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Thread: Connecticut eminent domain case being considered by U.S. Supreme Court

  1. #51
    Cyburbian Trail Nazi's avatar
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    Supreme Court Rules Cities May Seize Homes for Private Development

    From the Washington Post:

    The Supreme Court today effectively expanded the right of local governments to seize private property under eminent domain, ruling that people's homes and businesses -- even those not considered blighted -- can be taken against their will for private development if the seizure serves a broadly defined "public use."

    In a 5-4 decision, the court upheld the ability of New London, Conn., to seize people's homes to make way for an office, residential and retail complex supporting a new $300 million research facility of the Pfizer pharmaceutical company. The city had argued that the project served a public use within the meaning of the Takings Clause of the Fifth Amendment to the Constitution because it would increase tax revenues, create jobs and improve the local economy.

    A group of homeowners in New London's Fort Trumbull area had fought the city's attempt to impose eminent domain, arguing that their property could be seized only to serve a clear public use such as building roads or schools or to eliminate blight. The homeowners, some of whom had lived in their house for decades, also argued that the public would benefit from the proposed project only if it turned out to be successful, making the "public use" requirement subject to the eventual performance of the private business venture.

    The Fifth Amendment also requires "just compensation" for the owners, but that was not an issue in the case decided today because the homeowners did not want to give up their property at any price.

    Writing for the majority, Justice John Paul Stevens said the case turned on the question of whether New London's development plan served a "public purpose." He added, "Without exception, our cases have defined that concept broadly, reflecting our longstanding policy of deference to legislative judgments in this field."

    New London officials "were not confronted with the need to remove blight in the Fort Trumbull area, but their determination that the area was sufficiently distressed to justify a program of economic rejuvenation is entitled to our deference," Stevens wrote. "The City has carefully formulated an economic development plan that it believes will provide appreciable benefits to the community, including--but by no means limited to--new jobs and increased tax revenue."

    Stevens added that "because that plan unquestionably serves a public purpose, the takings challenged here satisfy the public use requirement of the Fifth Amendment."

    He was joined in that view by justices Anthony Kennedy, David H. Souter, Ruth Bader Ginsburg and Stephen G. Breyer.

    Dissenting were justices Sandra Day O'Connor, Antonin Scalia and Clarence Thomas, as well as Chief Justice William H. Rehnquist.

    In a strongly worded dissenting opinion, O'Connor wrote that the majority's decision overturns a long-held principle that eminent domain cannot be used simply to transfer property from one private owner to another.

    "Today the Court abandons this long-held, basic limitation on government power," she wrote. "Under the banner of economic development, all private property is now vulnerable to being taken and transferred to another private owner, so long as it might be upgraded -- i.e., given to an owner who will use it in a way that the legislature deems more beneficial to the public -- in the process."

    The effect of the decision, O'Connor said, "is to wash out any distinction between private and public use of property -- and thereby effectively to delete the words "for public use" from the Takings Clause of the Fifth Amendment."

    The ruling has broad potential implications nationwide, giving cities wider authority to condemn homes and businesses to make way for more lucrative developments.

    According to the Institute for Justice, a Washington-based property rights group that represented the Fort Trumbull homeowners, local governments have used or threatened to use eminent domain to transfer property to private parties in more than 10,000 instances between 1998 and 2002.

    Over the years, the power of local governments to take private property through eminent domain has gradually grown. Although that authority historically had been used to acquire land needed for roads, bridges or other infrastructure fitting the "public use" requirement, the Supreme Court in 1954 broadened the definition of the term to allow local governments to condemn slums or other blighted areas for the purpose of redevelopment.

    The court's ruling today upheld the Connecticut Supreme Court, which had ruled 4-3 that New London's property condemnations were constitutional.

    The case had been brought by nine holdout owners of 15 homes in the Fort Trumbull area, which sits on a peninsula jutting into the Thames River and includes a total of about 115 privately owned properties.

    Among the holdouts was Susette Kelo, who moved into Fort Trumbull in 1997 and made major improvements to her house, which she prized for its water view. Another petitioner was Wilhelmina Dery, who was born in her Fort Trumbull house in 1918 and has lived in it with her husband for the past 60 years. In fact, the home, originally purchased by her grandmother, has been in her family for more than a century.

    Although the area is described as a working-class neighborhood, the majority opinion written by Stevens noted that "there is no allegation that any of these properties is blighted or otherwise in poor condition; rather, they were condemned only because they happen to be located in the development area."

