Michigan Power Company

[farmgirl_48732]

What is the name of your state (only U.S. law)? Michigan, My question is this. What advice can you give on this situation? A Michigan power company is planning to expand. My home and two others are in line to be purchased by the power company. This expansion, will bring a train track that will be built behind on our homes.

The company approached the three home owners last fall. We had to provide them with what WE thought that what we wanted for our homes. The one home next to me is just 2 years old.

We have expressed that we are willing to sell, I do not want to live with train tracks behind me. but we are not going to give our home away. Our home is almost 3000 sq. ft with an indoor pool, etc. None of these homes are dumps, and I understand that they can just expand and build it without buying us out. HELP! Ofcourse everyone has their opinion around here, believe me we have heard it all.

Do we need an attorney? Can we just negoiate this ourselves? How close can they put a coal plant to a home? Any advice would be greatly appreciated.

 

[seniorjudge]

Let's start from the top:

If you are going to sell your place, then why do you care where the train goes?

 

[FarmerJ]

If the homes current market value with a sale leaves you enough to pay off and start over elsewhere then what ever the power co does OR might not do for years and years wont matter if they are the one who buys you out. Have you considered getting the assistance of a realtor to atleast find out what they think it could be sold for with and with out any changes created by a utility system expansion ?

 

[farmgirl_48732]

In response:

I am NOT worried about the train IF they purchase my home. I am however concerned IF they do not. I have not contacted a realtor, however I have contacted a tax assessor to assess what I have and what it would cost to replace. I do not expect to get replacement cost, but offering me "fair market" value in Michigan, right now I wouldn't accept either.

I thought that someone would have some worldly advice on what to expect.

 

[justalayman]

first, a real estate agent does not provide a legally dependable value. They are sales people and what they want to do is list your home and if the give you a higher price than your home will actually sell for, well, the homeowner gets all excited and wants to list. Then, after several price reductions, the home hopefully sells for the true value.

assessors; they are not appraisers either. how they value a home is rarely accurate.

If you want a true value, a licensed appraiser is the guy.

The problem is; you already said you will not sell for fair market value. The problem with that is; if they do not have to buy your home, what makes you think they will offer anything above fair market value? You most likely can ask for moving expenses but there is no reason they would pay over FMV in this situation. As you said, they don;t need your home to build. They might offer more but that is up to them.

Now, I have not researched Michigans position of private enterprise and emminent domain but if they have not limited what the SCOTUS has allowed, they have even less reason to offer over FMV.

 

[farmgirl_48732]

In response

The power company in Michigan can NOT take our homes.

 

[justalayman]

no problem. Tell them you want $12 mil for the house or you aren't moving. Then let them build the tracks behind your house.

here is an excerpt from a site I happened to run across:

A private property owner's right to receive just compensation for property that is taken for public use is protected by both the Federal and State Constitutions. The Fifth Amendment to the United States Constitution states: “[n]or shall private property be taken for public use, without just compensation.”

The Michigan Constitution provides that, “Private property shall not be taken for public use without just compensation therefor being first made or secured in a manner prescribed by law. Compensation shall be determined in proceedings in a court of record.” Const. 1963, Art. 10, § 2.


The purpose of requiring a government agency that is acquiring property to pay just compensation is to put the property owner in as good a position as it would have been had the taking not occurred. Miller Bros. v. Dep't of Natural Resources, 203 Mich App 674, 685; 513 NW2d 217 (1994). The public may not be enriched at the expense of the property owner, nor may the property owner be enriched at the public's expense. Id.

In addition to these constitutional requirements for the taking of property by eminent domain, Michigan has adopted the Uniform Condemnation Procedures Act (“UCPA”). The UCPA provides standards for an agency's acquisition of land, the conducting of condemnation actions, and the determination of just compensation. M.C.L. § 213.52(1). Section 5 of the UCPA provides that a condemning agency must make a property owner a good-faith offer of just compensation for the property. M.C.L. § 213.55(1). Section 12 of the UCPA provides that either the government agency or the property owner is entitled to a jury trial over issue of just compensation. MCLA 213.62.

Who May Exercise the Power of Eminent Domain?
Both the federal and state governments (including their respective agencies) have the power of eminent domain or condemnation. In Michigan, cities and counties have also been delegated the authority or power of eminent domain by statute. See, MCLA 213.21. Of course, all entities exercising the power must be acting on behalf of the public when using the power of eminent domain.

Public utilities, such as gas and power companies, may also condemn property in Michigan. See, MCLA 486.252. Public utilities must typically receive authorization from a state or federal board or commission before condemnation proceedings may begin. The Michigan Public Services Commission grants authority to power companies to commence condemnation proceedings. See, In Re Acquisition of Land by Detroit Edison, 137 Mich App 161 (1984).

Not that it has anything to do with your situation since you are not dealing with a public utility...oh..wait..yes you are.

Jusy in case you believe that since that was pre-scotus decision and Michigan subsequent restrictions on emminent domain, here is another more recent post.

http://tdworld.com/news/METC-ITC-eminent-domain/

I'll add as I find them

http://www.indianalawblog.com/mt/archives/2004/07/000844.html

http://www.michigancondemnation.com/amendmentstotheupca.htm

 

[justalayman]

knock knock