Sunday, April 16, 2006

Eminent Domain reform bills tainted with buried “diminution in value” language (APA opinion)

[Source: Alan Stephenson, Vice-President for Legislative Affairs, Arizona Planning Association] -- The Arizona Legislature is considering Senate Concurrent Resolution 1019 restricting the use of eminent domain in Arizona. The Arizona Planning Association, a professional organization formed of land use experts, supports balanced eminent domain reform. Unfortunately useful and appropriate legislation to achieve this reform has been tainted by the insertion of buried “diminution of value” language in SCR 1019; language that would have a detrimental effect on Arizona’s communities and give our tax dollars to developers. What’s the most surprising is that the hidden language isn’t coming from inside Arizona –- it’s being forwarded by a well financed Illinois anti-government political action group. This group does not care about development that balances diverse property owner interests -- only eliminating government regulation.

What is “diminution of value?” It’s when a government regulation on a parcel of land causes the property owner to perceive a loss in value. For instance, say there is a vacant parcel adjacent to your home with residential zoning and a developer proposes to rezone it for a mega-mart shopping center because that will increase the property’s value. The proposed “diminution of value” language requires the government to either give the developer the right to build the center or pay, with your tax dollars the property owner for the lost commercial value. Your tax dollars would pay for every denied rezoning request and/or other government regulation along with all associated court costs. This will severely impact all city and county services such as police, and fire.

The language ensures that any land use action, whether it be rezoning or just the approval of a building permit could likely be subject to litigation and compensation. The language eliminates the ability of local elected officials to balance development interests with adjoining property owner concerns or other issues such as the economy or environment. It is important to note that current federal, state and local regulations already provide for appropriate safeguards relating to “diminution of value.” The current property rights system is an equitable and responsible system built on Arizona’s commitment to individual rights and community values. I urge you to contact your legislators and oppose SCR 1019 because it eliminates local ability to balance property owner rights with larger community needs and will lead to significant litigation and loss of your tax dollars.