California's proposition 90 is sold as protection from eminent domain abuse but the real power, hidden in the language of the bill, is a provision that strips away local government's ability to regulate land use. Supporters of proposition 90 say, don't worry, local governments will still be able to regulate land use so developers won't be able to build a strip joint next to a preschool. They fail to mention that local governments will have to pay through the nose to even make those common sense zoning regulations.
When local governments acquire land by eminent domain they must pay the FAIR MARKET VALUE and provide relocation assistant to any displaced tenants. Cities regularly pay extra to smooth the transaction and avoid lawsuits. Under proposition 90 local governments would be forced to pay the "POTENTIAL VALUE" instead. What's the difference? Imagine a land speculator bought a bunch of vacant lots and the city decided to use its power of eminent domain to acquire one of those lots to build a school. Under proposition 90 the land speculator could now argue he planned to build a 10 story condo and would have made $30 million on that vacant lot. Proposition 90 forces the city to pay him for his so-called loss on his un-built 10 story condo, even if the speculator has sat on that land for 20 years and done nothing with it.
Proposition 90 guarantees profit, without risk to land speculators underwritten by taxpayers. Building schools or any public service just got
a lot more expensive.
In Oregon a similar proposition (Prop 37) passed in 2004. Since then more than 2,200 claims have been filed - seeking over $5 billion in compensation from local and state governments. The population of Oregon is 3.6 million. The population of California is 33.9 million. If Oregon is any guide we can expect upwards of 22,000 legal suits and $50 billion in claims. Where is that money coming from: higher taxes, fewer teachers, fewer fire fighters, road repair? The local and state governments are not awash in excess cash so they must either rubber stamp developer's plans or empty the bank to fight the avalanche of lawsuits.
Go to www.noprop90.com for more info.