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MAXIMILIAN FRANZ
This stretch of vacant storefronts along Washington Boulevard in Pigtown is one of at least 12 redevelopment projects in Baltimore that are highly dependent on condemnation.
CONDEMNED
BY ROBBIE WHELAN | robbie.whelan@mddailyrecord.com our condemnation series:
CONDEMNED
Baltimore’s use of eminent domain
“ ”
we need to use eminent domain, you need look no
further than Charles Center or the Inner Harbor.
— M.J. “Jay” Brodie
President, Baltimore Development Corp.
Year East Balt. Park Westside Gateway American Uplands Poppleton Fairfield Baker/ Upton Washington Broadway Total
Development Heights South Brewery Division Village Corridor properties
Inc. /Pigtown authorized
2003 5 0 2 0 0 0 0 0 1 79 0 0 255
2006 42 1 5 0 15 0 7 8 10 23 8 24 224
2007 11 12 2 6 12 5 26 2 11 7 0 3 204
2008 78 9 4 1 20 5 25 91 17 2 0 1 283
“ ”
leaders of the community — public and
private — were searching for a solution.
— Martin Millspaugh
Former CEO, Charles Center Inner Harbor Management Inc.
N
Condemnation areas in Baltimore
The map shows where most condemnations in Baltimore take place. Our research
W
S
E
shows that eminent domain use is not limited to one particular part of town; instead,
large-scale site acquisition projects using the tool are spread out over a wide area.
However, eminent 83 domain seizures in the central part of the city, especially around the
downtown area, tend to be of commercial properties, while East Side and West Side
Park Heights 140 properties tend to be houses.
Condemnations authorized: 22
139
American Brewery
26
Condemnations authorized: 47
41
E. North Ave.
66
1
83
Upton 66
40
Condemnations authorized: 120
66
40
EBDI
Condemnations authorized: 610
295
144 Inn
er H
Bo
arb st
on
or St
.
Key Hwy.
395
Uplands Poppleton
Condemnations authorized: 10 Condemnations authorized: 58
95
North
.
vd
Broadway Corridor
west
Bl
95
n
66
1 Condemnations authorized: 121
to
Harb
ng
hi
as
or
2
W
95
295
695
Washington Village/Pigtown
Condemnations authorized: 8 Fairfield
Carroll-Camden Industrial Area/ Condemnations authorized: 101
Gateway South
Condemnations authorized: 7
.
vd
Bl
95 895
n
to
ng
hi
695
as
295
W
“ ”
with this whole urban renewal business.
The rest of the world moved on and got over it.
— John C. Murphy
Baltimore eminent domain lawyer
Voices on condemnation
“How do we help the pri- “I think that in the city “The process of acquir-
vate sector do what it of Baltimore, the emi- ing all of the necessary
does in America, to get nent domain tool is ab- parcels through voluntary
loans to get equity? Our solutely critical. I’ve negotiations would have
stepping in with any of worked in half a dozen required an unknown,
the city’s powers is done cities in my career, uncontrollable amount of
with a judgment call that and Baltimore is in time ... The solution was
the private sector is not many ways a special to invoke eminent do-
doing it. … In the long example because it main to acquire the re-
term, there are benefits has seen massive dis- quired properties in a pre-
— jobs, taxes — that you investment and out-mi- dictable amount of time;
have to balance against M.J. “JAY” BRODIE gration, and that has PAUL T. GRAZIANO since the property own- MARTIN MILLSPAUGH
the angst.” created vast tracts of ers were entitled to appeal
largely abandoned property.” the price they received to a jury in court pro-
ceedings, before the city acquired possession.”
MARYLAND’S BUSINESS & LEGAL NEWS SINCE 1888
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Convicted sex
offender’s wife
advocates for
reform.
Land-use attorney John C. Murphy, in the middle of the West Side Superblock: ‘…there has been a general change in attitude towards government. The general public is much more sympathetic to property rights.’
