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Encinitas takes on the Supreme Court: city makes historic move to challenge eminent domain ruling.

Article Excerpt
Eminent domain can be a double-edged sword for developers who, on one hand, can reap big bucks on redevelopment projects, but also run the risk of being seen as heartless home stealers.

Some manage to find a middle ground. But with the recent U.S. Supreme Court riding loosening restrictions on private property takeovers, all bets seem to be off.

On June 23 in a 5-4 split decision, the high court ruled local governments have the right to take land and, in turn, give it to private developers to spur economic development and tax revenues for the community. California's eminent domain law is stricter, requiring that seized property must be designated as blighted. But, ask some in the development community, who determines blight?

"The question is, who do you trust?" asked Mike In Andreen, the publisher/editor of the Surf City Times in Encinitas and chairman of communications for the Encinitas Chamber of Commerce.

Encinitas City Councilman Jerome Stocks decided not to take any chances and proposed what is considered the first ordinance in the nation to strengthen private property rights in the face of the Supreme Court's decision. On July 13, the Encinitas City Council approved a draft ordinance of his proposal, which is scheduled for final approval Aug. 17.

Under his proposal, the city would not be able to take private property and transfer it to another private owner or project by eminent domain without first calling for a public vote during a regularly scheduled election. Voters then must approve the transfer by greater than a two-thirds vote.

Stocks is especially concerned about the increased vulnerability of property owners who have reaped the benefits of Proposition 13. That measure, approved by the voters in 1978, reduced property taxes by more than 50 percent by capping property tax rates at 1 percent and rolling back property values for tax purposes to the 1975-76 level.

"Owners who have property over 10 years have got a bull's-eye on it," Stocks said at the time he proposed his ordinance....

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