Deadline to Abolish Redevelopment Agencies Looming

In the aftermath of the California Supreme Court ’s recent ruling that upheld the legislature’s elimination of redevelopment agencies, eminent domain abusers are reticent to relinquish their power.

The court’s decision directed the nearly 400 redevelopment agencies to close up shop by February 1, 2012.  It should come as no surprise that local bureaucrats across the state are fighting to extend the deadline.  The California Redevelopment Association is lobbying legislators to pass Senate Bill 659, which would extend the deadline to April 15, 2012.

The fight to protect property owners in California from abusive government power is not over yet!  This next chapter will surely test the resolve of state legislators to abolish these out-of-control agencies.

Property owners across California are invited to attend a rally at the California Capitol on March 7 at 12:00pm.  More details forthcoming—check the Castle Coalition site for updates.

For a detailed look at eminent domain abuse in California, check out California Scheming: What Every Californian Should Know About Eminent Domain Abuse.  To learn how to encourage development without the use of eminent domain, read Simplify, Don’t Subsidize: The Right Way to Support Private Development.

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Mayor Bloomberg Begins "Redevelopment" at Willets Point

By Fernando Ferreira

Willets Point, also known as the Iron Triangle, has been abandoned by New York City for decades. The area has no sewers; the streets are crumbling; there are no fire hydrants; no trash removal and no city plows when it snows.[1] Ironically, city officials are now using their own negligence to justify using eminent domain on the businesses and land owners that thrived in the area.[2]

The area that Mayor Bloomberg called “another euphemism for blight”[3] is actually a successful business district with over 225 businesses. Some, like Bono Sawdust Company have been around for over half a century. The company was started in 1933 by Jake Bono’s grandfather, who emigrated from Sicily. “My grandfather helped to build this economy, and he helped build America,” said Jake Bono, now president of Bono Sawdust.

Today, the Iron Triangle still plays a vital role in lifting the lives of those who have recently reached the Land of the Free. Over 1,000 local workers are employed in Willets Point, many of whom are hard working Hispanic immigrants.[4] Willets Point has become a place where newcomers to America can get steady employment and settle into their new lives with the support of the community.

For decades the city neglected the flourishing tax-paying businesses at the Iron Triangle. They refused to invest in infrastructure despite many petitions and complaints. However, now that every single business is on the chopping block, the city has given the go-ahead on a $50 million project to bring working sewers to the neighborhood. According to city officials, it is the first step toward the $3 billion redevelopment project.[5]

With the sewer project in place, and more flexible zoning for the area, the city has already laid the groundwork for development. There is no need to use eminent domain to force businesses out. Once the infrastructure investment is in place and new uses for the land are legally allowed, property prices are sure to go up. However, bureaucrats need not worry: Once landowners are allowed to keep their properties and benefit from its increased value, they have the incentive to either develop the property themselves, or sell it to someone who will.

The city of New York should take the easy, and right, way out: Give up on eminent domain. Scarce taxpayer money is better spent elsewhere, not fighting property owners in court just to benefit a handful of deep-pocketed private developers.

MS Senator Cites IJ’s Research in Call for Eminent Domain Reform

Mississippi voters are set to decide on November 8 whether or not to reform the state’s eminent domain laws to better protect property owners. Only Mississippi, Arkansas, Hawaii, Massachusetts, New Jersey, New York, and Oklahoma have so far failed to act in the wake of Kelo. The Mississippi legislature did pass legislative reform in 2009, but it was quickly vetoed by Governor Barbour.

Mississippians have now taken the matter into their own hands, placing eminent domain reform on November’s ballot by way of Initiative 31. Read more about the initiative in State Senator Chris McDaniel’s op-ed in the Laurel Leader-Call, which cites IJ’s research on eminent domain.

CA Supreme Court to Hear Redevelopment Lawsuit on Nov. 10

The California Supreme Court announced today that they will hear oral arguments on November 10th on the lawsuit challenging legislation passed this summer that mandates California’s 398 redevelopment agencies make a collective payment of $1.7 billion the first year, and $400 million in subsequent years.  If the redevelopment agencies refuse or are unable to make the payment, they will be dissolved.

The redevelopment agencies claim the legislation authorizes money grabs, yet they have been taking money from hardworking taxpayers for boondoggle projects for decades.  Read more in the Mercury News.

Victory in Jersey City

On September 27, the Jersey City Council voted unanimously to pass the McGinley Square Rehabilitation Plan, which removed the threat of eminent domain that previously existed in the redevelopment plan. The original proposal had caused an outcry from property owners, rightly concerned that their homes and businesses were on the chopping block.

Read more about this exciting news here.