Definition
New London, City of L refers to the landmark 2005 Supreme Court decision in Kelo v. City of New London, where the court ruled 5–4 to affirm the constitutionality of using eminent domain to condemn private land for the purpose of economic development. In this instance, the city of New London, Connecticut, intended to take private property to further economic developments that would benefit the community. The ruling stated that “public purpose” could encompass commercial developments expected to enhance tax revenues and stimulate economic growth, even if the land is eventually used for private enterprise.
Examples
Example 1: Euless, Texas
The city of Euless condemned private homes located behind a shopping center to facilitate the shopping center’s expansion and enhance its competitive standing. The city then sold the acquired property to the shopping center owner for redevelopment. The project sought to increase sales tax revenue for the city despite protests and claims that the condemnation exceeded constitutional rights.
Example 2: Atlantic Yards, New York
In Brooklyn, New York, the state used eminent domain to acquire private land for the Atlantic Yards project, arguing it served a public purpose by revitalizing a blighted area. The development included an arena, housing, offices, and retail spaces. Despite opposition from property owners, the state’s argument prevailed in court.
Frequently Asked Questions
What was the primary legal issue in Kelo v. City of New London?
The central issue was whether the use of eminent domain to transfer land from private owners to a private developer for economic development constituted a permissible “public use” under the Fifth Amendment.
What was the Supreme Court’s decision in Kelo v. City of New London?
The Supreme Court ruled in a 5–4 decision that economic development projects that confer a public benefit, such as job creation and increased tax revenues, can satisfy the “public use” requirement of the Fifth Amendment, justifying the use of eminent domain.
How did the Kelo decision impact eminent domain laws?
The Kelo decision prompted several states to reevaluate and restrict their eminent domain laws to offer greater protection for property owners against condemnation for economic development purposes.
Are there any states that changed their laws post-Kelo?
Yes. Many states, such as Texas, Florida, and Michigan, have passed laws to limit the use of eminent domain for economic development subsequent to the Kelo decision.
Did all states react the same way to the Kelo ruling?
No. While many states imposed stricter regulations on eminent domain, others maintained more lenient approaches, assessing such cases on an individual basis.
Related Terms with Definitions
- Eminent Domain: The power of the government to take private property for public use, provided that just compensation is offered.
- Public Purpose: A justification under the law that permits the use of eminent domain; traditionally including infrastructure, parks, and public buildings; expanded by Kelo to include economic development.
- Condemnation: The legal process by which the government exercises its power of eminent domain.
- Blight: A term used in real estate to describe an area in a city that is rundown or underdeveloped, often cited as a justification for redevelopment.
- Just Compensation: The requirement under the Fifth Amendment that the government must provide fair market value payment to property owners when exercising eminent domain.
Online Resources
- Supreme Court of the United States - Kelo v. City of New London Decision
- Eminent Domain Law - Nolo
- Institute for Justice - Kelo v. City of New London Case Details
References
- Kelo v. City of New London, 545 U.S. 469 (2005)
- Epstein, Richard A. “Takings: Private Property and the Power of Eminent Domain” (Harvard University Press, 1985)
- Garnett, Nicole. “The Neglected Political Economy of Eminent Domain” (Michigan Law Review, 108, n.d.)
Suggested Books for Further Studies
- “The Grasping Hand: ‘Kelo v. City of New London’ and the Limits of Eminent Domain” by Ilya Somin
- “Property Rights: From Magna Carta to the Fourteenth Amendment” by David Prenoveau
- “Eminent Domain: A Comparative Perspective” edited by Iljoong Kim, Hwa-Jin Kim, and Ilya Somin
- “The Economics of Eminent Domain” by Micah Herrick
