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Eminent Domain

In: Miscellaneous

Submitted By mystic1
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Lancaster California located about 45 minles from Los Angeles, was trying to build its local economy but was tripped up by the United States constitution. Costco, a big box retailer, wanted to expand into next door space leased to 99 Cent Only Stores. Costco told the city it would move to Palmdale if it could not expand. Lancaster tried to buy 99 Cents' lease, but the company refused. Lancaster then used its power to emenent domain to condemn the 99 Cents property for the purpose of making city contrasted 99 Cents property for the purpose of making it available to Costco. the city noted that blight might follow if Costco left, and the city contrasted 99Cents' under $40,000 per year in sales taxes generated with costco's more then $400,000. 99 Cents then sued the city seeking an order blocking the effort to take the 99 Cents property

Eminent domain allows states the right to take over private property, at fair market value, for public use. Due the declining economy of Lancaster, I would rule in favor of the state to take over 99 Cent Only Stores Property thereby allowing Costco to move in. The additional sales tax generated by allowing Costco to take over the property of 99 Cent Only Store would allow Lancaster to continue independently as a productive county. The present negative of eminent domain, in this case, wieghs far less than the positive outcome of ruling in favor of Costco.

B. Would the result be any differnet today after the Supreme Court's 2005 decision in the New London, connecticut case? Explain
According the to Supreme Courts ruling, the city can file for eminent domain even if the economy is not blighted. The result would be the same today; however, prior to ruling in favor of the state, I would require Costco's development company to provide a commitment for funding. Without the benefits of funds to develop Costco, then the obvious decision...

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