Property In Landmark Eminent Domain Supreme Court Case Never Used

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KATIE NELSON | 09/25/09 06:03 PM | AP

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John Brooks, executive director of the New London Development Corp. stands in a vacant lot in New London, Conn., on Monday, Sept. 21, 2009. The lot, along with 90 nearby acres sits at the heart of an ongoing controversy about the rights of cities to use eminent domain to take property from one private owner for private development. (AP Photo/Fred Beckham)

NEW LONDON, Conn. — Weeds, glass, bricks, pieces of pipe and shingle splinters have replaced the knot of aging homes at the site of the nation's most notorious eminent domain project.

There are a few signs of life: Feral cats glare at visitors from a miniature jungle of Queen Anne's lace, thistle and goldenrod. Gulls swoop between the lot's towering trees and the adjacent sewage treatment plant.

But what of the promised building boom that was supposed to come wrapped and ribboned with up to 3,169 new jobs and $1.2 million a year in tax revenues? They are noticeably missing.

Proponents of the ambitious plan blame the sour economy. Opponents call it a "poetic justice."

"They are getting what they deserve. They are going to get nothing," said Susette Kelo, the lead plaintiff in the landmark property rights case. "I don't think this is what the United States Supreme Court justices had in mind when they made this decision."

Kelo's iconic pink home sat for more than a century on that currently empty lot, just steps away from Connecticut's quaint but economically distressed Long Island Sound waterfront. Shortly after she moved in, in 1997, her house became ground zero in the nation's best-known land rights catfight.

New London officials decided they needed Kelo's land and the surrounding 90 acres for a multimillion-dollar private development that included residential, hotel conference, research and development space and a new state park that would complement a new $350 million Pfizer pharmaceutical research facility.

Kelo and six other homeowners fought for years, all the way to the U.S. Supreme Court. In 2005, justices voted 5-4 against them, giving cities across the country the right to use eminent domain to take property for private development.

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The decision was sharply criticized and created grassroots backlash. Forty states quickly passed new, protective rules and regulations, according to the National Conference of State Legislatures. Some protesters even tried to turn the tables on now-retired Justice David Souter, trying unsuccessfully in 2006 to take his New Hampshire home by eminent domain to build an inn.

In New London the city's prized economic development plan has fallen apart as the economy crumbled.

The Corcoran Jennison Cos., a Boston-based developer, had originally locked in exclusive rights to develop nearly the entire northern half of the Fort Trumbull peninsula.

But those rights expired in June 2008, despite multiple extensions, because the firm was unable to secure financing, according to President Marty Jones.

In July, backers halted fundraising for the project's crown jewel, a proposed $60 million, 60,000-square-foot Coast Guard museum.

The poor economy meant that donations weren't "keeping pace with expenses," said Coast Guard Foundation president Anne Brengle.

The group hopes to resume fundraising in the future, she said.

Overall, proponents say about two-thirds of the 90-acre site is developed, in part because of a 16-acre, $25 million state park. The other third of the land remains without the promised residential housing, office buildings, shops and hotel/conference center facility.

"If there had been no litigation, which took years to work its way through (the court system), then a substantial portion of this project would be constructed by now," said John Brooks, executive director of the New London Development Corp. "But we are victims of the economic cycle, and there is nothing we can do about that."

A new engineering tenant is moving into one of the office buildings at 1 Chelsea St., and a bio tech firm with as many as five employees is getting ready to move into an existing building on Howard Street, Brooks said.

Kelo, paid $442,000 by the state for her old property, now lives across the Thames River in Groton, in a white, two-bedroom 1950s bungalow. Her beloved pink house was sold for a dollar and moved less than two miles away, where a local preservationist has refurbished it.

Kelo can see her old neighborhood from her new home, but she finds the view too painful to bear.

"Everything is different, but everything is like still the same," said Kelo, who works two jobs and has largely maintained a low profile since moving away. "You still have life to deal with every day of the week. I just don't have eminent domain to deal with every day of the week, even after I ate, slept and breathed it for 10 years."

