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U.S. Supreme Court Justices
N.J.
Eminent Domain Limit
Associated Press
New York Post
June 14, 2007
The New Jersey State Supreme Court issued a blow yesterday to the
way municipalities use their power of eminent domain to acquire
private land.
In a unanimous ruling, the
court said that for land to be taken against the owner's wishes, it
must be "blighted" and not merely "not fully productive."
The ruling, in a case about
the development of wetlands along the Delaware River across from
Philadelphia, overturned a prior decision allowing the town of
Paulsboro to seize the land.
Voters
Back Limits on Eminent Domain
By Terry Pristin
November 15, 2006
Voters showed last week
that the furor over a 2005 Supreme Court decision in a
Connecticut eminent domain
case has not abated, even in states that have already enacted
legislation to restrict the use of condemnation for economic
development.
Ballot measures to limit
eminent domain powers to public uses were approved by large margins
in eight states. Louisiana passed an eminent domain measure in
September.
In all, 34 states have
adopted laws or passed ballot measures in response to the
Connecticut case, Kelo v. New London, which upheld the right of
local officials to require the forced sale of homes and businesses
for private development intended to increase the tax base of one of
the state’s poorest cities.
"A message has been sent
that state and local governments have to do a better job of
justifying a need for eminent domain," said Larry Morandi, a
land-use specialist at the National Conference of State
Legislatures. "There needs to be more negotiation and more
transparency."
Donald J. Borut, the
executive director of the National League of Cities, acknowledged
that condemnation powers are sometimes abused. But he said that
property-rights groups have played to public fears in a way that
discourages thoughtful discussion about how individual rights should
be balanced against projects that benefit the community as a whole.
He described anti-Kelo sentiment as "a huge emotional tsunami that’s
been rushing through the country."
Of the measures approved by
voters, "about half of them are purely procedural or largely
symbolic," said John D. Echeverria, the executive director of the
Georgetown Environmental Law and Policy Institute. In
Florida, for example, the
State Legislature, by a three-fifths vote of each house, can make an
exception to a ban on transferring condemned property from one
private entity to another.
Strict constitutional
amendments have been added in South Carolina and Georgia — states
where eminent domain is not used for economic development, said
Timothy Sandefur, a staff lawyer for the Pacific Legal Foundation, a
libertarian group that represents property owners in condemnation
cases.
But in Michigan, where
officials are trying to cope with decades of disinvestment in cities
like Detroit and Flint, a new constitutional amendment is likely to
have a "chilling effect on the willingness of investors to undertake
new development," said John E. Mogk, a law professor at Wayne State
University.
Though property-rights
groups cheered last week’s election results, their victory was
tempered by the failure — except in Arizona — of initiatives aimed
at discouraging government officials from making zoning and other
land-use decisions. California, Idaho and Washington State defeated
initiatives to require compensation for owners of property that lost
value as a result of a government action to restrict its use.
That the measure was
rejected by three-fourths of the voters in Idaho, considered a
strong property-rights state, suggests that the movement against
so-called regulatory takings is doomed, said David Barron, a Harvard
Law School professor. "It shows that the people recognize that the
property-rights movement is potentially just divesting them of their
ability to decide their own future as a community," he said. "People
don’t want that to happen."
In Oregon, which passed a
similar measure in 2004, local officials have waived zoning rules to
avoid paying nearly $6 billion to compensate property owners who
claimed economic losses.
But California’s eminent
domain and antizoning initiative lost by only four percentage points
after opponents put together a huge coalition that included antitax
groups concerned about the potential cost of compensating property
owners for land-use changes.
The California measure was
one of eight propositions on ballots throughout the country backed
by groups linked to Howard S. Rich, a New York real estate investor.
In Arizona, where the measure was one of 19 on the ballot, the
proponents outspent the opponents 4 to 1, according to The Arizona
Republic. The situation was reversed in California, where proponents
were outspent 3 to 1, said John F. Shirey, the executive director of
the California Redevelopment Association, a trade group.
California has already
tinkered with its eminent domain powers, but Mr. Shirey said the
state should take further steps — like passing legislation to
prevent the condemnation of single-family homes — to head off future
property-rights initiatives. "We need to do something substantive to
give people better assurances than they have now that something like
what occurred in Connecticut couldn’t happen in California," he
said.
Eminent domain specialists
on both sides of the issue say many of the statutes enacted by state
legislatures have few teeth, either because the language is vague or
the measures impose only minor restrictions on public officials.
"A lot of state legislators
don’t really believe in property rights," Mr. Sandefur said. He
praised Pennsylvania as one of a handful of states that have enacted
a "well-crafted, careful, thought-out measure," but noted that
officials could continue condemning property for redevelopment in
Philadelphia and Pittsburgh until 2012.
Mr. Barron, the Harvard Law
professor, said much of the legislation was "more hype than not,"
often riddled with exceptions inserted during the legislative
process. Indiana — another state praised by Mr. Sandefur — includes
technology parks as a "public use" for which eminent domain powers
can be used.
The initiatives approved
Nov. 7 tend to be shorter and more restrictive than the bills, "but
there will be a lot of interpretative questions about what they
mean," Mr. Barron said.
Amy S. Doppelt, a managing
director at
Fitch Ratings, said the
initiatives were often unclear. "Frequently, the language is quite
broad," she said. "It creates a lot of uncertainty." Communities
that can no longer use condemnation could find themselves at a
competitive disadvantage, which could ultimately lower their credit
rating, she said.
In many communities,
eminent domain powers are used only sparingly. That is not the case
in Detroit, where officials have worked to bring industrial parks
and middle-income housing developments to tracts of land that are
largely, but not entirely, vacant.
"Any project requiring an
assembly of land of 50 acres or more since 1960 has required eminent
domain at some point in order to complete the project," said Mr.
Mogk, the Wayne State professor.
But the use of condemnation
powers to replace one set of property owners with another has often
proved contentious. One such project on the city’s east side, now
known as Jefferson Village, gave rise to years of lawsuits. But it
has proved so successful that the city expects to recoup its $38
million investment in 12 years, said Robbin G. Millard, a project
manager for the Detroit Economic Growth Corporation, the nonprofit
organization that helped create Jefferson Village. Though 160 homes
were taken, most owners were able to reach a settlement with the
city, he said.
In 2004, the Michigan
Supreme Court ruled that eminent domain could no longer be used for
private projects to create jobs and generate tax revenue. That
decision is now enshrined in a constitutional amendment approved
last week by Michigan voters. If condemnation is used to eliminate
blight, each individual property must now be shown to be blighted
"by clear and convincing evidence," Mr. Mogk said. This requirement
is likely to discourage badly needed development, he said.
Mr. Millard said that while
some aspects of the amendment need to be clarified, that does not
appear to pose insurmountable barriers. Officials will be able to
show that the buildings they seek to condemn are blighted. "We think
we can still do eminent domain in this city," he said.
Nine States
Limit Eminent Domain
By Eric Pfeiffer
the Washington Times
November 10, 2006
Voters in nine states this
week passed measures to limit governments' ability to use
eminent-domain property seizures for private development, displaying
extreme distaste for the concept supported by a Supreme Court ruling
last year.
"After the Kelo decision,
there was a huge explosion of anger by voters," said Bill Wilson,
executive director of Americans for Limited Government, a group
opposed to the court's eminent-domain ruling.
"Many of the states then
tried to address the issue themselves. Unfortunately, what came out
from the state legislatures in most cases was very weak and wasn't
very effective."
Voters in Arizona, Florida,
Oregon, Michigan, North Dakota, New Hampshire, South Carolina,
Georgia and Nevada passed measures limiting the scope of the court's
decision. Voters in California, Washington and Idaho rejected
similar measures.
A collection of
environmental groups and city municipalities opposed the measures.
"The voters showed us once again that they're not easily fooled,"
said Maria Alegria, president of the League of California Cities.
"They understood that this
measure would have undermined our efforts to rebuild California's
infrastructure and build the affordable housing our cities need,"
she said.
The landmark Kelo decision
said New London, Conn., had the right to seize private residences
and give them to private developers to further economic development
with a planned hotel, apartments and retail space. Historically,
eminent domain had been used for public projects such as highways.
The Nature Conservancy, an
environmental group opposed to the California measure, spent more
than $1 million to defeat it. In literature opposing the measure,
they said, "It will result in lawsuits and regulatory restrictions
that will drain taxpayer dollars away from critical projects to
protect our environment and build infrastructure."
Although the eminent-domain
proposal failed in California 52 percent to 48 percent, Mr. Wilson
said his group plans to run more state initiatives, including a
possible rematch in California, in 2008.
