| Wisteria
annexation is a green light to developers
The
rush to judgment on Wisteria Island is being supported by the
argument of "we're only deciding annexation, not development —
we'll have that debate when the time comes because they will
have to go through the development process." Granted the
development process provides for ample debate and public
comment, but we must have the development debate now. Inverse
condemnation, or "takings" claims, are based entirely on the
owners' "investment-backed expectations."
The
basic question a jury is asked to decide in a takings case is
whether the owner was denied their reasonable investment-backed
expectations. This is the language that has been used by the
courts for decades. The phrase "investment-backed expectations"
has been defined in many ways by the courts in an area of law
deemed one of the most complex by even the federal courts. I
assure you our local takings attorneys are salivating at the
notion of the city's annexation. It provides an essential tool
in establishing a takings claim — an act of government approval
giving the owner an expectation that there would be more to
come. The grandfather of the takings claim is the vested rights
claim.
One
of only three elements that must be established for a successful
claim is specifically and merely "an act of government
approval." The decision to annex is not one without huge legal
ramifications. Plaintiffs in takings cases more often are not
seeking compensation back to the date they purchased the
property, but to a later date triggered by some act of
government approval that gave them the magical expectations
needed to establish their claim.
For
example, the city annexed my island, so it was reasonable for me
to believe they wanted me to develop it. I spent a lot of money
on engineers, architects and accountants to determine the most
profitable development to build, so I am now entitled to
compensation. It is as good a takings case as any, so it's too
bad the city is considering giving it to the owners of Wisteria
Island as a multimillion dollar Christmas in July present.
Any
notion that we do not need to debate whether and how much
development the city will ultimately allow is both uninformed
and contrary to the public interest. Some commissioners have
been quoted to give the impression that the annexation is no big
deal, that it leaves the possibility for the island to be kept
status quo. If annexation is approved, there will be no ability
whatsoever to keep the island status quo or to improve it as a
park without creating the financial liability of an enormous
takings claim. The city has already given the owners one foot in
the door with a first reading and approval.
If
there is any real possibility of maintaining the island as a
park or other non-profitable use, we must have the debate now.
Karen Cabanas, Key West |