Posted: October 16th, 2022

Do the owners of bailey’s actually have the right to challenge the taking of their property in court?

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Bailey’s Brake Service, a business that is a bit of an eyesore, is located at a main intersection near the downtown area of Denton, Texas. Bailey’s is a family-owned business that has operated at its location since 1970. Pioneer Diner is a local cafe that also is a longstanding business in the location next to Bailey’s. Pioneer Diner’s owner would like to see Bailey’s forced out of its location as customers constantly complain about the sounds and smells coming from next door to the staff.
The owner of Pioneer also leads local efforts to revitalize and beautify Denton’s downtown area and frequently works with the city government on such issues. Pioneer’s owner also feels that some additional green space would beautify the downtown area and attract more customers to the other businesses in the downtown area. They initially approach Bailey’s with an offer to buy out the business, but it is rejected and Bailey’s owners indicated that they are unwilling to relocate, or just sell, their property at any price.
Pioneer then makes a presentation regarding the situation to the City Council and requests help to get Bailey’s business out of the downtown area and convert the space into a public park for disc golf.
The City Council is convinced by the presentation and votes in favor of a project and authorizes a taking of Bailey’s property by eminent domain. The Council further decides that the acquisition of the property will be followed by the demolition of the business and the conversion of the property to a public park and allocates funds to compensate the owners of Bailey’s and demolish the building.
At the end of the voting, the City Council notes on the official record that it only authorized the project because of its intended economic benefit to the city and not because of any past dealings with the owner of Pioneer Dinner.
The Baileys are aware of these plans and intend on challenging – in court – the taking of their business as being unconstitutional. They know that you took classes on this topic in school and ask what your thoughts are on the following: 1. Discuss how the city has the power to take Bailey’s property. (i.e. – what is this power called, where does it come from, and how does it generally work)
2. Whether or not the city is complying with the rules and law in taking Bailey’s property. (Be sure to explain your reasoning for each part of your answer.)
3. Do the Owners of Bailey’s actually have the right to challenge the taking of their property in court? Also, who do you think will ultimately win the court challenge and why?

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