Real Estate & Property Law

Attempt to Block Intermodal Terminal

By Alan Ackerman

All Business

A judge has turned down Montgomery County's attempt to block a proposed intermodal rail yard in Elliston. In a decision that reached county officials Monday, Richmond Circuit Court Judge Melvin Hughes ruled Nov. 18 for Norfolk Southern Corp., which wants to build the yard, and the state of Virginia, which proposes to help pay for it. Montgomery County Administrator Craig Meadows said he had not discussed the matter with the county's attorney.

That left unclear whether the county might appeal its loss. "We just learned about it and are still evaluating our options," Meadows said. Joyce Howard, an Elliston resident whose home the railroad wants to buy, expressed regret. She said she does not want to move and had hoped the county would win.

The county challenged giving state support to the project as an unconstitutional giveaway of public funds for a private purpose -- the expansion of Norfolk Southern, a Virginia Beach-based railroad and major freight carrier. The judge disagreed, saying the project has primarily a public purpose and is in keeping with the state's function to maintain a quality transportation system.

It is unlikely that a county will have the legal standing to challenge a proposed acquisition, much less the legal basis.  The Department of Transportation and most jurisdictions supercede local control.  The Department of Transportation is limited under certain circumstances when there is specific legislation.  However, when issues are related to the roads and other transportation modes, the Department of Transportation will be given broad discretion in proceeding to acquire land for such activities as intermodal rail terminals.

Full post as published by National Eminent Domain Blog on December 22, 2009 (boomark / email).