Eminent domain is a legal process that allows government entities to take private property for public use. When this happens, it is supposed to provide fair compensation. In Texas, eminent domain is used for projects like highways, schools and parks. While this can benefit the community, it can also negatively impact property owners, especially if they are a business whose success relies heavily on their location.
The Texas Department of Transportation (TxDOT) often uses eminent domain to expand or build new roads. For instance, if TxDOT decides to widen a highway that runs through a commercial area, a business owner might lose their storefront, leading to financial distress.
The TxDOT’s land acquisition process
The process of TxDOT taking land through eminent domain typically follows these steps:
- Project planning: TxDOT identifies the need for the project and determines the properties required.
- Property identification: Specific properties are identified and mapped out for acquisition.
- Initial contact: TxDOT contacts property owners to inform them of the project and potential acquisition.
- Property appraisal: Independent appraisers evaluate the property to determine its fair market value.
- Offer presentation: TxDOT presents a written offer to the property owner based on the appraisal.
- Negotiation: If the owner disagrees with the offer, negotiations may ensue to reach a mutually acceptable price.
- Final Offer: TxDOT presents a final offer to the property owner.
If the two sides do not agree on a price, TxDOT may initiate condemnation proceedings in court.
How property owners can respond
Property owners have several options when responding to an eminent domain notice. First, they should carefully review the offer and consider hiring an independent appraiser to assess the property’s true market value (it’s extremely rare for appraisals to match). This can provide a basis for negotiating a better offer from TxDOT.
Additionally, hiring an attorney experienced in eminent domain issues is crucial. These lawyers understand the complexities of the law and can help ensure the property owner receives just compensation. They can also assist in negotiating terms that allow the business to relocate successfully or receive additional compensation for business losses.
