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Eminent Domain


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eminent domain; property ownership dispute;sample legislation

Eminent domain is a municipality’s power to take or acquire private property and put it to public use, a use the will benefit the entire community. A recent court ruling allowed the use of eminent domain to transfer private property to other private owners for economic gain, which led to public outcry. Many municipalities have reacted by prohibiting the use of eminent domain for economic gain, and clarifying that eminent domain may be used for public utilities, transportation or other public use, as well as for eliminating substandard or blighted property. If your community needs to clarify its use of eminent domain, review our sample legislation.

 

Borough of Paramus, NJ: Ch. 221

Town of Orange, CT: Ch. 51

Borough of Palisades Park, NJ: Ch. 26

Township of Hamilton, NJ: Ch. 24

Borough of Norwood, NJ: Ch. 19

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Borough of Paramus, NJ
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Chapter 221

Eminent Domain

[HISTORY: Adopted by the Borough Council of the Borough of Paramus 10-25-2005 by Ord. No. 05-38. Amendments noted where applicable.]

§ 221-1. Use of power of eminent domain.

The Borough shall not employ the power of eminent domain so as to deprive owner-occupiers of residential real properties of such ownership rights in the absence of a specified purpose:

A. To transfer the property to public ownership for the creation of a public use, including but not limited to a road, hospital, military base, sewer, water line, sidewalk, right-of-way, flood control, park, open space, erosion control mechanism and the like; or

B. To transfer the property to private owners for the specific purpose of making the same available for public use.


Town of Orange, CT
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Chapter 51

Eminent Domain

[HISTORY: Adopted by the Board of Selectmen of the Town of Orange 8-10-2005. Amendments noted where applicable.]

§ 51-1. Findings.

A. The Supreme Court of the United States, in the case of Kelo et al v. the City of New London, et al has held that the taking of private property for economic development is a legitimate public purpose for the exercise by a municipality of the power of eminent domain; and

B. The Town of Orange views the private property rights of its citizens in their homes to be paramount to, sacred and inviolable from the power of eminent domain for the purpose of private economic development; and

C. The Town of Orange desires that its citizens be free of any concern, no matter how remote, that their homes will be taken through the power of eminent domain for transfer to a private party for economic development.

§ 51-2. Taking of residential properties for economic development prohibited.

A. The taking of a single-family or two-family residential dwelling within the Town of Orange by eminent domain for transfer to another private party for the purpose of economic development shall not be deemed a proper public use or public purpose for the exercise of the power of eminent domain.

B. No single-family or two-family residential dwelling shall be taken by the Town of Orange, or any of its agencies, boards or commissions, by eminent domain for conveyance to another private party for the purpose of economic development.

C. No approval shall be granted by the Town of Orange and/or the Orange Board of Selectmen for the taking of a single-family or a two-family residential dwelling by any public, quasi-public or private individual or entity for the purpose of economic development, where such approval is a prerequisite to the exercise of such taking under the laws of the State of Connecticut.

§ 51-3. Exceptions.

A. Nothing herein shall prohibit, or be interpreted to prohibit, the Town of Orange from taking, or approving the taking of, any property by eminent domain, where authorized under the laws of the State of Connecticut, for transfer to a private party for the purpose of making the property available for public utilities, public transportation or other public use.

B. Nothing in this chapter shall prohibit or be interpreted to prohibit the Town of Orange from taking, or approving the taking, by eminent domain, where authorized under the laws of the State of Connecticut, of any property which is substandard, unsanitary, blighted, environmentally impaired or contaminated, the effect of which is injurious to the public health, safety and welfare to the Town of Orange and/or its citizens.


Borough of Palisades Park, NJ
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Chapter 26

Eminent Domain Policy

[HISTORY: Adopted by the Mayor and Council of the Borough of Palisades Park 5-16-2006 by Ord. No. 1471. Amendments noted where applicable.]

§ 26-1. Limitation of the power.

The Borough of Palisades Park shall not use the power of eminent domain to take residential property under any circumstances unless it is absolutely necessary to transfer the property for direct public purposes, such as the need for the Borough to construct schools, roads, sewer, water, sidewalks and other public easements which are necessary for the public good of the Borough and where there is no other available land for the specific purpose of making land available for that public use.

§ 26-2. Reasonable compensation.

In no event, even under the most extraordinary circumstances, shall the Borough attempt to take anyone's property, residential or otherwise, without paying the owner reasonable value of that property.


Township of Hamilton, NJ
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Chapter 24

Eminent Domain, Use Of

[HISTORY: Adopted by the Township Committee of the Township of Hamilton 3-6-2006 by Ord. No. 1556-2006. Amendments noted where applicable.]

§ 24-1. Restricting the use of the power.

The Township of Hamilton shall not employ the use of the power of eminent domain under the New Jersey Eminent Domain Statute to condemn any legally occupied residential property that conforms to all applicable housing and maintenance codes of the Township of Hamilton which condemnation would be part of a redevelopment project under the New Jersey Redevelopment Act.


Borough of Norwood, NJ
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Chapter 19

Eminent Domain

[HISTORY: Adopted by the Mayor and Council of the Borough of Norwood 5-16-2006 by Ord. No. 06:08. Amendments noted where applicable.]

§ 19-1. Purpose.

The purpose of this chapter is to state that it is the public policy of the Borough of Norwood that the Mayor and Council will not use the power of eminent domain granted to the Borough by statute or otherwise to acquire private property against the wishes of the property owner for private development merely to increase tax ratables or tax revenue derived from the property, and that this power only will be used to acquire private property: (1) when the property is to be opened to the public or for the public’s use, or (2) when the acquisition is necessary to eliminate an existing use of the property that inflicts an affirmative harm on society. The Mayor and Council adopts this chapter because, on June 23, 2005, the United States Supreme Court decided the case of Kelo v. City of New London, 125 S. Ct. 2655 (2005). The Court’s 5 to 4 majority affirmed the use of the governmental power to condemn property, known as the power of eminent domain, to acquire privately owned property against the owner’s will, and then transfer the property to a developer for private redevelopment, only because the proposed redevelopment will provide increased tax revenue. The principal dissenting opinion, authored, by Justice Sandra Day O’Connor, would permit governments to condemn and then transfer condemned property to private parties in only two circumstances: when (as with railroads) the property is to be opened to the public’s use, or when the condemnation is necessary to eliminate an existing use of the property that “inflict[s] affirmative harm on society.” Accordingly, the Mayor and Council seeks to do all that it can under the law to limit the Borough’s power to condemn and acquire property, as suggested by the dissenting Justices in the Kelo case.

§ 19-2. Definitions.

In this chapter, the following definitions shall apply:

BOROUGH – The Borough of Norwood.

EMINENT DOMAIN – The power of the Borough, whether authorized by statute, rule or regulation, or otherwise, to take or acquire private property and put it to public use through the legal process called condemnation.

MAYOR AND COUNCIL – The duly elected Mayor and Council of the Borough.

§ 19-3. Limitation on the power of eminent domain.

The Mayor and Council of the Borough shall not adopt an ordinance or resolution using the Borough’s power of eminent domain to acquire private property against the wishes of the property owner for private development to increase tax ratables or tax revenue derived from the property, and this power only will be used by the Borough to acquire private property:

A. When the property is to be opened to the public or for the public’s use; or

B. When the acquisition is necessary to eliminate an existing use of the property that inflicts an affirmative harm on society.


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