American Elephants

Do you remember Kelo v. City of New London? It involved the constitutional question of eminent domain, which has traditionally allowed governments to condemn privately owned land only for a public purpose such as a needed bridge or a freeway, a use that serves all the people.

The Supreme Court’s 2005 decision stands as one of the worst in recent years, handing local governments the option to seize private property in the name of “economic development.”

Suzette Kelo’s little pink house in New London, Conn. was seized by private developers for a project including a hotel and offices intended to enhance Pfizer Inc.’s nearby corporate facility and New London’s tax base.

In the late 1990s, politicians in New London were desperate to fix up their aging and ailing town. The city set up a private, non-profit entity  which set about making a plan for a new New London.

The centerpiece would be a massive research and development facility which Pfizer needed, and they were right across the river in Groton. The politicians picked a 24 acre lot and sold it to Pfizer for $10, and added on some special tax breaks, including cleanup of the lot.

Sweet deal, but Pfizer wanted it sweetened a little more.  The old Victorian houses in the Fort Trumbull neighborhood next door were not what Pfizer envisioned.  They thought a high-rise hotel and luxury condominiums would be just the thing.

The development corporation, empowered with eminent domain by the city, condemned the homes of anyone who wouldn’t sell at its appraised value.  Suzette Kelo and others sued to block the condemnation, and fought it all the way to the U.S. Supreme Court.

There the five justices ruled  in favor  of the developers.  America was shocked.  The Court cited the development plan’s “comprehensive character” and the politicians “thorough deliberation.” And besides, it would improve the tax base and attract needed jobs. The city and the state spent around $78 million to bulldoze the homes.

But the development never happened. Pfizer merged with Wyeth, decided to close its research and development offices, and move back across the river with some 1400 jobs.  The property remains vacant, overgrown with weeds and rubble.  No jobs, no business. And Kelo remains one of the most reviled decisions of the Supreme Court in years.

In the face of the outcry, many states have taken action to strengthen eminent domain. But Kelo must be repealed.