DOES VIRGINIA have a Kelo problem? Following the 2005
Powerful forces within the state either welcome the Kelo ruling or deny that similar abuses could occur here. The Virginia Municipal League calls Kelo "a correct outcome," while the Virginia Association of Counties is watching to be sure that any fix does not hinder local governments' ability to pre-empt blight. (In VACO's fantasy, it seems, a well-maintained property that could someday go to seed is fair game for condemnation. Ye gods, what does that leave?) Meanwhile, the Virginia Association of Realtors Legislative Action Center asserts that "in a pure legal sense, we don't have a 'Kelo problem' in Virginia." That group backs House Bill 94, patroned by Virginia Beach Del. Terrie Suit (who's in the mortgage business), a weaker measure than the one the House of Delegates last session eventually passed--before the Senate smothered the reform.
Cases compiled by the Virginia Property Rights Coalition justify a bleaker view of Kelo's potential for mischief. Examples:
In Ottofaro vs. City of Hampton (2000) the Virginia Supreme Court allowed the municipality to take property owned by Dora and Frank Ottofaro on Mercury Boulevard allegedly needed for a road. However, only 18 percent of the land went to that purpose; the rest passed to the Industrial Development Authority. Now a Bass Pro Shop, a Lowe's, and a Texas Steakhouse occupy the former Ottofaro property.
In 2005, the Halifax Board of Supervisors condemned part of a man's property. Why? Because his neighbor wanted a driveway. The neighbor paid the county for the land and for paving the driveway. A judge went on to rule that "Virginia law does not prohibit the government from taking one person's private property and turning it over to another." If that's true, get friendly with your local supervisor or council member.
Cumberland County opted to auction off an old, boarded-up school building. A couple named Meeks bought it, spending $400,000 for acquisition and renovation. They then rented the space to churches and other groups. Later, however, the county, exercising eminent domain, took back the property to use it for--guess what?--educational purposes. They paid the couple a measly $200,000, leaving them in debt. Litigation is pending.
The city of Virginia Beach condemned five oceanfront properties in 1999 so that a $30 million four-star hotel and retail complex with a parking garage could be built. Estimated take for the city: $49 million in taxes and rent over the first 25 years.
Does Virginia have a Kelo problem? Yes. But a "Kelo denial" problem looms even larger. When the General Assembly convenes in January, it speedily should solve both.