Loughborough Commons, Eminent Domain and Fairness
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Today I was have a “conversation” about Loughborough Commons with another REALTOR® that lives and works in my area. Quick background, the Schnuck’s grocery store wanted to build a new building and create a big shopping center and in the process 12+ homes were bought out and razed. A single family held out — not wanting to move.
This is where our conversation turned to disagreement. We were discussing value — fair market value. He felt it was “unfair” of the family to hold out for a higher price on their family home than what was the “market” value prior to redevelopment and rezoning of the land. I countered that it was unfair they were being forced to sell something they didn’t wish to sell. Furthermore, I stated I thought it was immoral that Desco, Ald. Villa and the City of St. Louis forced this situation upon these families for an outparcel.
When a client comes to me and wants to sell their property my job is to help determine the best price for them relative to their debt, how quickly they wish to sell and what the market will bear. Some property is in more demand than others and prices generally reflect that. If you buy all the homes around me and then want mine I am going to be wise and recognize the value just went up. Developers know the “value” of that land is considerably higher than if located in an area not being targeted for redevelopment.
Developers often will offer 25% more or so above the normal residential assessed value but often this just approaches the true market value. They’ll use scare tactic arguments to suggest all development will stop if we try to curtail these practices but little evidence if offered to back up these claims.
Taking someone’s occupied personal home is unjustifiable. Sure, if it is falling in and they’ve been dragged through every housing court in town I’ll grant you an exception. But in terms of fairness I think preference should be given to home owners, not developers. I always wonder about the people that advocate for developer’s rights in such terms — how they’d feel if it were actually their home being threatened.
Fair is relative but what is fair to me is allow people to not fear their homes being taken away from them at the whim of a developer or sales tax starved municipality.
– Steve