Owner says eminent domain bill would ease business dilemma

Technology has improved, competitors have branched into mailing and other services, and the tiny restrooms barely accommodate the 10 people who work there.

But thanks to freeway widening projects in the works for decades Smith, 52, can neither sell nor expand her building at 1224 Western Ave.

That’s because the highway project along Interstate 15 is expected take over her property, meaning buyers don’t want the building and the city won’t approve expansion plans.

“I’m in perpetual hell here stuck in this building and I can’t leave,” said Smith, whose husband died, leaving her in charge of the company.

What she wants is for the Nevada Department of Transportation, the city of Las Vegas and other partners to move forward and compensate her fairly for the property or back off and remove the cloud hanging over the area.

“They’re going to build this, they are going to build that. But I have never seen anything they are actually moving forward with,” Smith said.

“Talk is cheap.”

A bill facing the Legislature would resolve situations facing Smith and other people in Nevada who own property in areas where governments want to use eminent domain to build public projects.

Assembly Bill 346, introduced by Assemblyman James Ohrenschall, D-Las Vegas, would give governments 180 days from the time they approve a resolution to build a project to begin formal eminent domain proceedings or face legal action from property owners.

DAMAGE DONE

Las Vegas attorney Kermitt Waters, who specializes in eminent domain cases, says the current laws allow governments to let projects languish and put property owners in limbo.

The uncertainty scares off potential buyers, drives out commercial tenants and prevents owners from making property improvements, he said.

“They act like a hog on ice; they don’t want to move,” Waters said of how potential buyers cope with uncertainty. “It chills the market.”

In Las Vegas, Smith and many other businesses and homeowners in the path of the proposed Project Neon plan to widen I-15 have been facing uncertainty for years, and it might be decades before the entire project is planned and executed.

AB346 would prevent such problems by providing a cause of action for property owners against governments that don’t start eminent domain proceedings within 180 days of adopting a resolution of intent to do so.

It would also give property owners 15 years to file suit for the value of their property plus legal costs.

Proponents say the 15-year window is needed because owners often aren’t notified their property will be targeted and might only find out when they try to sell or improve the land.

LOCAL GOVERNMENTS OPPOSE

Opponents, mostly local governments, say AB346 would drive up projects’ legal and right-of-way acquisition costs that are passed onto taxpayers.

Representatives of Las Vegas, North Las Vegas and Clark County testified in opposition to the bill Friday before the Assembly Committee on Judiciary.

“We believe this would have a tremendous fiscal note to local governments and we believe it would result in frivolous lawsuits,” said Dan Musgrove, lobbyist for North Las Vegas.

Musgrove said the way the bill is drafted, it would penalize local governments, and taxpayers, in the event of a legitimate delay that prevents an eminent domain filing within 180 days of a resolution.

The language in the bill says after 180 days the government needs to pay the owner fair market value for the property and potentially be liable for damages.

“We obviously would have to go to court to defend those or begin paying damages immediately,” Musgrove said.

Lobbyists for Clark County presented an amendment that would reduce the time allowed for property owners to take action from 15 years to 18 months.

If the amendment were attached, lobbyist Alex Ortiz said Clark County would testify as neutral.

But Waters, who asked Ohrenschall to carry the bill, told the committee the Clark County amendment would defeat the purpose.

“If you are going to adopt the amendment, just kill the bill,” Waters said. “That’s how bad it is.”

The committee didn’t vote on the bill Friday. Bills that don’t clear their firsts committee by April 15 will be declared dead.

Contact reporter Benjamin Spillman at bspillman@ reviewjournal.com or 702-477-3861.