We received some reader comments on our Amortization in Bloomington Indiana post.
An east coast out of home exec says you should enlist clients to help fight amortization
I always use the term “slow motion confiscation” and the metaphor, imagine you own a ten story building and suddenly a town decides that buildings cannot exceed 5 stories. Any building with more than 5 stories have ten years to remove. This is not a case of eminent domain. And we could never be compensated the true value of the asset, anyway. NEVER! When a town in our market floated the idea of amortization, we immediately got letters from all of our clients, speaking to the importance of billboard advertising to their business. We did the same with landowners. Also, we contacted each council member and asked to meet with them. We met with the mayor and City Manager. In the end, it worked and we were able to prevail.
A midwest out of home exec points out that amortization may be illegal in Indiana because the state has a just compensation statute.
Exactions/amortization in Indiana Code
(b) Before an outdoor advertising sign, display, or device is removed, taken, or appropriated through the use of zoning or another power of authority of the state, a state agency, or political subdivision:
(1) the value of the sign, display, or device shall be determined by the taking authority without the use of an amortization schedule: and
(2) the owners of the sign, display, or device and of the real property upon which the sign, display, or device is situated must be paid full and just compensation for the taking.”
Indiana Code Title 36. Local Government IN CODE Section 36-7-2-5.5 –
Sec. 5.5. A unit may not require that a lawfully erected sign be removed or altered as a condition of issuing:
(1) a permit;
(2) a license;
(3) a variance; or
(4) any other order concerning land use or development;
unless the owner of the sign is compensated in accordance with IC 32-24 or has waived the right to and receipt of damages in writing.
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You may want an article about what I believe is a misguided use of eminent domain by municipalities.
The issue is using eminent domain for private development such as redevelopment. While this issue seems unrelated to billboards an area flagged for redevelopment may well include billboards.
Ron Borree
Ronald Borree Consultant, LLC
Seymour, Wi