    New London adopted its redevelopment plan in January 2000, two years after Pfizer announced plans to build a new research facility nearby. The plan called for a waterfront hotel and conference center surrounded by restaurants and stores, marinas for recreational and commercial use, 80 new residences in an urban neighborhood, office space for research and development, parking lots and other retail services. The site also includes an existing state park and space reserved for a new U.S. Coast Guard Museum.

    During oral arguments before the court, it emerged that the land parcels at issue were earmarked for office space and "support" for the park or marina, possibly meaning a parking lot.




    I feel bad for those property owners in New London. I guess some private interests will even use the government to do more of their dirty work with this ruling. Very interesting. I wonder about the long term effects.

  2. #52
    Cyburbian The One's avatar
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    well....

    Quote Originally posted by gkmo62u
    Lee I don't think the decision is at all the workings of a conservative court. Its exactly the opposite. 5-4 with the more liberal court and Kennedy opting on the side of more government power while the conservatives (and O'Conner) opt for individual property rights.
    A vote like that makes it likely to be overturned when the next similar case comes up......in 5 to 10 years.....
    On the ground, protecting the Cyburbia Shove since 2004.

  3. #53
    Cyburbian SGB's avatar
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    Quote Originally posted by JNA
    Here is the written opinion:

    KELO et al. v. CITY OF NEW LONDON et al.
    http://caselaw.lp.findlaw.com/script...friend=nytimes
    It's worth noting that the opinion also includes the written dissents from Justices O'Connor and Thomas.
    All these years the people said he’s actin’ like a kid.
    He did not know he could not fly, so he did.
    - - Guy Clark, "The Cape"

  4. #54
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    Kelo et al v. City of New London

    Big Supreme Court decision today for planning.

    What does the planning community think of this. Discuss.

  5. #55
    Cyburbian The One's avatar
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    Quote Originally posted by Trail Nazi
    [I]From the Washington Post:

    I feel bad for those property owners in New London. I guess some private interests will even use the government to do more of their dirty work with this ruling. Very interesting. I wonder about the long term effects.

    Don't, just be sure not to buy property anywhere that a rich corporation might want to locate, with the "help" of the local government authorities......which could now mean ANYWHERE they want, as long as the proposed use brings enough money to the City Does this now mean that every square inch of land is available to the highest bidder? I don't think its likely that the rich (fancy pants neighborhoods) will have a thing to worry about....but as for the rest of us that may be living in questionable areas......look out.....
    On the ground, protecting the Cyburbia Shove since 2004.

  6. #56
    Cyburbian michaelskis's avatar
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    Quote Originally posted by Trail Nazi
    I feel bad for those property owners in New London. I guess some private interests will even use the government to do more of their dirty work with this ruling. Very interesting. I wonder about the long term effects.
    I think that this is a good thing. It is not like they did not offer the residents more than fair market value. In some cases people were offered significantly more than what their house and property were worth. Many of the home were dilapidated and I believe a few were even condemned. I also think that they bent over backwards to work with the residents to relocate them into nicer neighborhoods with safer homes, but many of the residents decided that they would not sell. If the Courts would have gone the other way, it might of lead to many deviating reversals including any possibility to regulate land.
    When compassion exceeds logic for too long, chaos will ensue. - Unknown

  7. #57
    Cyburbian The One's avatar
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    Wow

    This is like the fourth thread on this topic....maybe I'll start a thread....
    On the ground, protecting the Cyburbia Shove since 2004.

  8. #58
    I think the majority opinion's key point is "States are within their rights to pass additional laws restricting condemnations if residents are overly burdened." I bet the State of Connecticut will have some new proposed legislation coming up soon.

  9. #59
    Cyburbian MayorMatty's avatar
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    Dear low income resident

    Dear low income resident,

    As you are aware, the City has been in consultation with a wealthy real estate developer who would like to use your land for a commercial enterprise that won't costs us more in services than you generate in taxes. Even though you lawfully purchased the home at a market price and are using it lawfully under our Zoning Code the City IDA has decided to back the project. We are also going to enter in a PILOT agreement to ensure he's getting a 15% return. (He's also is a cousin of a city council member, and a frequent contributor to our re-election campaigns so he's earned this). So therefor by the power vested in us by the US Supreme Court you have 30-days to move out. And thanks for the view!

    Signed,

    Your Mayor,
    City of Gentrification
    Communist States of America

  10. #60
    Cyburbian
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    Just read it, majority opinion and dissents.