Although her side lost, Kelo said she sees the wider ramifications of her property rights battle.

"In the end it was seven of us who fought like wild animals to save what we had," she said. "I think that though we ultimately didn't win for ourselves, it has brought attention to what they did to us, and if it can make it better for some other people so they don't lose their homes to a Dunkin' Donuts or a Wal-Mart, I think we did some good."

Scott Bullock, senior attorney for the Institute for Justice, argued Kelo's case before the Supreme Court. He calls "massive changes that have happened in the law and in the public consciousness" the "real legacy" of Kelo and the other plaintiffs.

The empty land means the city won a "hollow victory," he said.

"What cities should take from this is to run fleeing from what New London did and do economic development that is market-driven and incorporate properties of folks who are truly committed to their neighborhood and simply want to be a part of what happens," he said.

NEW LONDON, Conn. — Weeds, glass, bricks, pieces of pipe and shingle splinters have replaced the knot of aging homes at the site of the nation's most notorious eminent domain project. There are...
NEW LONDON, Conn. — Weeds, glass, bricks, pieces of pipe and shingle splinters have replaced the knot of aging homes at the site of the nation's most notorious eminent domain project. There are...
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The Supreme Court’s decision in Kelo v. City of New London deduced its conclusion based primarily on its presumption of a “carefully considered” development plan maintained as a mantra by the city of New London, the New London Development Corporation and the state of Connecticut.

The city of New London did not win Kelo v. New London. The Institute for Justice (IJ) lost the case because of its repeated and stubborn refusal to raise procedural irregularity challenges to the validity of the MDP although advised by other legal advisors on numerous occasions. Any wise attorney knows to first address the administrative process before prosecuting constitutional issues. The city maintained that there was a carefully crafted plan and IJ deliberately erred in never challenging that opinion. The Supreme Court had no choice but to presume its fallacious truth.

The city has a Charter created as a special act of the 1921 General Assembly containing procedures for the taking of property by eminent domain. Similarly, the Connecticut General Statutes, Title 48 contains provisions for eminent domain. The statutes do not provide for overriding of town charters through the use of the words “notwithstanding any provisions of any special act or charter.” Yet, the NLDC ignored the charter and took property by eminent domain under the statutes, a clear breach of the Connecticut Constitution’s home rule provisions.

For the true facts, I can be reached at comcast.net@comcast.net

    Favorite    Flag as abusive Posted 04:05 PM on 09/29/2009
- Sharon1951 I'm a Fan of Sharon1951 5 fans permalink

If you are really interested in this subject, take the time to read "The Power Broker" by Robert Caro, about how Robert Moses "broke the back" of an entire city, condemning entire historic ethnic neighborhoods, like the Grand Concourse, to build highways and bridges over and around the city. The book explains how he was able to acquire absolute power, answering to no one. What he took from the city was its soul, obviously irreplaceable, and a cautionary tale for any community under this new law.

    Favorite    Flag as abusive Posted 09:44 AM on 09/28/2009

Someone should sit the New London Development Corp and John Brooks down and explain the concept of karma to them. It might not be a bad idea to make Justice David (Call me sell out) Souter and the conservative company-first judges sit in the corner and listen.

    Favorite    Flag as abusive Posted 01:21 PM on 09/27/2009
- Peleador I'm a Fan of Peleador 16 fans permalink

Health care, social security, medicare, all of these things are unconstitutional and take from one person to give to another. But if you install judges that refuse to look at the law and do what they "feel" is right, it endangers the country in terrible ways. Bork understood this, but liberals despised him because he respected both the words and intent of the Constitution and would have ruled against this horrible decision. Because of his "borking", we got Anthony Kennedy, a luke warm "acceptable" conservative. And then people get their land taken away against the intent of the Constitution.

Thomas Jefferson, BTW, believed in the idea that land and property should be inviolable and the government shouldn't be able to take it under ANY circumstance. Madison and others were more pragmatic, but I wonder if Jefferson wasn't the correct one. The government can "arrest" your money or car if it even *thinks* you're a drug dealer. Interesting "power" out of nowhere.

