Kelo v. City of New London: eminent domain and economic redevelopment

U.S. Supreme Court: Kelo v. New London (2005)

Supreme Court case Kelo v. City of New London involved the issue of eminent domain which is granted to governmental bodies including federal, state and local governmental bodies by the Fifth Amendment to the U.S. Constitution which means that the government is authorized to take land that is privately owned if the land is to be used by the public and the owner is paid a fair price for the land or what is referred to as 'just compensation'. Prior to Kelo v. City of New London the power of eminent domain was typically exercised by cities for acquisition of facilities that were clearly intended for public use such as schools, bridges or freeways. The case of Kelo v. City of New London however, involved what was a "new trend among cities to use eminent domain to acquire land for the redevelopment or revitalization of depressed areas. Basically the use of eminent domain for economic, rather than public purposes." (Longley, 2005, p.1)

Kelo v. City of New London

This case involved the city of New London, Connecticut developing a redevelopment plan that was hoped would result in the creation of jobs and revive the city's downtown areas through generation of increased tax revenues. The property owned identified as Kelo challenged the city's plans even after the city offered just compensation on the basis that the plans of the city for the land failed to constitute 'public use' under the Fifth Amendment.

II. The Eminent Domain Process

The eminent domain process while varying somewhat from one jurisdiction to the other involves the following steps:

(1) Notification of the property owner by mail and followed by a visit from a government employee offering an explanation of why the property is needed;

(2) Government appointment of an independent appraiser to evaluate the land and to come up with a price that is fair to pay the landowner for the land;

(3) Negotiation between the property owner and the government to arrive at a fair price; and (4) Owner is paid the agreed upon price and the property ownership is transferred to the government.

Discussion

While Kelo's home was taken by the City of New London based on its hopes of economic development, the outcome was that the project failed miserably and the corporation that was involved in the economic development, Pfizer, has long left the City of New London with the location of Kelo's home now being a barren landscape. The American public has questioned such tactics and there are many opposed to this type of eminent domain on the part of governmental bodies. Justice Sandra Day O'Connor states of this case:

"The specter of condemnation hands 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." (Institute for Justice, 2012)

There is a serious question left by the outcomes of this case that needs to be addressed in the U.S. Courts when eminent domain is used for lands that are deemed as public use in this manner.