Voters in San Bernardino
County, Calif., approved their own eminent-domain measure.
"This isn't going to impede
the county from improving streets and roads in any way," county
Supervisor Dennis Hansberger, who supported the measure, told the
Los Angeles Times.
"But it's also not going to
allow people's land to be taken away and given to developers and,
frankly, just making them richer."
On Wednesday, a three
judge-executives in northern Kentucky approved a decision that will
allow eminent domain to be used in the construction of a 7-mile-long
sewage-transport tunnel.
Anger
Drives Property Rights Measures
By William Yardley
The New York Times
October 8, 2006

Katie Breckenridge, who owns a ranch
in Picabo, Idaho, said there was rising anger over property rights.
PICABO, Idaho — Cheeks
chapped, patience thinned, Katie Breckenridge had no trouble making
up her mind about an Idaho ballot measure that would make the
government pay property owners if zoning rules reduce the value of
their land.
“Do I think this is almost swinging the pendulum back too far in the
other direction? I do,” said Ms. Breckenridge, 61, a rancher just in
from tending to cattle and quarter horses. “But do I think we’ve got
to do something to bring the balance back to property rights? I do,
and I’m going to vote for it.”
More than a year after
Suzette Kelo and several of her neighbors in New London, Conn., lost
their battle against eminent domain in the United States Supreme
Court, the backlash against the ruling has made property rights one
of the most closely watched ballot issues nationwide.
Already, 30 state
legislatures have enacted restrictions on eminent domain in response
to the court ruling. Now voters here and in 11 other states will
consider property rights measures in November, making it the
election’s most prevalent ballot issue.
Most of the measures would
limit eminent domain to some degree, while others, in Western
states, would go further, imposing new restrictions on government’s
ability to enforce zoning laws, even if those laws are intended to
reduce sprawl and improve safety.
In the Kelo case, the Supreme Court ruled that government could
transfer private land from one owner to another for the sake of
economic development. But the court made a point of saying states
were free to change their laws.
Even opponents of the ballot measures concede that support for them
appears strong in public opinion polls. They predict years of court
fights if the measures pass.
“This thing is an abomination, the way it’s written, the way it’s
being sold,” Nils Ribi, a City Council member in nearby Sun Valley
who opposes the Idaho measure.
Supporters of the ballot efforts in the West — often called
“Kelo-plus” — say they want to stop so-called regulatory takings,
the idea that government effectively takes private property when
zoning laws limit how it can be used.
Opponents say the regulatory-takings initiatives are essentially a
ruse, that they are trying to exploit anger over the Kelo decision
and eminent domain to roll back zoning regulations that are critical
to controlling growth, protecting the environment and preserving
property values.
The more far-reaching proposals in the West — in Idaho, Arizona,
California and Washington State — are citizens’ initiatives
supported by signature petitions, and they are often supported
financially and logistically by national libertarian groups.
This House Is My Home, a group based in Boise that is sponsoring the
Idaho measure, Proposition 2, is among groups in several states that
have received strong financial help from Fund for Democracy, headed
by Howard S. Rich, the New York real estate investor who is chairman
of the libertarian group Americans for Limited Government. As of
late June, Fund for Democracy had given at least $237,000 to This
House Is My Home, about two-thirds of the money raised by the group.
The next filing deadline is Oct. 10.
“We are essentially a ‘networking station’ that brings together
grass-roots activists, donors and community leaders who share a
common interest,” John Tillman, president of Americans for Limited
Government, said in an e-mail message. “In this case, that common
interest is in restoring property rights for the average citizen.”
Affluent outsiders have been drawn to Idaho in recent decades, lured
by technology jobs, mountain recreation and abundant sunshine.
Boise, the capital, has boomed, as has Sun Valley, where newcomers
from California build second homes not far from ranchers who herd
sheep over the Sawtooth Mountains. About two-thirds of Idaho land is
under federal control, and frustration runs deep in rural areas with
newcomers who, after buying their piece of paradise, try to restrict
land use further in the name of preservation and environmentalism.
“Katie’s family, my family, they did this great job of developing
this country,” said Rob Struthers, 59, Ms. Breckenridge’s partner in
life and work. “Now all these people come in and say, ‘Wow, what a
beautiful place.’ But they don’t trust us to keep it that way.
Instead of rewarding us, they’re penalizing us.”
In an era of sun-splashed subdivisions, land here can be a farmer’s
greatest asset. Mr. Ribi, the councilman, expressed some sympathy
for farmers who have been “down-zoned” under a new county plan.
But Mr. Ribi, a venture capitalist, is trying to galvanize
opposition to the initiative by tapping the same independent streak
that may make some anti-government Idahoans interested in the
measure.
“These are guys on the right wing who always want local control and
all of a sudden they’re saying let’s let these guys from Washington,
D.C., and outside think tanks have control,” Mr. Ribi said. “That’s
why I think we’ve lost perspective.”
If the Supreme Court ruling in the Connecticut case inflamed
passions for property rights, the initiatives in the Western states
are more directly rooted in events in Oregon. In 2004, Oregon voters
passed a measure that allowed property owners to file claims that
zoning restrictions had hurt their property value. That law, known
as Measure 37, requires government to either pay for the lost value
or waive the zoning rules if an owner makes a successful claim.
About 2,400 claims totaling more than $5.6 billion have been filed
since the measure was upheld in court this spring, according to the
Oregon Department of Land and Conservation Development. “Not a
penny” has been paid to property owners, said Sheila A. Martin,
director of the Institute of Portland Metropolitan Studies at
Portland State University. Local governments, lacking money to pay,
have simply waived the zoning rules.
But while Measure 37 grew out of frustration with Oregon’s famously
strict zoning rules, Idaho does not have such comprehensive
restrictions. Even if some rural landowners are frustrated with new
zoning rules, said Stephanie Witt, director of the Center for Public
Policy at Boise State University, “It’s not like people are
rebelling against this really restrictive growth management law.”
The Castle Coalition, a property rights group that has fought for
eminent domain overhauls, does not list a single “eminent domain
abuse” case in Idaho on its Web site. It calls Idaho “one of the
best states in the country for protecting owners from eminent domain
abuse.”
John Eaton, government affairs director for the Idaho Association of
Realtors, said the initiative “blows up the stability that we have
right now.”
“We’re the property rights people but we’re not going to support
this,” he said. “This is crazy.”
Ms. Breckenridge, dusty boots on the mat by the door, was not ready
to predict how the vote might go up in swank Sun Valley or down in
urban Boise. Closer to home, however, she was confident.
“Everybody that’s connected to the land is going to vote for it,”
she said, “because there’s an anger, a rising anger.”
Paul Hosefros for The New York Times
Ohio's
High Court Backs Property Owners
Associated Press
July 27, 2006
The Ohio Supreme Court
ruled unanimously on Wednesday that economic development isn't a
sufficient reason under the state constitution to justify taking
homes, putting a halt to a $125 million project of offices, shops
and restaurants in a Cincinnati suburb that officials said would
create jobs and add tax revenue.
The case was the first
challenge of property rights laws to reach a state high court since
the U.S. Supreme Court last summer allowed municipalities to seize
homes for use by a private developer.
"For the individual
property owner, the appropriation is not simply the seizure of a
house," Justice Maureen O'Connor wrote in a case that pitted the
city of Norwood against two couples trying to save their homes. "It
is the taking of a home the place where ancestors toiled, where
families were raised, where memories were made."
Property rights' advocates,
business groups and backers of city planning were watching the Ohio
case because of the precedent it could set. The ruling comes a year
after the U.S. Supreme Court ruled 5-4 in a case from New London,
Conn., that cities can take land for shopping malls or other private
development.
Norwood wanted to use its
power of eminent domain the authority to buy and take private
property for public projects such as highways to seize properties
holding out against private development in an area considered to be
deteriorating.
In the ruling, O'Connor
said cities may consider economic benefits but that courts deciding
such cases in the future must "apply heightened scrutiny" to assure
private citizens' property rights.
Targeting property because
it is in a deteriorating area also is unconstitutional because the
term is too vague and requires speculation, the court found.
O'Connor wrote that the
court attempted in its decision to balance "two competing interests
of great import in American democracy: the individual's rights in
the possession and security of property, and the sovereign's power
to take private property for the benefit of the community."
Dana Berliner, an attorney
for the Arlington, Va.-based Institute for Justice that represented
property owners in the case, said Wednesday's decision will have
ramifications in high courts and legislatures across the country.
