Posted on Fri, Apr. 07, 2006

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Senate panel refuses to tweak eminent domain bill

By Zane Wilson

The Sun News

COLUMBIA - A Senate subcommittee studying eminent domain declined Thursday to add specific rules on how to determine compensation, though the subject may come up again.

The panel is trying to refine the Senate bill that deals with concerns over a U.S. Supreme Court ruling last year, as well as review a House measure on the same topic.

Members have met several times and will meet at least once more, said the chairman, Sen. Greg Gregory, R-Lancaster.

The subcommittee has not dealt with an issue raised by the House version of the bill that the state Department of Transportation says could cause a two-year delay in Interstate 73 construction.

The House bill says compensation for land taken by the state must be settled before the state can obtain the land.

The current law allows an agency such as the DOT to take possession and work on the project while settling the compensation in court.

Gregory said the subcommittee will work on the House bill next week. He said the Senate will not include a House provision sponsored by Rep. Tracy Edge, R-North Myrtle Beach, that requires local governments to pay for loss of property value when the zoning or land-use rules are changed.

Legislators are responding to a court ruling in a Connecticut case that allowed a city to condemn an older beachfront residential area and turn it over to private developers for redevelopment.

The court said the action was for the public benefit because the result would be higher-value property and more tax revenue.

Legislators want to ensure that S.C. law does not allow condemnation unless the property is for public use, such as a road, not simply for public benefit, and that the property cannot be turned over to private developers.

Most of the discussion Thursday was over requested changes from Nick Kremydas, lobbyist for the S.C. Association of Realtors.

He said compensation should be limited to value under the existing zoning or land use when the property is condemned.

"You can't just have the pie in the sky," including what might have happened with the property in the future, he said.

But in fast-growing areas such as Horry County, property owners could be cheated under that provision because rezoning happens often, Sen. Luke Rankin, R-Myrtle Beach, said.

What was valued as a single-family residence can quickly become suitable for condominiums and shoot up in worth, Rankin said. Those factors should be taken into consideration when payment for condemned property is figured, he said.

Sen. Chip Campsen, R-Isle of Palms, said existing case law allows all such factors, including moving costs, to be considered when compensation is figured.

Sen. Dick Elliott, D-North Myrtle Beach, said compensation methods need to be put into law because a court ruling could change how owners are repaid.

Gregory said he feared if too many specific items are put in the bill, it will lose support and nothing will pass.

But none of the issues were settled Thursday. Gregory said he hopes to finish and vote something out to the full committee next week.