Eminent Domain, Elections, California's Most Recent Experience

Property Rights attorney Bill Dahlin offers his post-mortem on Prop. 98:

On June 3, 2008, California’s mid-year election process took place.  The early June date, which had historically been utilized as a primary for presidential candidate voting, was changed as of this year so that California’s presidential primary could be held in February, 2008.  Thus, the June 2008 elections concerned only local races, and several statewide propositions.  The primary battleground for this year’s statewide propositions was the debate between Propositions 98 and 99.

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The Press Spreads Misinformation on Proposition 98

The opponents of Proposition 98 have plenty of allies in the press, who seem all to happy to spread misinformation about the property rights initiative.  The typical story focuses on the plight of renters under rent control, who claim they will be "out on the street" if Proposition 98 passes.   The "news" stories either ignore or bury the fact that no one currently under rent control will lose rent control if Prop. 98 passes.    A typical example is this recent story in the San Jose Mercury News, a major metropolitan newspaper.    The focus of the story is residents currently under rent control as potential "victims" of Proposition 98, even though its adoption would not allow their rents to be increased.   This is an example of dishonest advocacy masquerading as  journalism.  The headline  says it all: "Prop 98 one more blow to tiny mobile home park."   

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Should Property Rights Be Decided By Majority Vote?

On April 21, 2008, the City Council for the City of Seal Beach voted 4 to 1 to adopt a controversial ban on third story construction in the downtown area.   This decision could have enormous financial consequences for home owners in the area who bought with the expectation, under existing zoning, that they could build up to a third story.  The Orange County Register reports that at least two of the four council members who voted for the ban cited "majority opinion" as the basis for their decision.   Since when are civil rights--yes, property rights are a basic civil right--determined by majority vote?  Do you believe that your right to develop and use your property consistent with existing zoning should be subject to change as long as a majority of residents favor it?

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The Press and Property Rights

My law firm is often involved in litigating cases that get press attention.   We typically represent  landlords and developers.  The coverage couldn't be more biased and shallow.   A perfect example is yesterday's Orange County Register, reporting on litigation relating to the interpretation of the ground lease for Huntington Harbor Mobile Estates.  The article by Cindy Carcamo starts with the proposition that the Judge decided "to appraise the land for much more than the land has been historically valued."  Carcamo neglects to mention, the Judge found the land should be valued for what it is currently worth, exactly as specified in the ground lease.   She does find room for a headline suggesting the owner wants to give senior residents "the boot."  Kudos to Rob Coldren, Bill Dahlin and Irene Kiet of HKC who worked on the case.       

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Orlando Florida Weighs Housing Fee To Make Housing Affordable

Common sense would suggest that adding a fee to the cost of housing would make housing less affordable.    As a Californian, I don't really expect common sense from our politicians.  However, I would have expected better from Florida (Is it the heat?)  The Orlando Sentinel reports that the City of Orlando is considering a housing fee for new real estate projects as a way of funding affordable housing programs.    Next on the agenda is a food tax to pay for a program to provide food to the poor!

 

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Will Politics Trump Property Rights For Anaheim Stadium Project?

Archstone-Smith owns certain development rights to property adjacent to Anaheim Stadium owned by the City of Anaheim.   Archstone-Smith wants to develop retail and commercial property on the site, which makes the most sense for the location.  The lease between the Anaheim Angels (also known as the Los Angeles Angels) specifies that no residential project will be built on the site.  Looks like we have the makings of an agreement.   Not so fast.  Enter the community activists who apparently have other plans for the property.  The Orange County Register reports a group of about "150 community activists and residents" braved the rain to call for a "community benefit agreement" which provides for "child care facilities, park space, adequate wages and low-cost housing."   I credit City Council Member Sidhu for some straight talk on the issue.

 

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Jarvis Backs A New Property Rights Initiative

The Howard Jarvis Taxpayers Association is backing a new property rights initiative.  The initiative has some similarities to Proposition 90, but also has many differences.  It more clearly spells out limitations on rent control.  The initiative is supported by the California Alliance To Protect Property Rights, which has lots of useful background information on the inititative on its web site.  Much more on this later.