"This case is really part
of a trend throughout the country of states responding to and
rejecting the U.S. Supreme Court's Kelo decision last year," she
said. "There are now 28 states that have taken legislative steps to
protect owners more after that decision, and this case is the next
movement in that trend, and I believe now not only legislatures but
other courts are going to begin rejecting that terrible decision."
After the U.S. Supreme
Court decision, Ohio declared a moratorium that prevents local
governments from seizing unblighted private property for use by
private developers until 2007. A legislative task force is expected
to go ahead with reforms when it meets Aug. 31.
"I anticipate that many of
our recommendations, combined with today's Supreme Court decision,
will ensure that Ohio sends a strong message to its citizens that
their private property rights are secure," said state Sen. Tim
Grendell, chairman of the state's Eminent Domain Task Force.
Norwood Mayor Tom Williams
defended the plan and said he still believes the project was lawful.
"I believed that we did
that right thing then, I believe we did the right thing now," he
said.
Tim Burke, a lawyer hired
by Norwood, called the decision a significant disappointment and
said it will halt progress on the planned development. He said the
city likely will not appeal.
"Norwood, every step of the
way, followed the law as it existed," Burke said.
Development interests in
other areas particularly Cleveland's Flats development along Lake
Erie signaled their intentions to proceed with plans that involve
similar seizures.
"The Flats case is
fundamentally different from the Norwood case and as such, we do not
believe today's ruling will impact the outcome of our legal
actions," the Port Authority and The Wolstein Group said in a joint
statement.
Berliner called Norwood
emblematic of development trends across the country.
"This was a perfect example
of what is going on all over the country: a perfectly nice, working
class neighborhood with no tax delinquencies, no falling down
buildings, a nice neighborhood of homes and businesses, that a
developer thought could be much more profitable as an upscale
shopping and high-end housing center," she said.
Associated Press Writer
Terry Kinney in Cincinnati contributed to this report.
Groups
Seek End To Eminent Domain Abuse
North Country Gazette
December 5, 2005
WASHINGTON, DC--An historic
and diverse coalition of traditional civil rights groups and other
advocacy organizations have joined together in Ohio and Pennsylvania
to call on state judges and legislators to end eminent domain abuse.
In Ohio, 12 organizations-including the Ohio Conference of the
NAACP, the Ohio Farm Bureau, the Ohio Association of Realtors, and
the National Federation of Independent Businesses-recently filed 10
separate amicus briefs with the Ohio Supreme Court calling for
reasonable limits on governments' power of eminent domain.
The Reason Foundation, a nationally renowned think tank, and the
Becket Fund for Religious Liberties, which litigates on religious
liberty issues nationwide, also joined these organizations filing
"friend of the court" briefs. (Copies of the briefs are available at
http://www.ij.org/private_property/norwood/amicus_briefs.html.)
Each organization described their unique concern with the abuses of
eminent domain that have become all too common across Ohio and the
nation. The briefs were filed in support of property rights in
Norwood v. Gamble, a case litigated by the Institute for Justice
that will determine whether Ohio cities can take and bulldoze
non-blighted homes and small businesses for private development. All
of the briefs asked Ohio's High Court to protect the homes of Joy
and Carl Gamble, Joe Horney, and Carol Gooch by upholding state
constitutional limits imposed on government's use of eminent domain.
This is especially important after the U.S. Supreme Court's decision
in Kelo v. City of New London in which the court removed
federal constitutional protection for homeowners.
Likewise in Pennsylvania, a similarly broad coalition-including the
League of United Latin American Citizens (LULAC), the Mexican
American Legal Defense and Education Fund (MALDEF), the Pennsylvania
State Conference of the NAACP, the Farm Bureau, National Federation
of Independent Business and the Institute for Justice-is calling on
state lawmakers to pass legislation protecting homeowners, small
businesses, churches and other private property from land-hungry
developers and tax-hungry state and local governments.
The organizations have banded together to call for passage of SB
881, the Property Rights Protection Act, which would prohibit the
use of eminent domain for commercial development and tighten the
definition of blight. (Under current law, an area can be razed if
only 10 or 15% of its buildings have supposed "blight," and the
standards for determining blight are so lax they could apply to
nearly any area in the state. Instead, the reform bill would require
a majority of the property in an area be truly blighted to use
eminent domain.) Cities would retain considerable leeway in blighted
areas under the new law, as well as the long-standing ability to
condemn abandoned, dangerous or severely tax delinquent properties.
The organizations are also urging Pennsylvania lawmakers to reject
efforts by the Pennsylvania Association of Housing and Redevelopment
Agencies to weaken this reform by amending SB 881 to allow the use
of eminent domain against so-called "economic blight"-an exception
that would essentially gut state constitutional protections for
private property owners in the state, most especially for the poor.
Eminent
Domain Project at Standstill Despite Ruling
By William Yardley
The New York Times
November 21, 2005
NEW LONDON, Conn. - They
have still not moved out. Not Susette Kelo. Not the Derys. Not Byron
Athenian or Bill Von Winkle or the others.
Five months after the
United States Supreme Court set off a national debate by ruling that
the City of New London could seize their property through eminent
domain to make way for new private development, no one has been
forced to leave.
No bulldozers have arrived
to level the last houses still standing, and none are expected soon.
Even though the holdouts
lost their case, and the development that would displace them
finally seems free to go forward, construction has not begun, and
some elements of the project have been effectively paralyzed since
the court ruling prompted a political outcry.
"I felt relaxed enough to
get my checkbook out and put the new roof on," said Mr. Von Winkle,
who owns three buildings with a total of 12 occupied apartments in
the Fort Trumbull neighborhood by the Thames River, where the city
was sued for claiming 15 properties through eminent domain.
Ms. Kelo, also among the
handful of holdouts, said, "We still have hope that we'll get to
keep our homes."
It is not that Ms. Kelo and
the others have chained themselves to their property in a final
dramatic defiance of the law.
Instead, wary of public
disapproval and challenges from groups like the Institute for
Justice, the law firm that represented the holdouts in court, the
state and the city have halted plans to evict the remaining
residents. Investors are concerned about building on land that some
people consider a symbol of property rights. At the same time,
contract disputes and financial uncertainty have delayed
construction even in areas that have been cleared.
With so many complications,
some people are unsure whether the city's initial vision for the
property - a mix of housing, hotel and office space intended to
transform part of its riverfront and bolster a declining tax base -
is even realistic anymore.
"Winning took so long,"
said Mayor Jane L. Glover, "that the plan may not be as viable in
2005 or 2006 or 2007."
New London, founded in the
17th century as a port city in southeastern
Connecticut, has a high
unemployment rate and fewer residents today than it had in 1920. Its
court battle over eminent domain started five years ago, when it
claimed the property of six Fort Trumbull homeowners, a two-block
area within 90 acres set for development. Homeowners challenged the
move, and the matter eventually made its way to the Supreme Court,
which ruled 5 to 4 in June that the city had the right to take the
land to improve its financial health, even though doing so would
eventually transfer the property to a private developer.
But in a dissent that
echoed what property rights activists were saying, Justice
Sandra Day O'Connor wrote:
"The specter of condemnation hangs over all property. Nothing is to
prevent the state from replacing any Motel 6 with a Ritz-Carlton,
any home with a shopping mall or any farm with a factory."
Congress and state
legislatures across the country have reacted by revisiting eminent
domain laws. Over the summer, the United States House of
Representatives passed a resolution condemning the court decision.
This month, the House voted overwhelmingly to deny federal economic
development money for two years to local governments that seize
private property for private development.
In September, Gov. M. Jodi
Rell of Connecticut demanded that the New London Development
Corporation, the city's development agency, rescind eviction orders
delivered to tenants in rental units that belong to homeowners who
have refused to give up their property.
The Connecticut General
Assembly has asked cities to delay using eminent domain while it
considers revising state law. Some city and state officials cite the
difficulty in finding a balance between using eminent domain to
rebuild blighted areas and preventing the potential for abuse that
concerned Justice O'Connor.
"We're not writing a law to
solve the New London problem," said State Representative Michael P.
Lawlor, a Democrat who is co-chairman of the Judiciary Committee.
"We're writing a law to fix the Sandra Day O'Connor problem."
Amid all the debate, the
Fort Trumbull project has stalled.
"This lawsuit put a chill
on the development of the whole 90 acres, no doubt in my mind," said
Thomas J. Londregan, the city's director of law. "Any developer knew
that whatever they did would most likely be appealed to the courts."
Contentiousness led to
stalemate and stumbles. At one point the city severed ties with the
New London Development Corporation, only to reverse itself days
later under pressure from the state. A key corporation executive was
forced out.
