30 Jan 12
Last week the Indiana Senate voted 34-13 to approve Senate Bill 54, which would require public universities obtaining property through eminent domain to pay for the value of a business taken. We have previously blogged about the potential impact of the bill and how it would affect land owners. That blog can be viewed here.
The bill now moves to the House for further consideration.
26 Jan 12
The Delphi Pentecostal Church has rejected the State’s second offer to buy its property in connection with the Hoosier Heartland Highway. The second offer was improved, but still far short of what the church believes its property is worth. This offer was $617,000, up from the original $535,000 offer. However the church has been given an estimate of $1.8 million just to replace the three buildings on the property, which does not even include the cost of purchasing the land. The rejection of the offer means the dispute is likely headed trial if it can not be settled at mediation in the mean time.
The dispute continues to get coverage in the news. Click the following link for an article about the most recent developments.
http://www.jconline.com/article/20120125/NEWS/201250318/Delphi-church-rejects-higher-offer?odyssey=tab%7Ctopnews%7Ctext%7CFRONTPAGE
Those interested in more information or involved in their own eminent domain disputes are welcome to contact our office at any time at 1-888-318-3761 or visit us on the web at www.severstorey.com.
13 Jan 12
State Sen. Doug Eckerty, R-Yorktown, has introduced a bill that could change the landscape for public universities and their use of the power of eminent domain. The proposed bill looks to be a strong move in the right direction in terms of leveling the playing field for landowners involved in the eminent domain process, but it realistically does not go far enough. Senate Bill 54 would require state colleges or universities using eminent domain to acquire property including an operating business to pay the business owner the capitalized value of the estimated future earnings of the business after the date the state educational institution would acquire the property. The payment of future earnings would be in addition to the current requirements that the property owner be paid the fair market value of the property and all improvements as well as any other damages to which he is entitled.
Another way to understand the impact of this bill is to say that it would require state universities to compensate business owners for the value of their property and their business losses resulting from the taking. Business losses are established by determining the present value of future earnings. The present value of future earnings is computed using a formula that relies on previous earnings and then accounts for the business’s projected growth and the risk that earnings will stop or end up lower that the estimate. This somewhat complicated formula is used to value the business. The important takeaway is that this valuation method considers the current benefit of realizing future cash flows now, rather than in the future.
Indiana, among many other states, currently has a land-centric compensation system, which ignores potential economic injuries to businesses located on properties subject to eminent domain. Indiana law compensates the land or business owner for the value of the property, but it does not take into account the losses the business incurs as a result of the taking. Rarely is a business subject to eminent domain and able to avoid any negative financial impacts. Considerations like location, customer loyalty, etc. are almost always affected by eminent domain, and these factors play an important role in a business’s viability. Many businesses are so greatly affected by the process that they are unable to survive, and thus businesses owners are often left uncompensated for major injuries resulting from the taking. This is an insufficiency that must be addressed. The power of eminent domain is an important tool for the State, but landowners must be compensated fully for any and all losses suffered.
This bill is a step in the right direction in terms of truly compensating property and specifically business owners affected by eminent domain, but it ultimately does not go far enough. The bill’s impact should be expanded to cover eminent domain actions taken by any actor when an operating business is involved. Certain business owners should not be left without true compensation simply because they were not lucky enough to be located next to a state college or university. All actors exercising the power of eminent domain and all individuals affected should be treated equally under the law.
This is not to say however that no limitations should be placed on the recovery of business losses. It should not be the business owner’s goal to become unjustly enriched through the eminent domain process. Therefore it would likely be prudent, in an effort to prevent windfall returns to those businesses that are able to relocate and resume effective operations, to limit the compensation to the business losses that cannot reasonably be recouped through relocation of the business or other reasonable means.
Other states, although few in number, have already taken steps to compensate property and business owners for what are generally considered “business losses.” And they have applied the compensation for business losses theory to eminent domain proceedings initiated by all actors. California and Minnesota are prime examples. These states have applied the general idea in the Indiana bill, but have refined it with the addition of some limitations. Each state has its own term to describe business losses, but they are generally defined as “the benefits that accrue to a business as a result of its location, reputation for dependability, skill or quality, and any other circumstances resulting in probable retention of old or acquisition of new patronage.” Additionally, each state places three important limitations on the award of compensation for business losses: (1) The loss must be caused by the taking of the property of the injury to the remainder. (2) The loss must not be reasonably preventable by a relocation of the business or by taking steps and adopting procedures that a reasonably prudent person would take and adopt to prevent these losses. (3) Compensation for the loss must not be duplicated in the compensation otherwise awarded.
The California and Minnesota statutes achieve just what the eminent domain laws should be designed to accomplish. They allow for the true compensation of land and business owners for the full extent of damages caused by eminent domain proceedings. As stated above, proposed Senate Bill 54 is a step in the right direction in terms of properly compensating property owners affected by the eminent domain process. However it falls short of being the perfect solution. The idea stands to be refined in a number of ways including by expanding its scope to reach all eminent domain takings and by establishing limitations to prevent over-compensation.
The ultimate goal is to implement a system that properly compensates property owners for the taking of their land. And although there is more work to be done, Indiana has taken a significant step towards this goal with the proposal of Senate Bill 54. Many other states without similar laws stand to do the same by proposing legislation similar to Senate Bill 54, and laws like those in California and Minnesota should be considered a viable blueprint for taking that step.
