Sampling of Eminent Domain
Abuses in Virginia

Including government's use of the power of eminent domain to transfer private property from one individual to another.

Under Virginia Law, Kelo-type takings can occur; Virginia’s Law is quite similar to Connecticut Laws which allowed New London to seize Susette Kelo's home for economic development. Kelo-type takings have occurred under Virginia Law. Now, with approval from the U.S. Supreme Court, it is imperative that the Virginia General Assembly pass protective legislation in 2007, including a Constitutional Amendment, if our homes, farms, businesses, and property are to be safe.

Below you will find examples of cases that have occurred in Virginia in which government took property from one person and gave it to another, examples of the use of eminent domain to take non-blighted property, and examples of low offers made by condemning authorities that could not be justified in court.

1. 2000:  The Ottofaro family owned rental property near Mercury Boulevard in Hampton, VA. The City wanted to transfer the property to the Industrial Development Authority (IDA) for a commercial entertainment complex near the Hampton Coliseum. When the Ottofaros refused to sell for the price offered, the property was taken by a quick take, and the house was immediately bulldozed while the case was still unresolved in court. A road was built using 18 percent of the property, but the remaining 82 percent was turned over to the IDA. The IDA then leased the remaining Ottafaro land to a Maryland developer for a Bass Pro Shop, a Lowes, a Texas Steak House, and other commercial development. Ottofaro fought the City of Hampton in court, but a Hampton judge ruled that this transfer of private property for commercial development was legal. He then appealed the case to the Virginia Supreme Court. In a split decision, the Court ruled that because the property was long-term leased to the IDA and was not going to be sold, this transfer of the Ottofaro property to a private developer was legal. After losing his property, Ottofaro attempted to obtain just compensation in court. For the trial, however, the City replaced their original appraisal with one showing the property to be worth $40,000 less than they had previously offered. The trial judge would not allow evidence of the lower appraisal to be admitted.

2. 2000:  The City of Roanoke entered into an agreement with Carilion Health Care to build a biomedical park on 110 acres in an older, non-blighted, light-industrial area. Only 6 percent of the property was blighted according to the City of Roanoke report. Active businesses were taken by eminent domain for the redevelopment project. The City government had not done a feasibility study prior to confiscating these properties. When the study was finally completed, because of unrecognized competition from similar parks, prospects for the project's future success were found to be questionable. Phase one of this multi-million dollar project was to be completed in five years. Instead, six years later, only Carilion is involved in development, which is largely incomplete. Where businesses once stood there is mostly vacant land that is now for sale for private development. Only one business remains and is still involved in negotiations with the City.

3. 2005:  The Halifax County Board of Supervisors used eminent domain to take a man's property for the construction of a new, paved driveway into the property of his neighbor’s home. The neighbors paid the county for the cost of the property taken and for the driveway. The 4/10-mile driveway, which serves only family and friends and dead-ends on the man’s property, was taken under the auspices of eminent domain for public use, when, in fact, it was private property taken from one individual and given to another. When this property transfer was challenged in Halifax Circuit Court, the judge ruled that Virginia Law does not prohibit the government from taking one person’s private property and turning it over to another.

4. 2006:  Duke Energy took the property of over twenty property owners in Wythe County, including Mr. Harold Hart and Mr. Larry Ball. The County Administrator, testified in court, that Hart and Ball’s property had been identified and included in the counties commercial marketing efforts.   When the property was crossed by the pipeline, it was dropped from the counties marketing efforts because the pipeline made it unfeasible to do the grading necessary for commercial/industrial development.  A unanimous jury found that the property was industrial/commercial, not farm land or residential property, as Duke had claimed. They awarded Hart and Ball $1,825,000.  The original amount Duke Energy offered as just compensation was roughly $30,000.

5. 1999:  The City of Virginia Beach condemned ocean front property, which had been leased to five tenants, including Neptune's Restaurant. The City planned to build an 850-space parking garage to provide parking for a $30 million, 4-star hotel and retail complex. This transfer of private property for economic development would bring the City $49 million in taxes and rent in the first 25 years.

6. 2002:  The City of Chesapeake began to build a 20-acre retail complex with a private developer along Battlefield Blvd., to be anchored by a Costco Warehouse store, a large furniture store, and a 200-room hotel. The developer offered to pay the City $2 million to cover acquisition of two privately-owned gas stations through eminent domain, plus another $2 million for road and infrastructure costs. Publicity and citizen opposition to the taking of the property for a developer stopped the City from carrying out the condemnation. The developer completed his project, leaving the gas stations to continue business but the City clearly demonstrated they believed they could take these two non-blighted service stations and make the property available to the private developer.

