In the previous post I said that the city’s de facto taking of the “Made in Oregon” sign was “eminent domain by other means.” That’s not quite right. It’s actually worse than that. If the city had taken the sign through eminent domain it would have had to pay Ramsay Signs fair market value for the property, estimated in this Oregonian article at $500,000. Under the new deal Ramsay gets $200,000 to change the sign and a 10 year, 2,000/month contract to maintain it, for a total of just $440,000; with discounting for the present value the actual amount is even less than that. Under eminent domain, Ramsay would have received more money and been free of the sign. With this deal they’re receiving far less and will have to pay for the redesign, electricity, and upkeep for a decade.
For those of you needing a refresher, the Fifth Amendment to the Constitution protects property rights with a clause limiting the power of eminent domain: “nor shall private property be taken for public use, without just compensation.” I think the argument that the sign needed to be protected as a public good was dubious, but even if you disagree you should still want the owners to be fairly compensated for the taking. That so many people are glibly applauding the railroading of a private Portland business is very disappointing.