09 Jan 12
The court-appointed appraisers came back with a slightly higher number, but Sever Storey still believes the amount is far too low. Check out the link below to see what Tonny Storey had to say about the new developments.
http://m.pharostribune.com/PT/db_/contentdetail.htm?contentguid=PC47WxI4&full=true#display
Those interested in more information or involved in their own eminent domain disputes are welcome to contact our office at any time at 1-888-318-3761 or visit us on the web at www.severstorey.com.
05 Jan 12
FirstEnergy, an energy company headquartered in Akron, Ohio, is proposing to run a 138,000 volt power line through central Ohio. One proposed route is receiving a great deal of resistance from local residents. The route opposed would travel 60 miles and connect a station in Clark County to another in Delaware County. The opponents have organized and even created the website www.nonewwires.org. FirstEnergy is set to submit a (preferred) proposed route and an alternate to the siting board in February or March, with construction set to begin on the chosen route in 2014. Residents are concerned about the potential losses in property value that will likely be caused by the power line. Those interested in more information are welcome to contact our office at any time at 1-888-318-3761 or visit us on the web at www.severstorey.com.
05 Jan 12
The Hoosier Heartland Highway will provide motorists with a much needed connection between Lafayette and Fort Wayne, but its creation comes at a cost. The project is forcing a longstanding Delphi church to move, and the church’s battle with the State over compensation has made the news. Check out the link below for more information about the dispute and some insight from Sever Storey’s own, Tonny Storey.
http://www.jconline.com/apps/pbcs.dll/article?AID=/201201050200/NEWS/120104039
Those interested in more information or involved in their own eminent domain disputes are welcome to contact our office at any time at 1-888-318-3761 or visit us on the web at www.severstorey.com.
23 Sep 11
INDOT held a public open house on Wednesday, September 21 at Westfield Middle School to reveal plans for the $600 million improvement of US 31 from I-465 to SR 38. The project, which will bring the corridor up to freeway standards, is being tackled in pieces and a number of portions are set to begin within the next year. INDOT acknowledges that there will likely be construction headaches in the form of detours and closures for many motorists in Hamilton County but stresses the benefits the improved US 31 will provide. It will eliminate 13 stoplights along the route and provide nonstop travel along the entire corridor. Property owners affected can expect the land acquisition process to begin anywhere from 18 to 24 months prior to the scheduled start of construction on any given portion of the project. Those interested in more information are welcome to contact our office at any time at 1-888-318-3761 or visit us on the web at www.severstorey.com.
20 Sep 11
There is debate as to the true significance of SC DOT’s decision to approve an $11.5 million project which includes highway widening and realignment, as well as the rebuilding of a bridge on the intersection of U.S. 301 and U.S. 501 near Latta, SC. The project is scheduled to be completed in 2013. Critics say it marks the beginning of construction work associated with I-73 because the project will enable the construction of future ramps associated with the I-95/I-73 interchange. Proponents acknowledge the project is complementary to I-73, but are quick to stress its benefits as a stand-alone project, pointing out it will make roads safer and easier to travel in rural South Carolina. How I-73 in South Carolina will ultimately be funded remains a hot-button issue, so there is no guarantee I-73 will ever come to fruition as planned. Still, the project’s approval likely indicates an attitude within SC DOT geared toward the eventual completion of I-73.
15 Sep 11
Sever Storey will be hosting two educational seminars in Ohio in the next three weeks. The first will be in Portsmouth Ohio on September 27, 2011 for those affected by the Portsmouth Bypass project. The second will be in Lima Ohio on October 3, 2011 for those affected by the I-75 improvement project. The purpose of these seminars is to educate property owners as to their rights and options when they are involved in eminent domain proceedings. Remember, the most important thing you can do is to get yourself in the “know zone.” If you have any questions or would like to attend, feel free to contact us at our toll free number 1-888-318-3761 or visit us on the web at severstorey.com.
Portsmouth Bypass Seminar
Where: Portsmouth Public Library, 1220 Gallia Street, Portsmouth, Ohio 45662
When: September 27, 2011
Time: 6:30-7:30 p.m.
I-75 Seminar
Where: Lima Public Library, 650 West Market Street, Lima, Ohio 45801
When: October 3, 2011
Time: 6:30-7:30 p.m.
09 Sep 11
An important step was just taken in the completion of I-69 from Evansville to Bloomington when the Federal Highway Administration (FHA) approved construction plans for Section 4 of I-69 from near the Crane Naval Surface Warfare Center to Bloomington. The FHA’s approval allows for the use of federal funds for the design and construction of Section 4. The only remaining roadblock is the Bloomington/Monroe County Metropolitan Planning Organization’s pending approval. The board previously voted not to include Section 4 in its transportation plan, but will meet today, September 9, to discuss and possibly vote on the matter again. The board’s approval would give Section 4 the complete go ahead. Despite the uncertainty, INDOT remains resolute that all of I-69 between Evansville and Bloomington will be open for traffic by the end of 2014.
SeverStorey - High Conflict Litigation
Indiana (other locations)
770 3rd Ave SW, Carmel, IN 46032 (map it)
Telephone: (317) 575-9942 | Toll Free: (888) 318-3761
Fax: (317) 575-9943
