Sen. Eckerty’s SB 54 requires public universities exercising eminent domain to pay business owners as well as property owners. Under this legislation if the property is owned by one person and a business renting that property is owned by another person, then the university is required to pay the property owner the fair market value of the property. The university is additionally required to pay the business owner “the capitalized value of the estimated future earnings of the business.”
Sounds to me like the business owner stands to get a substantial windfall inasmuch as the university acquires only the property but not the business. The business owner – depending to some extent on the nature of the business – is then free to pocket the cash and continue doing business as usual in a new location.
Not really protecting taxpayer dollars on this one. Just taking a stab in the dark that someone around Ball State isn’t happy with the idea of the university acquiring adjacent property.
I think this bill would be very effective at protecting property rights and tax payers if it was re-written to include restrictions on the payment of business value. For example, if the loss can be reasonably prevented by relocating the business or trade in the same or a similar location as the property that was taken, then payment of business value would not be necessary. However, for a business that relies solely on the University patrons and if the only property available to this business is off-campus, then this acquisition would likely destroy the business. I think compensation for loss of business is fair in a situation like this. I also think this bill should be expanded to include all business owners affected by eminent domain. It shouldn’t matter if the DOT is acquiring the property or the University. If a business is destroyed because of its acquisition for public use, then the business owner/property owner should be compensated for this. MN has a great “going concern” statute that protects both property owners and tax payers. Check it out here: https://www.revisor.mn.gov/statutes/?id=117.186