Eminent Domain Revisited

[JTistle1]

Not going to happen.

Michigan voters amended the Constitution in '06 to ban what Prof. Mogk is proposing.

Michigan Constitution, Art X, § 2 Eminent domain; compensation.

Sec. 2. Private property shall not be taken for public use without just compensation therefore being first made or secured in a manner prescribed by law. If private property consisting of an individual’s principal residence is taken for public use, the amount of compensation made and determined for that taking shall be not less than 125% of that property’s fair market value, in addition to any other reimbursement allowed by law. Compensation shall be determined in proceedings in a court of record.

“Public use” does not include the taking of private property for transfer to a private entity for the purpose of economic development or enhancement of tax revenues. Private property otherwise may be taken for reasons of public use as that term is understood on the effective date of the amendment to this constitution that added this paragraph....

I know I was speaking to a homeowner in the area of 7 mile and Hoover the other day. He was stating that only 4 people on his block have mortgages. He bought his house 15 years ago and still owes on it. However, a year or so ago, the house at the corner sold for 10,000 dollars. There went his property value.In the past year the two houses on either side of him sold for under 1600 dollars. What that means is he is paying close to his current property value, every month when he pays his mortgage. Seems to me that it means 125% of the properties fair market value is not even 2000 dollars, and that's for a inhabitable house, what about for the uninhabitable houses?

[canuck]

That is pretty sad! I hope someone there is a plan to relocate people who have invested in Detroit and maintained their properties; paid their dues to the city all these years. I think that the folks who managed to stay in Detroit in spite of the letdowns should have a chance at a property swap in areas that would be maintained on the urban grid vs the bulldozed or what have you. Michigan isnt hit so often by the kind of natural disasters that hit other states. Maybe its time for some homeowners to get relief. There has to be a creative way to help people in these situations, especially since Detroit needs people who care for the city.

[fryar]

That is pretty sad! I hope someone there is a plan to relocate people who have invested in Detroit and maintained their properties; paid their dues to the city all these years. I think that the folks who managed to stay in Detroit in spite of the letdowns should have a chance at a property swap in areas that would be maintained on the urban grid vs the bulldozed or what have you. Michigan isnt hit so often by the kind of natural disasters that hit other states. Maybe its time for some homeowners to get relief. There has to be a creative way to help people in these situations, especially since Detroit needs people who care for the city.

Hear, hear. I'm all for shrinking the city, but it's pretty much got to be along the lines of a property swap, or fair compensation that is a multiple of the home's current FMV. All those dedicated outposts of humanity among the devastation, they're an asset.
Nope, I got no clue as to where the money for that comes from, but we can't just throw people out on the street and tell them they're on their own, here's 1200 buckaroos, bucko.

[JBMcB]

Hear, hear. I'm all for shrinking the city, but it's pretty much got to be along the lines of a property swap, or fair compensation that is a multiple of the home's current FMV.

I thought it would be a good idea to fix up abandonded homes in established neighborhoods, then offering them to people who live in the more desolate parts of the city. One fixed-up home in exchange for your current home. I bet you could clear out good chunks of nearly-dead neighborhoods without the use of eminent domain with this method.

[canuck]

I thought it would be a good idea to fix up abandonded homes in established neighborhoods, then offering them to people who live in the more desolate parts of the city. One fixed-up home in exchange for your current home. I bet you could clear out good chunks of nearly-dead neighborhoods without the use of eminent domain with this method.

Yup, something like that. With property values the way they are, a new start can be beneficial. If Detroit had what New York and L.A. got in the nineties, more policing; then that might be a good start in neighborhood building. Relocation can be bewidering if done on a vast scale. Insecurity can be overcome by more help from federal help in police budgets.

One of the sadder points about Detroit which cold probably be remediated is that schools like Cass Tech which had quality in teaching and resources were closed. They might have been able to compete if the environment had an equal draw versus suburban institutions. These kinds of schools, like Wayne State are absolutely essential to the survival of the city. Imagine Wayne moving to an outlying suburb like UM at Ann Arbor. The hospital expansions in Detroit should be followed by investments in security, making adjustments so that neighborhoods around the core are provided with better infrastructure. I think Detroit is becoming a big health care destination for out of state patients. To compete on that level, smaller hotels and a certain safety net needs to be delivered. There will be money coming in from these unsuspected sources.

[canuck]

Hear, hear. I'm all for shrinking the city, but it's pretty much got to be along the lines of a property swap, or fair compensation that is a multiple of the home's current FMV. All those dedicated outposts of humanity among the devastation, they're an asset.
Nope, I got no clue as to where the money for that comes from, but we can't just throw people out on the street and tell them they're on their own, here's 1200 buckaroos, bucko.

Exactly, where are you going to get that kind of dedication? From absentee investors in Europe or the middle east? Seriously, the people who should be helped in something like a property swap [[repo'd by the city say) are the homeowners who stuck with Detroit for good or ill. It's nice to see industrial investment come and be subsidized to a degree, but how about taking care of folks who have a real stake. The city probably will have to take some hard decisions in that department. But I think there have to be ways of enhancing some well balanced streets and determining those that will not be serviced anymore; concentrating efforts and resources in areas where people have also shown an avid interest in their neighborhoods, etc...