Is eminent domain necessary for revitalizing cities?

Planners are split on eminent domain—one group believes it’s a critical component of planning since it allows them to implement plans more quickly. Others believe eminent domain does more to destroy urbanism than build it up. I’ve weighed in on it numerous times, including this commentary published by Planetizen.

3 minute read

January 9, 2008, 12:55 PM PST

By Samuel Staley


Planners are split on eminent domain-one group believes it's a critical component of planning since it allows them to implement plans more quickly. Others believe eminent domain does more to destroy urbanism than build it up. I've weighed in on it numerous times, including this commentary published by Planetizen.

One of the biggest hurdles for opponents to eminent domain is the simple and highly relevant question: "What's the alternative?" Many believe the presumption should be in favor of sweeping away old urbanism to accommodate new development. Without eminent domain, how could neighborhoods revitalize or adapt to changing economic circumstances?

I was prompted to revisit this question while viewing the most recent video installment of the Drew Carey Project on reason.tv.  This is the second segment on eminent domain by Drew, and this one has a pretty important twist: It highlights the redevelopment efforts of Anaheim, California. Anaheim, under the leadership of Mayor Curt Pringle, has adopted a resolution prohibiting the use of Eminent Domain for redevelopment purposes.

Guess what? Redevelopment is humming along just nicely in Anaheim without eminent domain.

This is quite a contrast to the efforts north of the city in Los Angeles. There, the City of Los Angeles cleared away an entire block, including 30 local businesses, to build a high end luxury hotel and condos. The city claims it's a win-win because the property owners got paid market rates. The business owners and property owners think otherwise.

The video also raises an important policy question: just because someone is paid market rates for property, is it fair? Is it fair to forcibly seize someone's property just because the property owner had a different vision for redevelopment than the city council-organic, street-level development instead of a high-rise luxury hotel in the LA case? The property owners are now deprived of the opportunity to redevelop the property because they city had a different, potentially more lucrative (for the city) vision. Eminent domain proceedings don't compensate for unrealized expectations or plans by the property owner. 

As a libertarian, of course, I don't think it is fair. Market prices don't necessarily reflect the value we individually place on property, land, buildings or other goods and services we own, especially if we don't want to sell them. The so-called market price used in legal cases reflects the value others place on those things. In the case of eminent domain, even though a property owner is compensated, the transaction is coerced so the entire concept of a market price is problematic from the get-go. (Market prices presume that transactions are voluntary.)

Notably, the developer for the LA property in the video admits the project would not have gone forward without the implicit subsidy of eminent domain. This raises yet another question: if the market would not have supported the project, what public purpose was it serving? 


Samuel Staley

Sam Staley is Associate Director of the DeVoe L. Moore Center at Florida State University in Tallahassee where he also teaches graduate and undergraduate courses in urban and real estate economics, regulations, economic development, and urban planning. He is also a senior research fellow at Reason Foundation. Prior to joining Florida State, he was Robert W. Galvin Fellow at Reason Foundation and helped establish its urban policy program in 1997.

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1, 2025 - KQED

Google street view of red brick multi-story power plant building in Pittsburgh, PA.

Defunct Pittsburgh Power Plant to Become Residential Tower

A decommissioned steam heat plant will be redeveloped into almost 100 affordable housing units.

July 4 - Pittsburgh Post-Gazette

Cyclist on protected bike lane in middle of street in Washington D.C. with Washington Monument obelisk visible in background.

Trump Prompts Restructuring of Transportation Research Board in “Unprecedented Overreach”

The TRB has eliminated more than half of its committees including those focused on climate, equity, and cities.

July 4 - Streetsblog USA

Blue and silver Amtrak train at small station.

Amtrak Rolls Out New Orleans to Alabama “Mardi Gras” Train

The new service will operate morning and evening departures between Mobile and New Orleans.

July 3 - New Orleans City Business