CONDEMNED
BY ROBBIE WHELAN
our condemnation series:
n Maryland, as in many parts of the country, the discussion m Historic court rulings
most fundamental rights — the right to own property — which is pro- condemnation powers has become
synonymous with urban renewal. g Interview with a lawyer
Watch an interview with a lawyer who
tected by the Fifth Amendment. No citizen, the amendment says, can has litigated historic eminent domain
MONDAY: The issue of condemnation
be deprived of his or her property unless for “public use” and with- touches on one of the U.S. Constitution’s cases. Embedded online with the main
out being justly reimbursed for its value. most fundamental rights — the right to condemnation story.
own property.
Over the years, several landmark court condemnation authorizations is expect-
cases have broadened the definition of
public use to include the economic well-
ed to increase more than 250 percent be-
tween 2007 and 2008, legal battles over
TUESDAY: Small business owners in
Baltimore affected by condemnation
i Historic photo slideshow
View a series of photos documenting
being of a city, state, county or national condemnation are often pitched and pro- tell their stories. several Baltimore City development pro-
government, significantly broadening em- longed. As of October 15, 176 condemna- jects that were completed with the use of
inent domain’s use as a policy tool. Sev- tion cases had been filed in city circuit decisions delivered blows to the city’s eminent domain. Posted online as a sep-
widely used “quick-take” procedure, arate story.
eral cases have held, for example, that it is court this year, up from 91 in 2007.
perfectly legal to take property from one The West Side Superblock, one of the which gives property owners just 10 days
private business owner and give it to an- Baltimore Development Corp.’s high- to contest the validity of the taking. This supplemental reporting is available on
other, if it means more jobs and a more ro- priority projects, has been stalled for years All this, some lawyers say, represents our Web site at www.mddailyrecord.com
bust tax base. by several major lawsuits. In the city’s a major change in the public’s attitude
In Baltimore, where the dollar value of nascent Charles North district, two 2007 SEE CONDEMNED PAGE 5A
“ ”
waterfront was exhibit A in the argument in favor of the
eminent domain power.
— John D. Echeverrian
Lawyer and land-use specialist,
Georgetown University’s Environmental Law and Policy Institute
RICH DENNISON
The West Side Superblock, one of the Baltimore Development Corp.’s high-priority projects, which has been stalled for years by several major eminent domain lawsuits
ages by condemning properties and re- the argument in favor of the eminent do- New urban theories, expressed in
Condemned
Continued from page 1A
developing them.
It gained further traction in 1954, when
main power,” said John D. Echeverria, a
lawyer and land-use specialist at George-
books such as Jane Jacobs’ “The Death
and Life of Great American Cities” and
the Supreme Court ruled in Berman v. town University’s Environmental Law Herbert J. Gans’ “The Urban Villagers,”
toward property rights and the govern- Parker that Washington, D.C., could con- and Policy Institute. mounted the first serious intellectual
ment’s role in real estate development: demn a supermarket to transfer it to an- “If there’s an essential rationale for challenges to urban renewal. This, paired
Emboldened by recent legal victories, other private developer simply because the use of eminent domain, it’s the hold- with public backlash against projects
property rights advocates are fighting the area around it was, in the eyes of city out problem, and it’s the difficulty of over- such as the razing of Boston’s West End
back against a government power that officials, “blighted.” coming the problem that one or 100 own- for an economic development initiative
they see as widely abused, and state Many of the big-city urban renewal ers won’t agree to sell on any reasonable that never materialized, made Charles
lawmakers are listening. plans of the 1960s — in New York, Pitts- terms. There are a variety of instances in Center-style urban renewal seem like a
burgh, Baltimore — depended on the lat- dealing with downtown development. thing of the past.
