Opinion ID: 2169345
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Heading: Iowa authorities concerning the power of eminent domain and the exercise of police power.

Text: In our cases, we have explained the distinction between the government's exercise of authority under the eminent domain and police power doctrines as follows: Eminent Domain is the taking of private property for a public use for which compensation must be given. On the other hand Police Power controls and regulates the use of property for the public good for which no compensation need be made. Kent v. Polk County Bd. of Supervisors, 391 N.W.2d 220, 226 (Iowa 1986) (quoting Hinrichs v. Iowa State Highway Comm'n, 260 Iowa 1115, 1126, 152 N.W.2d 248, 255 (1967)); see also Woodbury County Soil Conservation Dist. v. Ortner, 279 N.W.2d 276, 278 (Iowa 1979). With respect to the exercise of police power for the public health and welfare, we have stated: While the police power is very broad, and not capable of exact definition, it is not boundless, and, as a rule, is subject to constitutional limitations. Property may be destroyed under this power, without notice or opportunity to be heard, and, without compensation to the owner, to prevent the spread of contagious diseases, to stay the progress of a devastating fire, and in other exigencies, where the public needs protection or defense. Under this power, public nuisances may sometimes be abated; but, in all such cases, the necessity for summary action must exist, and one who would justify on the ground of necessity must be able to convince a jury that the occasion was present which authorized his act.... Waud v. Crawford, 160 Iowa 432, 434, 141 N.W. 1041, 1041 (1913) (emphasis added). As one commentator has explained: [t]he term regulatory taking refers to situations in which the government exercises its police powers to restrict the use of land or other forms of property. This is often accomplished through implementation of land use planning, zoning and building codes. In contrast, a governmental entity exercises its eminent domain power or acts in an enterprise capacity, where it takes unto itself private resources and uses them for the common good. Where the private landowner will not sell the land, the government entity seeks condemnation of the property and pays a fair purchase price to be determined in court. On the other hand, an inverse condemnation claim is sought by a landowner when the government fails to seek a condemnation action in court. [3] Bormann, 584 N.W.2d at 317 (quoting John W. Shonkwiler & Terry Morgan, Land Use Litigation § 1.02, at 6 (1986)). The exercise of police power may, in some situations, amount to a taking of private property if it deprives a property owner of the substantial use and enjoyment of one's property. See Iowa Coal Min. Co. v. Monroe County, 555 N.W.2d 418, 431 (Iowa 1996) ( Iowa Coal II ); Ortner, 279 N.W.2d at 278. The point at which police power becomes so oppressive that it results in a taking is determined on a case-by-case basis. Bormann, 584 N.W.2d at 316; Iowa Coal Min. Co. v. Monroe County, 494 N.W.2d 664, 670 (Iowa 1993) ( Iowa Coal I ); Ortner, 279 N.W.2d at 278. This ad hoc approach applies a balancing test that is essentially one of reasonableness, see Bormann, 584 N.W.2d at 317, which asks whether the collective benefits of the regulatory action outweigh the restraint imposed upon the property owner, see Easter Lake Estates, Inc. v. Polk County, 444 N.W.2d 72, 76 (Iowa 1989); Ortner, 279 N.W.2d at 278. Factors to be considered in applying the test include: (1) the economic impact of the regulation on the claimant's property; (2) the regulation's interference with investment-backed expectations; and (3) the character of the governmental action. Bormann, 584 N.W.2d at 316-17 (citing Penn Cent. Transp. Co. v. New York City, 438 U.S. 104, 124, 98 S.Ct. 2646, 2659, 57 L.Ed.2d 631, 648 (1978)). Our case law provides some examples of the distinction between the legitimate exercise of police power and the exercise of power under eminent domain. For example, we have said that the forced removal of billboards, at the owner's cost, which are maintained in violation of Iowa Code chapter 306C (Junkyard Beautification and Billboard Control Act) is a valid exercise of police power of the state, not an exercise of the power of eminent domain for which compensation must be paid. Iowa Dep't of Transp. v. Nebraska-Iowa Supply, 272 N.W.2d 6, 14 (Iowa 1978), overruled on other grounds by Estate of Grossman v. McCreary, 373 N.W.2d 113, 114 (Iowa 1985); see also Goodenow v. City Council, 574 N.W.2d 18, 25 (Iowa 1998) (holding that city ordinance forcing landowner to mow grass and weeds growing on city-owned property at landowner's expense is proper exercise of police power and does not constitute a taking of private property); Kent, 391 N.W.2d at 226-27 (holding that county ordinance prohibiting persons from owning dangerous and vicious animals is valid exercise of police power and does not amount to a taking of private property); Ortner, 279 N.W.2d at 279 (holding that provisions of soil conservation statutes, which require landowners to terrace property at landowners' expense is a proper exercise of police power and does not constitute a taking of private property); Walker v. Johnson County, 209 N.W.2d 137, 139 (Iowa 1973) ([w]here police power is properly exercised in limited situations it is well settled affected property owners are not entitled to prior notice and hearing, even where total destruction of the property is required to protect public health and public property, stating rule in context of claim based on the due process clauses of the Iowa and United States Constitutions); Loftus v. Department of Agric., 211 Iowa 566, 581, 232 N.W. 412, 420 (1930) (concluding that statute authorizing the destruction of diseased cattle without compensation was a proper exercise of police power and did not deprive property owner of due process under Iowa and United States Constitutions).