Published Wednesday, November 8, 2006, by the San Francisco Chronicle

EMINENT DOMAIN: Measure to restrict government power over private
land being rejected

By Patrick Hoge
Chronicle Staff Writer

Voters were poised Tuesday to reject Proposition 90, a measure that
supporters said would stop the government from using eminent domain
to take private property on behalf of developers, but which critics
said would actually hobble land-use regulation.

The "Protect Our Homes Act" -- one among a handful of similar
efforts in various states -- had 49.4 percent of the vote with
32.1 percent of precincts reporting.

Proponents said Prop. 90 was a necessary reaction to the June 2005
U.S. Supreme Court ruling that allowed New London, Conn., to seize
the home of Susette Kelo and others so a developer could build a
hotel, condominiums and commercial space on the site.

Critics countered that the court ruling had no bearing on
California, and called Prop. 90 a "taxpayer trap." They said the
measure would lead to lots of litigation and make it hard for cities
to plan development.

"We are ahead, but there's still a lot of votes to be counted,"
said Tom Adams, president of the California League of Conservation
Voters. "So far, it looks like the voters understand that Prop. 90
would hurt the environment and impose tremendous costs on
taxpayers."

The anti-Prop. 90 campaign drew support from an unusual assortment
of players that included cities, the state's major environmental
groups, builders, bankers and labor groups. Opponents raised about
$12.45 million, compared with $3.77 million by proponents, according
to the latest disclosure reports.

"We were outspent in total more than 3 to 1," said Kevin Spillane,
a spokesman for the "yes'' campaign. "The opposition campaign was
financed by special-interest money and based on blatant distortions
and falsehoods."

The vast majority of the money in support came from groups led by or
connected to conservative New York real estate investor Howie Rich,
who has long supported candidates and measures favoring property
rights, term limits, tax cuts and school vouchers.

Rich helped steer millions of dollars to similar property-rights
measures in Arizona and Nevada, which appeared to be winning Tuesday
night, and in Idaho and Washington, where they were losing. Other
measures he supported in Missouri, Montana and Oklahoma were
disqualified by courts. His money also flowed to initiatives
promoting term limits and curbs on taxes and government spending.

Much of the criticism of Prop. 90 focused on language that would
require public agencies to compensate property owners for
"regulatory takings" -- times when a government decision prevents a
property owner from developing or using land. The measure would have
amended the state Constitution to require the government to pay for
any "substantial" loss in property value caused by new laws or
rules, except ones dealing with public health and safety.

Though supporters denied it, the nonpartisan state Legislative
Analyst's Office said the measure could affect more than land,
potentially requiring compensation for rules governing such things
as pollution, employment conditions, consumer protection and rent
control.

Local redevelopment officials said limiting the use of eminent
domain for projects such as shopping centers or hotels would make
it more difficult to revitalize blighted areas.

Prop. 90 also could increase the price of property acquired through
eminent domain, which critics said would make public works projects
more costly.

E-mail Patrick Hoge at phoge@sfchronicle.com

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