Eminent domain: An evaluation based on criteria relating to equity, effectiveness and efficiency

Eminent domain has been relied upon to stimulate economic growth in America since the Colonial Period. Beginning with the urban renewal movement of the 1950s and 60s, the modern use of eminent domain by municipalities to reduce blight has been increasing, however, minimal analysis of the success or failure of eminent domain has been carried out. As a result, the objective of this study was to evaluate the effectiveness, efficiency and equity of eminent domain as a redevelopment tool through a nationwide survey of municipalities of one hundred thousand (100,000) people.; A review of the related literature determined that prior studies were categorized into legal, appraisal, economic and governmental research, with little integration between these areas. An additional finding was that the majority of the literature was descriptive, with minimal empirical studies. As a result, a need for an empirically based research study that integrated the prior literature was necessary.; A series of hypotheses were generated that considered the equity, effectiveness and efficiency of eminent domain as a redevelopment tool. The findings indicated that: (1) Eminent domain effectively plays a role in the increase of property tax values following the acquisition of and redevelopment of property, (2) Eminent domain is an efficient redevelopment tool in that litigation-based project delays were considered minimal, allowing redevelopment to occur in a timely manner, (3) Eminent domain is not equitable in regards to the purchase price disparity between national, regional and local developers who wish to gain title to the acquired property for redevelopment, and (4) Municipalities that possess an increasing population with a manufacturing economic base that is growing strongly are more likely to employ eminent domain as a redevelopment tool than municipalities possessing other characteristics.; The implications that this research has on a variety of fields related to eminent domain is significant in that it is a first step in determining the viability of this tool as a stimulus for economic development. The research should prove particularly relevant to municipal governments considering the use of eminent domain, as the results provide insight into the manner that eminent domain is used nationwide.