Pressure to go forward is
considerable, even if momentum is not. The state has already
invested $73 million on environmental cleanup and sewer and road
improvements. Elegant street lamps, intended to illuminate a
gentrified new riverfront, instead shine over empty lots where
buildings have been leveled but not replaced.
In recent weeks the city,
the state and the developer, Boston-based Corcoran Jennison, have
begun discussing ways to jump-start construction in empty areas.
Details are not firm.
"We are currently working
our way toward what I believe will be something fruitful," said
Michael Joplin, president of the New London Development Corporation.
One point of contention:
Corcoran Jennison is resisting pressure from the city to build a
waterfront hotel first, as was initially planned, out of concern
that there is no market for one.
Corcoran Jennison says that
Pfizer, which built a major research center next to the site in the
late 1990's and pushed for the Fort Trumbull development, backed
away from a commitment to help pay for the hotel as the lawsuit
dragged on. And the prospects for a Coast Guard museum, which under
one plan could be built on the holdouts' land, are also unclear.
Still, Ron Angelo, deputy
commissioner of the state's Department of Economic and Community
Development, insists that the project, at least in some form, will
get under way soon. "I think for the first time in a number of
months, if not years, we have come close to beginning with the
project," he said.
If any construction begins
soon, it will happen away from the area where the holdouts remain,
said Marty Jones, president of Corcoran Jennison, which has been
under contract on the project since 1999.
"We need to have some
positive things happening so that every lender and investor I go to
doesn't say, 'I want to be 100 miles away from here,' " Ms. Jones
said. "Eminent domain in Fort Trumbull has been on the front page of
every newspaper in the country, and it has not put New London in the
most positive light."
Despite losing in court,
the holdouts have gained political leverage, largely through the
public relations effort led by the Institute for Justice, Mr. Joplin
said.
Scott G. Bullock, a lawyer
for the Institute for Justice who argued for the resistant property
owners before the Supreme Court, said, "We might have lost the
battle, but the overall war is really going in our favor."
"What developer is going to
want to build on land that was received through probably the most
universally despised Supreme Court decision in decades?" Mr. Bullock
asked.
Governor Rell has hired a
mediator to meet with the holdouts. The goal is to see what, if any,
financial terms, beyond the outdated appraised value they have been
offered, might persuade them to leave.
"I'm on the road to search
for the proverbial win-win," said the mediator, Robert R. Albright.
"It's an extraordinarily complex situation. It's not a two-party
situation by any means. I'm not sure I can honestly give you an
option set or even fully describe the obstacles."
The property owners have
their critics in New London. They have been accused of delaying the
city's resurgence, and even of taking payoffs from property rights
advocates in order to keep up the fight. But at least a few, after
seeing most of their neighborhood leveled, say they will consider
coming to terms with Mr. Albright if the money is right. Others,
however, have not ruled out new lawsuits.
Meanwhile, some renters are
moving in, not out. Michelle Cerrato arrived from Pennsylvania in
September and found her two-bedroom apartment on Walbach Street
through a newspaper ad. Unaware of the fuss over eminent domain, Ms.
Cerrato, a 30-year-old casino hostess with three children, soon
figured out why neighbors have signs in their windows that say, "Not
for Sale."
Confused and concerned that
she would be evicted, she called her landlord, Sue Dery, one of the
holdouts.
"She said it's not going to
happen," Ms. Cerrato said. "It's been going on for eight years."
Court
Won't Reconsider Property Case
Gina Holland
Associated Press
August 22, 2005
WASHINGTON -
The Supreme Court, given a
chance to revisit a heavily criticized ruling, refused Monday to
reconsider its decision giving local governments more power to seize
people's homes for economic development.
So contentious was the
court's 5-4 ruling in the so-called eminent domain case earlier this
year that some critics launched a campaign to seize Justice David
Souter's farmhouse in New Hampshire to build a luxury hotel. Others
singled out Justice Stephen Breyer's vacation home in the same state
for use as a park.
Both Souter and Breyer
voted on the prevailing side. Justice Sandra Day O'Connor, who did
not, sharply criticized her colleagues at the time. She said in a
minority opinion that the ruling favored the well-heeled over the
less fortunate.
In addition, legislators in
some 25 states are considering changing their eminent domain laws to
soften the impact.
Justices did not comment
Monday in refusing to reconsider the case, which had been expected
because requests for a reconsideration of rulings are rarely
granted.
"I'm not surprised," said
homeowner Matthew Dery, whose family has lived in the affected
Connecticut neighborhood for more than 100 years. "It's even rarer
than a blue moon that they do reconsider."
Dery is hoping that state
lawmakers will retroactively change the eminent domain law so that
he does not have to move.
O'Connor, whose decision to
retire created the opening that appeals court judge and former
Washington lawyer John Roberts now seeks to fill, wrote in her angry
dissent in June that "the specter of condemnation hangs over all
property."
Justice John Paul Stevens
wrote the majority opinion and defended it last week in a speech in
Las Vegas. The ruling was legally correct, he said, because the high
court has "always allowed local policy-makers wide latitude in
determining how best to achieve legitimate public goals."
But Stevens said he had
concerns about the results.
"My own view is that the
allocation of economic resources that result from the free play of
market forces is more likely to produce acceptable results in the
long run than the best-intentioned plans of public officials,"
Stevens told the Clark County Bar Association.
Legal experts had said they
did not expect the court's ruling, involving an economic development
project in New London, Conn., to prompt a rush to claim homes.
Stevens said that "the
public outcry that greeted (the ruling) is some evidence that the
political process is up to the task of addressing such policy
concerns."
The case is Kelo v. City of
New London, 04-108.
ON THE NET
Supreme Court:
http://www.supremecourtus.gov/
Libertarians Urge Seizure of Justice Breyer's
Property to Protest High Court Ruling
By The Associated Press
August 1, 2005
Critics of a U.S. Supreme
Court's ruling that governments may seize private property for
economic development want to use the process to seize a justice's
vacation home and turn it into a park.
The New Hampshire
Libertarian Party is collecting signatures for a petition to ask the
town to use Justice Stephen G. Breyer's 167-acre Plainfield property
to create a "Constitution Park," with stone monuments to commemorate
the U.S and New Hampshire constitutions, said party Vice Chairman
Mike Lorrey.
"The point is: What goes
around comes around," Lorrey said. "This is a way of saying, 'You're
going to be held to your own standard.'"
Lorrey said the Libertarian
petition would place the land-taking request before a town meeting
next spring. But Plainfield Town Administrator Steve Halleran said
Friday that he didn't expect voters to support the effort.
The Libertarian Party
objects to the high court's June ruling that let a Connecticut city
take land by eminent domain and turn it over to a private developer.
Breyer supported the
decision, as did Justice David Souter. Earlier this month, a member
of the libertarian Free State Project suggested that the town of
Weare, N.H., about 45 miles southeast of Plainfield, make Souter's
home into a "Lost Liberty Hotel."
Logan Darrow Clements, of
Los Angeles, said he's received support from thousands of people
across the country for the plan, and the town clerk in Weare said
she had to return checks from people wishing to donate to a hotel
construction fund.
Breyer did not immediately
return a phone message to the Court seeking comment. Souter has
declined to comment on the matter.
The Supreme Court's 5-4
ruling lets officials in New London, Conn., take older homes along
the city's waterfront for a private developer who plans to build
offices, a hotel and a convention center.
Ruling
Sets Off Tug of War Over Private Property
By Timothy Egan
The New York Times
July 30, 2005

Peter DaSilva for The New York Times
Officials in Santa Cruz, Calif., have begun to use eminent domain
laws to force the sale of property that holds a family-owned
restaurant.
SANTA CRUZ, Calif. - More
than a month after the Supreme Court ruled that governments could
take one person's property and give it to another in the name of
public interest, the decision has set off a storm of legislative
action and protest, as states have moved to protect homes and
businesses from the expanded reach of eminent domain.
In
California and Texas, legislators have proposed constitutional
amendments, while at least a dozen other states and some cities are
floating similar changes designed to rein in the power to take
property.
But at the same time, the
ruling has emboldened some cities to take property for development
plans on private land. Here in Santa Cruz, for example, city
officials started legal action this month to seize a parcel of
family-owned land that holds a restaurant with a high Zagat rating,
two other businesses and a Sandy Huffaker for
New York Times
conspicuous hole in the ground and force a sale to a
Ahmed Mesdaq's property in San
developer who plans to
build 54 condominiums.
Diego will give way to a hotel project.
Far from clarifying
government's ability to take private property, the 5-to-4 Supreme
Court decision has set up a summer of scrutiny over a power that has
been regularly used but little-discussed for decades.