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Seal Beach Council Backs Down From Third Story Ban

Facing an initiative vote, the Seal Beach City Council began the process of repealing the ban on third story housing, reports the Register.   The Council voted 3-2 to repeal the ban.  I applaud the victory for property rights.  I am not a big fan of the initiative process, but, in this case, it worked.  It's not over yet, as council members are promising "new laws intended to preserve the character of Old Town."  (Translation:   We won't let this "temporary setback" interfere with our right to tell you what you do with your own property) 

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Property Rights Put Up to a Vote--Again

In another act of political courage, the City of Seal Beach has decided to punt the question of whether to allow third stories, putting the question up for popular vote, reports the LA Times.  While this may sound quite "democratic," our democracy should not put property rights to a vote.   This "election" will be all about self-interest.  You vote "yes" if you want to add a third story; you vote no if you already have your third story.    The City should simply apply the existing zoning fairly and consistently, protecting the property rights of those who purchased with the expectation of being able to develop their property consistent with the existing zoning.  Instead, it is putting up property rights to a popular vote. 

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Geenlight II Gets the Red Light

Proposition 90 may have been defeated, but there was at least one piece of surprising good news for property rights that came out of the election:  Proposition X (aka "Greenlight II) was defeated, as reported in the Daily Pilot.   I am generally opposed to having land use decisions made by elections, but I am planning on circulating a referendum to bar NIMBYS like Phil Arst from living in Orange County.    That's what I call protecting against urban blight.

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Multi-Story Referendum on the Ballot In Seal Beach?

It would appear that a Seal Beach citizens' group Save Our Seal Beach has collected enough signatures from residents to temporarily block a new city law that bans a newly adopted third-story homebuilding in the coastal area until a referendum election on the subject is decided in the next election.  As the Register reports, a group of residents in the Shorecliffs community in San Clemente believed they had suceeded in qualifying a similar referendum on height limitations for construction adopted by San Clemente, but that referendum is the subject of pending litigation in Orange County Superior Court.   The Court was sufficiently convinced there was enough questions about the Shorecliff's referendum that it issued an order staying any construction inconsistent with the new San Clemente law.  Let's hope  Save Our Seal Beach does not suffer the same fate.

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Proposition 90 -- The Ends Justifies the Means

I'm not a big fan of  "end justifies the means" type arguments.   In fact, one basic rationale for my belief in limited government is that government can always find a superfically laudable goal for its regulation, but the means almost always does more harm than the "good" the government was supposedly advancing.   I'm a little torn on proposition 90 for that reason.  The most important aspect of the proposition from my perspective is its potential impact beyond "direct condemnation" (where the government affirmatively acts to take property and compensates the property owner).  The problem of governments condemning private property is serious, but property rights are more threated from regulation which is not compensated.   The requirement to compensate is at least some constraint on government action.   

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Green Light II Proponent Shows His True Colors

The Proponents of Greenlight II gathered their petition signatures with an appealing sales pitch:  We want to protect you against clogged traffic caused by "uncontrolled" development.    In reality, Greenlight II is an anti-growth, anti-property rights initiative,  supported by NIMBYs who have their homes in Newport Beach and don't care if anyone else can afford to live there.  In fact, that's the way they like it.   Meet Phil Arst, leading Greenlight proponent.  The Daily Pilot reports that Arnst is against Measure V, a general plan update that would actually address traffic problems in Newport Beach.   

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Shorecliffs Update

The Orange Country Register reports that a preliminary injunction was granted by Orange County Superior Court Judge Glass, which extends an injunction  banning second-story construction in the Shorecliffs neighborhood of San Clemente.   The City Council of San Clemente adopted an ordinance banning second-story construction in Shorecliffs, despite the fact that second stories were consistent with existing zoning and many residents had purchased their property with the expectation that they could add a second story.  

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HB Council Votes To Defend Right To Take Property

As a resident of Huntington Beach, I am deeply heartened by the decision of the City Council to spend my money to defend the right of mobile home park residents to take the property of mobile home park owners.   Next time I hear City Council members complain that they lack money for schools or to improve an aging infrastructure, I will recognize that money that could be used for such frivolous programs is much better spent protecting the right of mobile home residents to be paid two hundred thousand dollars for a 1962 single-wide worth $10,000.  Yes, as the Orange County Register reports, the City Council voted to defend a mobile home park closure ordinance that would require a park owner who decided he or she no longer wanted to to do business as a mobile home park, to pay all residents the "in place value," which translates to the value of the mobile home and the underlying land.    Good job, City Council!  In one crass political fell swoop, you managed to adopt a bad policy, that violates property rights and wastes valuable resources.   

