Lincoln Institute of Land Use Policy: Alternatives to eminent domain

I still insist our problem in the highlands was a result of not accepting public input when we needed to, a passionate debate I had with the mayor.  Meanwhile, a Cleveland based non-partisan policy center, Lincoln Institute of Land Use Policy, has been analyzing the use of eminent domain for economic revitalization, and they have produced some interesting articles on the topic.  I subscribe to their newsletter.  Here is their latest:

An Alternative to Eminent Domain

Eminent domain continues to get a battering across the United States.  Ballot measures and legislation have restricted its use for economic development.  Political concerns have also limited its use in downtown redevelopment efforts and in partnership with private developers in such big projects as Atlantic Yards in Brooklyn or Columbia University’s expansion into West Manhattanville in New York City.  The tensions have prompted a new focus on alternative methods for assembling large land parcels.

One such process is land readjustment – assembling a large redevelopment parcel by giving property owners a stake in the redevelopment project.  “Land readjustment gives all affected property owners the power, by majority vote, to approve or disapprove the transfer of land rights to a self-governing body for redevelopment,” said Yu-Hung Hong, fellow at the Lincoln institute and co-author of Analyzing Land Readjustment, who suggests the method is a “third way” for urban redevelopment.

Instead of buying out all existing property owners or using eminent domain, this self-governing body invites property owners to become stakeholders and to contribute their real assets to the project as investment capital, Hong said. In return, the agency promises to give each owner a land site of at least equal value in the vicinity of the original site upon the completion of the redevelopment. In theory, this method does not require substantial upfront capital for buying out existing owners or government assistance to acquire land through a compulsory process.

The approach has been widely practiced in many countries, such as France, Germany, Israel, Japan, The Netherland, South Korea, and Taiwan.

The Lincoln Institute is continuing research on property rights, legal definitions of land value, and growth and land use regulation. This month nearly two-dozen journalists from around the country are gathering at Lincoln House for a two-day conference on property rights, eminent domain and regulatory takings, all of which is sure to be central in the coverage of development in the years ahead.