"The intense reaction -
this backlash - has caught a lot of people off guard," said Larry
Morandi, who tracks land use developments for the National
Conference of State Legislatures.
In Connecticut, where the
court case originated, Gov. M. Jodi Rell, a Republican, has likened
the reaction to the Boston Tea Party and called for a moratorium on
land takings until the legislature can revisit the law.
California's proposal would
prohibit the use of eminent domain, a process in which governments
force a sale of someone's property, in cases like Santa Cruz's.
"This decision opens a new
era when the rich and powerful can use government to seize the
property of ordinary citizens for private gain," said State Senator
Tom McClintock, a Republican who proposed the amendment.
In Congress, liberals like
Representative Maxine Waters, Democrat of California, have joined
conservatives like Representative Tom DeLay of Texas, the House
majority leader, in criticizing the ruling. The House voted 365 to
33 to pass a resolution condemning the decision, and proposals in
both the House and the Senate would prevent the federal government
from using eminent domain for private development, as well as local
governments using federal money on such projects.
The Fifth Amendment allows
the taking of land for "public use" with "just compensation," and
governments have long used the practice to build roads and schools
and to allow utilities to run service lines. In its June 23 ruling
regarding efforts by the City of New London, Conn., to condemn homes
in an old part of town to make way for a private development, the
Supreme Court said public use could mean something that brings a
public benefit - like jobs or increased tax revenue.
But at the same time, the
court invited states to tailor their own laws. While only one state,
Delaware, has changed its law, most states are likely to have a
proposed change by next year, Mr. Morandi said.
"The initial outcry after
the court case was: Nobody's house is safe, we've got to do
something now," he said. "But as more states take a look at this
they will respond in some form, but they won't want to take away a
valuable tool."
In Texas, Gov. Rick Perry
added the issue to a special legislative session initially called
for education. Both houses passed bills limiting eminent domain with
some exceptions, including one allowing the City of Arlington to
condemn homes for a new Dallas Cowboys football stadium, a project
already under way. The two versions of the bills were not reconciled
before the session ended.
But some cities view the
ruling as blessing their redevelopment plans; Arlington filed
condemnation lawsuits against some holdout property owners this
month. Officials in Sunset Hills, Mo., outside St. Louis, voted to
condemn a cluster of homes to make way for a shopping center,
despite the pleas of some elderly homeowners who said they had
nowhere else to go and no desire to move. Officials in Oakland,
Calif., evicted a tire shop and an auto repair shop to make room for
a development that is part of Mayor Jerry Brown's plan to bring
10,000 residents to the central part of the city.
In Santa Cruz, the plans
pit one family against the city's long effort to redevelop a
downtown hit by the 1989 earthquake. With the Supreme Court's
ruling, city officials here said they felt free to seize a
20,000-square-foot lot they considered a blight.
To the city, the lot owned
by the Lau family is a drag on other businesses, because the hole,
left by the earthquake, has never been redeveloped. To the family,
the seizure is legalized theft and shows how the court decision can
be used to take anyone's property under the broad rubric of public
use.
"My family has owned this
land for 36 years," said Eric Lau, who laid bricks to shore up the
building that would become his thriving restaurant, which is
adjacent to the hole. "And now they're trying to erase us from this
place, to take it and say we don't have any choice."
The ruling has struck a
chord; in a Wall Street Journal/NBC News poll this month, the legal
issue that Americans said most concerned them was "private property
rights," ahead of parental notification for minors' abortions or the
right-to-die debate.
Property rights groups have
united with more liberal organizations in arguing that taking
property for economic use usually favors the rich over the poor.
"Typically, you have these
corporate lobbyists who go down to a city council and say, 'Take
this person's property and we'll build you a shopping center,' "
said Timothy Sandefur, a lawyer with the Pacific Legal Foundation, a
libertarian-leaning legal group that helped draft the proposed
California amendment.
Opponents of the Supreme
Court decision also point to San Diego, where Ahmed Mesdaq lost his
prosperous cigar and coffee shop in the trendy Gaslamp Quarter to a
hotel project, which the city said would bring more tax revenue.
Many city officials say
eminent domain is crucial for creating jobs, expanding tax bases and
keeping their communities economically viable.
"Redevelopment is sometimes
the only tool a community has to jump-start revitalization of
downtrodden, blighted communities," officials at the California
League of Cities wrote in a response to the proposed amendment.
Mayor Brown of Oakland said
it was inevitable that some small businesses would have to be
relocated, and he urged caution in any efforts to pass laws. "I
understand the horror of urban renewal," he said. "But you don't
want to take away a tool that a city has to reform itself. If you
did, Oakland would suffer greatly."
During the 1970's, the Lau
property, with its bookstore and cafe in the pre-Starbucks age, was
a central hangout in funky Santa Cruz, neighbors say. Eric Lau
watched his father's bookstore come to life and then die in the Loma
Prieta earthquake, which destroyed the building.
The family's restaurant,
Oswald, would not be considered blight by many standards. There is
ivy on the outside walls, art on the inside, and the tables are
covered with fresh-pressed linen. The restaurant is packed on most
nights, neighbors say. And it has consistently been voted one of the
best places to dine in Santa Cruz, a beach town of 54,000 people
south of San Jose, known for its university and the carpet of
redwoods on its fog-shrouded hills.
Ron Lau, who is 69, has
long tried to build something on the undeveloped part of the
property - the hole in the ground. The problem, city officials say,
is that Mr. Lau has proposed hard-to-
build, idealistic plans,
involving alternative energy sources and unusual designs, that have
never gotten off the ground, angering some nearby property owners.
"We do not use eminent
domain frivolously," said Ceil Cirillo, executive director of the
Santa Cruz Redevelopment Agency. "I feel we have been very fair and
very patient."
Taking the Lau property
would serve the public good, Ms. Cirillo said, "because there is a
hole in the center of our retail district."
Eric Lau and his sister
Lani say the city is taking their property simply because their
father took so much time to try to build something unusual.
"My dad was hellbent on
getting his dream project built, nothing less, and that has been his
biggest weakness," Eric Lau said.
The city agency has offered
the family $1.6 million for the property, and the Laus plan to fight
it. It is unclear whether the amendment would protect the Laus, but
they hope to hang on to the property long enough to find out. A vote
on the amendment would come no sooner than next June, legislative
leaders say.
Meanwhile, the Laus say
they are willing to modify their plans and build something close to
what the city has agreed to with a developer.
But city officials say that
they have run out of patience and that it is too late for the Laus
to come up with new designs. They have an exclusive agreement, Ms.
Cirillo said, with a developer, Bolton Hill, to take over the
property and build on it.
"The project is moving
forward," Ms. Cirillo said. "The Supreme Court gave us reassurance
of our ability to proceed."
As for Laus and their
restaurant, Ms. Cirillo said there might still be a place for them
in the new development - after they sell out.
"Ideally, we would like to
see them relocated in some way to the project," she said.
Land Fight Hits Home for Justice
Associated Press
July 30, 2005l
PLAINFIELD, N.H. ——
Libertarians upset about a Supreme Court ruling on taking land have
proposed seizing a justice's vacation home and turning it into a
park.
Signatures are being
collected for a petition to ask the town to use Justice Stephen
Breyer's 167-acre Plainfield, N.H., property to create a
"Constitution Park" with stone monuments to commemorate the U.S. and
New Hampshire constitutions, said party Vice Chairman Mike Lorrey.
"The point is: What goes
around comes around," Lorrey told the Valley News. "This is a way of
saying, 'You're going to be held to your own standard.' "
Lorrey said the Libertarian
petition would place the land-taking request before a town meeting
next spring. But Plainfield Town Administrator Steve Halleran said
yesterday that he didn't expect voters to support the effort.
The Libertarian Party
objects to the high court's June ruling that let New London, Conn.,
take land by eminent domain and turn it over to a private developer.
Breyer supported the
decision, as did Justice David Souter. Earlier this month, a member
of the libertarian Free State Project suggested that the town of
Weare, about 45 miles southeast of Plainfield, make Souter's home
into a "Lost Liberty Hotel."
Breyer did not immediately
return a phone message seeking comment. Souter has declined to
comment on the matter.
The Supreme Court's 5-4
court ruling said municipalities have broad power to bulldoze
people's homes and put up shopping malls or other private
development to generate tax revenue.
States
Mobilize Against Property Ruling
By Maura Kelly Lannan
Associated Press AOL
July 19, 2005
CHICAGO - Alarmed by the
prospect of local governments seizing homes and turning the property
over to developers, lawmakers in at least half the states are
rushing to blunt last month's U.S. Supreme Court ruling expanding
the power of eminent domain
In Texas and California,
legislators have proposed constitutional amendments to bar
government from taking private property for economic development.
