So, what is eminent domain?
““Generally speaking, in most states, the standards that the government has to meet (for eminent domain) the courts are incredibly deferential to the government,” Mitchell said. “It’s incredibly difficult to prove that the government taking property is not for public use.”
The real conflict comes with settling on “just compensation,” which has been defined as fair market value. However, Mitchell said that lower property values are generally paid less than fair market compared to wealthy owners.
“Despite the legal requirements, the government wants to protect its spending and resources,” he said. “In many cases you’re dealing with property owners who have no idea what the fair market value of their property is and get low-balled.”
Mitchell said governments may undervalue property by 5 to 10 percent. Property owners that don’t have the resources to go to court often accept that price in order to avoid the high legal fees.
On the flip side, with wealthy owners, it’s the government doing the cost-benefit analysis, and governments tend to overprice the land in order to avoid paying the legal fees in court. Either way, the governments usually succeed in taking over the land, Mitchell said.”
Zinck, Shaun. Beloit Daily News 14 Januaury 2013.