7. 2004:  The Claytor family owned a city block in downtown Roanoke, VA.  In 1976, the Roanoke Redevelopment and Housing Authority (RRHA) adopted a redevelopment plan, designating their property for condemnation and acquisition. The property remained under the threat of condemnation for twenty years, but the Authority never took the Claytors’ property. During this time, without notifying the Claytors of their intentions, the RRHA negotiated the sale of the property to a church. Although the negotiation fell through, the actions of the Housing Authority demonstrated the belief that they had the power, under Virginia Law, to take the Claytors' private property by eminent domain and transfer it to someone else.  When the redevelopment plan expired in 2001, 25 years after it was adopted, the Claytors sued the RRHA. The judge ruled the Claytors had been deprived of the use of their land for 20 years and were therefore entitled to just compensation under Article I, section 11 of the Virginia Constitution as a result of the Claytor’s claim of inverse condemnation.

8. 2006:  In 1987, the Norfolk Redevelopment and Housing Authority determined that there were two junkyards that added to the blighted condition of the North Church Street Area of Norfolk. Although notice was sent to the owner of one of the junkyards about the need to correct the conditions of the junkyard, no notice was given to the owner of the other junkyard, C & C Real Estate. In 2003, the Authority passed a resolution to condemn the property owned by C & C Real Estate. C & C Real Estate challenged the Housing Authority’s right to take its property. The Supreme Court affirmed the circuit court’s holding that the language of the Housing Authority’s Plan was overbroad and, therefore, did not allow acquisition of C & C Real Estate’s property. The Supreme Court also affirmed that the Housing Authority had a duty to provide C & C Real Estate with notice and an opportunity to correct any existing deficiencies prior to initiating any condemnation proceedings due to blight. As no such notice had been given, the Housing Authority was not authorized to condemn C & C Real Estate’s junkyard.

9. 2005:  At a closed-bid auction, the Meeks family bought an old school in Cumberland County which had been boarded up for years. By the time they completed the renovation, they had spent well over $400,000 for the acquisition and renovation of the building. They then rented space to churches and a business and opened the gym and auditorium for the community and senior citizens to utilize. After the renovations, the county decided to take the property back through the power of eminent domain and to re-open a small portion of it as a school. They took it for $200,000, leaving the Meeks $200,000 in debt. The Meeks family has been forced into court because of this abuse of power by Cumberland County.

10. 1998:  Mr. William Beaman renovated a historic building in downtown Suffolk, VA. Beaman operated a record store and a clothing store on the first floor and lived in and rented out apartments on the second floor. The City of Suffolk claimed that the property was needed for future courthouse parking. Beaman fought the initial taking of his property, and the court invalidated the first condemnation. The City then condemned the property again, and though the building had recently been renovated, offered Beaman $20,000 for the entire property, which was less than the tax-assessment value. Beaman eventually settled for many times the amount originally offered by the City of Suffolk.

11. 2004:  Ron Meadows and his neighbors in Patrick County received low offers from Duke Power/East Tennessee Natural Gas for a pipeline easement across their property. To receive just compensation for their loss, the property owners were forced to challenge Duke Power/East Tennessee Natural Gas in court.  The court agreed that the offers were low, and awarded the property owners six to 11 times the amount originally offered. The judge also ordered Duke to remove mechanics liens placed illegally on the property of every individual who had challenged their offer in court.

12. 2000:  In Norfolk, Roy Darden owned an auto repair shop and garage in the neighborhood of Ocean View which he had operated at the same location for 36 years. To widen Shore Drive, VDOT needed a small section of Darden's property and offered him $27,000. The section of the property was where Darden advertised his business. He challenged VDOT's offer in court and when the three day trial ended, the Norfolk Circuit Court awarded Mr. Darden $188,000, nearly seven times VDOT's original offer.

13. 1999/2001:  In the project to widen Kempsville Road between Battlefield Boulevard in Chesapeake and the Centerville Turnpike in Virginia Beach, VDOT repeatedly offered amounts that could not be justified in court and spent $800,000 in tax payer money on legal fees. According to the Virginia Pilot, as of July of 2001, when the article was written, VDOT had lost 56, of 66 court challenges, with 10 remaining to be tried. Court awards were as great as 15 times more than the amount originally offered byVDOT.  One example cited involved compensation for significant loss of parking for Greenbrier Shoppes, owned by Wanda Richards. Richards would have preferred a negotiated settlement, but was forced into court. Richards fought in court and was awarded $875,000. This was $800,000 more than the $75,000 originally offered by VDOT.

14. 2005:  In 2002 VDOT offered $112,000 to Ray Cartwright for 60 acres of his 1,500 acre farm to reroute U.S. Route 17. Cartwright challenged the offer, which was then increased to $300,000. However, when the new U.S. 17, a limited access road was opened, Cartwright found his fields landlocked with the only access being from a neighbor's property or a private road. Though this severely diminished the value of his land, he was again forced into court because VDOT would not recognize the level of damage to his property's value. This time the court awarded Cartwright another $90,000 for his original 60 acre loss, and $2.3 million for an additional 391 acres that was now landlocked. The final amount exceeded VDOT’s original offer by more than 2,000 percent.

This list has been compiled by the Virginia Property Rights Coalition.