Invoking (a different kind of) blight to take land for Foxconn

The term “blight” is more likely to conjure up images of slums and urban decay (example of Detroit) than farmland and single-family homes. Yet, the Wisconsin village of Mount Pleasant earlier this week invoked blight to take land for a planned Foxconn facility:

Trustees voted 6-1 to declare as a blighted area some 2,800 acres of open farmland and a few dozen homes, all of it earmarked for Foxconn and the development expected to spring up around the planned electronics factory. Trustee Gary Feest was the lone dissenter, and one of only two board members to speak before the vote…

Still, holdouts remain — people who believe the 140 percent of market value the village has offered is unfair when owners of larger tracts of farmland were paid several times the pre-Foxconn price such property was bringing…

As proponents have in the past, DeGroot emphasized not the eminent-domain power the blighted-area designation gives the village, but rather the financial advantages the measure confers. Communities with plans such as the one Mount Pleasant just approved can finance the redevelopment by issuing bonds exempt from both state and federal taxes, which DeGroot said could save the village millions of dollars…

In taking its action Monday, the village is using a section of state law that broadly defines blighted areas. Besides the commonly understood definitions of blight — dilapidated housing, overcrowding, high crime — the statute says an area can be deemed blighted if it is predominantly open and, for any reason, “substantially impairs or arrests the sound growth of the community.”

Here is the Google Maps satellite image of the Foxconn location (according to news reports). All the farmland is clearly visible.

Google Maps satellite image of Foxconn site

Taking land for a sizable or notable project like this is not always easy. The argument that this is good for the community will not strike all land owners as consonant with their property rights. And there may be some irony later in this story involving property rights. A Democratic gubernatorial candidate will be protesting the use of eminent domain as part of his larger concerns about the project. When Republicans are characterized as supporting both big business and property rights, which one wins? And are Democrats pro-property rights?

While Wisconsin has a slightly different definition of blight, this could be compared to urban renewal plans of the mid-twentieth century that used similar reasoning to mark certain properties as blighted. In both cases, officials and developers have a redevelopment plan for the land that is billed as an improvement for the community. In this case, the trade-off is largely open land for increased local tax revenue and a significant number of jobs. With the urban renewal plans of decades ago, history was not kind to some of the proposals as redevelopment could clear affordable housing units, target minority communities, and accelerate suburbanization (in the cases of highways constructed right through urban neighborhoods). Even without declaring some land as blighted, a project this size could be viewed by some as a significant change to the character of the community. “As many as 13,000 jobs” may sound good but this will affect local traffic, housing, and civic services. I would guess that following up with the community in five, ten, or twenty years could relay both intended and unintended changes if all or most goes as planned with the Foxconn facility.

 

One thought on “Invoking (a different kind of) blight to take land for Foxconn

  1. Pingback: The declining value of shopping mall real estate | Legally Sociable

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