TESTIMONY
by MarySol Rodriguez, Director of NYC Affairs,
Government Affairs
PARTNERSHIP FOR NEW YORK CITY

New York, New York
December 12, 2005

PDF 93K

Testimony before the City Council Committee on State and Federal Legislation

Good morning Chairman Rivera and members of the Committee. Thank you for the opportunity to testify today on resolutions supporting passage of S.5946, which calls for the creation of a temporary state commission to examine eminent domain laws and A.9043-A, which would change the state’s eminent domain procedure law.

The Partnership for New York City, which represents the city’s business leadership, welcomes the City Council’s exploration of the issues surrounding the use of eminent domain in support of local economic development. The Partnership has a long history with public-private development programs that have produced affordable housing, neighborhood renewal and economic development activity across the city. Many of these projects required the judicious use of eminent domain to assemble sites.

As you are aware, the Supreme Court’s decision to affirm the use of eminent domain in the Kelo case has triggered a tremendous reaction against the taking of private property for conveyance to another private owner. Groups as wide ranging as the NAACP and the AARP have joined forces with Libertarians and conservative property rights advocates in attempts to reverse Kelo through legislation. Just last week, the President signed a bill that will withhold federal housing and transportation funding in 2006 from projects that involve eminent domain for private development. Political pressure from the left and the right demonstrate their support for homeowners and small business against government and real estate interests.

Hopefully, this Council hearing will contribute to a discussion of this issue at both the local and national level. It is very important that representatives of cities and states who understand the role of eminent domain in urban development have an opportunity to weigh in before the U.S. Senate acts on national legislation or the State legislature proceeds with the bills being considered in response to the Kelo decision.

The power of cities and states to condemn private property and assemble sites for development has been an essential component of the public-private partnerships that have been responsible for most of the affordable housing, economic and community development projects that have been built in American cities over the past three decades. To curtail this power without full discussion of the implications is a serious mistake that would certainly discourage the type of private investment that urban America depends upon for renewal and regeneration.

As we said in testimony last month before the State Assembly, the Partnership supports the creation of a temporary commission to review existing State and local eminent domain laws to ensure that they are effective and fair to individual property owners as well as to the government’s economic development objectives. We believe that New York City’s experience with condemnation has enabled the government to contain speculation in land prices and leverage limited public dollars to assemble sites for projects that could not have been feasible otherwise. We think you will find that the rights of owners and tenants have been respected and the public interest has been served under New York’s eminent domain laws and procedures.

Without the power to condemn private sites to support economic development projects, New York and other older urban centers could not have kept pace with demands for upgraded infrastructure, modern office facilities, and an expanded housing stock. Lincoln Center, Times Square and Downtown Brooklyn are just three of many examples where the city and state have used eminent domain to assemble the land and buildings necessary to put blighted and underutilized property into more productive use.

Importantly, New York State law provides for due process and just compensation for the owners of land that is condemned for urban renewal and redevelopment and contains oversight and protections that govern the use of eminent domain that may be a good model for national legislation. Properties acquired through eminent domain must be deemed to be “blighted.” Public review is required.

New York City has an excellent eminent domain law that requires a finding of blight and full public review for the taking of private property. As you know, in New York City, the public review process known as ULURP requires multiple hearings at several different layers of government, including your approval here at the City Council. Finally, the courts have oversight to ensure that owners are justly compensated at fair market value.

These existing restrictions ensure that government is able to assemble sites for affordable housing and economic development sites while owners are treated fairly. For that reason, we urge you to caution the State Legislature against giving the State any new authority to overrule local development decisions. “Friendly condemnations”—in which localities invite the state to use its eminent domain powers—have been and will continue to be a successful model for the use of State’s eminent domain powers. But land use decisions have historically been the province of local and county governments and we believe that they should remain so.

The mantra of urban experts is that cities must constantly renew themselves or they will die. During the 1960’s and 70’s, America came close to losing its older cities. The power of eminent domain was one of the tools that prevented complete disinvestment and destruction of our urban centers. Today, American cities are in relatively good shape, so it is easy to argue that we should leave things as they are and preserve the status quo.

Many who will testify today for cutting back on eminent domain are reflecting a very immediate concern with over-development. Their concerns may be legitimate with respect to individual projects, but they should not be the basis for policy decisions that would limit the flexibility of state and local government to respond to changes in our national and global economy.

Thank you.

The Partnership for New York City (www.pfnyc.org) is a network of business leaders dedicated to enhancing the economy of the five boroughs of New York City and maintaining the city’s position as the global center of commerce, culture and innovation.