itude allowed city governments by Where that arises, eminent domain is the “Urban renewal replaced small
Gaining traction Berman, and many downtowns trans- natural tool for dealing with it.” streets, high density, mixed-use city en-
The concept of “urban renewal” first formed over the course of a decade using But in the decades that followed, as vironments with these sterile plazas and
became prevalent in the early 1950s, after eminent domain powers. federal money for cities dried up, emi- superblocks,” said Paul S. Grogan, direc-
the 1949 Housing Act provided federal in- “In the context of the national debate, nent domain-based urban renewal fell out
centives for cities to clean up their im- the Baltimore waterfront was exhibit A in of fashion. SEE CONDEMNATION PAGE 6A
INNER HARBOR BEFORE REDEVELOPMENT, 1965 INNER HARBOR AFTER REDEVELOPMENT, 1990
6A T H E D A I L Y R E C O R D MONDAY, DECEMBER 8, 2008
CONDEMNED
Baltimore’s use of eminent domain
It’s a push and pull effect. Kelo was at first seen as a great
“ ”
boon to cities and developers. Shortly after [it] was handed
down, you saw a rush in the use of eminent domain.
— Scott G. Bullock
Senior attorney, Institute for Justice
But takings entered the spotlight once been challenged by legislation passed in 42
again in 2005, when nearly a half century states — much of it in the first few months
after the Berman decision, the Supreme after the decision was made — including
Court ruled on Kelo v. City of New Lon- Maryland.
don, its first major land-use decision in A few states, like Florida, have passed
decades. aggressive laws that effectively ban emi-
In that case, a Connecticut nurse nent domain for economic development
named Susette Kelo fought the local gov- purposes. Florida requires condemners
ernment of New London, which proposed to wait 10 years after filing their case to
taking her waterfront home to build a transfer property to private developers,
$300 million research facility for pharma- effectively making it not worth it. Other
Susette Kelo stands in front of her New London, Conn., house. In 2005, a divided Supreme Court said the
ceutical giant Pfizer Inc. A divided deci- city was within its rights to take her house to make way for a $300 million research facility for
states have passed laws that simply bol-
sion held that the city was within rights to pharmaceutical giant Pfizer. ster private property owners’ rights.
take the house, and Kelo lost her home. In 2007, a Maryland Senate bill passed,
In the majority opinion, Justice John construed as “public purpose,” which has adopted “to benefit a particular class of putting a four-year shelf-life on condem-
Paul Stevens wrote that the idea that there come to be regarded as the same as “pub- identifiable individuals,” — i.e. a particu- nation authority: if the condemning au-
should be “any literal requirement that lic use.” lar private business interest. thorities don’t use it, they lose it.
condemned property be put into use for “The takings before us, however, Kelo was a turning point in the eminent The bill seems to be a legislative re-
the general public” had “eroded over time” would be executed pursuant to a ‘carefully domain debate in Baltimore, said John C. sponse to a 2004 state Court of Appeals
since the 19th century, and that the cre- considered’ development plan,” he wrote. Murphy, a land-use lawyer who has liti-
ation of jobs and higher taxes could be “[T]he City’s development plan was not gated dozens of condemnation cases. SEE CONDEMNED PAGE 7A
1 2 3 4 5
1949 1 1958 3 1975 6 1984 7
Federal Housing Act provides federal Baltimore planners present Charles Cen- In Prince George’s County v. Collington Hawaii Housing Authority v. Midkiff
funding for two-thirds of the cost of ter urban renewal plan to mayor, the Crossroads Inc., the Maryland Court of finds the Supreme Court ruling in favor of
eminent domain acquisitions in cities first major building project in the city Appeals upholds eminent domain tak- the state’s right to condemn massive
like Baltimore since before World War II. ings for the purposes of economic de- swaths of privately-owned property and
velopment. The county successfully con- redistribute it to multiple private owners.
