Opinion ID: 1330087
Heading Depth: 1
Heading Rank: 5

Heading: Use for which taken

Text: Article I, § 13, of our State Constitution provides: Except as otherwise provided in this Constitution, private property shall not be taken for private use without the consent of the owner, nor for public use without just compensation being first made therefor. GDOT argues the condemnation is unconstitutional because the property is being taken for private and not public use. We agree. [3] The trial court held that County's lease to SAIT for a marine terminal qualifies as a public use and therefore County's taking of GDOT's property is constitutionally permitted. He distinguished our decision in Karesh v. City Council of City of Charleston, 271 S.C. 339, 247 S.E.2d 342 (1978), which held unconstitutional the City of Charleston's condemnation of land to build and then lease a parking facility and convention center to a private corporation. The trial court found the condemnation here distinguishable because the public interest is protected by federal law and regulation, referencing the lease provisions regarding the application of general maritime laws, and by County's control of the premises as landlord. Karesh is controlling here. In Karesh, the parking facility was to be made available on reasonable demand to all members of the general public with only 10% reserved for the proposed convention center. We found this public interest was not enough in the context of a condemnation proceeding because private property rights were being infringed. Our decision in Karesh turned on the fact that the parking garage and convention center, which were ostensibly public facilities, were to be leased long-term to the developer and used as an adjunct to the developer's own business. The importance of this fact is apparent from our subsequent decision in Goldberg v. City Council of City of Charleston, 273 S.C. 140, 254 S.E.2d 803 (1979), which addressed a later challenge to the revised project involving the same parking garage. In Goldberg, we summarily found the project no longer suffered the same constitutional impediments found in Karesh and was valid because the city would now own and operate the parking garage. General regulations governing the lease here and the standard landlord control provisions included in the lease do not rise to the level of public control required under Karesh. Further, the trial court found the projected industrial development and economic benefit to the citizens of the county was sufficient to constitute a public use. Facts introduced at trial indicate the majority of County's population have low-paying tourist and service industry jobs and 25% live below the poverty line. The proposed project would be valued at approximately $400 million by the time it is completed, about 40% of County's current tax base. Projected tax revenues under a fee-in-lieu of tax agreement are between $3.5 and $4 million. The project would also diversify County's job base. The cases relied on by the trial court in finding economic benefit is a sufficient public use, however, are not condemnation cases but tax cases [4] and bond revenue cases. [5] The public purpose discussed in these cases is not the same as a public use, a term that is narrowly defined in the context of condemnation proceedings. Edens v. City of Columbia, 228 S.C. 563, 573, 91 S.E.2d 280, 283 (1956). Although the projected economic benefit to County is very attractive, it cannot justify condemnation in this case. As stated in Karesh: However attractive the proposed [project], however desirable the project from a [government] planning point of view, the use of the power of eminent domain for such purposes runs squarely into the right of an individual to own property and use it as he pleases. 271 S.C. at 344-45, 247 S.E.2d at 345. We take a restrictive view of the power of eminent domain because it is in derogation of the right to acquire, possess, and defend property. Karesh, 271 S.C. at 342, 247 S.E.2d at 344; see generally 2A Julius L. Sackman & Patrick J. Rohan, Nichols' The Law of Eminent Domain §§ 7.02-7.07 (rev. 3d ed. 1990) (discussing broad and narrow views of public use). It is well-settled that the power of eminent domain cannot be used to accomplish a project simply because it will benefit the public. As we have previously emphasized: The public use implies possession, occupation, and enjoyment of the land by the public at large or by public agencies; and the due protection of the rights of private property will preclude the government from seizing it in the hands of the owner, and turning it over to another on vague grounds of public benefit to spring from a more profitable use to which the latter will devote it. Edens, 228 S.C. at 573, 91 S.E.2d at 283. The involuntary taking of an individual's property by the government is not justified unless the property is taken for public usea fixed, definite, and enforceable right of use, independent of the will of a private lessor of the condemned property. Karesh, 271 S.C. at 344, 247 S.E.2d at 345. County's proposed marine terminal does not meet our restrictive definition of public use. The private lessor, SAIT, will finance, design, develop, manage, and operate the marine terminal. The terminal itself will be a gated facility with no general right of public access; access is limited to those doing business with SAIT. SAIT will have agreements with various steamship lines and will charge them per container fees for unloading, storing, and delivering. The marine terminal is considered a public terminal simply because it will serve different steamship lines as opposed to a single line or cargo interest. We hold the trial court erred in finding the property will be taken for public use and conclude the condemnation is therefore unlawful. In so holding, we emphasize it is the lease arrangement in the context of a condemnation that defeats its validity. We express no opinion regarding County's ability to accomplish the project in a different manner. [6] In light of our disposition, we decline to address GDOT's remaining issues. REVERSED. TOAL, C.J., WALLER, BURNETT and PLEICONES, JJ., concur.