Berger, Stam: Eminent Domain Reform Needed

Eminent Domain reform was the primary topic of this morning's press conference by N.C. House Minority Leader Paul Stam and N.C. Senate Minority Leader Phil Berger. Below is a press release from Sen. Berger's office.

Eminent Domain: Press Release from Sen. Phil Berger's Office

Senate Republican Leader Phil Berger (R-District 26) and House Republican Leader Paul Stam (R-District 37) today held a press conference to discuss eminent domain, the inherent power of government to seize a citizen's private property without consent. A recent United States Supreme Court decision, Kelo v. New London, created much concern because the Court expanded the concept of a "public purpose" for which condemnation could be used. The Court held that the United States Constitution's Fifth Amendment did not protect private property owners from a government taking of property for economic development purposes. An economic development condemnation permits the taking of property from a private citizen with the understanding that such property would ultimately be conveyed by the government to another and is justified by the expectation of greater tax revenue to the government. In light of that decision, many states took steps to insure that state constitutions offered protection to owners of private property from such takings. Republican Senate and House members have introduced bills that address the need for additional legal and constitutional safeguards in North Carolina.

Senator Fred Smith (R-District 12) has introduced Senate Bill 38, An Act to Amend the Constitution of North Carolina to Prohibit Eminent Domain From Being Used for Economic Development Purposes. The bill calls for amendment of the North Carolina Constitution to prohibit eminent domain takings for economic development purposes.

Senator Berger introduced Senate Bill 766; that bill protects non-profit organizations whose property is condemned. The bill provides that replacement value is an appropriate measure of fair market value in cases involving property owned by not for profit entities.

Senator Eddie Goodall (R-District 35) introduced Senate Bill 704, Eminent Domain Attorneys' Fees/Costs, which requires the condemnor to pay attorneys’ fees and costs of court if the final judgment is more than the amount deposited (offered) by the condemnor.

Senator Berger made the following statement:

“The people of North Carolina were right to be concerned about the Kelo decision. Thus far, the General Assembly has responded with half measures which fail to adequately protect private property. This is in spite of the fact that individual members state their opposition to a Kelo like result here. In fact, in the House ninety-six members have co-sponsored a bill (House Bill 878) that would allow North Carolinians to vote to amend the State Constitution and prohibit economic development condemnations. Despite protestations to the contrary and assurances that Democrat leaders have learned lessons from the past, not much has changed as Democrat legislative leaders appear to be in no hurry to move the bill from the House Rules Committee. Some have asserted that enough was done last year to protect private property. Such actions and hollow assurances are seen by many as evidence that the post-Black Democrat leadership handles popular legislation much like its predecessor. People have to wonder which special interest is being protected in this case. In my view, the Legislature has a responsibility to protect private citizens not special interests.”