1954 2 1962 4 demns a pricey parcel of private land for The case was meant to break Hawaii’s
In Berman v. Parker—the Supreme Court One Charles Center, the iconic Mies van the purpose of building an industrial park. “land oligopoly” — a situation in which a
unanimously upholds the right of the Dis- der Rohe office tower, opens. This case would be used as precedent tiny number of property owners con-
trict of Columbia to seize a department in a number of significant decisions, in- trolled the vast majority of Hawaii’s land,
store as part of a massive redevelopment 5 cluding Poletown v. Detroit, a 1981 ap- thus inflating prices and skewing the
1963 pellate court decision that upheld that
plan to fight blight, even though the store Mayor Theodore McKeldin an- housing market.
was not blighted. This is the first case to city’s seizure and clearance of a residen-
nounces the Inner Harbor urban re-
specify that the constitution’s “public use” tial neighborhood to build a General Mo-
newal plan. A master plan is accepted
clause includes “public purpose” in its four years later, and acquisition by tors assembly plant on the site.
definition, allowing government to con- condemnation and clearance of down-
demn privately owned property and con- town properties begins.
vey it to another private owner.
MONDAY, DECEMBER 8, 2008 THE DAILY RECORD 7A
CONDEMNED
Baltimore’s use of eminent domain
Condemned
Continued from page 6A
6 7 8 9 10 11
1998 8 2005 9 2005 10 2006 - 2007 11
Baltimore begins condemnation pro- Kelo v. City of New London, the first Reich’s Ford Joint Venture v. State High- Two high-profile condemnation suits,
ceedings for two major West Side urban federal court challenge to eminent do- way Administation establishes that the Mayor and City Council of Baltimore v.
renewal projects, Centerpoint and the main in more than two decades, up- threat of condemnation can lead to ma- Sapero and Mayor and City Council of
Superblock. Centerpoint will be built holds the central tenet of Berman, that jor losses for a small business that are re- Baltimore v. Valsamaki, find that the
within a few years, coinciding with the a city can condemn property for the coverable as damages to the business city has abused its “quick-take” con-
renovation of the Hippodrome theater. “public purpose” of economic develop- owner. A Frederick County gas station demnation powers, and rules that the
The Superblock is still stalled today. ment, when the Connecticut town con- owner lost his anchor tenant when the city must demonstrate immediate need
demns Susette Kelo’s house for the con- operator refused to renew a 10-year lease for taking a property by this aggressive,
struction of a pharmaceutical compa- agreement because the state was threat- expedited method, and have a plan in
ny’s corporate campus. Protesters sug- ening to condemn the site for a new high- place for the future of the property.
gested that a local condemning author- way interchange.
ity take Justice David Souter’s “blighted”
New Hampshire vacation home and re-
place it with a “Lost Liberty Hotel,” as a
symbolic act of defiance.
“ ”
recent history. If you look around the city at where eminent
domain happens — Fairfield, Poppleton, Washington
Village — these are really destitute areas.
— Elva E. Tillmann
Attorney, specializing in land-use
Voices on condemnation
“I don’t recall city poli- “Urban renewal re- “The Democratic
cy involving an over-re- placed small streets, majority doesn’t like a
liance on eminent do- high density, mixed- law that says you can’t
main. We engaged the use city environments have eminent domain
private properties in dis- with these sterile for economic develop-
cussions about plans. plazas and su- ment, but they don’t
Our view was, let’s tell perblocks. Through want to be on record as
people what we have in community organizing having opposed it, so
mind, try to bring them and the civil rights they just decided not to
into the discussion, and movement…there be- have a vote,” he said of
see if we can come up gan to be a great deal the measure.
with the private-public KURT L. SCHMOKE of opposition to these PAUL S. GROGAN ALLAN H. KITTLEMAN
joint partnerships.” kinds of projects.”
MARYLAND’S BUSINESS & LEGAL NEWS SINCE 1888
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Page 3A
Fleet Transit owner Kevin McNeil: ‘My biggest issue is, if I own a thing, and I want to develop it, and you want to take it away from me and give it to someone else, that doesn’t seem fair.’
