PKO Ventures, LLC v. Norfolk Redev. & Housing Auth.

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In 1998, Norfolk approved the Hampton Boulevard Redevelopment Project created by the Norfolk Redevelopment and Housing Authority pursuant to Code § 36-49, which authorizes such an authority to "adopt a redevelopment plan for a designated redevelopment area to address blighted areas" and Code § 36-51(A), which authorizes localities to approve redevelopment plans. The approval was based on a redevelopment study which determined that the area was blighted due to incompatible land uses, disrepair, environmental risks, demographic changes, and high crime rates. Properties were classified as good, fair, or poor; about 20 percent were classified as poor. The area was selected to assist in the expansion of Old Dominion University, immediately adjacent to the Redevelopment Project. Challenges to individual condemnations were rejected and a trial court upheld the finding of blight. In 2010 the Authority initiated condemnation of PKO’s apartment building. PKO appealed the adverse decision. The Virginia Supreme Court held that the court erred in permitting the Authority to acquire PKO's property after the effective date of the statutory limitation added by Code § 1-219.1, which provides that property taken for condemnation must itself be blighted at the time the petition for condemnation is filed. The limitation applies to all redevelopment and housing authorities operating pursuant to redevelopment plans adopted prior to January 1, 2007. It does not refer to the filing of a petition for condemnation or the institution of the acquisition of property, but instead limits the "ability of a redevelopment and housing authority ... to acquire property." View "PKO Ventures, LLC v. Norfolk Redev. & Housing Auth." on Justia Law