Proposed Missouri Ballot Initiative would Restrict Eminent Domain

A proposed Missouri ballot initiative would restrict eminent domain by government entitles. It would amend the Missouri Constitution to allow only government entities to use eminent domain, prohibit its use for private purposes with certain exceptions for utilities, require that eny taking of property be necessary for a public use while continuing to provide "just compensation," require that the intended public use be declared at the time of the taking, and permit the original owners to repurchase the property if it is not so used within five years or if the property is offered to a private entity within 20 years. According to the cost estimate provided by the Secretary of State's office, the total cost or savings to state or local governmental entities is unknown. the estimated costs, if any, could be significant.

The group Citizens for Property Rights is pushing the petition. It says on its website that private use of eminent domain is "one of many types of corporate welfare" that they say is being practiced by the state. On their website, they say that eminent domain, as practiced by certain governmental entities, amounts to nothing more than the theft of small businesses for the benefit of gigantic corporations. For instance, they cite the case of Homer Tourkakis, a dentist who was sued by the City of Arnold, who wanted to take away his dental building so that they could build a huge department store that they said would bring in more revenues.

As quoted by Citizens for Property Rights, Tourkakis said:
I have no objection to development, but I feel it’s wrong to take my property for the benefit of another private party. Over the last three years, I have spent a vast part of my life and a whole lot of money fighting for my constitutional right to keep my property. I would not wish this on anyone. This process is a travesty of justice and needs to be stopped. I don’t take kindly to the idea of having my hard work and property taken away. I could not reproduce what I have here anywhere else. I have a prime location and it has been excellent for my business. But city officials don’t care—they’re too fixated on the increased sales tax revenues the new retail establishments will bring in.

In March 2008, the Missouri Supreme Court ruled that smaller and larger cities have the authority to condemn properties and turn them over to private developers. Eminent domain battles of this nature have been fought throughout the state.

According to a fact sheet from the Missouri Ombudsman of Property Rights summarizing RSMo 523.350, the Landowner Bill of Rights in Missouri, at least 60 days before the filing of a condemnation action seeking to acquire an interest in real property, the condemning authority shall provide the owner of record with a notice. Among other things, the notice is required to state the legal description, the purpose or purposes for which the property is to be acquired, and advising the owner of their rights.

Property owners have the right to seek legal counsel, make a counteroffer and engage in further negotiations, obtain one's own appraisal, have just compensation determined by court-appointed condemnation commissioners and by a jury, seek assistance from the office of Ombudsman of Property Rights created to help owners help understand the process, contest the right to condemn, and exercise the right to request vacation of an easement.

The Missouri Municipal League opposes efforts to prohibit the use of eminent domain to rehabilitate blighted areas according to their most recent policy statement available online. They have litigated in the past against previous attempts to restrict eminent domain. "Eminent domain is indispensable and is most often used as a last resort for revitalizing local economies, creating much-needed jobs, and generating revenue that enables cities to provide essential services. Eminent domain is a powerful tool; its prudent use, when exercised in the sunshine of public scrutiny, helps achieve a great public good that benefits the entire community. Economic policies and incentives supported by the Governor and adopted by the General Assembly will have little effect in encouraging business to expand or relocate in Missouri to support the economic vitality of the state if land cannot be assembled through the power of eminent domain if necessary," said the statement.

In another section relating to municipal acquisition of land, the Municipal League stated in the same policy paper that they opposed any requirement to pay property damages to nearby property owners when a municipality purchases or condemns land for public purposes. They also oppose attempts that would encourage property owners to challenge, risk-free, condemnation settlements "offered in good faith."

One of the main problems is that "blight" is a very subjective definition; the Municipal League maintains that most cases of eminent domain are exercised to combat "blight." However, the Ombudsman for Property Rights posted a whole section of well-kept houses that were targeted for condemnation because they were deemed to be "blighted."