Developer Plans To Sue City Over Eminent Domain

Viking Inlet Harbor Properties has already spent more than $50 million to acquire property in Riviera Beach's redevelopment zone in support of a $2.4 billion project to revitalize the marina area of one of Palm Beach County's poorest cities. After the US Supreme Court ruled last year that local governments could use eminent domain to obtain property for private development, Florida and 30 other states passed laws restricting the seizures. Floyd Johnson, Executive Director of Riviera Beach's redevelopment agency, says the city has no choice but to follow the law.

"Now I'm stuck with these properties but can't develop them because I can't fill in the puzzle pieces, " said Mike Clark, president of Viking Associates, the real estate arm of the company. "The city spent millions of dollars putting together its comprehensive plan, and we spent well over $1 million in engineering, architectural and planning fees. Our plan now becomes virtually worthless."

Clark indicated that his company was considering joining with other developers and some municipalities to challenge Florida's law. Meanwhile, Florida voters have a chance to put the state law restrictions into the State Constitution if they pass Amendment 8, which is on the State's November 7th ballot. The Constitutional amendment would ban the use of eminent domain to transfer properties, such as homes or businesses, to private developers unless an exemption is approved by three-fifths of both houses of the Legislature.