Georgia must reform eminent domain laws to protect local businesses

For this owner, after running his family restaurant at the same location for 20 years, the partial taking of his property means losing his prominent corner location, customer parking, and easy access from the main road.

And here’s the worst part: While the state will compensate him for the land value, nothing will be offered for the devastating impact on his business.

This situation plays out regularly across Georgia, where our outdated eminent domain laws fail to recognize a fundamental reality: for business owners, property value is just part of the equation for what’s at stake when the government exercises its eminent domain power over them.

As an eminent domain attorney who has represented dozens of Georgia entrepreneurs facing condemnation, I’ve witnessed firsthand how our current system creates profound injustice. While Georgia law requires “just compensation” for property taken through eminent domain, our state’s narrow interpretation of this constitutional principle often leaves business owners bearing significant uncompensated business losses.

Just across our southern border, Florida takes a dramatically different approach. For decades, Florida Statutes (see 73.071(3)(b)) has recognized that when the government takes part of a property for a right of way, the impact on a business operating there deserves compensation.

Their law allows business owners to recover damages when a partial taking impairs business operations, provided the business has been established at that location for at least five years.

The contrast between our states is dramatic. A restaurant owner in Jacksonville facing a partial taking for a highway project can claim compensation for lost profits, increased operational costs, and diminished customer access. Meanwhile, 140 miles away in Savannah, a business owner receives payment only for the physical land — nothing for the business impacts that might ultimately force them to close their doors.

This disparity isn’t just unfair – it’s economically destructive. Small businesses are the backbone of Georgia’s economy, employing about 43% of our private workforce in 2024. When eminent domain actions impact these enterprises without adequate compensation, Georgia loses jobs, tax revenue, and community anchors.

The Georgia Department of Transportation’s initial offers to property owners are often significantly below true value, often forcing business owners into difficult legal battles just to receive basic compensation for their land, let alone business damages.

Some argue that expanding compensation to include business damages would make public projects too expensive. This view misunderstands both economics and justice. The true cost of infrastructure development includes its impact on local businesses. When government fails to account for these costs, it merely shifts the burden to business owners rather than eliminating it. This hidden tax on entrepreneurs distorts our understanding of what public projects actually cost society.

Georgia should amend Title 22 of our state code to include provisions for business damages for takings for right-of-way or public infrastructure projects, similar to Florida’s model. The reform should provide clear eligibility criteria, including a five-year establishment requirement, and standards for proving business impacts. This change would bring Georgia in line with evolving standards in eminent domain law.