Downtown ‘blight’ raises question of eminent domain

HIAWASSEE, Ga. – Plans for two Hiawassee buildings are steadily progressing, with Hiawassee City Council scheduled to vote Tuesday on a Blight Resolution proposed by Hiawassee Mayor Liz Ordiales earlier this week. The City of Hiawassee recently purchased the historic structures, located just west of town square, for the purpose of downtown redevelopment.

Click to read Hiawassee solicits business ideas for purchased buildings

“We did Environmental Phase One and Two studies and there was nothing wrong with the buildings. They even did soil surveys and found that there was acetone in there,” Ordiales said during the monthly Mayor’s Report at city hall. “They said, ‘But yeah, you don’t even have to worry about it. It’s very minimal amounts, you can do what you want with the buildings.'” Upon inquiry from Councilmember Amy Barrett, Ordiales confirmed that asbestos testing was additionally conducted and that none was found.

Later in the Jan. 27 work session, listed as new business, the Blight Resolution appeared on the council’s agenda.

“In order for us to apply for big money for the remodel of those old buildings, we have to declare them blight and like, falling apart,” Ordiales said. “And once we get that we can apply for (what) they call Community Development Block Grants…and if it’s a blight building and we’ve deemed it to be a blight building, they give you more money. Well, certainly that’s a blight building. There’s nothing to discuss.”

Mayor Liz Ordiales at the council’s Jan. 27 work session.

The Community Development Block Grant program is federally funded and “focuses on benefiting low- to moderate-income people by providing resources for livable neighborhoods, economic empowerment, and decent housing,” the Georgia Department of Community Affairs website explains.

Although the exact requirements of a blighted location widely vary, the City of Hiawassee has not released specific criteria. The following list, however, are common examples of blight:

•    Deteriorating and/or abandoned structures
•    Population loss or significantly changed population demographics
•    Defective street layout
•    Unsafe or unsanitary conditions
•    Lack of utilities or public works improvements
•    Environmental contamination of nearby structures or land

FYN was contacted by a downtown business owner who questioned the city’s future intentions, concerned with the possibility of the resolution opening “Pandora’s Box” toward eminent domain. Research into the topic of blight, in fact, revealed a consistent connection to eminent domain land grabs.

In late-2018 when the five-year strategic plan was introduced at Hiawassee City Hall, an appointed ethics board member publicly inquired whether eminent domain – a highly-controversial practice in which the government expropriates private property for public use – was an option to abolish what the member considered an unattractive local business. A representative from the Carl Vinson Institute responded that grants, rather, may be available to encourage compliance with the city’s aesthetic vision.

Click to read Editorial: Hiawassee’s plans may encompass more than meets the eye

Following an announcement in August 2019 by Economic Developer Director Denise McKay that 209 properties had been identified by the city government as redevelopment sites, FYN filed an open records request to research the matter.

Click to read Residences on Hiawassee’s wish list for commercial development

The properties on the City of Hiawassee’s radar for redevelopment include numerous occupied buildings and several residential homes in the area. A full copy of the identified properties is available here: Rural Zone

“Though redeveloping blighted areas may seem like a positive step to many, it can cause major harm to landowners in these areas,” the law firm of Sever Storey, attorneys specializing in property rights, explained. “Additionally, the definition of ‘blight’ is often so vague that the government may try to seize property under the guise of blight when, in reality, the neighborhood is functioning and vibrant. One abandoned building should not mean that an entire block of homes should be seized from their owners and torn down, though studies have shown that the government often abuses its powers to condemn blighted areas.”

A case study was released by the Institute of Justice after the organization became involved in an Elberton, Georgia, couple’s fight against the city to save their small business from an attempt to deem their town square building blighted. “Because eminent domain—especially quick take proceedings—can deprive people of their property, courts strictly construe eminent domain statutes to ensure property and due process rights. Strictly construing the power to take property for ‘public road and other transportation projects’ is also necessary to prevent Georgia governments from improperly invoking that power to avoid the important provisions of the Landowner’s Bill of Rights and Private Property Protection Act,” the Institute of Justice said.

While the issue of blight progressing into an eminent domain situation is unfounded, history has shown a concrete correlation between blight findings and eminent domain in the hands of Georgia municipalities.

Georgia’s constitution authorizes its counties and municipalities to establish a community redevelopment tax incentive program (Ga. Const. art. IX, § 2, para. VII). Those that choose to do so must adopt an ordinance that includes certain provisions.

Hiawassee City Council is set to vote on the Blight Resolution, Tuesday, Feb. 4, at 6 p.m. While the meeting is open to the public, citizen input is prohibited during the council’s regular sessions.