Redevelopment the Next Scandal

After the savings and loan scandal, the HUD scandal, the EPA scandal and the Pentagon spending scandal, the next scandal to be uncovered will be the redevelopment scandal in the cities across the nation.

Developers are moving in and promoting the stealing of private property from owners of property just because these properties happen to be on valuable land that offers developers profit-making opportunities. The city government is encouraged to expropriate this private property, giving the rightful owners minimal compensation which would not permit them to even begin to duplicate their investment at current market prices.

The city is actually violating the law by circumventing Proposition 13 when it condemns property for redevelopment. The property taxes on the condemned property are increased when the property is taken over by the developer at a percentage of his purchase price, which is much higher then the taxes on the assessed value of the property in the hands of the original owner. Redevelopment is motivated by the desire of the city to increase property taxes.

An example is the city of Ventura, which proceeds with redevelopment with the excuse that it is eliminating blight. Blight exists only where property is not productive and is in a state of disrepair. The properties that the city of Ventura proposes to condemn are productive properties with operating businesses on them and are in good repair.

The practice of redevelopment leads to the destruction of the free-market economy in private property because individual owners are forced to surrender their property to the government. How can investors feel secure in investing if the threat of government expropriation hangs over their heads? The government stands to lose much more than it gains by taking away private property for redevelopment. Individuals are discouraged from investing in real estate, and individual initiative is destroyed.

JOSEPH HYMAN

Ojai