An Ohio legislative task force last week made its recommendations for changes in the state's eminent domain law, which is expected to be reviewed when the General Assembly returns in the fall.
The Eminent Domain Study Task Force ended its work last week just days after an Ohio Supreme Court ruling on July 26 that said the city of Norwood could not take property solely for economic development purposes.
The General Assembly approved legislation earlier this year to review the state's eminent domain laws. The law required that the task force make recommendations prior to any legislative changes. The legislature is set to return in September.
The task force, led by Rep. Bill Seitz, agreed to two broad guidelines for the law: The state should forbid the use of eminent domain authority when the sole purpose is to generate additional tax revenue, but governments should be allowed to use eminent domain to improve blighted areas even if a private developer ended up with the property.
The Ohio Supreme Court ruled recently that Norwood's effort to use its eminent domain power to take property that would be used for development violated the state constitution. The ruling could set the tone for other state courts as they review eminent domain laws. The case was the first ruling on the matter for a state high court since the U.S. Supreme Court's Kelo v. New London decision last year upheld the use of eminent domain by municipalities.
Norwood said the area it wanted was deteriorating - a designation the court said was too vague.
The task force recommended that half of an area would need to be declared blighted to be taken under the eminent domain authority. The proposed language for the law would allow governments to declare property blighted if it is a public nuisance, environmentally contaminated, vermin-infested, or in tax foreclosure, according to local news reports.
In addition, the municipality would need to meet two or more standards such as "unsafe conditions, disconnected utilities, abandonment or overcrowding."
