damon key's legal alert (april 2011) - rail, construction law, insurance

April/May /June 201 1 Providing clients worldwide access to sophisticated legal advice and exceptional service. ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• Inside this Issue: Bidding on Rail You’ve Been Condemned: What’s it Worth? Damon Key Land Use Lawyers in the Supreme Court Again Damon Key Leong Kupchak Hastert • 1003 Bishop Street • Suite 1600 • Honolulu, Hawaii 96813 Telephone (808) 531-8031 • Facsimile (808) 533-2242 • Website www.hawaiilawyer.com H onolulu rail, officially referred to as the “High-Capacity Transit Corridor Project,” will generate its share of legal issues over an anticipated eight year construction period, including eminent domain, construction and procurement, and environmental law . The attorneys at Damon Key have a depth of experience in these fields, and stand ready to assist you if you will be impacted by the rail. Eminent Domain The City has the power to take property by eminent domain, provided the taking is “for public use” and “just compensation” is paid to the owner . According to the June 2010 Final Environmental Impact Statement, the City will acquire 199 parcels (40 full, and 159 partial acquisitions), which will include relocation of 20 residences, 1 church and 66 businesses, and the City has identified these properties by TMK number in the FEIS, a copy of which is available at www.honolulutransit.org. The City asserts that only those properties identified in the FEIS will be acquired, and that property owners will be offered fair market value and relocation expenses, but whatever the City might promise, affected property owners should be proactive in determining the value of their land and businesses. The City estimates acquisitions will be completed by 2014 for no more than $248 million total, based on property tax assessment records (not fair market value). According to the Honolulu Board of Realtors, the median sale price of single family homes in March 2011 was $548,500. That amounts to about $1 1 million for residential acquisitions, or only 4% of the estimated budget for all acquisitions. By Christi-Anne H. Kudo Chock Keeping Track of Rail n July, the American Bar Association’s Section of State and Local Government Law will publish the Condemnation Law Deskbook, which includes chapters authored by Damon Key attorneys Robert H. Thomas (who is Chair of the Section’s Condemnation Law Committee), Mark M. Murakami, and Christi-Anne H. Kudo Cho ck. This one-volume primer on the law of eminent domain is a comprehensive guide to the government’s condemnation power, and is national in coverage. Look for more d etails when th e book is publis hed in July. Upcoming Eminent Domain Book I Continued on page 2

damon key's legal alert (april 2011) - rail, construction law, insurance

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