Re:Columbia University vs the little guy
by kbutler on Friday December 17, 2010 @01:35PM
(#2017161)
> If it's "fair market value," then why do they need to exercise eminent domain in order to force the sale?
Because sometimes individuals choose not to sell at the fair market value (e.g., not everyone sells their stock at the current stock price - in fact, some people choose to buy at that price. That's the definition of a fair market value.)
> And if the person is irrational and refuses to sell their land at any price, you freaking change your plans.
Sometimes this makes the plans dramatically more expensive and/or impossible. The canonical example is if a road needs to be built. It may be that there is _no_ viable route where all the existing property owners are willing to sell. This may either be because of personal attachments to the property or because they know that as the last holdout, they can demand a higher price.
In either case, "eminent domain" says the government can force the sale, paying a just compensation, in order to promote the public welfare.
Yes, this is imperfect (the owner may not consider it a fair price, or may not want to sell at any price). Yes, it is open to abuse. But yes, there are cases where it is needed, hence the inclusion in the Constitution, but with possibility of judicial and electoral review.
Because sometimes individuals choose not to sell at the fair market value (e.g., not everyone sells their stock at the current stock price - in fact, some people choose to buy at that price. That's the definition of a fair market value.)
> And if the person is irrational and refuses to sell their land at any price, you freaking change your plans.
Sometimes this makes the plans dramatically more expensive and/or impossible. The canonical example is if a road needs to be built. It may be that there is _no_ viable route where all the existing property owners are willing to sell. This may either be because of personal attachments to the property or because they know that as the last holdout, they can demand a higher price.
In either case, "eminent domain" says the government can force the sale, paying a just compensation, in order to promote the public welfare.
Yes, this is imperfect (the owner may not consider it a fair price, or may not want to sell at any price). Yes, it is open to abuse. But yes, there are cases where it is needed, hence the inclusion in the Constitution, but with possibility of judicial and electoral review.
kb