Real Estate & Property Law

City Considers Eminent Domain to Save Jobs

By Alan Ackerman

The posting by Molly Line in liveshots.blogs is fascinating. Here, we do not have a taking for a private purpose, but a taking so the employees can maintain their job. The intent is to not pay less than the fair market value, but bar at auction, which simply will destroy the community.

A state's limitation of taking for private purposes would not bar this type of acquisition. Condemnation arguably has some virtues.

Liveshots

"It's been my livelihood," said Anita Boulter, who says she has worked at the plant for 37 years. "I always felt I made a good living working and I like my job."

City leaders are considering an unusual measure to save the plant, which has been a staple in the community for 80 years, operating under the umbrellas of numerous corporate entities over the decades. The Taunton City Council is exploring the possibility of exercising the power of eminent domain to take the machinery away from the parent company, Bellevue, Washington based Esterline. The city would pay a fair price to prevent the equipment from being sold at an auction scheduled for December 14th.

Former Haskon workers hope to raise the capital to buy it and run an employee owned operation or find a new corporation to take over the business.

"It's certainly outside of the box so there were a lot of concerns," said Taunton City Council member Ryan Colton.

When the government exercises the power of eminent domain it is most often used to clear the way for highways, railways or public utilities but property is also taken for public use or economic development.

"What we'd be doing here is making the argument that keeping these jobs here in Taunton serves a public purpose here in our city," said Colton.

Full post as published by National Eminent Domain Blog on December 09, 2010 (boomark / email).