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Property-rights movement could be a boon to us all

Published 5-Mar-1995 in the Denver Post
Copyright ©1995 by Ed Quillen. All rights reserved.

The Fifth Amendment to the United States Constitution is most famous for its protection against self-incrimination, in that no person... shall be compelled in any criminal case to be a witness against himself.

That provision, along with its prohibition of double jeopardy and its requirement of due process, sometimes upsets the law-and-order types. But lately, some right-thinkers have celebrated the last clause of the Fifth.

It provides that private property cannot be taken for public use, without just compensation.

Normally, that means that if the city wants to widen the street in front of your lot, then the city has to pay a fair market value for your land.

However, there's a growing property-rights movement which argues that any form of government regulation which limits the possible economic return from your property constitutes a takings, and you should be compensated.

Here's the logic. Suppose you bought a 40-acre parcel in some low-down-payment easy-monthly-payment serene and rustic mountain development. You plan to put a cabin on it someday.

Meanwhile, some dangerous radicals take over the rural county's government. They observe that your cabin site is essentially a mudslide waiting for a good thunderstorm, and they don't want to be stuck with the mess. Further, that charming scenic access road has steep grades and hairpin curves, such that no fire truck or school bus can climb it.

So the county commissioners adopt a new zoning plan, and forbid all residential or commercial construction in this area.

You've still got your land, but you can't legally do much with it, on account of a governmental action. The restrictions mean that your property is worth less. It certainly appears that a part of your property, its development rights, has been taken for public use, and that the constitution entitles you to just compensation.

In essence, that's the argument of the emerging property-rights movement. They were excited last summer when the U.S. Supreme Court limited the ability of local governments to make real-estate developers set aside environmental easements.

At issue was the desire of a plumbing-supply store owner to expand her store and pave the parking lot. The city of Tigard, Ore., said she'd have to dedicate about 10 percent of the property to a storm-drain and pedestrian pathway. She said this requirement was a takings and the Supreme Court agreed.

The decision thrilled the rip-and-run crowd. If they can get the takings clause to cover any government regulation of property, then they'll have to be compensated every time a regulation affects them. Environmental regulations will become so expensive that no government could afford them.

Or at least, that's what my environmentalist friends tell me -- that this whole property rights movement is just a right-wing plot to insure that polluters and developers always have their way.

But it could also enrich the rest of us. The first takings lawsuit was brought in Kansas, a haven of virtue which adopted statewide prohibition in 1887.

Peter Mugler, who owned a brewery, sued. His mash tuns and wort kettles were worthless on account of prohibition, a governmental action which had put him out of business, and he wanted his just compensation.

He didn't get it. The Supreme Court then held that a government can prevent a property owner from using his property to injure others without having to compensate the owner for the value of the forbidden use.

However, that was essentially the same Supreme Court which created the separate but equal doctrine that was later overturned. So the Mugler precedent is certainly not carved in stone, and it could certainly be struck down by a more enlightened court after hearing arguments from the well-funded attorneys of the property-rights movement.

If that happens, one friend plans to send the federal and state governments a bill for $100,000 a year. He has about 10 acres with decent water rights.

I just read somewhere that a dedicated pot farmer can clear about $10,000 an acre every year, he said, and so the laws that forbid marijuana cultivation are taking this much potential income away from me and my family. If that's not a 'takings,' I don't know what is, and I want my just compensation.

I don't own any land besides some city lots, but they'd probably be worth considerably more if I could replace the current structures with casinos or bordellos. The laws which prohibit these uses, just like various environmental laws which prohibit certain property uses, must be a form of takings. Where do I file for my compensation?

Those noisy airplanes that the government allows to fly over your property, thereby diminishing its value -- how much compensation do you deserve? If you're in the metro area, how much just compensation do you deserve for what the Brown Cloud costs you in lost property values?

With a good Supreme Court decision that upholds the arguments of the property-rights movement, we could all get rich.


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