Help us improve in just 2 minutes—share your thoughts in our reader survey.

Fact check/Is Texas Central Partners threatening to seize family farms?

From Ballotpedia
Jump to: navigation, search

Fact check: Is Texas Central Partners threatening to seize family farms?

Fact Check by Ballotpedia-Bold.png
Shinkansen Series 200 (8062065957).jpg

High-speed train of the type Texas Central Partners seeks to construct

May 10, 2017
By Sara Reynolds

Texas Central Railroad and Infrastructure, Inc. (TCRI) and its affiliates are pursuing development of a high-speed bullet train between Dallas/Fort Worth and Houston. Five Texas state senators and ten state representatives have filed more than 20 bills to regulate high-speed rail projects.[1][2] According to state Representative Leighton Schubert (R-District 13), "This group of foreign investors is threatening to seize family farms, physically divide the state of Texas, and have a gravely detrimental impact on the citizens I represent."[2]

Is Schubert correct that project investors threatened to seize family farms?

Yes. Company officials have repeatedly asserted that TCRI has legal authority to exercise the powers of eminent domain.[3][4][5] That would allow the company to survey private property without the owner’s permission, and to forcibly acquire the property for its project upon payment to owners for its “fair market value.”[6] Whether TCRI actually does have the legal authority to exercise such powers is a matter of dispute.

Background

As currently proposed, the new rail line would travel the 240 miles between Dallas/Fort Worth and Houston in 90 minutes at speeds of 205 miles per hour. Texas Central is planning to use train technology developed by the Central Japan Railway Co., which will also provide “long-term and continuous technical support” to the project, according to company officials.[7][8]

Construction of the rail line depends, in part, on the outcome of a federal environmental impact study, which is currently underway. It also hinges on the company’s ability to obtain access to—or acquire outright—the land over which the train would travel, as well as land for stations and maintenance facilities.[8]

Officials of Texas Central say the company is not planning to seek state or local funds for the project, although they have also said they will “explore all forms of capital available," including federal loan programs.[8][9] Capital costs for the project have been estimated to be between $10 billion and $12 billion, although critics have questioned the accuracy of this estimate as too low.[10]

Some $40 million of the development cost has reportedly been pledged by the Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development, a public-private fund specializing in overseas infrastructure investment.[11]

The Texas Central project is not the first attempt to bring high-speed rail to Texas. In the early 1990s, a firm called Texas T.G.V. received approval from the now-abolished Texas High-Speed Rail Authority to build a high speed rail system connecting Dallas, Houston, Austin, and San Antonio. The project folded in 1992.[12]

Land Acquisition

Texas Central officials have stated that the company intends to build the rail line along existing roadways, rail lines and public utility easements to minimize the impact on private landowners.[8] However, company officials have also asserted that Texas Central is authorized under state law to exercise the powers of eminent domain. In the face of public opposition, however, they have also pledged to do so only "as a last resort."[13][14]

According to legal documents, Texas Central sought written permission from landowners to enter public property “to conduct the examination and surveying activities needed to determine the most advantageous route for its train.” After a number of landowners denied permission, Texas Central petitioned the Harris County District Court for a temporary injunction “that can leave no doubt of its right to enter Defendants’ property to conduct examinations and surveys.”[3][4]

The Texas Central petition stated: “TCRI is vested with the right of eminent domain under Sections 131.012 and 112.053 of the Texas Transportation Code.”[3][4]

Section 131.012 grants the power of eminent domain to "a corporation chartered for the purpose of … operating lines of electric railway between municipalities."[15] Section 112.053 authorizes a railroad company to "acquire property by condemnation" if that company and the landowner cannot agree on a purchase price, and if the land is needed for specified purposes, such as railroad incorporation or right-of-way.[16] (To "acquire property by condemnation" refers to the use of eminent domain.)[17]

The Texas Central petition also stated: “Aside from the express statutory right, Texas courts have conclusively established that entities vested with the power of eminent domain, such as TCRI, have the right to enter onto private property in order to conduct examinations and surveys."[4][3]

Harris County District Judge Joseph "Tad" Halbach denied TCRI's motion for summary judgement. Judge Halbach did not provide an explanation for his decision.[18][19][20]

Concurrent with its petition to the District Court, the company requested a “clarifying order” from the state Surface Transportation Board (STB) of its eminent domain authority. As stated in the petition, “Texas Central has already begun negotiating with numerous landowners along its proposed right-of-way. If some of those negotiations reach an impasse, Texas Central plans to use its statutory eminent domain powers to establish the properties' condemnation value."[21] The STB concluded that Texas Central did not require legal clarification from the STB and denied the petition as "moot."[22]

Conclusion

As plans move forward for development of a high-speed rail line in Texas, state legislators have filed more than 20 bills to regulate such projects. State Representative Leighton Schubert (R-District 13) claimed of developer Texas Central, "This group of foreign investors is threatening to seize family farms, physically divide the state of Texas, and have a gravely detrimental impact on the citizens I represent."[2]