CONDEMNED
BY ROBBIE WHELAN
our condemnation series:
“ ”
which you need eminent domain to really make a project
work. The Superblock is an example.
— George A. Nilson
Baltimore City Solicitor
RICH DENNISON
Baltimore City Solicitor George A. Nilson stands in front of City Hall. City officisls say the legal formalities of acquiring large assemblages of property often require that eminent domain be used on the front end of a project.
city’s attitude toward the property rights it did not own yet.
of small business owners over the past After McNeil bid on the RFP and re-
five years: If a business stands in the jected a purchase offer from the city in
way of a city development plan, the city 2007, the city moved to seize the proper-
will not hesitate to condemn the prop- ties and pay McNeil $2.2 million. The plan
Kevin McNeil works at his Fleet Transit headquarters in Fairfield, which houses 90 trucks and moves about
erty occupied by the business, seize it, selected by the BDC offered McNeil a
1.5 to 2 million gallons of petroleum-based products per day.
and sell it to a new developer that city of- portion of the land to develop himself,
ficials see as more capable or with more use is becoming more widespread, rising roads and air thick with industrial fumes but also brought in Chesapeake Real
appropriate plans. more than 250 percent in the dollar value until its last houses were cleared in the Estate Group, a developer that has had
In more than a dozen interviews with of condemnations authorized in 2008 over early 2000s. previous relationships with the city.
small business owners and legal counsel 2007, and calling into question the city’s at- McNeil said he had to wait until all Chesapeake redeveloped the Bagby
representing them, The Daily Record titude toward small-business owners. the people who lived in Old Fairfield were Building in Little Italy, a former furniture
has found the city frequently solicits If eminent domain is used widely as a gone before even considering trying to factory that has now become a handsome
plans for property redevelopment from front-end tool for development, does that buy more land for his industrial park idea. commercial retail property with a Veri-
the private sector before it owns the mean the city’s interests are more impor- In the meantime, he said, the Baltimore zon store. In July, the BDC approved
property in question. tant that the property rights of small-busi- Development Corp. decided that he was Chesapeake’s plans to build 400,000
The practice underscores the fact ness owners? stalling, and the reason was that he wasn’t square feet of industrial space on the Bow-
that redevelopment efforts in Baltimore capable of developing such a large parcel. ley’s Lane landfill site, which it sold to
depend heavily on eminent domain ‘Different ways to renew’ “The only thing I’ve heard is that I’m the developer.
seizures and the threat that eminent do- The details of Kevin McNeil’s prob- not a developer — I don’t develop land,” In September, Jim Lighthizer, a prin-
main powers pose to independent prop- lems in Old Fairfield are hardly unique. he said. cipal with Chesapeake, told The Daily
erty owners. He has owned the properties since “Well, I built this place from scratch,” Record that he had hired a broker and
Indeed, threatening a business with 1980, when the area still had a small, most- he said, gesturing out the window of his was sending out mailers trying to attract
condemnation, even without filing legal ly black residential community that dated office at the Fleet Facility, which houses tenants, and that he was trying to con-
action to take the property, is often to the 19th century adjacent to its factories 90 trucks and moves about 1.5 to 2 million vert “a dumpy area to a nice business
enough put a business owner under or and scrap yards. A small white clapboard gallons of petroleum-based products per park setting.”
convince land owners to abandon their church still stands on Fairfield Road as a day. “I think it was all political.” But McNeil called Lighthizer and his
plans for the plots that they own. testament to the community’s existence. It BDC President M.J. “Jay” Brodie said
And in Baltimore, eminent domain was surrounded by poorly maintained in a recent interview that McNeil’s pro- SEE CONDEMNED PAGE 10A
10A T H E D A I L Y R E C O R D TUESDAY, DECEMBER 9, 2008
CONDEMNED
Baltimore’s use of eminent domain
“ ”
kick us out, it’s not fair. It’s like something in a
communist country.
