HB 434 Eminent Domain March 2017 - PFT Legal |...

WhatyouneedtoknowaboutproposedchangestoGeorgia’sEminentDomainLaw

1

WithonlyafewdaysleftinGeorgia’slegislativesession,HouseBill434continuestogarnerlittlepublicinterestandlessdebateinsidetheCapital.HouseBill434wouldamendthelawofeminentdomaininGeorgiabydramaticallyexpandingthemeaningof“publicuse”toincludetheremovalof“blights.”Blightsarenotstrenuouslydefinedbythebill,butthebill’ssponsor,RepresentativeWillard,hasarguedthatallowingtheStatetocondemnpropertythatdiminishespropertyvalueswillmeantheabilitytocondemnandremove“crackhouses”andthelike,andraisetaxrevenues.Perhapsthemostradicalchangeposedbythisbillistheabilityofprivatedeveloperstopetitionsuperiorcourtstouseeminentdomain.Onceaprivatedeveloperestablishesthroughanapplicationprocessthataparticularpropertyorareasisa“blight”inthecommunity,thedevelopercanintroduceitsownplanfortheproperty.Iftheplanisdeemedbythegoverningauthoritytobean“economicdevelopment”capableofincreasingtaxrevenues,thetaxbase,oremployment,thenthepetitionwillbegrantedafterahearingwhichallinterestedpartieswillbegivennoticetoattend.

2

EversincetheUnitedStatesSupremeCourtruledinKelov.CityofNewLondonin2005thatagovernmententitycandefine“publicuse”toincludetheremovalofslums,moststategovernmentsaswellascountiesandcitieshavereactedbypassinglegislationdeliberatelylimitingagovernment’suseofeminentdomain.Georgiafollowedsuit,enactingTheLandowner'sBillofRightsandPrivatePropertyProtectionActonthelastdayofthe2006session.TheActmadesignificantchangestoTitle22undertheOfficialCodeofGeorgiaAnnotated,includingprohibitingtheuseofeminentdomainauthority"unlessitisforpublicuse."Today,HB434isadramaticstepawayfromthatpolicybyexpandingthedefinitionofpublicusetoallowforeconomicdevelopmentasa"secondaryorancillarypublicbenefitofcondemnation."Ultimately,thedefinitionof“blight”inthebillcouldleadtojudicialdeterminationofwhatconstitutes“blight”andareviewofwhichpropertiesarenegativelyimpactingtheircommunitiestowarrantseizureandconversionoftitletosuchpropertiestoprivatedevelopers. For more information on this article contact: Christian Torgrimson, Managing Partner and Eminent Domain Attorney, Pursley Friese Torgrimson, at ctorgrimson@pftlegal.com.

L e g i s l a t i v e A l e r t | M a r c h 2 7 , 2 0 1 7

H o u s e B i l l 4 3 4 S e e k s t o E x p a n d E m i n e n t D o m a i n P o w e r s