Change in eminent domain law could costs localities money
“A change took place on Jan. 1 that could cost local jurisdictions money in the future if they have the need to acquire property though eminent domain.
A constitutional amendment passed in November says localities can’t use eminent domain to get property that is then passed on to a third party for a use that will generate more tax dollars for the locality. In short, counties and cities cannot use eminent domain as an economic development tool.
It’s Virginia’s response to the U.S. Supreme Court ruling in Kelso v. City of New London in 2005. In that case, a 5-4 majority of the court said that government could transfer property from one private owner to another through eminent domain for the expressed purpose of increasing tax revenues.”
Vaughan, Steve. The Virginia Gazette 11 January 2013.