Jan. 26, 2006 - 19:15 MST

CHEERS

Hooray for John Allison a man after mine own heart. An article in Thursday's Rocky Mountain News by Paul Nowell of the Associated Press shows why the cockles of my heart are warmed. In full:

BANK BANS LOANS ON SEIZED LAND

BB&T exec calls eminent domain 'just plain wrong'

CHARLOTTE, N.C. -- "Regional bank BB&T Corp., one of the nation's largest financial institutions, will make no loans to developers who plan to build commercial projects on land taken from private citizens by the government through the power of eminent domain, the company said Wednesday."

"The idea that a citizen's property can be taken by the government solely for private use is extremely misguided. IN fact it's just plain wrong," John Allison, the bank's chairman and chief executive, said in a statement."

"In an interview, BB&T chief credit officer Ken Chalk said the bank expects to lose only a tiny amount of business but belileves it was obligated to take a stance on the issue."

"It's not even a fraction of a percent," he said. "The dollar amount ils insignificant."

"But he added: "We do business with a large number of consumers and small businesses in our footprint. We are hearing from clients that this is an important philosophical issue."

"Chalk said he knows of no other large U.S. bank with a similar policy. BB&T, which is headquartered in Winston Salem, N.C., ranks among the nation's top ten banks by assets."

"In June, a divided Supreme Cout ruled that cities may raze people's homes to make way for shopping malls or other private development. The 5-4 decision gave local governments the power to seize private property in the name of increased tax revenue."

"The ruling upheld a decision by the City of New London, Conn., to seize seven property owners' land so developers could build a hotel and high-end condominiums to keep pharmaceutical giant Pfizer expanding in the state."

"Scott Bullock, a senior attorney with the Arlington, Va.-based Institute of Justice, who represented homeowners in the Neww London case, applauded the bank's decision."

"Eminent domain abuse is wrong and unconstitutionaal," Bullock said in a statement. "BB&T has stepped up and recognized its corporate responsibility to not be a part of this shameful abuse of individual rights."

"The policy also will protect the assets of banks such as BB&T by not tying up money in proects that may draw opolitical opposition, said Columbia University law professor Thomas Merrill, a specialist on eminent domain. Merrill added that he did not believe there were many cases similar to the one that developed in New London."

"No one knows how many of these projkects are out there because the data is flimsy," he said. "But my hunch, from what data we do have, is that the numbmer is relatively small and concentrated in large congested cities like New York, Boston or Baltimore."

"In its statement, BB&T said 38 states have recently passed or are considerring laws to ban the use of eminent domain for private development. Similar legislation is pendint before the U.S. Congress."

"While we are certainly optomistic about the pending legislation, this is something we could not wait any longer to address," Chalk said in a statement. "We're a company where our values dictate our decision-making and operating standards. From that standpoint, this was a straightforward decision: its simply the right thing to do."

"BB&T, with $109 billion in assets, opoeraties more than 1,400 branches in 11 states and Washington, D.C."

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Would that every financial institution in our country have enough guts to do likewise. To my mind something like happened in Rhode Island points up the fact that eminent domain supposedly pays the owners a fair compensation but of course nowhere near a fair share of the immense amount of money that will be made by the new owners and developers as well as the increased tax money going to the city and state.

Cities and towns are made by people settling there, making their homes there and their careers there. And they should have the right to hold their property safe from "eminent domain" pushing them out.

In our area the City of Aurora was trying to threaten "Eminent Domain" against owners of businesses and homes in the area around the old Fitzsimons Army Hospital (which has been taken over by University Hospital and being developed as a medical science and service property), Aurora wanted to let developers build "high end" businesses and residences on Colfax Avenue and Peoria Street, the two main drags passing that area. Seems like the heat is off for now, but who knows what will develop down the line.

Seems that property owners hold out for a fair return on their property and the cities and governments don't want to pay that, so - - - wheeee, EMINENT DOMAIN to the rescue.

In the suburb of Westminster, Colorado the city council and the mayor are letting Mal-Wart raze a shopping center in an area that citizens contested the right to do so. Let's see, seems like in meetings with the public the Mayor told people that no incentive or money was being exchanged between Mal-Wart and the city, but what he didn't reveal is that the developer was the middle man for the transfer. I may have some of the details mixed a bit, but based on lies -- Mal-Wart will go in. In Denver Mal-Wart was trying to get a shopping mall razed so they could build there, working to get eminent domain on that property. Didn't go through . . . . . . yet. But who knows. The shopping mall is pretty well ethnic in nature, having fairly large businesses of an Asian nature and stores also in that ethnic area. But occupied and busy it is.

I remember a man who built a dump in Tampa, way out in the boonies, a reputable and decent man. Seems like the city grew up around him and he was eminent domained out of his property. Never did hear the details but expect he was never paid what his property was worth.

To my way of thinking developers who try to get hold of property by getting a city to declare eminent domain are real PUBLIC NUISANCES and should be prevented from doing business as developers.

Skid row in Denver was pretty well razed and rebuilt with the exception of one block which was kept like it was in the gold rush days. I can't remember the city using eminent domain to get the land but massive redevelopment took place. Of course I could be wrong on that too.

Our country needs people like John Allison, not only in banking but in political areas as well, but - - - for Mr. Allison, three rousing CHEERS . . . . . . . . . .

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