    Wow. Regardless of position on this matter, The full opinion and dissents is required reading for all Planners. Stephens, O'Connor, and Thomas are brilliant.

  11. #61
    Cyburbian MayorMatty's avatar
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    Dear Low Income Resident,

    Dear low income resident,

    As you are aware, the City has been in consultation with a wealthy real estate developer who would like to use your land for a commercial enterprise that won't costs us more in services than you generate in taxes. Even though you lawfully purchased the home at a market price and are using it lawfully under our Zoning Code the City IDA has decided to back the project. We are also going to enter in a PILOT agreement to ensure he's getting a 15% return. (He's also is a cousin of a city council member, and a frequent contributor to our re-election campaigns so he's earned this). So therefor by the power vested in us by the US Supreme Court you have 30-days to move out. And thanks for the view!

    Signed,

    Your Mayor,
    City of Gentrification
    Communist States of America

  12. #62
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    What a shame. I wonder if homes on the national register of historic places can be razed?

  13. #63
    Forums Administrator & Gallery Moderator NHPlanner's avatar
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    Moderator note:
    Please folks....post in the original thread, which has been here for a while. I've now merged 3 different threads on this topic.
    "Growth is inevitable and desirable, but destruction of community character is not. The question is not whether your part of the world is going to change. The question is how." -- Edward T. McMahon, The Conservation Fund

  14. #64
    Cyburbian SGB's avatar
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    Off-topic:
    Quote Originally posted by hitchhiker
    I wonder if homes on the national register of historic places can be razed?
    Under Federal law, owners of private property listed in the National Register are free to maintain, manage, or dispose of their property as they choose provided that there is no Federal involvement. (Source)
    All these years the people said he’s actin’ like a kid.
    He did not know he could not fly, so he did.
    - - Guy Clark, "The Cape"

  15. #65
    Cyburbian Big Red's avatar
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    "The consequences of today's decision are not difficult to predict, and promise to be harmful,". "So-called 'urban renewal' programs provide some compensation for the properties they take, but no compensation is possible for the subjective value of these lands to the individuals displaced and the indignity inflicted."
    Justice Thomas


    It is interesting to note that the "conservative" judges ruled against this business/government love child.

    Try telling my great-grandmother who has lived on the state highway since it was a dirt track that it's time to leave her old house and move on up to town!

    I know they are paying "fair market" prices for the property but Thomas seems to cut right through that line of defense.

    I know there are plenty of people who would pay at or above "fair market" price to have my spread but I love it there and don't need or want to sell...

    Maybe the most any of us can expect of ourselves isn't perfection but progress.

  16. #66
    Quote Originally posted by Big Red
    "The consequences of today's decision are not difficult to predict, and promise to be harmful,". "So-called 'urban renewal' programs provide some compensation for the properties they take, but no compensation is possible for the subjective value of these lands to the individuals displaced and the indignity inflicted."
    Justice Thomas


    It is interesting to note that the "conservative" judges ruled against this business/government love child.
    I'm having a hard time believing that I agree with Thomas and Scalia on something.

    I also thought more of the planners on this site would be happy with the decision- are they all being quiet right now?

  17. #67
    Cyburbian MayorMatty's avatar
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    APA/ AICP Membership

    Is anyone else out there reconsidering their APA / AICP membership renewal in light of their amicus brief in support of this new power of eminent domain?

  18. #68
    Cyburbian
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    I wrote an email some time back to Mr. Paul Farmer, executive director (or whatever...)expressing my displeasure. Don't recall a response from him.

    I wouldn't throw away the association stuff yet, though I find APA and AICP particularly closed to alternative ideas, contrarian thinking, or opposing viewpoints.

    As I like to say, in the end, the APA tent really isn't all that big.

  19. #69

    New Article : Homes may be 'taken' for private projects

    This is scary stuff:

    http://www.msnbc.msn.com/id/8331097/

    What has happened to the land of freedom? I would not have imagined that this would happen outside of communist countries and third-world countries.

    Moderator note:
    thread merged

  20. #70
    Cyburbian ecofem's avatar
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    I haven't had a chance to read the opinion yet, but I was very concerned this would happen in this case.

  21. #71
    Unfrozen Caveman Planner mendelman's avatar
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    Quote Originally posted by urbanliz
    I'm having a hard time believing that I agree with Thomas and Scalia on something.

