Enterprise Zones And Eminent Domain

The Desert Dispatch has an interesting editorial today in support of a ballot measure aimed at limiting the government's power of eminent domain found in last year's Supreme Court decision Kelo v. New London. The editorial raises the specter that a local government could use the impetus of an Enterprise Zone to invoke eminent domain.

A large chunk of Barstow real estate was named an Enterprise Zone by the state last year. This designation provides for tax credits and benefits for companies that locate within the zone.

While most of the attention has been bringing business into the large undeveloped areas within the zone, such as the proposed Wal-Mart distribution center in the Lenwood area, it's important to note that the zone includes much of the Main Street area in Barstow, including a number of homes and small businesses.

Under last year's Supreme Court ruling, Barstow City Council could use eminent domain to take ownership of a number of Main Street businesses and then turn around and sell the land to Circuit City to develop (just as an example), all in the name of increasing Barstow's tax revenue and allegedly serving the public good.