Eminent domain is the power of government to seize private property without the owner's consent for public use. Fair compensation must be made.
Historically, use of the seized property was for public facilities, highways and railroads. That was before the U.S. Supreme Court in 2004 set a precedent for government to transfer property to private interests when there is a "public interest" such as economic development. The high court -- in a 5-4 decision -- found that if an economic development project creates jobs, increases taxes and other revenue and revitalizes a depressed or blighted area, it qualifies as "public use."
Following that decision, the Wisconsin Legislature adopted eminent domain legislation to protect the rights of private property owners. Act 233, which went into effect in April 2006, defined blighted property based on a variety of conditions, but there was room for broad interpretation.
In 2011, Sen. Mary Lazich, R-New Berlin, hoped to tighten the definition of "blighted areas" to provide additional protection for property owners from eminent domain when the intent is to transfer interests to a private entity, but the bill failed to pass in the Senate in March.
