Eminent Domain – Resident Organization

OK, you have the City Fathers lined up, your Team is standing by, the financing is identified and you are moving forward toward Eminent Domain action.  

However, you would not have gotten this far if you did not have a supportive RESIDENT ORGANIZATION from the start.

If your group gets to the point where they are seeking the use of Eminent Domain condemnation, it is likely your group is already unified into an adversarial relationship with your park owner.  

Remember however, you are making the case to the City Fathers that the park owner is acting in bad faith, the residents deserve protection for the equity they have in their homes, the City needs to preserve affordable housing and the City needs to eliminate the expense of endless litigation.

BUT, you also have to demonstrate to the City Fathers that your group can uphold it’s end of the bargain, i.e., the City Fathers condemn the park, and your group responds by being organized so you can ultimately acquire it and run it successfully.

That means you don’t go down to city hall with a torchlight mob demanding action.
That might get their attention, but it probably won’t produce the results you want.

Rather,

If your goal is to purchase the park and your plan is to use eminent domain:

  • DO (you MUST) get organized now and develop an organizational and financial plan that has the potential for success. The City Fathers must be comfortable that you are prepared.
  • DO NOT use existing resident organizations in the park. Such groups typically have a full agenda and members with other interests. Form a special Park Purchase Committee composed of 10-15 members (representative of all groups within the park) who have the desire and skills to get the job done. Park purchases threaten many residents (and eminent domain actions threaten them more), so be prepared for suspicion and distrust.
  • DO have your most diplomatic committee members in direct contact with the City Fathers, and, eventually (if you end up in negotiations) with the owner. Such members need to be low-key, professional, presentable and gently persistent.  Think wisely before you decide to beat on anyone.
  • DO NOT, initially, spend any money. Appraisals, engineering reports, legal retainers, etc. accomplish nothing at this stage. If you have any money in the kitty, use it for stamps, copying, donuts, mileage and phone calls.  However, you will need money in the future and need to begin to plan for your costs.
  • DO be careful where your committee meets (there are churches, libraries, and city buildings available) and remember the walls have ears. This is not to say that you should not keep the other residents informed. Just be careful. Remember that the park manager may be a source for negative and divisive rumors.
  • DO NOT bother to incorporate or to form a nonprofit organization (unless you already have one or it is a requirement of state law) at this time. You can incorporate during the process if the City Fathers seem to be willing.  Stay focused! DO NOT get trapped into thinking that activities such as this accomplish anything. THEY DO NOT.

STAY FOCUSED ON GETTING THE CITY FATHERS SIGNED UP.

  • DO NOT assume that your financial problems with be solved by state government, local government or nonprofit organizations. The folks at these entities are very nice and want to help, but they are way understaffed, have little or no funding and simply cannot deal with your transaction unless and until you have a signed deal. They typically do not provide all (or even most) of the funding you will need. Their usual role in a resident acquisition is to provide technical assistance and, maybe, secondary funding which mitigates the impact of a resident purchase on low/moderate residents.
  • DO develop relationships with the City Fathers, your other local and county government leaders, building departments, zoning authorities, etc. They can provide valuable in-formation about your park. Financial assistance is rare, so if it is offered, get the details.  Clearly understand ALL of their requirements for any assistance that they provide.  Remember that City Fathers (and all public officials) look at everything (EVERYTHING!!!) from a different viewpoint than yours. They also are loath to take political risk unless they have to, and unless they have consensus within their group.

Well, we have has several Blogs on Eminent Domain.  I think I’ll have one more on this topic and then Wrap It Up.

I’ll be in touch,

Deane

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