Schubert is correct. Texas Central has repeatedly claimed authority to exercise the powers of eminent domain to forcibly obtain the private property needed for its proposed line.[18]

See also

Sources and Notes

  1. ↑ State Senators Perry, Kolkhurst, Schwertner, Birdwell, and Creighton introduced senate bills 973, 974, 975, 977, 978, 979, 980, 981, and 982. State Representatives Cook, Wray, Israel, Martinez, Workman, Ashby, Bell, Rinaldi, Bailes, and Schubert introduced house bills 2104, 2160, 2161, 2162, 2163, 2164, 2165, 2167, 2168, 2169, 2172, 2173, 2179, 2181, and 3440. See Texas Legislature Online, "Bill Search," accessd May 8, 2017
  2. ↑ 2.0 2.1 2.2 WTAW, "Texas Central Partners Reaction To State Legislation Regarding High Speed Passenger Trains," February 24, 2017
  3. ↑ 3.0 3.1 3.2 3.3 Harris County District Court, "Texas Central Railroad & Infrastructure Inc., v. William L. Derrington and Michele Derrington: Verified original petition and application for injunctive relief," April 6, 2016
  4. ↑ 4.0 4.1 4.2 4.3 Legislative Reference Library of Texas, "Texas Central Railroad & Infrastructure, Inc., v. Calvin V. House: Verified original petition and application for injunctive relief," August 8, 2016
  5. ↑ Texans Against High-Speed Rail, "Re: James Fredrick Miles v. Texas Central Railroad & Infrastructure, Inc., Cause No. 16-0137CV, in the 87th District Court, Leon County, Texas." July 28, 2016
  6. ↑ Investopedia, "Eminent Domain," accessed May 1, 2017
  7. ↑ Texas Central, "High-speed rail corridor," accessed April 28, 2017
  8. ↑ 8.0 8.1 8.2 8.3 Texas Central, "Learn the facts: About Texas Central Partners," accessed April 28, 2017
  9. ↑ Texas Central, "Project financing," accessed May 8, 2017
  10. ↑ Reason Foundation, "Texas High Speed Rail: Caution Ahead," February 2017
  11. ↑ Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development, "JOIN Supports the Texas High-Speed Railway Project," November 21, 2015
  12. ↑ Texas State Library and Archives Commission, "Texas High-Speed Rail Authority: An Inventory of High-Speed Rail Authority Records at the Texas State Archives, 1970-1995, bulk 1990-1994," accessed May 10, 2017
  13. ↑ Texas Central, "Eminent domain," accessed May 1, 2017
  14. ↑ Eminent domain occurs when an entity can take private property without the owner's consent upon reasonable compensation. Ballotpedia, "Eminent domain," accessed May 1, 2017
  15. ↑ Texas Constitution and Statutes, "Transportation Code Section 131.012," accessed May 1, 2017
  16. ↑ Texas Constitution and Statutes, "Transportation Code Section 112.053," accessed May 1, 2017
  17. ↑ Legal Dictionary, "Condemnation," accessed May 8, 2017
  18. ↑ 18.0 18.1 Locke Lord Real Estate Practice: Quick study, "Texas Central Rail Project Under Attack," January 25, 2017
  19. ↑ Harris County District Court, "Texas Central Railroad & Infrastructure, Inc., v. Calvin V. House: Order denying plaintiff's motion for summary judgment," December 16, 2016
  20. ↑ Bisnow, "Texas Central Rail Headed To Trial In Land Survey Case, Delays Project," December 21, 106
  21. ↑ Texans Against High-Speed Rail, "Expedited consideration requested before the Surface Transportation Board: Petition for clarification," April 19, 2016
  22. ↑ Surface Transportation Board, "Decision," accessed May 4, 2017
Fact Check- 1000 x 218 px.png

Launched in October 2015 and active through October 2018, Fact Check by Ballotpedia examined claims made by elected officials, political appointees, and political candidates at the federal, state, and local levels. We evaluated claims made by politicians of all backgrounds and affiliations, subjecting them to the same objective and neutral examination process. As of 2025, Ballotpedia staff periodically review these articles to revaluate and reaffirm our conclusions. Please email us with questions, comments, or concerns about these articles. To learn more about fact-checking, click here.

Contact

We welcome comments from our readers. If you have a question, comment, or suggestion for a claim that you think we should look into, send an email to editor@ballotpedia.org. You can also contact us on Facebook and Twitter.


More Fact Checks



Want these fact checks delivered to your inbox? Click here to sign up.

BP logo.png

Verbatim Logo.png

About fact-checking • Contact us • Staff • Ballotpedia



Retrieved from "https://ballotpedia.org/wiki/index.php?title=Fact_check/Is_Texas_Central_Partners_threatening_to_seize_family_farms&oldid=7767172"