Importance of Eminent Domain and the Negative Financial Effect Essay

Importance of Eminent Domain and the Negative Financial Effect - Essay Example This paper seeks to explain the economic importance of eminent domain and the negative financial effect it has on ordinary citizens. Eminent domain has helped in economic development as it has provided land that has revitalized communities and increased the welfare of cities and states (Godwin 69). It has enabled smart growth. Eminent domain has helped to correlate development and improvement of the quality of life. It promotes development with economic cautiousness and it does keeping in mind environmental prudence. Eminent domain offers the government with the power to be able to assemble or utilize underutilized land or the land portion in depressing and decaying neighborhoods. This helps in revitalizing such areas so that can help economic development. Over the years, there are various case studies that have revealed the significance of eminent domain and how it has helped the government to assemble different parts of land in order to promote economic development. This has helped to savage depressed or failing communities. Eminent domain has also led to economic development or ordinary citizens. In Lakewood, Colorado there was a Villa Italia Mall that was approximately 1.4 million square feet. This was an area of gross leasable. In the early 1990s, the land began to decline. The city later initialed eminent domain proceedings in the quest to acquire this land. This was closely monitored and orchestrated by Continuum as the proposed a new city plan. From this proceedings, they anticipated sales tax revenues of about 90$ million with a future projection over the next 20 years. Up until now Belmar is known as Lakewood’s thriving and uprising downtown. The second case that has shown the importance of eminent domain is of Best Buy that is located in Richfield, Minnesota. Best Buy decided to purchase a headquarters complex that was about the area square of 43 acre in the year 2000. This was not taken lightly and, after the condemnation proceedings, the cou rt had to intermediate this issue. The case was ruled in favor of Best Buy. They were able to acquire the land and were able to relocate their offices to this place by March 2003 (Mich 70). Economists assert that it is possible for the redeveloped site to be generating about 8$ million on a yearly basis. This is about ten times what was initially gotten as taxes from that land. Eminent domain has also helped in making the life of ordinary people safer and their environment much habitable. A case to support this fact is the New York City’s Time Square. Back in 1980 there was a memorandum of understanding between Empire State Development Corporation with regards to the development of the 42nd St. This project was focused on building new offices towers hotels entertainment facilities amongst other improvements. This eventually turned Times Square into a lively center that has shopping, entertainment and business facilities. This Corporation was able to purchase parcels of land t hrough two means. It was either through outright public development, regulation or condemnation. This parcel of land has been having constant public litigation and controversy. Revitalization of Times Square has made it to become a model for other cities to enumerate. Despite the importance of eminent domain to ordinary citizens, it has some negative financial effect on them. The major issues and challenges that eminent domain presents