8 Ways Eminent Domain Can Affect Your Business
Eminent domain, the power of the government to take private property for public use, can have significant implications for commercial property owners. Here’s how eminent domain can affect your business and what you need to know to protect your interests.
Control of Access and Right-of-Way Issues
When the government acquires land through eminent domain, the right-of-way lines can drastically impact commercial properties. New control of access and right-of-way requirements can affect egress and ingress, which are critical for business operations. For businesses reliant on tractor-trailer deliveries, such as those with regular shipments of goods, modifications to driveways and access routes can create significant problems.
For example, the width, placement, and number of driveways may be altered, impacting the ease of access for delivery vehicles. For large trailers, the required turn radius can be a critical issue. Without proper adjustments, businesses might face delivery delays or logistical difficulties. Businesses dependent on large or specialized equipment might also struggle with access issues if the new configurations don’t accommodate the required maneuvering space for 53-foot trailers or other heavy machinery.
Complicated Commercial Leases
Commercial leases often contain condemnation clauses that outline the rights and obligations of tenants and landlords in the event of a property taking. These clauses can address various issues, including:
- Ingress and egress: Changes in access routes can impact how tenants and customers enter and exit the property.
- Parking and business operations: Condemnation can affect parking spaces and overall business operations, potentially reducing the rentable space or altering how business is conducted.
Lost or Diminished Rental Income
While the law typically does not account for lost business income directly, commercial property owners might face reduced rental income due to changes in the property’s highest and best use. Experts such as appraisers and land condemnation lawyers can help evaluate the financial impact of these changes and seek appropriate compensation.
Signage Issues
Road improvements and widening projects frequently impact business signage. The process of relocating signs can be complicated by set-back rules, utility easements, and other factors which may restrict where signs can be placed. Additionally, changes in signage can affect compliance with local zoning regulations and reduce parking availability, impacting the business’s operational efficiency.
Commercial Relocation Issues
If tenants are required to relocate due to eminent domain, they may be entitled to relocation benefits. However, relocating complex business equipment, trade fixtures, and manufacturing machinery can be challenging. Ensuring that you receive appropriate compensation for these relocation costs is crucial.
Slope, Grade, and Visibility Challenges
Road improvements can alter the elevation of roadways, leading to:
- Slope and grade issues: Grade changes can affect the ability of large trucks and equipment to access the property.
- Impacted visibility: Significant alterations to the landscape or the construction of noise barrier walls can impact the business’s visibility from the roadway, potentially affecting customer traffic and visibility.
Larger Parcel Issues
Commercial property owners who manage multiple tracts of land with a common use or interest may face compounded issues when part of their land is taken. The “Trinity of Use” principle allows lawyers to link these parcels for proper damage valuation. This approach helps understand the full impact on all interconnected properties.
Utility and Pipeline Easements
Utility easements, including permanent, aerial, subterranean, drainage, and sewer easements, can affect commercial properties in various ways. For instance, property owners may be prohibited from maintaining structures, signs, or significant landscaping within these easements. In addition, changes in the use or value of the property due to easements can result in financial losses and operational disruptions.
Your Commercial Property, Your Rights. Speak With Our Eminent Domain Lawyers for Free.
At Henson Fuerst, we frequently represent business owners facing challenges due to eminent domain and understand the various ways eminent domain can affect your business and operations. We are dedicated to helping you navigate these challenges and protecting your best interests.
If you are facing eminent domain issues or have questions about challenging the government’s offer for your property, consult with our experienced team to explore your options and ensure you receive fair compensation for any impacts on your property.
For more information or to discuss your situation, contact us today by submitting a form online or calling our office at 919-781-1107 for a complimentary consultation.