Pro North Beach Vision Coalition

Sensationalism vs. The Facts 

There have been sensational claims that North Beach land was seized by eminent domain and the City is restricted to building a park there.  Let's look at the facts...

• Property owners were paid fair market value for their land in 1970-71.
• The sellers got a significant tax break - they did not have to pay capital gains tax (28% at the time).
• The sellers had five years to challenge the eminent domain transaction.  None of them did.
• After 40 years the City can do anything it wants with the land

Eminent domain can be an emotional issue because it conjures visions of helpless citizens being cast onto the streets after their homes were "seized" by the government.  The reality is quite different.

The government's power of eminent domain is described in the Fifth Amendment to the U.S. Constitution.  The Eminent Domain clause provides that no property shall be taken without "just compensation."  The courts have consistently equated "just compensation" to payment of fair market value at the time of the acquisition.

It is very common for local governments to acquire land in very amicable eminent domain transactions.  In many cases it simplifies the acquisition process, assures fair market valuation of the property, and affords tax benefits to the sellers.

Several lots sat vacant in North Beach for many years.  Patrons of the Miramar Theater and other nearby businesses often used these dirt lots as an informal parking area.  In 1970 the City decided to create a paved parking lot, so they initiated eminent domain to acquire the land.  In its official resolution the City stated the proposed use of the property was "offsite parking and other public uses." 

There was little controversy during the acquisition process, although one of the three property owners held out for a higher price.  The sellers had a period of five years to challenge the transactions.  However none of them chose to do so.

In 2006 the US Supreme Court upheld an action by the City of New London, Connecticut in which it purchased private homes by eminent domain for the purpose of building a Walmart.  Understandably, there was a public outcry over this extreme case.  Many citizens demanded that their local municipalities disallow such abuse.  The City of San Clemente passed an ordinance prohibiting the acquisition of property by eminent domain "for the sole purpose of transferring the property to another person to further that person's private use of the property."

The 2006 San Clemente ordinance is not relevant to the parking lot in North Beach.  The land was not acquired in 1970 for the "sole purpose" of transferring it to another private owner.  In 1970 Playa del Norte was not yet planned.

While eminent domain is an emotional issue, it has little relevance to the City's plans to build Playa del Norte.  The sellers of the property were paid a fair price, they received tax breaks, and they had five years to revisit the transaction.  Forty years later the City is well within its rights and responsibilities to use the North Beach land as it sees fit.