L E G A L N O T E S
The future 43-acre mixed-use Vil- lage Center development in Jersey Vil- lage also lies within the route. Mayor Bobby Warren said at a February town hall meeting the train is being consid- ered throughout the development of the property o Jones Road and Hwy. 290, but with the Texas Supreme Court decision up in the air and state legislators expressing their intent to le bills to protect rural landowners, Warren said he was uncertain of the train’s future. “If either the court nds that they do not have eminent domain power or if the Legislature takes it away, I suspect that that would probably spell the end of the high-speed rail,” he said. According to the federal govern- ment’s Permitting Dashboard, which tracks infrastructure projects through- out the country, the high-speed rail project had passed its initial permit- ting checks as of September 2020. However, the project has not yet received a construction permit from the Surface Transportation Board. The STB rejected a Texas Central petition for an exemption from construction approval requirements in July 2020. Peter LeCody, president of the Dal- las-based nonpro t Texas Rail Advo- cates, suggested the company was waiting until the resolution of the Texas Supreme Court case before pro- ceeding with acquiring a permit. “If I was an investor with Texas Central, I would want to wait to see what the Supreme Court of Texas has to say,” LeCody said. “Once that’s solidi ed, Texas Central can present what they’ve got to the STB.” Funding issues Several critics of Texas Central have raised issues regarding Texas Central’s ability to raise funds for its project with the company’s own esti- mations uctuating over time. A 2018 drafted memorandum of
11 as part of its rehearing. Miles led the suit in 2016, arguing Texas Central is not by de nition an “interurban electric railroad com- pany” and therefore cannot use the power of eminent domain to survey and condemn property. According to Kellen Zale, a property law professor at the University of Houston, eminent domain can be used by state agencies or private companies that demon- strate a signi cant public use. During oral arguments Jan. 11, Levinger argued because Texas Cen- tral is not operating railroads, it can- not be de ned as a railroad company. Matthew Festa, a professor at the South Texas College of Law, said the plainti s were adhering to “dictionary de nitions” of a railroad company. “What I nd very interesting about this case is that it seems like both sides of the argument are relying on general common sense rather than the legal technicalities because it seems like the plainti s are saying operating a railroad means you have to be operating a railroad,” Festa said. “[The defendants’] common-sense argument is, ‘We need to use eminent domain to become a company that operates a railroad and [we cannot] do it until we have your land.’” Although Texas Central has not publicly provided its future steps for construction nor an updated timeline, the company has signed with part- ners for construction and operation, including Spanish railway operators Renfe in 2021, Community Impact Newspaper previously reported. The Texas Supreme Court is likely to rule on the case before June, according to Festa. Danica Lloyd contributed to this report.
understanding between Texas Cen- tral and the metropolitan planning organization Harris-Galveston Area Council stated Texas Central “will not seek federal or state funding for the deployment of their project.” HGAC transportation o cials con rmed the project is on the orga- nization’s 2023-26 Transportation Improvement Plans, where its current entry lists it receiving $3.3 billion in local funds. Texas Central has made one announcement of its capital fundrais- ing to date in 2015, announcing an ini- tial $75 million in private investment. The announcement was removed from the company’s website but can be accessed through archived versions. In May 2021, Texas Central CEO Carlos Aguilar testi ed before the U.S. House of Representatives Transporta- tion Committee and its subcommit- tee on railroads. Aguilar thanked the committee’s 1998 e ort to pass House Resolution 2, a bill that includes a pro- gram that guarantees federal loans of up to $3.5 billion for projects. Texas Central did not respond when asked about its plans on using state or federal funding. In lings to the Texas Supreme Court, the compa- ny’s attorney Marie Yeates reported the company had spent $125 million since 2019 on acquiring railroad cars and other “procurements.” In a separate ling March 30, six counties in the railroad’s proposed path argued the company was delin- quent on its property taxes in all eight counties it covers. The taxes owed come to a total of $622,975 with Har- ris County making up $216,359 of the money, according to the brief. Eminent domain The Texas Supreme Court heard oral arguments from Yeates and attor- ney Jerey Levinger, representing Leon County landowner Jim Miles, on Jan.
EMINENT DOMAIN IN THE LAW
Eminent domain is the power to enter, survey and take private property as long as signi cant public use is shown and landowners are paid fairly. The Texas Comptroller maintains a database of all private entities granted eminent domain, including Texas Central Railroad.
THE QUESTION IN THE COURTS
Leon County landowner Jim Miles argues Texas Central is not a railroad company and should not have the power of eminent domain. Texas Central in court lings cited its ties to Amtrak, which has agreed to connect its interstate network to the high-speed rail project.
EMINENT DOMAIN RIGHTS
Condemnors must:
Notify the landowner of their intent to seize property and of their power of eminent domain; Provide 14 days after submitting an o er before ling a lawsuit to legally condemn property; and Include appraisal reports, contact information and a copy of the Landowner’s Bill of Rights.
Landowners have the right to:
Hire attorneys and appraisers to assist in valuation of property and legal proceedings; A special hearing of three court- appointed commissioners to determine compensation; and Repurchase their property if the project is canceled or after 10 years if no progress is made. SOURCES: SOUTH TEXAS COLLEGE OF LAW, TEXAS CONSTITUTION, TEXAS OFFICE OF THE ATTORNEY GENERAL, TEXAS SUPREME COURT COMMUNITY IMPACT NEWSPAPER
For more information, visit communityimpact.com .
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