Politicians in Alabama, South Dakota and Virginia likewise hope to
curtail government's ability to condemn land.
Even in states like
Illinois - one of at least eight that already forbid eminent domain
for economic development unless the purpose is to eliminate blight -
lawmakers are proposing to make it even tougher to use the
procedure.
"People I've never heard
from before came out of the woodwork and were just so agitated,"
said Illinois state Sen. Susan Garrett, a Democrat. "People feel
that it's a threat to their personal property, and that has hit a
chord."
The Institute for Justice,
which represented homeowners in the Connecticut case that was
decided by the Supreme Court, said at least 25 states are
considering changes to eminent domain laws.
The Constitution says
governments cannot take private property for public use without
"just compensation." Governments have traditionally used their
eminent domain authority to build roads, reservoirs and other public
projects. But for decades, the court has been expanding the
definition of public use, allowing cities to employ eminent domain
to eliminate blight.
In June, the Supreme Court
ruled 5-4 that New London, Conn., had the authority to take homes
for a private development project. But in its ruling, the court
noted that states are free to ban that practice - an invitation
lawmakers are accepting in response to a flood of e-mails, phone
calls and letters from anxious constituents.
"The Supreme Court's
decision told homeowners and business owners everywhere that there's
now a big `Up for Grabs' sign on their front lawn," said Dana
Berliner, an attorney with the Institute for Justice. "Before this,
people just didn't realize that they could lose their home or their
family's business because some other person would pay more taxes on
the same land. People are unbelievably upset."
Don Borut, executive
director of the National League of Cities, which backed New London
in its appeal to the high court, said government's eminent domain
power is important for revitalizing neighborhoods. He said any
changes to state law should be done after careful reflection.
"There's a rush to respond
to the emotional impact. Our view is, step back, let's look at the
issue in the broadest sense and if there are changes that are
reflected upon, that's appropriate," he said.
In Alabama, Republican Gov.
Bob Riley is drawing up a bill that would prohibit city and county
governments from using eminent domain to take property for retail,
office or residential development. It would still allow property to
be taken for industrial development, such as new factories, and for
roads and schools.
In Connecticut, politicians
want to slap a moratorium on the use of eminent domain by
municipalities until the Legislature can act.
One critic of the ruling
has suggested local officials take over Supreme Court Justice David
Souter's New Hampshire farmhouse and turn it into a hotel. Souter
voted with the majority in the Connecticut case.
Arkansas, Florida,
Illinois, Kentucky, Maine, Montana, South Carolina and Washington
already forbid the taking of private property for economic
development except to eliminate blight. Other states either
expressly allow private property to be taken for private economic
purposes or have not spoken clearly on the question.
Illinois state Sen. Steve
Rauschenberger, a Republican who is considering a run for governor,
said the state's blight laws need to be more restrictive.
"The statutory definition
of blight in Illinois is broader than the Mississippi River at its
mouth," he said. "They have taken everything from underdeveloped
lakefront property to open green-
grass farmfields as being
defined as blighted."
Action also is taking place
at the federal level, where a proposal would ban the use of federal
funds for any project moving forward because of the Supreme Court
decision. And the Institute for Justice said it will ask the Supreme
Court to rehear the New London case, but acknowledged that the
prospects of that happening are dim.
"One of the things, I
think, that is elemental to American freedom is the right to have
and hold private property and not to interfere with that right,"
Rauschenberger said. "For Americans, it's like the boot on the door.
You can't kick in the door and come in my house unless I invite
you."
Liberal
Land Grab
Editorial
New York Post
June 25, 2005
The
stereotype is that conservatives are heartless and in the tank to
big business while liberals are the ones who stand up for the little
guy.
So how come the liberal
Supreme Court justices just sold a bunch of New London, Conn.,
homeowners up the Thames River?
In Kelo et al. v. City of
New London et al., the court ruled 5-4 that local governments may
use the power of eminent domain to confiscate private homes and turn
the land over to private developers for private projects like sports
stadiums and shopping malls.
The New London project will
tear down a decent residential neighborhood for office space, a
conference hotel and up-market residences. The development would
accompany a nearby $350 million research center built by Pfizer.
In essence, the court
expanded the requirement of "public use" the longtime limit on
eminent domain to anything that supposedly enhances economic
activity. No more need for a truly public need such as
highways, parks and bridges.
The liberal bloc Justices
John Paul Stevens, Ruth Bader Ginsburg, David Souter and Stephen
Breyer joined with moderate Anthony Kennedy to state that economic
development is a legitimate "public purpose" that can override
private property rights.
Writing for the majority,
Stevens said: "Promoting economic development is a traditional and
long accepted function of government . . . There is no basis for
exempting economic development from our traditionally broad
understanding of public purpose."
The court's more
conservative members Chief Justice William Rehnquist and Justices
Sandra Day O'Connor, Clarence Thomas and Antonin Scalia all
dissented.
"The specter of
condemnation hangs over all property. Nothing is to prevent the
state from replacing any Motel 6 with a Ritz-Carlton, any home with
a shopping mall or any farm with a factory," wrote O'Connor.
Added Thomas: "Losses will
fall disproportionately on poor communities. Those communities are
not only systematically less likely to put their lands to the
highest and best social use, but are also the least politically
powerful."
It's ironic that the
conservative justices are the ones who sound like the New York
liberal voices that rise to block almost any sort of economic
development.
Ironic, but not too
surprising.
Kelo is the logical end
product of a political philosophy that seeks generally to expand
government power.
It did so this time, in
spades.
Both Congress and state
governments need immediately to consider what specific limits can be
drawn on the concept of "public purpose" and how best to mitigate
the effects of this truly disturbing decision.
To read case go to:
http://www.ij.org/pdf_folder/private_property/kelo/kelo-USSC-opinion-6-05.pdf
For Homeowners, Frustration and Anger at Court Ruling
By Avi Salzman and Laura
Mansnerus
The New York Times
June 24, 2005
NEW LONDON, Conn., June 23
- The owners of the few brick and frame houses remaining in the Fort
Trumbull neighborhood here who lost their fight in the Supreme Court
to stop the city from seizing their homes said Thursday that they
were devastated and saw few other legal options.
"I am sick," said Susette
Kelo, sitting on the porch of the pink Victorian cottage that she
bought on her nurse's salary eight years ago. "Do they have any idea
what they've done?"
What the justices did in
their 5-to-4 decision, Kelo v. New London, was allow the city
redevelopment authority to condemn the old waterfront neighborhood
so a private developer can put office and apartment buildings in
their place.
But similar battles are
being fought across the nation in state courts, the usual forum for
eminent domain cases. The Washington lawyers who brought the
challenge to the City of New London's redevelopment project say they
see opportunity in state legislatures and state courts to address
the question of whether local governments can use eminent domain, or
condemnation, to replace homes and businesses with bigger, better
sources of tax revenue.
Though the Connecticut
Supreme Court ruled against Ms. Kelo and her neighbors, courts in
several other states have ruled that their constitutions protect
owners in cases like Ms. Kelo's. Such rulings by a state's highest
court are not subject to review by any federal court.
The rights of owners have
become populist causes in many places as local governments have
grown bolder in efforts to fatten their tax bases.
"I think there's going to
be an unbelievable popular backlash to this decision," said Dana
Berliner, a lawyer at the Institute for Justice, a libertarian group
that represents the New London homeowners and has taken dozens of
other eminent domain disputes. "The court has just told homeowners
that the government can take their house for someone who pays more
in taxes."
The Institute for Justice
says there are thousands of similar disputes around the nation,
although many involve a local government's designation of an area as
"blighted" - not an issue in New London - under laws dating to the
1950's and 60's when slums were cleared wholesale.
Nine state supreme courts,
including those in Illinois, Michigan and Washington, have forbidden
the use of eminent domain simply to bring in more revenue and jobs.
New York's highest court, the Court of Appeals, has allowed such
condemnations. The New Jersey courts have not ruled on the issue,
although a trial court in 1999 barred the state Casino Reinvestment
Development Authority's plan to take a house, a small Italian
restaurant and a pawnshop to allow the Trump Plaza casino to expand.
Michigan was among the
first states to encourage the use of eminent domain to promote
economic development. In a 1981 decision, the Michigan Supreme Court
allowed the City of Detroit to condemn 1,400 houses and 140 business
to make way for a General Motors plant. In doing so, it encouraged
the use of eminent domain for economic development all over the
country. Then, last August, the court reversed the legal rationale
behind that decision.
