Legalized Theft: Eminent Domain And Redevelopment

The Fifth Amendment in the Bill of Rights: "No person shall be.deprived of life, liberty or property, without due process of law; nor shall private property be taken for public use without just compensation." Nevada Constitution, article one, section eight: "No person shall.be deprived of life, liberty or property, without due process of law; nor shall private property be taken for public use without just compensation having been first made."
Both of these clauses establishes many points, but the most important for this discussion is the idea of taking PRIVATE property for PUBLIC use. There is no requirement or allowance made for the government taking




PRIVATE property for PRIVATE use.
In fact, one of the most basic responsibilities of government is to protect private property. On a direct level, we still hold to that; if a thief steals my car or breaks into my home and helps himself to my possessions, the law will punish him for violating my property rights. Now, suppose my neighbor decides he wants my land for a new project of his. Can he force me off my property, and confiscate it? No. What if several dozen of my neighbors decide they want my land for a joint project. Can they collectively force me out? No. They can offer to purchase it, hound me at the store, yell at my kids and socially ostracize me, but they can't take my property from me without my consent. My property is just that -- mine. And the law protects me in that right.
Now, a scary thought. Suppose it is the government itself, by constitutional law required to protect my property rights, who suddenly hungers for my land. Can they take it?
Yes. If, that is, the land is to be used for public use. If they're putting


 
in a freeway, and my house just happens to be in the middle of the new road's path, the government has a constitutional right to take my property, paying a reasonable price for it.
But suppose I have a large and powerful neighbor-say, a major casino-and they want my land. Can they take it? Or force me to sell? No. Only the government has the authority to force me out -- and then, only if the property is for "public use," as clearly written in both the national and state constitutions.
The founding fathers regarded property ownership as a right given to individuals from God, an "unalienable right," and carefully wrote into the Constitution safeguards to insure government protected, not plundered, private property. The founders were well aware of several centuries of government abuse by both English Monarchs and Parliament of private property ownership, and were determined to prevent any such legalized thievery from happening here.
But compare: The Reno Redevelopment Agency [The Reno City Council, using a phony front to conceal and indemnify] has approved a plan to expand the City's "eminent domain" policy. The new policy is described in a Reno newspaper: "Previously, the policy




for eminent domain was limited to property needed for public projects on the [Truckee] river, abandoned buildings and new downtown housing projects. The new policy is tied to a "developer incentive" called ownership participation agreements, WHICH GIVE A DEVELOPER THE RIGHT, TO PROPOSE A PROJECT ON LAND SOMEONE ELSE OWNS."(Emphasis mine.)
The government does not have the right to force a private landowner to turn over his property to another private individual, group, or developer. In fact, that's why government and the concept of "rule of law" came into existence in the first place-to protect the weak from the pillaging of the strong, or in modern vernacular, an ordinary landowner from a wealthy, powerful, campaign contributing developer. So, what happens if a citizen turns to the law and the courts for protection? The description continues: "The property owner would have the option of becoming a partner, BUT IF THEY REFUSED, THE CITY COULD USE EMINENT DOMAIN AND HAVE A COURT GIVE THE LAND A VALUE TO BE PAID TO THE OWNER."
The courts, rather than protecting the little guy, instead become a tool, an accomplice in effect, of the extortionists! Where does the government derive the


 
right to force a private landowner to give up his property to another private party?
"But Ira, without this authority, how can cities "revitalize" rundown areas? What would happen?"
Of course, the main reason for all of this government-sanctioned theft is for "downtown redevelopment." I'm surprised that some believe the government is somehow wiser than the free market, or that we should sacrifice fundamental rights to supposedly "save" old parts of town. The truth is its perfectly normal for business districts to age and depreciate in value. That's a typical economic cycle. More importantly, it is not the responsibility of government to save or protect or finance private enterprises.
Also, before you feel too sorry for downtown Reno, consider this: a huge chunk of the money made in Reno was siphoned off and sunk into Las Vegas, Atlantic City, South Tahoe, and so forth. Now, they expect the taxpayers to pick up the tab and make up for their failure to reinvest in their own infrastructure needs.
Why wasn't their capital reinvested in Reno? Perhaps they saw the writing on the wall. If private investors are leery, why are government




officials so gung-ho to spend current and future taxpayer dollars? A recent survey was released showing businesses seeking to relocate to Nevada has declined in the last year by 44%. Before we commit to long term tax based corporate welfare projects masquerading as "downtown redevelopment," shouldn't we ask why private capital is hesitant to invest here?
This belief that the government can cure negative economic changes by mass infusions of tax dollars has been limited to mainly larger cities. But I see that some in Elko are catching the redevelopment bug, and tiny Eureka County recently spent almost four million tax dollars to remodel two old buildings. This was during flush times. Now that the price of gold is dropping, and the Federal government's war on the livestock industry has reduced ranching to a pittance, such spending seems wildly extravagant. The bottom line is this -- government should faithfully protect all in their property rights; we should let the free market determine how business districts grow or contract, and tax dollars should be spent on public, not selected private, enterprises. That is the American way.

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