Property owners enjoy many inherent legal rights, not to mention the deep sense of pride that accompanies the ownership of private land. Unfortunately, many Alabama landowners are not familiar with the terms “eminent domain” and “condemnation,” and receiving a condemnation notice informing the owner about an upcoming construction project can be concerning and stressful. Suddenly, you face an uncertain future, as a governmental entity plans to seize your private property in exchange for compensation. Both state and federal constitutions endow governmental entities and other qualifying bodies (such as a public utility) with eminent domain power, allowing these entities to seize privately-owned land to use in construction or improvement projects that benefit the public in some way. In exchange, the body exercising its eminent domain authority must provide the land owners with “just” compensation. The legal process through which a governmental entity exercises its eminent domain power is called condemnation.
Condemnation proceedings occur for a variety of reasons, including highway expansion projects, building a new public library or school, or constructing a new railroad. In recent months, Alabama Power announced plans for building a pumped storage energy project on Chandler Mountain, which would impact an unknown number of residences and farms. This post will provide an overview of what this project entails and what property owners can do as the project moves forward.
About the Chandler Mountain Pumped Storage Hydro Facility
Alabama Power is seeking to identify projects that can continue to power the state with reliable and affordable energy. The entity recently announced a proposed project that will involve building a large dam on Chandler Mountain (located in northeast Alabama, about ten miles southeast of Gadsden) to establish an upper reservoir. Additionally, Alabama Power would build four smaller dams below the top reservoir to create a crescent-shaped lake farther down the mountain. The installation of an underground pump station and turbine at the lower lake would then push water to the upper reservoir when power is abundant to capture the energy as the water trickles down to the lower reservoir. According to Alan Peeples, the manager for hydroelectric licensing and compliance at Alabama Power, this project is “just like charging a battery.” The goal of this project is to establish a “viable technology to reliably provide power to customers.” To this end, Alabama Power claims that it can invoke its eminent domain authority, as the result promises to benefit the public. That means a lot of landowners stand to lose their land.
What the Proposed Project Could Entail
In early July 2023, hundreds of Alabama residents attended two public meetings to discuss the Alabama Power pumped storage hydro facility project proposal. These meetings drew representatives of the Federal Energy Regulatory Commission (FERC) and Alabama Power to go over the specifics of the proposed project. The FERC representatives discussed the agency’s timeline for approving the project, while Alabama Power provided an aerial map of the areas that will likely be impacted by the project. This map also included drone footage of Chandler Mountain, showcasing farmland, creeks, and residences in the areas that may be condemned by the hydro facility construction project. However, few specifics were provided, such as how many property owners could be impacted and how soon the project could move forward. Although the meetings aimed to inform the community about the project, most members of the public were left with more questions than answers.
How Alabama Property Owners Are Responding to This Proposal
According to the presenters, the Chandler Mountain project is only in its pre-application phase. The exact boundaries have yet to be established, and the timeline remains uncertain. Even if the FERC approves the project, it will likely take several years before Alabama Power can move forward with the project. For now, it’s estimated that construction may begin in 2031. Unfortunately, the lack of clarity has residents and farmers expressing their frustration, as they still have no idea when the condemnation process will begin and compel them to give up their land. Residents who attended the meeting expressed concern with the lack of definitive answers, lamenting that hundreds of people are left wondering whether the project will start in five or ten years, if at all. Additionally, FERC clarified that eminent domain applies to this project, meaning that many property owners will likely lose their land. Without further information or details, the members of the public who attended these meetings walked away feeling confused and anxious about their uncertain future. One resident expressed frustration by saying, “I’m supposed to put my life on hold, my plans on hold, and just wait for Alabama Power to say, ‘hmm, well, maybe in a few years…’. I don’t want to live like that. I hate limbo.” Other attendees voiced similar concerns about what this project could mean for their property value in the future.
What to Do When Facing Condemnation in Alabama
Landowners in the affected areas should pay attention and attend all public meetings to learn if their property is being considered for acquisition for this project. As soon as you learn that your property is in the affected area, you should reach out to a trusted and experienced condemnation attorney to discuss your situation. Your lawyer will help you understand your rights as an Alabama property owner and empower you to negotiate the most favorable outcome possible. Giving up your property is a dramatic event, so turn to a knowledgeable and caring attorney who can help you navigate this complicated process. It is important to understand the total amount of compensation you are entitled to receive before you are served with an offer (condemnation letter) to purchase your land. That is the only way to know how to respond to the offer. Alabama law entitles the landowner to payment for the land being acquired at its highest best use, not its current use. Initial offer letters often make a lowball offer because this legal requirement was not followed by the condemning entity. Alabama law also entitles the landowner to receive an additional award of damages for their remaining land which is not being acquired. This element of the additional award is called “damage to remainder” and is often not included in the initial offer letter sent to the landowner. An experienced condemnation attorney can help you quantify the actual amount of money you are entitled to receive which is often substantially more than what you will be offered in the condemnation letter. It takes time to put your case together so it is important to start engines with an experienced condemnation attorney long before you receive the condemnation letter. Once you receive the condemnation letter you will experience pressure to get you to accept it within 30 days. Those who accept the first offer often leave a lot of money on the table because they are not prepared. You do not have to accept a lowball or otherwise legally defective offer. An experienced condemnation attorney will guide you through the process of holding the condemning entity accountable to its obligations under state and federal law and ensure that you receive the correct amount of compensation you are entitled to receive. In some cases, an experienced condemnation attorney may be able to stop the acquisition altogether.
If you suspect that an upcoming condemnation project may affect your property, get in touch with Sewell Sewell Beard LLC as soon as possible to discuss your options. We’ve been doing this for 39 years. Call our Alabama office at (205) 544-2350 or our Texas office at (972) 777-5390 to speak with a dedicated and caring eminent domain attorney.
