N.G. Gen. Stat. 40A–3(b)(2) authorizes municipalities (and counties) to condemn property for “[e]stablishing, extending, enlarging, or improving any of the public enterprises listed in G.S. 160A-311 for cities….” Basically, “public enterprises” are utilities that Chapter 160A, Article 16 permits cities and towns to run. The exact definition is set below in N.C. Gen. Stat. 160A-311.
Chapter 160A, Article 16 does not itself authorize or further address exercises of eminent domain by cities and towns. Instead, it authorizes cities and towns to run public enterprises or grant franchises for them to be run. It also addresses billing and rate setting. If you would like to see the whole Article, just click link, “Article 16. Public Enterprises.”, directly below.
Article 16. Public Enterprises.
§ 160A‑311. Public enterprise defined.
As used in this Article, the term “public enterprise” includes:
(1) Electric power generation, transmission, and distribution systems.
(2) Water supply and distribution systems.
(3) Wastewater collection, treatment, and disposal systems of all types, including septic tank systems or other on‑site collection or disposal facilities or systems.
(4) Gas production, storage, transmission, and distribution systems, where systems shall also include the purchase or lease of natural gas fields and natural gas reserves, the purchase of natural gas supplies, and the surveying, drilling and any other activities related to the exploration for natural gas, whether within the State or without.
(5) Public transportation systems.
(6) Solid waste collection and disposal systems and facilities.
(7) Cable television systems.
(8) Off‑street parking facilities and systems.
(9) Airports.
(10) Stormwater management programs designed to protect water quality by controlling the level of pollutants in, and the quantity and flow of, stormwater and structural and natural stormwater and drainage systems of all types. (1971, c. 698, s. 1; 1975, c. 549, s. 2; c. 821, s. 3; 1977, c. 514, s. 2; 1979, c. 619, s. 2; 1989, c. 643, s. 5; 1991 (Reg. Sess., 1992), c. 944, s. 14; 2000‑70, s. 3.)
Recent case
For a recent case dealing with a municipality’s use of eminent domain for a public enterprise, see the post on Town of Midland v. Morris, ___ N.C. App. ___, 704 S.E.2d 329 (No. COA10-322 Jan. 18, 2011).
