Real Estate & Property Law

Just compensation is not a windfall

By Alan Ackerman

Kansas City Star

    A condemnation begun during downtown's redevelopment rush in 2005 has been settled, and while the market is decidely cooler, the owners of Gigi's Wigs & Beauty Supplies are $1 million richer.
    Chung Hoe Ku and Myong Suk Ku, the couple running Gigi's, will receive $990,000 from the city for the two buildings housing their business at 1219-21 Grand Blvd. They also are expected to get about $150,000 for relocation when they pull up stakes in December after 25 years at the location.
    The Gigi's settlement demonstrates the influence of recent efforts to change or abolish the use of eminent domain for economic development, Smiley said. When the U.S. Supreme Court ruled condemnation was a valid redevelopment tool in 2005, efforts were made in many states, including Missouri, to outlaw the practice.    

    The Kansas Star headline reads that the individuals receiving full compensation for the property somehow received a 'windfall.'  The Authority knew that they had to pay the money and ended up settling, not trying the case, when it paid the million dollars.  The Kansas City Star should be ashamed of itself for concluding receiving just compensation is somehow a windfall!
   
 

Full post as published by National Eminent Domain Blog on November 09, 2009 (boomark / email).