Using Eminent Domain in North Carolina to Build a Parking Lot

In the news recently, High Point, North Carolina is threatening to use its power of eminent domain to take private property to build a parking lot. See FoxNews media report here. It may surprise some North Carolina landowners, but the government CAN take private property for something seemingly as unimportant as public parking. However, the power of eminent domain gives governments the legal authority to take private land for almost any purpose as long as the purpose can be deemed for "public use" or "public benefit." Generally, the process of taking private land is called "condemnation." There is generally one important limitation on legal authority of governments here in North Carolina to condemn private land: The government must pay "just compensation" for what it takes.

In the case of High Point, North Carolina, as described in the media report, the land at issue is occupied by Piedmont Electric Repair Company and is adjacent to an empty lot. Both properties are behind a baseball park called Truist Point Stadium. Truist Point Stadium is home to the High Point Rockers, members of the Atlantic League of Professional Baseball.

City officials have attempted to purchase the property via a private sale. However, so far, the parties have failed to come to an agreement. As a result, High Point officials are planning to use the power of eminent domain to condemn the land so that parking can be built for the Stadium and for non-game-day parking for the general downtown area. As quoted, the High Point Deputy City Manager has stated: “It’s a block from the stadium, and it’s a block from all the job growth that’s taking place around the stadium.” High Point officials have asserted the broad concept that expanding public parking availability is a method of ensuring economic growth in the downtown and surrounding areas. In this sense, High Point is claiming that creating public parking is a "public use/benefit" that justifies and authorizes the use of eminent domain.

Condemnations are governed by North Carolina statutes. See North Carolina General Statutes Chapter 40A. In general terms, to be legal, these conditions must be met:

• The condemning authority -- like the City of High Point -- must have statutory authority to engage in condemnation proceedings
• The condemnation must be "necessary" and for "public use/benefit"
• The condemning authority must pay "just compensation"
• Proper legal procedures must be following -- generally, this means proper court and legal notice procedures

From the media reports, it looks as though High Point has met the requirements. Under some provisions of North Carolina law, condemning authorities must engage in negotiations to buy the land at issue via a private sale. That has been accomplished even if High Point was not legally required to conduct such negotiations.

Under North Carolina, the City of High Point is considered to be a "local public condemnor." Such governmental entities are allowed to use what is called a "quick take" condemnation proceeding. This means that, upon giving 30-day notice and then filing the proper paperwork with the local county Superior Court, title and the right to possession immediately transfers to the condemning authority. Thus, the process is as follows:

• The local public condemnor must give a 30-day notice of condemnation to the landowner
• After the 30 days has passed, a Notice of Taking and a Complaint are filed with the Superior Court
• At the same time as those papers are filed, the local public condemnor must deposit with the County Clerk the amount of "just compensation" for the land
• Notice of the court filings must be sent to the landowner

The "quick take" is triggered by the money that is deposited with the Clerk. Thereafter, the landowner has an opportunity to file what is called an "Answer" to the Complaint and Notice of Taking. Challenging a condemnation is complex and requires a deep understanding of North Carolina eminent domain law. Thus, landowners really must retain experienced North Carolina land use and condemnation attorneys to help.

The landowner may legally challenge the condemnation on any legal grounds that might be available such as lack of statutory authority, the taking was not for "public use," etc. However, insufficient payment is NOT a basis for challenging the condemnation. Rather, a landowner can litigate the amount of "just compensation" as a separate legal question. The landowner may also simply take the amount deposited which essentially concedes that the condemnation was legally proper. The landowner may also take the amount deposited and continue litigating other legal issues. But, in this latter circumstance, the condemning authority will take possession of the land and proceed with the public works project while the litigation proceeds.

For more information, and to schedule a confidential consultation with experienced and dedicated eminent domain and condemnation attorneys in Charlotte, contact Arnold & Smith, PLLC. Use our “Contact” page or give us a call at 704-370-2828. We handle land use, zoning and condemnation legal matters in federal court, in Mecklenburg County and elsewhere in North Carolina. We have offices in Charlotte, Lake Norman, and Union County.