Property Transactions/Eminent Domain

Question 1

Acuisition of Property

Answer 1

Localities have the power to acquire property for public use both within and outside corporate limits by purchase, gift, lease, bequest, and condemnation

Question 2

Eminent Domain
Localities may exercise the power of eminent domain and by proper proceeding may condemn any land, building, or personal property if:

Answer 2

1. There is an existing public need for the property
2. The locality made a good faith offer to purchase and cannot agree with the owner on compensation

Question 3

Public uses for eminent domain

Answer 3

Narrowly includes only:
1. any use by public;
2. public facilities like airports, libraries, jails;
3. use by a utility or railroad;
4. to eliminate a “blighted” property that has become a public safety danger;
5. where an owner of property in a redevelopment or conservation area agrees to such acquisition.

Gov’t has burden to show public use

Question 4

Recovery for Condemnation

Answer 4

fair market value for the property taken (plus) lost profits (plus) value of loss of access

Question 5

Lost access (condemnation)

Answer 5

material impairment of direct access to the specific parcel of residue property. The loss of value of remaining property is compensable

Question 6

Lost profits (condemnation)

Answer 6

loss of profits suffered for a period of up to 3 years as a result of taking property on which a business or farm operation is located

Question 7

Residue property valuation (condemnation)

Answer 7

measure is the fair market value the day before the taking vs. the day after, considering uses to which it could reasonably be put

Question 8

Indirect taking (inverse condemnation)

Answer 8

When property is taken indirectly (like damaging it or rendering it less useful) without formal condemnation, an owner can bring an inverse condemnation action by filing a proceeding to obtain a declaratory judgment or damages.

NO SOVEREIGN IMMUNITY FOR INVERSE CONDEMNATION CLAIMS

Question 9

Adverse Possession

Answer 9

• Localities can obtain property through adverse possession
• Citizens cannot adversely possess public land

Question 10

Selling Public Property

Answer 10

Must be based on an ordinance/resolution passed by ¾ of the governing body