Request for eminent domain raises questions among property
owners
Morgan Hill – The proposed extension of the city’s redevelopment agency might include eminent domain powers to force the sale of blighted commercial properties.
City officials announced at a town hall meeting Monday evening that the controversial tool might be needed in the future to deal with absentee property owners who do nothing to fix their neglected land. Officials also say the tool could come in handy in assembling larger parcels to accommodate bigger commercial buildings.
The arguments raised eyebrows among the 40 residents attending the meeting at the Morgan Hill Community Playhouse on Monterey Road.
While many in the audience said they support the work of the RDA, which since 1981 has spent about $250 million on improvement projects in the city, some were skeptical of the necessity for eminent domain authority.
“I just don’t think the city should be in the real estate business,” said longtime Morgan Hill resident Gayle Richter, who owns several properties along Monterey Road. “I do believe the city has ways and means of working with property owners.”
Downtown developer Gary Walton, president of the Morgan Hill Downtown Association, said eminent domain is a risky proposition for property owners.
“What does ‘last resort’ mean?” he asked at Monday’s meeting, alluding to possible conditions under which someone might be forced to sell land.
City Manager Ed Tewes, the RDA’s executive officer, said the authority would only be used in extreme cases where an absentee property owner ignored requests by city leaders to revitalize blighted land.
“The purpose of redevelopment is to enhance the entire project area, or all of downtown, so that the value of all properties is enhanced,” Tewes said. “Often rents are depressed because ‘the property next door’ is in such bad condition.”
Walton said he would still support the RDA extension with some caveats. Any assistance to new commercial projects, he said, should be done carefully to avoid unfair advantages against existing merchants and property owners.
“Any time the city gets involved in using public money, there could be an unfair advantage,” he said, adding the downtown association has not taken a position of the RDA extension.
RDA consultant Ernie Glover, who facilitated Monday’s meeting, struggled a little in responding to Walton’s claim. On the one hand, Glover made the general case that redevelopment provides assistance to all areas that are assisted. But he also noted that some cities have used RDA money to attract big-box stores that subsequently put local merchants out of business.
The proposed RDA plan does not include the addition of big-box stores.
Since 1981, the RDA has spent about $250 million on numerous projects such as the widening of Dunne Avenue, the construction of Butterfield Boulevard and the addition of public facilities such as the Morgan Hill Community and Cultural Center, the Aquatics Center and the Centennial Recreation Center opening in October.
To maintain its work, the RDA is proposing raising its “tax increment limit” – the amount of funding it can cull from local property taxes – by $333 million. Also being proposed is the reestablishment of the RDA’s bond limit, to speed up the financing of future projects.
City officials released a new five-year draft plan for the RDA earlier this month. Copies of the document are available on the city’s Web site at www.morgan-hill.ca.gov.
“We were pleasantly surprised by the number of people who attended” Monday’s meeting, said Garrett Toy, director of Business Assistance and Housing Services. “We thought eminent domain would be a concern raised at the meeting. However, since the purpose of the meeting was to discuss issues of concern, it came as no surprise.”
A second town hall meeting will be scheduled in October before the City Council considers adopting the plan in November.
