Earlier this week the Supreme Court ruled against the homeowners in the closely watched case about the powers of local governments to exercise eminent domain. In their 5-to-4 decision, Kelo v. New London, the judges gave the green light to the city redevelopment authority to condemn the old waterfront neighborhood so a private developer can put office and apartment buildings in their place. While eminent domain never sits quite right with us, we can see some justification in the case of critical infrastructure like major roads, railroads, and even in truly blighted neighborhoods, though we realize that in itself can be a slippery slope. But what a scary precedent that a city can dispossess law-abiding, tax-paying citizens from their homes in order to make way for a fancier development! The amount of compensation the City of New London is offering homeowners is based upon appraisals from 5 years ago–so it’s a safe bet that the numbers are significantly below market value. In her dissent, Sandra Day O’Connor worried that the decision would mean that the government could transfer any private property from the owner to another person with more political influence “so long as it might be upgraded.” Bet you won’t hear Bruce Ratner complaining about this decision.
Justices Uphold Taking Property for Development [NY Times]
Homeowners Frustrated at Court Ruling [NY Times]
OpEd: The Limits of Property Rights [NY Times]