property."
- Wayne Hage

An Interesting Note on "Blight"
This has happened a lot in the past where the pol's will use eminent domain or "Community Redevelopment" to bulldoze a "blighted" neighborhood.

I'd like to take Stossel to task for a minute over the definition of "blighted". Let's suppose it's well and precisely defined. Let's suppose we have a community which is truly, truly "blighted" in the worst sense of the word.

Now suppose for a second that if these people disliked it badly enough, and if they had the means to do so, DON'T YOU SUPPOSE THEY'D LEAVE?

The neighborhood is blighted for a reason. Probably a lot of complicated inter-connected reasons. So some high-minded politician (with a developer in his back pocket) comes along and bulldozes the area. WHERE CAN THESE POOR PEOPLE GO? They certainly aren't going to be able to afford the ritzy new development -- if they *could* they would moved out YEARS ago!

The old buildings, "blighted" though they may well have been, were certainly better than the cardboard box a lot of these people end up in.

And then you get a new category of Democrat voter -- the homeless!

Eminent domain, under the very *best* of circumstances, is legalized theft. And we certainly can find too many examples of *hugely* less-than-best circumstances. It's bad enough to take private property for a genunine public need -- it should *never* be used to transfer property from one private owner to another private owner.

Liberty
Re: Done under a Republican watch

You are mistaken here; SCOTUS was packed with globalists before GWB was even nominated and the judges that his nominees replaced voted in favor of the property owners in Kelo.

Here in Akron, the 100% Democrat city government kicked out two or three families from their homes and evicted a restaurant; the city then gave the land to a nearby car dealer for parking space. The city's megalomaniac mayor also flattened an occupied home while the owner was away and has so far gotten away with it.

The law is really unfair in ED cases; if you want more money for your property there are lawyers who will step up for a percentage of the take but you are on your own if you want to keep your home. Also, as soon as the city decides to take your home then you owe the city rent for their "permission" to stay there.

Another thing: Ohio has a farm preservation law; the principal offenders wre the cities in Ohio. Whenever an issue like this comes up for a vote, look closely at it. More likely than not, government entities will be exempt from its provisions. Wadsworth, to the west of us, decided to take a portion of a local family's farm to build a new high school. Never mind that the present high school campus is one that larger cities would kill to get. Farm preservation law be hanged; the farm will be "preserved" as a new high school.

Akron has a farm inside the city limits and the mayor has been applying pressure to put that farm out of business so he can give that land to a developer.

It ain't the Republicans; the Federal govt doesn't get involved in local issues.

Property Theft on the Street
Property theft "on the street" or in the county jail is more overt than government stealing your house through eminent domain "processes". In principal, it is no different, only more sophisticated.

" I'm gonna take YO' NikEs" says the two bit thug at the High School.


eminent domain
How weak Americans have become in protecting there property rights? This theft of lands for developers is typical of the masses being used by politicians and wealthy. Maybe a bloody revolution would get the polititians attention. Oh no we are too civilized to fight for liberty and property rights. Well then there you have let them take your rights away! No I say stand up and defend your home with weapons in mass force let America know we will not go quietly while developers and there banker buddies steal nice affordable neighborhoods and convert them into high end ,high tax, high junk property. Condo's yuck who wants to live in those boxes anyways. Sounds like Eastern block European development to me.
Personally America needs to just say no to buying anything or doing business with any piece of realestate taken via emininent domain. It's That easy let them go broke. If this doesnt work there is always threat of revolt. We need to stand up for those in communities across this country. Your fellow americans need help saving there homes! support others in cities across this country and threaten you local politians with what ever means nessesary. Dont let em bulldoze over the top of us!!! Thankyou for listening to my complaints. In my town of Oshkosh , Wi our politians currently are gobbling up all the good river frontage agianst my will with my tax dollars. At least with the Communist or Nazis you knew they would be stealing from you.


eminent domain
I was so mad after they toke a few poeple's land I want you all to know both republicans and democrats are basically in concert stealing land all over America. Dont be confused both parties in many areas have backed the theft of American lands. Both
parties are bought and sold by business and banksters. These poeple that claim liberty is worth losing as long as progress is made. Id rather live in the stone age than progress under a swastika flag of red white and blue. Call it what you will but Eminent Domain is a fancy name for Armed Robbery. The government has the military and police to take your land and rarely gives you a fair price. Sounds like a common robbery to me. I would shoot to kill if the poltitian came calling on my front door. They would paint me a criminal but truth be told if every american did the same would we not all be patriots. Wow sorry if I offended thee I guess such times of tyranny bring out the beast in me.
I urge you all to police your neighborhoods
and do not allow your local government get away with it. Am I inciting violence ? WEll if this is what it takes to bring liberty back to America then let it come. I hope it doesnt come to this.
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