Eminent Domain Problems?

There is controversy regarding the traing of private lands by governmental agencies, only to turn the lands over to other private interests to develop in a manner “benefitting the public good”. Carried to the extreme, someone owning a small waterfront home could have his property condemned, only to be sold to someone else wanting to build a mansion. This theoretically would benefit the public good by increasing the tax base of the community.

There are protests of this practice, and indeed Florida and 37 other states have legislation either passed or under consideration which would prevent it. Florida permits it if the area is deemed blighted as was the case of Murdock Village in Charlotte County, FL.

One institution however has voiced their objections to the practice by changing the way they do business. Charlotte, West Virginia regional bank, BB&T has ended the practice of making loans to developers who plan to build commercial projects on land taken from private citizens by the government through the power of eminent domain.

BB&T, the nations 9th largest bank, states that no other large US bank has a similar policy. Read more here.