    Favorite    Flag as abusive Posted 10:52 PM on 09/26/2009
- bettyx1138 I'm a Fan of bettyx1138 22 fans permalink
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Health care, social security, and medicare are for the equal and direct benefit of all american ppl.

these ppl's property was taken away exclusively for private profit. that's not right.

    Favorite    Flag as abusive Posted 12:28 AM on 09/27/2009
- Peleador I'm a Fan of Peleador 16 fans permalink

It's not equal at all There will be many people hat pay far less and get far more. There will be people that die early and never use any of it. The money they take to day is not something you can use. It is given to someone else. Then in 20 or 30 or 40 years, they take someone else's money and give it to you. Like a gigantic Ponzi scheme. UNLIKE public use projects where the money goes in, the product is owned by the people and EVERYONE can use it as soon as it is done.

There is authorization for roads in the Constitution. There is no authorization for health care or social security. No authorization = unconstitutional = illegal = corrupt government = invalid government.

    Favorite    Flag as abusive Posted 01:53 PM on 09/27/2009
- Peleador I'm a Fan of Peleador 16 fans permalink

This is the problem with the faulty concept of a "liberal judge". By its very definition, a liberal judge is unacceptable in that they are prone to 'rewrite' the law in their mind and come to improper conclusions.

This was a case of 4 true conservatives doing the right thing and voting on both the wording and intent of the Constitution. The founding fathers were absolutely against the idea of taking from one person to give to another. Eminent domain was only to be used for the common good, which is to say, everyone gets to use it if they want and addressing a real need. A park, a school, a highway. 4 liberals and a mediocre conservative voted for this. Real conservatives new better.

The Constitution is there to protect the people from bad government. Good government is good for everyone. Bad government is good for some, terrible for others. It is time for liberals to, if they really care about things like this and the Patriot Act to recognize that the Constitution is the real law of the land. And that it is not to be "bent" to suit. It is to be amended by a deliberately difficult process.

    Favorite    Flag as abusive Posted 10:52 PM on 09/26/2009
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...think about these little injustices that compound slowly, here and there across the country, until we reach a place that 1950 never imagined..­. WE have no rights unless we are rich. WE have no guarantees, no safety nets, nothing. all the things we thought we had growing up american turn out to be completely illusory..­.

    Favorite    Flag as abusive Posted 10:29 PM on 09/26/2009
- poster1122 I'm a Fan of poster1122 27 fans permalink

Reading the comments here, it's clear that people don't realize that the majority opinion in this case was actually issued by the liberal wing of the Supreme Court (Stevens, Ginsburg, Breyer and Souter), joined by Justice Kennedy. In particular, it was Justice Stevens that wrote the majority opinion.

The principal dissent was written by Sandra Day O'Connor and was joined by Rehnquist, Scalia, and Thomas.

Google Kelo v. City of New London:

http://en.wikipedia.org/wiki/Kelo_v._City_of_New_London#Majority_and_concurring_opinions

    Favorite    Flag as abusive Posted 10:27 PM on 09/26/2009
- Peleador I'm a Fan of Peleador 16 fans permalink

Everyone just assumed that it must be a conservative that would do something so evil, rather than a well-meaning 'social justice' liberal.

    Favorite    Flag as abusive Posted 01:54 PM on 09/27/2009
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The dispicable ruling by the Supreme Court is akin to their stance on Intellectual Property Rights. The Court displayed its crony favortism for Corporate America, and continues to do so without regard for the rights of individuals.

Eminent Domain gives the state the right to take property with just compensation, and New London Conn is the prime example of corprate abuse and government corruption that exists with such rampant malfeasances ... when will we return to the Rule of Law as a nation?

Obama, re-appointed Bernanke, the leader of the private corporation, the Federal Reserve that holds the nations wealth hostage to the gambling antics of a few banks. Our Senate refuses to audit the Federal Reserve ... why audit it when you are benefiting from their treasonous actions?

When does it become treason? $23.7 trillion.
When will the banking shennanigans cease? I estimate that another $20-$40 trillion will get spent before they will have destroyed the US dollar, it's place as the worlds reserve currency will end soon [if not already?], all this culminating in starvation and unemployment in our nation of epic proportions.

