Colorado is one of six states considering changing urban renewal

By: Colleen Slevin, The Associated Press
February 16, 2004

When the city of Wheat Ridge wanted to put up a 1950s chrome clock and welcome sign on the corner of a shopping strip, auto repair shop owner Chuck Madril let them use some of his property, giving up 12 parking spaces.

The day after the last brick was laid, city officials told him their next plan to spruce up 38th Avenue was to replace his business with a Walgreens. Nearly two years later, both sides are still arguing about what is a fair price for his property.

``People are really upset with the political thuggery going on in their cities,'' said Madril, whose father opened the garage 55 years ago.

Madril's story is being echoed across the country as cities look to increase revenues by bringing in retailers and upscale developments. Lawmakers in at least five states are sponsoring bills to limit use of eminent domain authority, which originally was intended to help governments get land to benefit the public for uses like roads and schools.

That authority has been broadly interpreted by the courts to also allow governments to take ``blighted'' properties for the sake of urban renewal projects. Economic liability is one factor that can lead a property to be labeled as blighted.

In Colorado, lawmakers are considering two bills, including one that would stop governments from taking land for economic reasons. It was sent to the full House for debate this week.

Sponsor Rep. Lois Tochtrop, D-Westminster, said cities which need more money should ask voters to increase sales tax on existing businesses instead.

``Don't find the solution on the backs of the mom-and-pop businesses,'' she said.

Rep. Shawn Mitchell, R-Broomfield, has a different approach: He wants to ban governments from taking land from a business only to turn around and sell it to another business.

Mitchell sees governments acting almost as super real estate agents, entering into the free market and brokering deals that allow big businesses to buy land without having to deal with the owner.

Opponents include cities and their lobbying group called the Colorado Municipal League who are concerned that an overhaul of the law might be too severe. They say it could threaten projects needed to revive struggling areas. Without it, they fear, one landowner could derail a project that will help the whole community.

League associate director Sam Mamet said cities may be willing to support some changes to hang on to their eminent domain authority _ such as letting elected city officials instead of planners make the final call or looking at whether owners are getting fair prices.

Urban renewal supporters say changing the law takes too much power away from cities simply because a few have abused their authority.

Delta _ an agricultural city of 4,000 on the Western Slope _ didn't end up having to condemn any vacant storefronts in an effort to revive its downtown but not having that power could hurt future projects, city manager Rich Englehart said.

Rep. Michael Garcia, D-Aurora, hopes his city will one day be able to use eminent domain to get rid of hourly rate motels and pawn shops that surround the former Fitzsimons Army Medical Center. Instead of changing the law, he said people who think leaders are abusing their power should vote them out of office.

Lawmakers in Alabama, Indiana, Kansas, Rhode Island and Virginia have introduced bills similar to those in Colorado, according to the National Conference of State Legislatures.

In Lakewood, Ohio, a suburb of Cleveland, residents will vote next month on whether to remove a blight designation from 1,000 homes, a distinction which clears the way for the city to try to take the properties under eminent domain.

The Institute for Justice, a libertarian law group based in Washington, says the area of bungalows and apartment buildings was categorized as blighted because some homes only had 11/2 bathrooms and single-car garages.

In Michigan, the state Supreme Court has agreed to review a case challenging a decision to condemn property near Detroit's airport for redevelopment.

Any solution the Legislature comes up with will be too late for Madril. For now, the best he can hope for is that an arbitration board will decide to up the city's $500,000 offer _ up from an initial $275,000. He estimates he needs $1.5 million to move, rebuild and help pay his six employees during the downtime in between.

The 54-year-old says he's worked many long hours to build up the business so it would be in good shape for his children to take over.

``Now my kids, instead of having the opportunity to expand the business, they're going to have to work their tails off to get it off the ground,'' he said.