With no recourse left in
Connecticut's courts, Ms. Berliner said lawyers from the Institute
for Justice would go to New London next week to discuss other
possibilities to save the houses, including appeals to the State
Legislature.
Bill Von Winkle, a
plaintiff who owns three houses with 12 apartments in Fort Trumbull,
said he would take every opportunity to continue the battle.
"It's desperately hard to
believe that in this country you can lose your home to private
developers," Mr. Von Winkle said. "It's basically corporate theft."
The redevelopment authority
has set aside $1.6 million to compensate property owners. Scott G.
Bullock of the Institute for Justice, who has argued the case in
three courts, said the city had offered most of them "something in
the low 100,000's," although that was based on appraisals made five
years ago. The city took possession of the Fort Trumbull houses four
years ago and has since been collecting rent.
The city's lawyer, Thomas
J. Londregan, said Thursday that the United States Supreme Court had
vindicated the plan to revitalize the city's waterfront.
"I'm here to tell you that
this case was never about the taking of property from one person and
giving it to another," Mr. Londregan said. "This case was not some
type of land grab. This case was about the City of New London, its
six square miles and its economic survival."
Avi Salzman reported from
New London for this article, and Laura Mansnerus from Trenton.
Supremes: Cities May Seize Homes for Private Developers
New York Daily
News
Associated Press
June 23, 2005
WASHINGTON - A divided
Supreme Court ruled that local governments may seize people's homes
and businesses against their will for private development in a
decision anxiously awaited in communities where economic growth
conflicts with individual property rights.
Thursday's 5-4 ruling
represented a defeat for some Connecticut residents whose homes are
slated for destruction to make room for an office complex. They
argued that cities have no right to take their land except for
projects with a clear public use, such as roads or schools, or to
revitalize blighted areas.
As a result, cities now
have wide power to bulldoze residences for projects such as shopping
malls and hotel complexes in order to generate tax revenue.
Local officials, not
federal judges, know best in deciding whether a development project
will benefit the community, justices said.
"The city has carefully
formulated an economic development that it believes will provide
appreciable benefits to the community, including - but by no means
limited to - new jobs and increased tax revenue," Justice John Paul
Stevens wrote for the majority.
He was joined by Justice
Anthony Kennedy, David H. Souter, Ruth Bader Ginsburg and Stephen G.
Breyer.
At issue was the scope of
the Fifth Amendment, which allows governments to take private
property through eminent domain if the land is for "public use."
Susette Kelo and several
other homeowners in a working-class neighborhood in New London,
Conn., filed suit after city officials announced plans to raze their
homes for a riverfront hotel, health club and offices.
New London officials
countered that the private development plans served a public purpose
of boosting economic growth that outweighed the homeowners' property
rights, even if the area wasn't blighted.
Justice Sandra Day
O'Connor, who has been a key swing vote on many cases before the
court, issued a stinging dissent. She argued that cities should not
have unlimited authority to uproot families, even if they are
provided compensation, simply to accommodate wealthy developers.
The lower courts had been
divided on the issue, with many allowing a taking only if it
eliminates blight.
"Any property may now be
taken for the benefit of another private party, but the fallout from
this decision will not be random," O'Connor wrote. "The
beneficiaries are likely to be those citizens with disproportionate
influence and power in the political process, including large
corporations and development firms."
She was joined in her
opinion by Chief Justice William H. Rehnquist, as well as Justices
Antonin Scalia and Clarence Thomas.
Nationwide, more than
10,000 properties were threatened or condemned in recent years,
according to the Institute for Justice, a Washington public interest
law firm representing the New London homeowners.
New London, a town of less
than 26,000, once was a center of the whaling industry and later
became a manufacturing hub. More recently the city has suffered the
kind of economic woes afflicting urban areas across the country,
with losses of residents and jobs.
The New London neighborhood
that will be swept away includes Victorian-era houses and small
businesses that in some instances have been owned by several
generations of families. Among the New London residents in the case
is a couple in their 80s who have lived in the same home for more
than 50 years.
City officials envision a
commercial development that would attract tourists to the Thames
riverfront, complementing an adjoining Pfizer Corp. research center
and a proposed Coast Guard museum.
New London was backed in
its appeal by the National League of Cities, which argued that a
city's eminent domain power was critical to spurring urban renewal
with development projects such Baltimore's Inner Harbor and Kansas
City's Kansas Speedway.
Under the ruling, residents
still will be entitled to "just compensation" for their homes as
provided under the Fifth Amendment. However, Kelo and the other
homeowners had refused to move at any price, calling it an
unjustified taking of their property.
The case is Kelo et al v.
City of New London, 04-108.
GOVERNMENT: Put on the Brakes
The Florida Times-Union
Editorial
February 24, 2005
The Supreme Court is reviewing an eminent domain case that could
have profound impacts on private property rights.
Residents of New London,
Conn., are fighting a city plan to take their property to make way
for a riverfront hotel, convention center, offices and upscale
condominiums, The Associated Press reports.
The courts have long upheld
a Fifth Amendment right of governments to take private property for
"public use" in exchange for just compensation.
But that has normally
involved government projects such as roads or federal housing to
eliminate blight, for instance.
In this case, seven homes
would be taken for a private development project -- essentially
taking land from private landowners for the benefit of other private
users in the name of economic develop- ment.
Every city and every
community wants development that will generate jobs, grow tax
revenues and boost the local economy. All kinds of private
developers can name private properties they would love to have that
would achieve those objectives.
The Supreme Court must draw
a line on this issue. Otherwise, no personal property will be safe
from abuse.
During 'Kelo' Arguments, Justices Feel for Homeowners
By Tony Mauro
Legal Times
February 23, 2005
The plight of Connecticut homeowners whose homes may be condemned to
make way for commercial development pulled at the heartstrings of
Supreme Court justices on Tuesday.
But it was less certain that the justices' sympathies would
translate into enough votes for the homeowners to win in the case of
Kelo v. City of New London.
The closely watched property rights case was argued before a packed
Court chamber, but before only seven justices. Chief Justice William
Rehnquist was absent because of his continuing battle with thyroid
cancer, and Justice John Paul Stevens was out because of an apparent
delay in his flight to D.C. from out of town. Justice Sandra Day
O'Connor presided over the Court in their absence and said that the
two "reserve the right" to participate based on reviewing written
briefs and transcripts.
The Connecticut case does not challenge the typical "public use"
eminent domain power allowed by the Fifth Amendment that enables
cities and states to condemn property for highways, fire stations
and the like. But New London resident Susette Kelo and others say it
would be an abuse of that power for the city to take their homes for
commercial uses that will complement a new Pfizer company facility
nearby.
"Every home, church, or corner store" is vulnerable, said Kelo's
lawyer Scott Bullock, if such takings can be justified because the
new use will generate more tax revenue than the original use. "There
have to be limits," he said.
Bullock, a lawyer with the Institute for Justice, which has
challenged alleged eminent domain "abuse" nationwide, said the
ultimate public benefit of the takings in New London and elsewhere
is dubious and depends on the economic success of the private owner.
In New London, the city plans to lease the condemned property to
private developers for $1 a year.
Justice David Souter said, "It bothers a lot of us" that unblighted
homes could be condemned for the benefit of another private owner.
"You're taking the home of someone who doesn't want to sell,"
Justice Antonin Scalia said to Wesley Horton, the lawyer for New
London, at another point. "That counts for nothing?"
And Justice Sandra Day O'Connor pointedly asked Horton whether a
city could condemn a Motel 6 just to make way for a Ritz-Carlton
Hotel. "Is that OK?" she queried. Horton replied yes.
That prompted O'Connor to wonder aloud why cities shouldn't be
forced to buy properties on the open market when there is no "public
use" rationale for using eminent domain.
Such a rule would create "severe assembly problems," Horton replied,
referring to the need for cities to aggregate several properties for
large developments without confronting "holdouts" and other problems
that could arise if government bought property on the open market.
"Some plaintiffs won't sell at any price," he said.
That reply and others seemed to give justices pause, reflecting
concern about whether courts should second-guess the land-use
decisions of city and state governments.
In New London, Justice Ruth Bader Ginsburg said, the "pitiful fact"
is that the entire city was depressed economically, even if the
specific properties to be taken were not blighted. "More than tax
revenue was at stake," she said.
Justices Souter and Anthony Kennedy also noted that the "public use"
benefit flowing from the condemnations that made it possible to
build railroad lines to the West depended on the economic success of
the railroads. "There isn't another practical way to do it," said
Souter.
