Why does the agency have the power of eminent domain (condemnation of property)?
Eminent domain or condemnation is the right of a government to take private property for public use in exchange for just compensation. Agencies may use this redevelopment tool to assemble many separate parcels of land into a site large enough for their needs in order to reduce or eliminate a blighting condition.
Redevelopment agencies very rarely use eminent domain. This is because eminent domain may only be utilized after negotiations between the agency and the private property owner fail. In most cases, the benefits and profits to be gained by the private property owner are clear. When eminent domain is used, it is typically because the well being of the residents or businesses in the project area are in jeopardy. Occasionally redevelopment agencies might also use eminent domain to condemn hazardous and dilapidated structures located in economically weak areas.
The agency is required by CRL to hold public hearings on the action, to pay the owner fair market value and to give the occupant all relocation benefits and allowances entitled by law. Acquiring property this way is typically used only as a last resort since it is generally time-consuming and costly. The time period for acquiring property through eminent domain within the project area may not exceed 12 years after the establishment of the project.
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