The legislature in the regular session which adjourned June 6, 2007 enacted Public Act 07-207. Section 3 requires the Ombudsman for Property Rights to perform a study regarding “the feasibility of calculating relocation assistance for businesses displaced by eminent domain or condemnation, pursuant to chapter 132 or 588l of the general statutes, on the basis of any loss or gain in goodwill associated with the displacement of the business.  The ombudsman shall examine (1) the possible methods for calculating such loss or gain in goodwill, (2) the advantages and disadvantages of basing such relocation assistance on any loss or gain in goodwill associated with the relocation of business, (3) the experience of other states in basing relocation assistance on any loss or gain in goodwill associated with the relocation of the business, and (4) possible strategies for municipalities to plan to achieve the fiscal capacity necessary to compensate property owners for lost goodwill associated with the displacement of a business.”

At the present time, Connecticut does not compensate a business owner for damages or losses to intangible assets such as goodwill when forced to move because of eminent domain.

Our federal and state constitutions obligate government to pay just compensation when taking privately owned property. Our legislature and courts have been reluctant to extend the right to full and fair compensation to personal property owned by property owners and businesses unless the property is in the form of fixtures or other kinds of structures attached to the real estate.

A report is due to the committees of cognizance, in this case the Planning and Development and Judiciary Committees, no later than January 1, 2008.

GOODWILL STUDY

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