"Governments proposal for new tools to promote "place-based sustainable urban communities" poses a serious threat to the notion that our family home is our castle" said Owen McShane, Director of the Centre for Resource Management Studies, today, explaining that the Government has released for comment, a discussion document titled "Building Sustainable Urban Communities – a document exploring place-based approaches to sustainable urban development in New Zealand."
Mr McShane said "The Centre hopes that, given all the other distractions, no one has underestimated the significance of the news reports in the New Zealand Herald and elsewhere which explain that local authorities or agencies may be given the right to seize people’s homes for whatever higher-density housing redevelopment, or other large scale developed is favoured by local planners. "The idea that this will address the problem of unaffordable housing is laughable, were it not so tragic. These powers of 'imminent domain', as they are known in the United States, are part and parcel of Smart Growth theory which has caused the problem in the first place.
"During my several attendances at international housing conferences in the US I have witnessed at first hand how these "revitalisation" projects operate, where they are frequently used to clear out Black and Hispanic neighbourhoods so that councils' Redevelopment Agencies (who purchase the property) can then sell at a cheap price to their developer colleagues – replacing the poor neighbourhoods with housing for the "creative class" or comprehensively planned "vibrant urban communities".
"I assured my overseas friends that this could never happen here because our legislation and conventions allow such takings of private home only for the purposed of "public works'. The US Supreme Court has interpreted the constitutional reference to "the public purpose" to allow takings of private property for a wider range of benefits including urban revitalisation or increasing the tax base and providing employment.
"This Discussion Document suggests that we change our legislation to enable homes to be taken to enable local authorities to promote these wider public purposes. So I have to eat my words.
"This sword hanging over our heads will be just another reason for our best and brightest to go to Australia! Why would any sensible person chose to live in a city where you can get a letter in the mail declaring your neighbourhood "blighted" and which offers to negotiate to buy you out, but on the understanding that if you refuse to deal, your house will be taken anyway.
"The process begins by declaring the neighbourhood "blighted" and hence requiring compulsory acquisition. (We used to call this Urban Renewal). Of course this is a self-fulfilling prophecy because banks stop lending and owners cease all maintenance and improvements and the properties become unsaleable on the market. (This is just what happened to Freeman's Bay until we removed the blighting urban renewal designation in the early sixties.)
"After a few years the Redevelopment Agency buys the property at a greatly reduced price. Many owners can see what is coming, so they negotiate immediately rather than lose the value of their asset.
"The NZ Government Discussion Document then claims that one of the benefits of this "land readjustment" process (I am not making this up. This is what they call it.) is that it:
* creates certainty for developers, knowing that the community is a partner in the outcome.
"Yeah – right! I do so enjoy my partnership with the IRD.
"The corruption around these schemes in the US is immense and inevitable.
America's Castle Coalition fights these "eminent domain" cases as they're called in the States, and their site documents the abuse and corruption which soon develops around these transfers of private property from homeowers to major developers. Anyone who thinks this proposal is a good idea should read this page and its case studies. Donald Trump used this means of corruption to put up a carpark at one of his casinos. For more such cases just google "Susette Kelo." or go here to learn about this woman's fight.
"Here is Wikipedia's summary of that famous case:
Kelo v. City of New London, 545 U.S. 469 (2005)[1], was a case decided by the Supreme Court of the United States involving the use of eminent domain to transfer land from one private owner to another to further economic development. The case arose from the condemnation by New London, Connecticut, of privately owned real property so that it could be used as part of a comprehensive redevelopment plan. The Court held in a 5-4 decision that the general benefits a community enjoyed from economic growth qualified such redevelopment plans as a permissible "public use" under the Takings Clause of the Fifth Amendment.
The decision was widely criticized by American politicians and the general public. Many members of the general public viewed the outcome as a gross violation of property rights and as a misinterpretation of the Fifth Amendment, the consequence of which would be to benefit large corporations at the expense of individual homeowners and local communities. Some in the legal profession construe the public's outrage as being directed not at the interpretation of legal principles involved in the case, but at the broad moral principles of the general outcome.[2]
In her dissenting opinion Justice Sandra Day O'Connor said: “The specter of condemnation hangs over all property. Nothing is to prevent the State from replacing any Motel 6 with a Ritz-Carlton, any home with a shopping mall, or any farm with a factory."
The opening pages of the Discussion Document end with a quote from Katherine Mansfield, which in its original context was no doubt thought provoking, but in this document is plain creepy. It reads:
"Could we change our attitude, we should not only see life differently, but life itself would be different."
"They are determined to change our attitudes to our rights, the quiet enjoyment of our property and our basic freedoms. So I suppose life itself will be profoundly different should we get caught in their web. I am so glad I left Auckland, and am out of range of such social engineering.
"And don't think "they will never come after me!" I toured a "blighted neighbourhood" At San José I toured while informed by an excellent commentary from a local lawyer whose own house had been subject to a "takings notice." The neighbourhood looked better than most of Remuera. She explained that her home had been declared "blighted" because a drive-by inspector decided there were too many leaves on her tennis court. She has replaced the tennis court with a swimming pool and is naturally fighting the Agency through the courts.
"I wish I could show the two Maori Ministers who have signed off the document how these policies have devastated Black and Hispanic communities in Portland and Minneapolis.
"Given the current distractions, and all the policies being presented in the lead up to the Election, the Centre does wonder how much attention will be paid to thdiscussion document.
"The proposed Emmisions Trading Scheme is a major and radical change to our economic structure and tax regime. This proposal to introduce takings for the "public purpose" is a radical change to private property rights in New Zealand, and promotes a whole new raft of development levies, subsidies and transfers.
"Is this really the appropriate time to call for public discussion of such a major and radical invasion of our rights? We can now understand why there was little enthusiasm for Gordon Copeland's NZ Bill of Rights (Private Property Rights) Amendment Bill.
"Someone must have known what was waiting in the wings," concluded Mr McShane.
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