Either Obama and Congress don't know how we are being swindled ... or they have become co-conspirators with the slave masters of debt and wage labor.

    Favorite    Flag as abusive Posted 08:58 PM on 09/26/2009
- BushBites I'm a Fan of BushBites 31 fans permalink

Developers are creeps.

    Favorite    Flag as abusive Posted 07:44 PM on 09/26/2009

Should burn all the land undeveloped, and salt it heavily. It would serve these greedy B@st*rds right.

    Favorite    Flag as abusive Posted 07:27 PM on 09/26/2009

Why not put that land to good use? Spray all the spewage that gets blown across the country during political campaigns over the unused land, then open it up for community gardens. God knows the soil will be well-fertilized.

    Favorite    Flag as abusive Posted 01:36 PM on 09/27/2009

I would like to add one tidbit. In the past two years, a neglected city owned property (old movie theater) was sold to a known felon for $1. He had served time in prison for monetary fraudulent actions. He also had a known and public record of negotiating urban development projects that never ever happened beyond his own imagination. The City Council, with all the facts available, were able to deduce in their infinite wisdom and competence that selling this property to this man for a dollar was a great idea. A year later, after certain stipulated benchmarks were not met by the new owner, the city decided to allow him to keep the property. He now owned the property outright and now has to do nothing. Again, I want to thank the Old Grey Mayor and her Council Cowpokes for coming up with that one.

Just one more thing. I remember reading in a book on the history of New London, that back in the 1960's several nice historical buildings were torn down to narrow the street. It is too bad they didn't tear down City Hall instead of the Fort Trumbull neighborhood. But I hear great news around the bend. The New Eminent Domain Museum sign will be constructed soon. I can't wait to go visit and welcome all the tourists.

    Favorite    Flag as abusive Posted 06:07 PM on 09/26/2009
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Sometimes, when development benefits thousands, it is ok to sacrifice a few. It's not like people are dying here, they are being compensated for their property. In my town, a company was trying to build a power station on some unused property next to a large airport. It was not ideal neighborhood property, yet many people in the town fought and fought. The power station, which was built anyway, is a highly efficient gas turbine station. It emits no particulate pollution other than water vapor. The company would have given the whole town a break on electric rates, but couldn't because they spent so much defending the project in court. The company eventually went bankrupt and sold the station. It looks like the same thing happened here. A beneficial project was destroyed because a small number of people were too short sighted to realize they had the power to help thousands of people. Is it really a good idea to sacrifice progress so that a few people don't have to move across town? Sounds ludicrous to me.

    Favorite    Flag as abusive Posted 05:03 PM on 09/26/2009
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I'm not quite sure that building adjoining shopping malls actually benefits thousands of people. If the power station went belly up, perhaps it had nobody to sell power to, having run everyone else off. Actions have consequences, and since you say it was beneficial and worked well it should have been able to stay in business. But then we do this all the time - shoot ourselves in the foot and blame someone else for pulling the trigger.

    Favorite    Flag as abusive Posted 05:16 PM on 09/26/2009
- Hillrick I'm a Fan of Hillrick 125 fans permalink
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Sounds like what I got out of the article. Fanned for clear thinking and sweet avatar.

    Favorite    Flag as abusive Posted 05:43 PM on 09/26/2009

If the land was undeveloped, it was worth a shot, tho, if it met basic economic and environmental review.

The actual time for legal action *does* need to be brought more under control. Dragging things out serves NOBODY.

    Favorite    Flag as abusive Posted 06:34 PM on 09/26/2009
- Jaywalkker I'm a Fan of Jaywalkker 51 fans permalink
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It was the precedent that this case set. This wasn't for municipal services, it was for glittering commercial development that has fallen flat. After this case was released, a suburb in DFW instantly lost its case against a Wal-Mart going up on residential zoning. This precedent also allowed Jerry Jones to build the monstrosity that is the new Cowboys stadium in Arlington, TX that I have to drive by every day on my commute.

