The Dark Side of Austin’s Light-Rail Project
Austin’s new light-rail project, named “Project Connect,” aims to connect central Austin to Austin-Bergstrom International Airport via a 9.8-mile rail system. With 15 stops, Project Connect would provide access to some of Austin’s most-visited destinations—including the University of Texas, Downtown, Lady Bird Lake, East Riverside, and South Congress—traveling along well-known roads such as Riverside, Congress, and Guadalupe. The City claims its project will create 10,000 new jobs and honor the wishes of the nearly 60% of Austinites who voted for a light-rail system in 2020.
But . . . how will Project Connect affect landowners along the route?
Monumental projects like Project Connect take land—literally. In this case, at least 85 high-value acres. Much of this land is prime downtown real estate that small businesses and individuals currently use. The law empowers local governments to take property for projects like Project Connect provided they give “just compensation” for the property rights they take. Some businesses and residences will see their land entirely taken, but most will lose only part of their land and part of their property rights—temporarily or permanently.
Can you guess which of the following real-world scenarios would entitle the landowner to compensation for a “taking” of private property rights for the City’s project?
A retail store permanently loses access to a parking lot.
A business loses its best entrance for customers.
A landlord temporarily loses a renter—or ability to rent—during the construction of the City’s project.
A building is entirely torn down to make room for the project.
A tract loses value because a portion of it is taken.
A business loses six months of profits during the project’s construction.
A small corner is taken from a vacant lot, reducing future building potential.
The project forces a business or individual to relocate entirely.
Some of these examples clearly entitle the landowner to compensation. But, depending on the facts, every single one of these situations may support a valid takings claim.
And sometimes taking even a small part of the landowner’s property can yield a big award of compensation. One of our lawyers was involved in a case where the State of Texas took about one-tenth of an acre and closed one entrance at a large manufacturing plant. The State’s appraiser believed that the landowner was entitled to less than $1,500. The case settled for over $6.5 million.
Eminent domain and property acquisitions can be difficult and confusing. Hire a lawyer who does this kind of work—and consistently gets strong results.
If you are willing to share any information you may have about Project Connect, or simply want to learn more about your rights as a landowner, please contact us at 512-399-3150 or visit www.cobbjohns.com.