Help For Property Owners Being Condemned May Be On The Way

In the wake of the June 2005 U.S. Supreme Court decision, Kelo vs. New London, which affirmed cities' rights to seize homes and business and replace them with private properties, the California legislature is looking at a new state bill and amendment that would significantly benefit homeowners.

Proposed Assembly Constitution Amendment 8 would compel cities to pay for 3 years worth of rent or mortgage payments for a business if it were relocated as a result of eminent domain.

If displaced businesses were bought out and not relocated, a city would be required to pay 125% of the value of the business if it was economically viable in addition to the value of the property.

The bill was introduced by Assemblyman Hector De La Torre and sought by a group called Californians for Eminent Domain Reform. Another proposed initiative by the Howard Jarvis Taxpayers Association seeks to ban the use of eminent domain for private development.

In the past, governments condemned land for parks, schools, or roads. However, more aggressive cities have used the condemnation process for the development of private businesses like power centers and mega-theater complexes. The governments argued that the resulting increase in tax revenues to the city was a "public benefit", while opponents interpret the "public use" requirement more narrowly.

The issue is particularly important for Northern Los Angeles County (NLAC) where the city of Santa Clarita is seeking to acquire in "friendly transactions" properties in downtown Newhall. The cities of Palmdale and Lancaster are also actively seeking to redevelop parcels.

Welcome

to THE blog for Northern Los Angeles County commercial real estate.

My name is Scott Voltz and I am the most experienced commercial real estate appraiser in Northern Los Angeles County (NLAC). I have specialized in appraising all types of real estate in northern Los Angeles County since 1989, when I started Southern California Real Estate Counselors, Inc., currently doing business as Voltz Commercial Realty Advisors (www.voltzrealestate.com)

I have published a newsletter covering Northern Los Angeles County real estate matters off and on for nearly 10 years. After a several year hiatus, I have brought back the newsletter. The development of on-line newsletter services and the explosion of the internet has meant new avenues to communicate with clients and market participants and those wanting to learn more about NLAC.

I am an MAI appraiser (Member of the Appraisal Institute) and have been servicing banks, attorneys, developers, cities, and property owners in the Santa Clarita and Antelope Valleys since 1989. Our government clients have included the cities of Santa Clarita, Lancaster, California City, Moorpark, and Santa Paula. Banks include Antelope Valley Bank, the Bank of Santa Clarita, and Mojave Desert Bank, just to name a few local banks.

I intend to regularly publish market information on this blog. I will also invite guest bloggers to discuss matters concerning real estate in Northern LA County (NLAC). If you'd like to be a guest blogger, or if you'd like to sponsor this blog, just drop me a note.

Check back often and refer the blog to your real estate friends.

Scott Voltz, MAI, MBA