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Pinnacle Entertainment May Push Eminent Domain for Casino Land

Land owners near the proposed site for the Pinnacle casino fear that the power of eminent domain may be used against them to force the sale of their businesses and property to Pinnacle.

Atlantic City and New Jersey are desperate to find encouraging movement in their economic situation, and the prospect of a brand-new $2 billion casino certainly could lift spirits among many in the Garden State. In fact, the desire to see Pinnacle Entertainment's beach-and-island themed resort and casino under way is so fierce, some observers fear the local governments may attack one of the deepest traditions and rights in Western culture.

The concept that a man at home is a king in his castle demonstrates the powerful ideology behind the protection of private property from the government. Eminent domain is a legal method for public authorities to seize private land from owners in return for a fair market price, designed for the necessity of buildings roads and other public structures.

However, recently some municipalities have tried to stretch the idea, using public domain for private projects on the argument that huge public benefits are received through creation of jobs, taxes paid, and other economic rewards.

Land owners near the proposed site for the Pinnacle casino fear that the power of eminent domain may be used against them to force the sale of their businesses and property to Pinnacle.

The protection of individual ownership rights goes back to the Magna Carta, and was developed through the ages leading to the U.S. Constitution. Thomas Jefferson wanted private ownership to be irrevocable, but a compromise position was placed in the Bill of Rights asserting that powers of eminent domain be used only for "public use."

But states and cities have differing laws, and the U.S. Supreme Court recently found for the city of New London in a landmark case, granting the town right of eminent domain to procure land for a private developer on the grounds his project would increase municipal funding.

The decision shocked many, including one prankster who wished to build a shopping center on the site of the home of Justice David Souter, a noted legal non-thinker, using the expanded eminent domain powers. Many states have since changed their laws regarding seizure to enhance individual protections against government infringement.

Jack Plackter, an attorney for Pinnacle, sounded an ominous note saying some measure of eminent domain may be necessary to complete the project.

But the Institute for Justice, a national group battling abuses of eminent domain, said through spokesman Christina Walsh, "Eminent domain is for public use, things like schools and courthouses, not to transfer perfectly fine businesses... to rich casino developers for private use."

For now, the government waits to see how things play out.

Published on September 3, 2008 by Preston Lewis

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