    Favorite    Flag as abusive Posted 05:20 PM on 09/26/2009
- quindy I'm a Fan of quindy 32 fans permalink

Eminent domain was only used when the govt. had interest in the property. In this case it was a private developer that got eminent domain. I would like to see you if you had property that some jerk wants to develop and your property is taken from you. No private person should have that right. It is one thing to build a highway and another to build another house.

    Favorite    Flag as abusive Posted 08:59 PM on 09/26/2009
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CT is full of unused eminent domain property - Bolton CT has large swath with abandoned homes now used by cops for practice. It's VERY sad.

    Favorite    Flag as abusive Posted 04:38 PM on 09/26/2009
- Nishnabe I'm a Fan of Nishnabe 31 fans permalink
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I am native, we know all about eminent domain. Here in Indiana a housing project for seniors went belly up. Consider. the project was condos for seniors selling at 150 to 250 thousand dollars apiece. They would have been occupied at best for 10-15 years and then had to be sold under restrictions, which means that the developer would have made a killing while families were left with grandpa or grandma in assisted living or passed away. The city approved it because, well, the developers pay a lot of money to local politicians. There are literally half dozen housing projects half empty or unfinished and not one of the housing developments were "greened." These developers and the cities do not have citizen interests at heart. If politicians do not hear these warnings there will be hell to pay in a few years. Development without restrictions is not the answer.

    Favorite    Flag as abusive Posted 04:35 PM on 09/26/2009

I don't understand the ".. and then *had* to be sold under restrictio­ns." I'm not sure any state is allowed to demand a property be sold at a particular time.

Please clarify.

    Favorite    Flag as abusive Posted 06:25 PM on 09/26/2009
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I don't believe he's referring to restrictions as to when to sell. He's saying that condos for seniors, realistically, have a relatively short time that they'll be used by any buyer. The elderly owner is no longer able to live on their own or passes away, and the family has a condo in a development for seniors that they probably can't live in themselves (they're not seniors) and that they may not be able to find a buyer for (because they have to be seniors).

    Favorite    Flag as abusive Posted 08:09 PM on 09/26/2009
- poster1122 I'm a Fan of poster1122 27 fans permalink

Actually, that's the point of eminent domain. The state determines that it needs property (theoretically for public use) and can require a property owner to sell for "just compensati­on." But they can most definitely force you to sell, and that's been the law since before the founding of this country.

What's different in New London was that "public use" was redefined to not just mean I need this land for a rail line, an airport, a public park, etc. But to give it to a developer on the theory that it would improve value for the community.

    Favorite    Flag as abusive Posted 10:16 PM on 09/26/2009
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Arlington Heights, Illinois tried to exercise eminent domain over a shopping center (owned by Korean interests) to put in a Super Target. The owners sued (mostly on racial discrimination grounds) and dragged the case out so long that the original decision expired. Because of the economy, Target has dropped the entire affair. Arlington Heights actually hurt their revenues by continuing to aggravate efforts to develop the surrounding area, by refusing to approve blue prints, for example.

The whole thing was instigated by greed, nothing more. And the fact that AH is one of the WORST towns in the Chicago area for frivolous building codes. For example, my chiropractor's office MUST have a sink in EVERY "examination room" (they do adjustments, not surgery). And they wanted showers installed because they have massage therapy. All of this code so the town could charge more for building permits, and perhaps to get a few dollars kicked back at them by the plumbers union (just an opinion; but this is the Chicago area, home to the worst roads in America, I believe, because the same criminal enterprise has been building them since I was a kid).

SOT

    Favorite    Flag as abusive Posted 03:53 PM on 09/26/2009

I went through Arlington Heights once. Stopped for something to eat, and when I walked back to the car I found a cop all ready to write a ticket because I'd parked in a Handicapped parking slot.. He didn't notice the parking placard hanging in the window. Followed me all the way out of town.
'Nuff said? I don't go anywhere NEAR Arlington Heights anymore.

    Favorite    Flag as abusive Posted 01:27 PM on 09/27/2009
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