    I also thought more of the planners on this site would be happy with the decision- are they all being quiet right now?
    Do you think that all planners are steamroller bureaucrats that will do anything to have the "Plan" implemented, no matter the cost(s)?

    I, personally and professionally, believe that eminent domain for economic development is a perversion of the power. Much the way that TIF districts (Tax Increment Financing) are being misused and abused (in some instances) here in Chicagoland.
    Last edited by mendelman; 23 Jun 2005 at 8:41 PM.
    I'm sorry. Is my bias showing?

  22. #72
    Cyburbian Plus otterpop's avatar
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    I am appalled at the majority decision. Eminent domain should not be used to assist private individuals/developers to make a profit, even if it can realize revenue benefits for municipalities. It just seems so wrong.

    If the need benefited the people I could see it (roads, sewage plant, such as that). But these people are being pushed out because they built their homes first in an area that now has "better" potential, due to its location.


    It is just wrong.
    "I am very good at reading women, but I get into trouble for using the Braille method."

    ~ Otterpop ~

  23. #73
    This decision was necessary if re-urbanisation of America is going to take place. It sucks that the end product for this particular case is so stupid, but as urbanists we should all be thrilled at the opportunities we will be afforded.

    Unfortunately the system is wide open to abuse by the wealthy. I believe that there is one simple reform that will protect the small homeowners from outright extorsion by special interests through state corruption. Give all expropriated homeowners a buy option on the property that replaces theirs for a price equivalent to the price-area at which their property was valued during the expropriation. If a 1000sqft house is expropriated for 100,000$ to build a shopping mall, allow the expropriated owner to purchase the mall for 100$/sqft. This in my mind will create the incentives to achieve balance through two means.

    1- No expropriations will take place unless the development replacing the property has significantly greater value.
    2- Expropriated owners will be compensated at a premium over the value of the redevelopped property in order to insure the developers that they will not lose the property by exercise of the option. A house valued at 100,000$ may be expropriated at 300,000$ by request of the redeveloper such that the $/sqft rate becomes higher than the value of the redevelopment.

    From 2, it would become much easier and much less litigeous to redevelop urban land.

  24. #74

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    Quote Originally posted by michaelskis
    I think that this is a good thing. It is not like they did not offer the residents more than fair market value. In some cases people were offered significantly more than what their house and property were worth. Many of the home were dilapidated and I believe a few were even condemned. I also think that they bent over backwards to work with the residents to relocate them into nicer neighborhoods with safer homes, but many of the residents decided that they would not sell. If the Courts would have gone the other way, it might of lead to many deviating reversals including any possibility to regulate land.
    But why should they have to move? Mayor Matty's little screed down thread illustrates the reality pretty well.

    I had an internal debate with a somewhat hotshot Economic Development Project Manager this afternoon. I was wishy washy. Now, listening to his (pro-condemnation) extremely arrogant dismissals of "the little people," I am adamantly appalled by it.

    The most interesting neighborhoods, the one's with character and history and committed neighbors are the ones that grow incrementally over time-with small decisions by individuals. They are necessarily a little messy, even decayed. But you know, maybe that's ok. We can't all live in perfectly groomed gated communities or posh condominium towers.

    Plus: very few "master planned" infill one-size-fits all projects make good urbanism. remember, all of the horrors of the "urban renewal" era used all the fashionable architecture and planning theories of their time. And, said "master planned" communities were more often then not devastating to the city and its neighborhoods.

    I'm not saying, like some do, that there is no such thing as a public purpose and that condemnation should never be used.

    I'm just not sure that another damn "museum" that will have nil real economic impact, another subsidized hotel that will fail in a few years or require another infusion of money, or another shopping center are a public purpose worth destroying a frayed but viable neighborhood. Like in Denver, when that small center full of Asian shops was to be condemned to build another Walmart. Count me out. There are other factors than property and sales tax receipts.

    gkmo62 and NH Planner, I'm reporting for duty on the libertarian barricades on this one!

  25. #75
    Cyburbian
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    You know this is a big deal when DRUDGE has it in its banner heading.

    jaws i think your proposal makes no sense. How is the little old lady going to by the mall at $100 sq ft. Malls are 1 million sf.

    so true-color urbanists have no respect for private property? The issue of this case is that private property can be taken and given to a private entity for "economic development" and higher and better use.

    Your house for a 200,000 sf office; the mom and pop bakery for the mixed use retail on first floor, condos above.


    This is outrageous.

    and BKM I love being on the same page with you.

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