Justices also seemed concerned that to support the homeowners, they
would have to overturn two precedents: Berman v. Parker from
1954, and Hawaii Housing Authority v. Midkiff, from 1984. In
these rulings and others, the Court gave deference to local
governments to determine the "public use" benefits of the takings.
Kennedy at one point offered up what seemed to be a compromise by
focusing on the "just compensation" requirement when government
takes private property. He said that when homes are taken for
private development rather than for obvious public uses, homeowners
could be paid a "premium" above the ordinary price. Justice Stephen
Breyer picked up on the idea, too.
Horton's only reply was that in the New London development,
homeowners have been offered relocation loans to assist them in
moving to comparable properties.
As the hour of arguments wound down, Horton, a partner at Horton,
Shields & Knox in Hartford, Conn., said he would conclude his
argument with "four words the Court should consider." But his red
light went on before he could state the four words, and he sat down
silently.
As his adversary Bullock rose to deliver a rebuttal, a smiling
Justice Anthony Kennedy asked him if he knew the four words Horton
was about to utter. Bullock said no, but at a press conference
outside the Court afterward, Horton revealed them: federalism,
boundaries (as in, "not for the court to decide where boundaries
ought to be") discretion ("deferring to legislative discretion") and
precedent.
Justices Ponder Taking Property for Development
Residents of Connecticut Town Fight Land Seizure
By Deborah Charles
Reuters News
February 22, 2005
Several
justices, addressing an issue that could have ramifications
nationwide, expressed reservations about their authority to stop the
government of New London, Connecticut, from seizing homes and
businesses owned by seven families for a private development project
to boost the city's economy.
Susette Kelo, owner of this home in New London,
Under the Constitution,
governments can
Conn., is one of several property owners to go befo- take
private property through their so-
re
the U.S. Supreme Court to keep their properties called eminent domain
powers in
from being seized for a commercial project. The
exchange for just
compensation, but only
case will have significant implications for so-called
when it is for public
use.
eminent domain actions.
New London says since the development -- which will complement
Pfizer Inc. drug company's new research building -- will create
jobs, increase tax revenues and help the long-depressed local
economy, it satisfies the Constitution's public-use requirements.
But residents who want to
stop the city from razing their homes and businesses say it is not
fair.
"Every city has problems,
every city would like more tax revenue," said Scott Bullock, the
attorney for the families who are suing to keep their land. "But
that cannot be justification ... for the use of eminent domain."
Attorneys for the families
have predicted the Supreme Court decision will affect homeowners
throughout the country.
Several justices were
concerned about overturning rulings by the high court that allowed
using eminent domain for private development. In particular, they
referred to a 1954 ruling that allowed the taking of property to
eliminate slums or blight after deciding such condemnations
constituted a public use.
Justice Ruth Bader Ginsburg
said New London made the move to take the property because it was in
a depressed economic condition.
After Bullock drew a
distinction between "blight" and "economic depression," Justice
Anthony Kennedy asked how the court could differentiate between the
two.
"You could say if economic
depression continues for several years ...(you) have blight,"
Kennedy said. "Blight is in the eye of the beholder."
Justice Antonin Scalia
appeared to support the homeowners, asking why the city did not fund
a private purchase of the land instead of condemning it and forcing
the people out.
"There are some plaintiffs
who are not going to sell at any price," responded Wesley Horton,
attorney for New London.
Several justices showed an
interest in finding a way to properly compensate people who are
forced out of their homes in the name of helping the local economy.
"Is there some way of
ensuring a just compensation that actually puts the person in the
same position he would be in if he didn't have to sell his house?"
asked Justice Stephen Breyer. "Or is he inevitably worse off?"
A ruling is due by the end
of June.
|
House Not For Sale
Can the
Government Force You
to Sell Your House in the Name of New Development?
|
By Sarah Max
CNN/Money
January 6,
2005
Salem, Ore.
- The neighborhood of Fort Trumbull in New London, Conn., isn't
on the National Register of Historic Places. But it is
historically significant to the people who live there.
 |
|
|
Bill Von Winkle made a nice living off his rental income
in New London, Conn. |
Wilhelmina Dery, 87,
was born in her century-old house near the Thames River.
Her son, Matt, and
daughter-in-law, Suzanne, live next door with their teenage son,
Andrew. Among their most precious possessions: the garden
planted by Matt's grandmother, and the kitchen doorway where
they've charted Andrew's height over the years.
|
The Derys' neighbors have
their own, similar stories.
Bill Von Winkle bought his
first building in the neighborhood 20 years ago, and went to work
making sandwiches in the downstairs deli and renovating the upstairs
apartments.
Susette Kelo meticulously
restored her small pink Victorian house.
So when the New London
Economic Development Corporation, a non-profit organization
appointed by the city, approached about 70 property owners in Fort
Trumbull about selling their homes to make space for a luxury hotel,
condominiums and office space, these and a handful of other owners
declined.
Their property, they said,
is not for sale.
In November 2000, however,
the city invoked eminent domain – a government right to seize
property for public use – and sent out condemnation notices to
owners refusing to sell. The city planned to pay the owners fair
market value, take possession of the buildings and tear them down.
According to Daniel Krisch,
one of the attorney's representing New London and its economic
development arm, the city had several good reasons for razing the
well-kept middle class neighborhood to replace it with a new,
private development.
Krisch contends that the
new development would create jobs, boost tax revenue, improve the
city's infrastructure and provide public access to the river. It's
for the benefit of the entire community, he said.
Taking for the Greater
Good
In February, the
Institute for Justice, a libertarian
public interest law firm that is representing seven Fort Trumbull
owners for free, will argue in the U.S. Supreme Court that the city
of New London has abused its use of eminent domain.
 |
|
|
Susette Kelo's house has been condemned for economic
development. |
The case, Kelo v. City
of New London, will decide whether the U.S. Constitution's
definition of "public use" includes private developments like condos
and casinos. The decision will have implications through the
country.
The Institute for Justice
argues that displacing property owners for private development is
not legal. "The Constitution says [eminent domain] should be used
for a public use -- a road, a court house, a military base. Not a
Wal-Mart," said Scott Bullock, a senior attorney with the institute.
According to a study of
court papers and published accounts covering a five-year period, the
institute found more than 10,000 examples of property being
condemned under eminent domain for the benefit of private parties.
The city of New London and
other cities using eminent domain in the interest of urban renewal
argue that such private projects are for public use, even if the
public only benefits indirectly.
"This is a tool that is
important to local governments because it allows them to revitalize
areas that otherwise would not get revitalized," said Tom
Grundhoefer, general counsel for the League of Minnesota Cities,
which is filing a "friend of the court" brief on behalf of New
London.
Cities want to attract new
businesses and developers to their urban centers rather than
contributing to sprawl by building in the suburbs, he said. But they
can only do so if they can get existing owners to sell.
"Often times there might be
one or two owners who will not go along with the voluntary sales
situation," he said. "The question comes up, 'Do you stop the entire
project because one or two won't sell, or do you use eminent domain
to encourage that activity?'"
Encourage isn't a word that
Joy and Carl Gamble of Norwood, Ohio associate with eminent domain.
The retirees are scheduled
to be evicted from their home of 35 years in early February to make
way for Rookwood Exchange, a $125 million development with offices,
shops, housing and restaurants.
In this case, the city of
Norwood voted to exercise eminent domain after a study -- which was
funded by the developers of Rookwood Exchange -- determined that the
Gamble's neighborhood is blighted.
 |
|
|
The Gambles say they're proud of their house.
|
"Blight 50 years ago
entailed serious problems and neglect," said Bullock, citing cracked
sidewalks and weeds as examples of blight given in the study. Now,
he said, blight is just an excuse for the government to take land
from one party and give it to another.
"The easy story is to wrap
the Gambles in the American flag and say, 'It's not right,'" said
Richard Tranter, an attorney representing Rookwood Partners, adding
that it's not unusual for cities to ask developers to pay for
studies and other expenses related to development. "But it's not
that easy."
Norwood is a doughnut hole
in the middle of Cincinnati that is about to declare a fiscal
emergency, according to Tranter. What's more, the Gamble's
neighborhood is cut off from the rest of the city by a major freeway
and roads feeding into that freeway.
"With the exception of the
Gambles, every resident is saying they want to get out of the
neighborhood," he said. "An 80-year old blind widow called it a
blessing."
Tranter says the developer
has signed contracts with 65 residents to buy their property for no
less than 25 percent above market value, pending the outcome of the
Gamble's appeal.
Still, the Gambles don't
want to sell for any price.
"We're very proud of this
house. It's extremely well built," said Joy.
"We raised our children
here. All of our memories are here," she said. "We don't want to
move, especially for a shopping mall."
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