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5 steps to protect your mom-and-pop shop from eminent domain

On Behalf of | Sep 27, 2024 | Eminent Domain

Small business owners invest time, money and passion into their stores. It’s not just a business; it’s your livelihood and a part of the community. But what happens if the government decides it needs your property for a public project? This scenario, known as eminent domain, can be daunting. However, you’re not powerless.

Eminent domain can authorize the government to take private property for public use. While it’s a necessary tool for public development, it can devastate small businesses.

California’s eminent domain laws provide additional protections for property owners beyond federal requirements. In an eminent domain case, you can challenge the government and negotiate better terms.

Proactive measures

Being proactive gives you time to plan and influence decisions that could affect your business. You can start by:

  • Staying informed about local development plans: It helps to know about upcoming projects. It lets you anticipate issues and prepare for them. Attend city council meetings regularly, join local business associations and subscribe to Irvine’s official newsletters.
  • Documenting your property’s value and business impact: Proper documentation better equips you to negotiate fair compensation or argue against the necessity of the taking. Collecting customer testimonials about your shop’s community importance can also help.
  • Building strong community ties: Create allies who may advocate for you if your property gets threatened. Participate in local events, sponsor community activities and develop relationships with neighboring businesses.

A business with strong community support is harder to displace.

Legal preparedness

Understanding the basics of eminent domain law can help you recognize potential legal strategies. A key aspect is that the government must prove the taking is for legitimate public use, not just a public benefit.

Actions that you can take to understand related legal concepts further include:

  • Knowing how eminent domain differs from inverse condemnation: Inverse condemnation occurs when government actions damage your property value.
  • Seeking legal counsel early: Consulting an eminent domain law attorney can help you clarify some concepts, such as the difference between “public use” and “public benefit.”

Taking precautions and knowing your rights can better protect your business. Your mom-and-pop shop is worth fighting for, and with these steps, you’ll be well equipped to defend it.