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Wednesday, July 20, 2005

UPDATE: In 2006, the Colorado legislature passed HB 1003, which took away from toll road (but not railroad or utility) corporations their power to condemn property. That bill also outlawed "non-compete" agreements (in which traffic on public roads is deliberately impeded in order to drum up business for toll roads), first exposed here in Unbossed.

A previous article about privatization and toll roads stated:

"To build a highway means acquiring a large amount of contiguous property in a specific location. Governments can do this through the power of condemnation, but private purchasers have only the power of offering enough money to persuade property owners to sell."

Not in Colorado!

In Colorado, some corporations have the power to condemn your property.

Here's a little gem from Colorado Revised Statutes:
"If any corporation formed for the purpose of constructing a road, ditch, ..., telephone line, or telephone plant is unable to agree with the owner for the purchase of any real estate or right-of-way or easement ..., such corporation may acquire title to such real estate or right-of-way or easement or other right in the manner provided by law for the condemnation of real estate or right-of-way." (CRS, Title 38, Article 2, Section 101)

Eminent domain, the power to condemn and seize land with compensation, is a significant power. It's one thing for government to have this power. But at least decisionmakers in government are elected by the people. If government abuses its power of eminent domain, the voters can fire the officials responsible. Also, at least in theory, government exists for one purpose: to serve the public good.

But for corporations to have this power is another matter altogether. Corporations are not accountable to the public. Their leaders are not elected by the voters (usually, not even by their employees). And corporations exist for one purpose: to make a profit for the owners. They do not exist to serve the public good.

The Front Range Toll Road Company (FRTR) which hopes to build "Super Slab" through eastern Colorado, has the power to condemn people's land. According to the lobbying firm Tomlinson & Associates, FRTR has already filed claims on thousands of properties.

Turning the tables on FRTR, a couple of opponents of Super Slab have formed their own toll road corporation. They call their road the Castle Rock Alternative Parkway (CRAP). Their planned right-of-way just happens to go through the living room of Ray Wells, Super Slab's developer. This article has more info.

On the bright side, Colorado's Constitution does have a corporate "death penalty". Article XV, Section 3 says that the legislature has the power to dissolve the charter of any corporation that is "injurious to the citizens of the state." Some members of the legislature wanted to repeal this provision several years ago on the ground that it was "obsolete", but activists came to the rescue and it's still there.

This corporate "death penalty" has never been used, but it's nice to know it's there just in case some corporation, sometime, were to do something that was "injurious to the citizens of the state".

Comments

3 comments

[1]
Scary stuff ... but what a great move by activists to propose CRAP as an alternative!

Posted by DCvote at Wednesday, July 20, 2005 15:22:33

[2]
And congratulations on your work being noticed on Stygius:
http://stygius.typepad.com/...

20 July 2005
Privatizing private property

One of the biggest controversies in Colorado is the proposed Super Slab, a private toll road that would go from Pueblo to Fort Collins. Building it would require seizing hundreds of square miles of private property through eminent domain, which under current Colorado law a private developer can do! The Democrat-controlled legislature passed bills killing off the project after citizens rallied outside the Capitol. However, Gov. Bill Owens vetoed them. A post at unbossed.com has more background.

Posted by shirah at Thursday, July 21, 2005 07:17:41

[3]
I'm told by an opponent of Superslab that the Front Range Toll Road Company has not actually begun condemning peoples' property yet. But in their Articles of Incorporation filed with the Secretary of State's office, the Company asserts that they "shall have and may exercise" the power of condemnation.

Also, this memo: "http://www.state.co.us/gov_..."
from the Colorado Legislative Council Staff summarizes some of the legal issues regarding private toll road companies.

Other interesting developments: A Colorado Springs developer named Lindsay J. Case has now registered a total of 5 (yes, five) toll road corporations in Colorado. According to "http://www.stupidslab.com", some developers think that filing incorporation papers gives them perpetual development rights, sort of like mining claims under the 1872 mining law, which is still in effect. It kind of makes you wonder if developers aren't just gaming the system, having ho intention of actually building toll roads.

To find any corporation's Articles of Incorporation in Colorado, or the name of the person registering a corporation, go to the Secretary of State's website, "http://www.sos.state.co.us/...", then click on "Business name..." or "Registered agent" .

Posted by BobB at Saturday, July 23, 2005 15:22:01

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