Bill Protecting Property Owners Wins Committee Approval
Municipalities, Owner Advocates Agree on Limits to Eminent Domain Powers
SPRINGFIELD, Ill., April 12 -- The Illinois House of
Representatives Judiciary-Civil Law Committee today approved a
comprehensive overhaul of Illinois' eminent domain law that will limit the
power of local governments to seize private homes and businesses,
especially when private development deals are involved. The bill, an
amended version of SB 3086 which won overwhelming bi-partisan support in
the Senate, is the result of intensive negotiations between advocates for
private property owners and municipal representatives, including the City
of Chicago and the Illinois Municipal League.
"I believe we have addressed any concerns among the municipalities that
this bill would impede important economic development or public works
projects, while providing meaningful protections that level the playing
field between powerful government and private property owners," said
Representative John Bradley (D-Marion), House sponsor. The bill now moves
to the full House where it is expected to be called next week.
The House amendments to SB 3086 consolidate various existing statutes
relating to eminent domain actions. It would:
-- Require municipalities to prove that an area is blighted before
forcing owners to sell for private development projects;
-- Require government entities to pay relocation costs for displaced
residents and businesses consistent with the federal Uniform
Relocation Assistance and Real Property Acquisition Policies Act in
all eminent domain actions;
-- Allow a judge to set a valuation date for seized property that ensures
owners will receive current, fair market value when they are forced to
sell if the trial commences more than 2 years after the date of
filing;
-- Require the government to award attorney's fees based on the net
benefit achieved for the property owner when an owner successfully
challenges the last written offer from the government, providing the
owner has made an offer in good faith to settle;
-- Require that government seizure of property for private development
either have a written agreement with a developer or that it be part of
an established plan to eliminate blight and that a written agreement
or deed restriction is in place to ensure that the property is
ultimately used for said purpose.
The bill applies only to actions commenced on or after the effective
date. Municipalities fought for and won language that exempts burden of
proof provisions in existing Tax Increment Financing districts where blight
has been determined previously and property acquisition plans are already
in place or moving forward. However, the legislation would not allow the
area of an existing district to be expanded nor the completion date
established to be extended.
The Equity in Eminent Domain Act was first introduced by Senator Susan
Garrett (D-Lake Forest) following a decision by the U. S. Supreme Court in
Kelo vs. New London affirming virtually unlimited power of local government
to seize private property and turn it over to other private interests.
States across the U.S. are acting to rollback those powers and restore
balance to the exercise of eminent domain.
"It is crucial that we have clear and transparent laws to protect
property owners," said Senator Garrett. "The Supreme Court invited us to
act and we have done so by codifying existing state and federal precedents.
Now citizens will fully understand what their rights are."
Senate Bill 3086, as amended, is supported by the Illinois Association
of REALTORS(R), the Home Builders Association of Illinois, the National
Federation of Independent Business, the Illinois Farm Bureau, the
Chicagoland Chamber of Commerce, the Illinois Retail Merchants Association;
the Outdoor Advertising Association of Illinois, CBS Outdoor Advertising,
AFL-CIO, the United Food and Commercial Workers, the Illinois Property Tax
Lawyers Association, the Alliance for Responsible Taxation, the Mobile Home
Owners Association of Illinois, and the Lawndale Business and Local
Development Corporation.