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Huntington Beach Mobile Home Park Conversion

The City of Huntington Beach adopted a mobile home park conversion ordinance which is being challenged by  a lawsuit.   Bill Dahlin, a property rights attorney in my office exhorts the City to avoid wasting its resources on this misguided ordinance, responding to recent editorial comments in the Orange County register:

"On September 14, 2006, Mr. Steve Gullage wrote a column for the ‘More Viewpoints“ column in The Wave Section of the Orange County Register. Mr. Gullage urged the City Council of the City of Huntington Beach to expend precious taxpayer resources defending a mobilehome park “conversion” ordinance adopted by the City Council in 2004. With all due respect, the position of Mr. Gullage is “hog wash.”

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Yorba Linda's Measure B -- Another Attack on Property Rights

Following the example of Newport Beach, the City of Yorba Linda narrowly approved Measure B, another anti-growth measure that requires voter approval.  These measures are inconsistent with property rights and just terrible policy.   The ocblog.net has an excellent post, discussing the impact of these kinds of measures. 

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Hollywood's "Brave" Stand Against Property Rights

I can’t recall the last movie I saw with Darryl Hannah in it, much less the last Darryl Hannah movie I liked. Apparently, she has nothing better to do than climb a tree in one of the most idiotic protests I have ever heard about. The property they are protesting over is owned by Ralph Horowitz, who outraged the protesters by having the temerity to insist on the right to develop his property for a use that makes money (to build a warehouse), rather than sell it for a fraction of its actual value to be used as a haven for the poor families to grow “crops” on their “urban farm.”  

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Update: Greenlight II Initative Signatures Submitted

The Orange County Register reported on May 31, 2006, that the backers of anti-development initiative Greenlight II turned in more than 9,100 signatures, of which 6,056 must be valid to secure a spot on the November ballot. This is bad news for property rights in Newport Beach, California. As I previously reported, this new initiative will put strenuous limitations on commercial and residential developments, requiring a successful election for anything other than the smallest of projects, including projects consistent with the existing general plan. A property owner's right to develop property consistent with existing zoning should not be subject to a city-wide election. Fight this initiative!


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Brea Creates Open Space By Down-Zoning Private Property

"There is no such thing as a free lunch" is a well-worn cliché. The political leaders of Brea apparently don't agree. Brea's City Council wants to enhance and preserve the city's open space. In the abstract, that is a laudable goal. The problem is that much of the existing open space is in the hands of private property owners who would like to develop their property. Of course, if the community values open space, it can acquire property for open space. In that way, the community as a whole would bear the burden of preserving open space. The problem is that the community is not willing to pay for it. Well, more accurately, the City Council has decided, why even ask the community to pay when it can impose the burden on a few unlucky property owners?

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Yorba Linda Extends Limitations on Eminent Domain

Local government politicians continue to respond to popular sentiment against the exercise of eminent domain in the wake of the Kelo decision. On April 4, 2006, the City Council for Yorba Linda, California, acting as the Redevelopment Agency board, added more properties to a list of real properties already subject of a prior resolution that bars the agency from exercising its eminent domain authority for any private, economic or tax purpose in redevelopment areas. I applaud the decision, but it would be nice to see our politicians, for once, lead the charge to protect property rights, instead of simply reacting to the wave of popular support.

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San Clemente Puts Property Rights To A Vote

Should A Majority Vote Decide the Rights of Property Owners?

The Shorecliffs development in San Clemente is in the middle of a dispute over the right of property owners to build a second story for homes in the community, most of which have beach views. The original development contained only single story homes, but the developer did not impose any restrictions on building a second story. Until a recent urgency ordinance adopted by the City, which put a 45 day moratorium to any new projects, there were no zoning limitations on building two story homes. The City Council now plans to have an "advisory" vote of the community to help the Council decide whether to make the moratorium permanent.

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Kelo Spawns Property Rights Initiatives

The United States Supreme Court's decision in Kelo v. City of New London,125 S. Ct. 2655 (2005) has prompted the support of new property rights legislation across the county. Some of these legislative initiatives have come from legislators, others from the public and interest groups. There are several active initiatives in Calfornia alone.

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