— Yun O. Park
Owner, Modern Mode
RICH DENNISON
Lou Boulmetis, left, works with a customer at his Hippodrome Hatters, a 78-year-old haberdashery: ‘In my case it’s so far so good, but not in everybody’s case.’
looks awful, you know? Give me two two more RFPs, for 15 additional proper-
guys, a couple of bulldozers and a few ties in and around the project. In late 2004,
days, and I’ll have it cleaned out,” he the BDC entered an exclusive negotiat-
said. “If [Chesapeake] gets to speculate, ing agreement with Lexington Square
why can’t I?” Hippodrome Hatters was moved twice by the city, in March 2001 from the unit block of N. Eutaw Street Partners, a development team made up
Similar situations — in which the to the 400 block of W. Baltimore Street, then to its current location at 318 W. Baltimore Street. of companies from New York and Atlanta,
city tires of waiting for redevelopment to for the properties in the first RFP.
Nilson. “Sometimes one lot or one prop- learned that her building was listed for But some business owners, like Koo,
happen and uses condemnation to speed erty at a time works. There are also al- condemnation in 2006. She said she plans whose 25,000-square-foot clothing store
up the process — can be found all over ways going to be circumstances in to retire in 10 years, and that she doesn’t and warehouse space, New York Fash-
the city. which you need eminent domain to re- want to relocate because she has a good ions, had been under threat of condem-
In September, the BDC moved to ally make a project work. The Su- customer base and the area is safe. nation for nine years before the city fi-
seize the Parkway Theater, a 93-year- perblock is an example.” “This is my retirement plan, this build- nally took it in August, were not so lucky
old movie house in the Charles North ing, and just to kick us out, it’s not fair,” as to stay in business.
Urban Renewal Area, which had been on West Side stories she said. “It’s like something in a com- Linn Koo, who speaks on behalf of
a condemnation list for most of the time The “Superblock” project is a 3.6-acre munist country.” his father’s business interests, said that
since its owner, Charles Dodson, pur- parcel of land between Liberty Street and Park hired attorney John C. Murphy, Superblock businesses were doing quite
chased it in 2002. Howard Street that falls under the city’s who said he showed BDC officials the in- well until the city intervened, starting in
Dilapidated buildings in the West Market Center Urban Renewal Act. Since side of the store to show them that the the late 1990s. By 2005, he said, New York
Side’s Pigtown neighborhood were seized the late 1990s, the city has condemned business was not blighted — rather it was Fashions’ sales, for which he declined to
earlier this year after years of disuse, un- or threatened to condemn the property of clean, professional and thriving. The city give a dollar amount, were down by 50
der another urban renewal plan. at least six small businesses, in many cas- backed down and removed Park from the percent.
The legal formalities of acquiring large es paying thousands of dollars to relocate condemnation list. “Look at this place — there’s no peo-
assemblages of property, city officials say, them to other parts of the city. Still, Park says business has suffered ple,” he said, standing at the corner of
often require that eminent domain be used Yun O. Park, a Korean-American who since the talk of condemnations began. Park and Lexington Streets. “Once the
on the front end of a project. since 1994 has owned Modern Mode, a Her store is flanked by two empty retail city started taking the buildings, there
“There are different ways to renew,” women’s apparel store on Lexington storefronts, one that was taken last year
said Baltimore City Solicitor George A. Street in the heart of the Superblock, by the city and the former A.M. Fashions, SEE CONDEMNED PAGE 11A
TUESDAY, DECEMBER 9, 2008 THE DAILY RECORD 11A
CONDEMNED
Baltimore’s use of eminent domain
Condemned
Continued from page 10A
“ ”
just leave it alone. The idea that the city needed to do
this is just lunacy.
— John C. Murphy
Baltimore land-use attorney
Condemned
Continued from page 11A