The Process of Eminent Domain
The legal process of eminent domain is called condemnation, and it varies by state -- but the basic steps are similar. Once the local government decides that it needs a parcel of land or a building, it contacts the owner to negotiate a selling price. At this point there are three different paths the process can take:
- If the property owner agrees with the sale and price, then the government issues payment and the landowner gives up the deed. This is the simple route and usually the road less traveled.
- Many times the property owner doesn't agree with the sale price. In this situation, the two parties proceed to a hearing where "fair value" is established. Attorneys and appraisers are involved, and the property owner can request that a jury make the decision.
- Sometimes the property owner refuses sale entirely. When this happens, the government files a court action and posts public notice of the hearing. In the hearing, the government must prove that it tried to negotiate the sale and that the takeover is for public use. If the government wins, an appraiser establishes fair market value and the property owner is paid and evicted. Both sides are allowed to appeal the decision.
![]() Photo courtesy Adriene Biondo Hollywood Star Lanes bowling alley was a sad casualty of eminent domain. |
When a business owner is forced from a building he or she leases, he or she is still entitled to compensation. Typically, this means the value of the lease is paid, in addition to improvements made by the tenant. The tenant can also ask for payment for the amount of lost business due to the move.
| This all changed in 2002, when the Los Angeles Unified School District claimed the property under eminent domain to build an elementary school. Locals were outraged that this Hollywood landmark might be demolished. Petitions were signed and the owners fought back with no success -- the classic nightspot was torn down later that year. Many of the artifacts from the alley were sold off to collectors. Lane 16 was turned into a bar top for the Lucky Strike bowling alley at the nearby Hollywood & Highland complex. |
In the next section, we'll look at a recent Supreme Court ruling that some say paved the way for eminent domain abuse.


