Encinitas Private Property Rights Act of 2005

By Jerome Stocks

I wrote this to protect Encinitas propertyowners from potential eminent domain abuse in response to the "Kelo" decision.

"Public benefit" now means that since a new proposed development project will pay more taxes than the existing properties do, the increase in tax dollars to the local government coffers equates to a "public benefit"! According to the US Supreme Court, more tax money to the government is a valid definition of a "public purpose", with a "greater public benefit", and is justification enough for the government to take away your home or business and sell it to some other private person or business who may generate more tax revenue for that government.

This recent decision by the Supreme Court places each and every California home and commercial property at risk of condemnation and confiscation by the government. The expanded interpretation of "public benefit" has especially ominous ramifications for California. Why? Prop 13.

The biggest source of income for local government is property taxes. And under prop 13 there's no increase in property taxes unless property changes hands at today's inflated values, or something of greater assessed value is built. Basically, we've all just had a bulls-eye painted on our backs. Here's how this works. Under Prop 13 the property taxes paid on a property each year is roughly 1% of the property's sale price. California real estate has more than doubled in the last five years, and it is not uncommon in Southern California to have folks who paid $50,000 for their property in 1974 right next to a similar parcel that just sold for $1,000,000. 1% of $50,000 = $500. per year in property taxes, but 1% of $1,000,000 = $10,000 per year in property taxes. Which does the government like best?

Can you think of a local commercial center that hasn't changed hands for a while? Oh, that won't do... How about some older homes in a desirable area very suited to being knocked down and replaced by some bigger, newer homes who's owners will be paying much more in property taxes? Count on it. City Council members and County Board's of Supervisors statewide will be peppered with development schemes. And greater tax revenue for no additional services will be the plumb dangled before them.

It was adopted unanimously and reads as follows:

Encinitas shall not take or condemn privately owned property for the benefit of any other private owner or private project by power of eminent domain without first placing the matter to a public vote on a regularly scheduled election, and receiving greater than 2/3 majority vote in the affirmative".

This ordinance cannot be overturned or weakened without a 4/5 Council Vote.