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January 10, 2006
Brooklynites watch eminent domain case in Ohio
The Ohio State Supreme Court is scheduled to hear arguments in an important eminent domain case in Norwood, this Wednesday.
Two couples are contesting the City of Norwood's right to condemn their property for reasons of blight in order to make way for an expansion of Rookwood Exchange, a mixed-use private development.
At stake is the definition of "blight." The Ohio Supreme Court's decision in this case could affect how state legislatures define "blight," as they craft property-rights legislation in response to the public backlash of the US Supreme Court's ruling in Kelo v. New London, handed down in June, 2005.
This case is being watched carefully by developers, municipalities, legal scholars and property owners under threat of eminent domain, because it could be headed to the US Supreme Court, where the magnitude of a decision would be similar to that of the Kelo ruling.
HOW DOES THIS CASE AFFECT BROOKLYN?
The Norwood case bears more resemblance to the situation in Brooklyn than Kelo.
When Forest City Ratner first announced plans to build an arena and 17 highrise towers, two justifications were given for condemnation of private property: "economic redevelopment" and "blight."
Though the Supreme Court decided the Kelo case for the City of New London, Justice Kennedy provided some guidance for lower courts against government's abuse of power in his concurring opinion. Kennedy wrote, "a court applying rational-basis review under the Public Use Clause should strike down a taking that, by a clear showing, is intended to favor a particular private party, with only incidental or pretextual public benefits."
Kennedy's statement, providing a legal basis to challenge the Ratner plan, and the public backlash against Kelo, made the "economic redevelopment" strategy tricky, maybe even untenable, in the largest media market in the world. That leaves Ratner and the State of NY with Plan B, the "blight" justification.
Though the Brooklyn case is no doubt headed to the courts after the eminent domain notifications are issued, the Norwood case is further along.
Both cases involve: * politically well connected developers, * with plans to build a privately owned mixed-use development, * who own the adjacent recently developed commercial real estate, * who want the government to condemn property to expand their real estate holdings (in Forest City Ratner's case, they are already the largest private property owner in Brooklyn), * who are claiming that the neighborhood is "blighted," despite evidence to the contrary, and * in a bizarre coincidence, the Gambles' home is on Atlantic Avenue in Norwood.
If the Norwood case is ever heard by the US Supreme Court, it could be the final word from the high court for a long time on the definition of "blight" used to justify making way for private development.
Here's a sampling of local coverage in the Ohio press:
The Cincinnati Enquirer, Eminent-domain case goes to court
[The attorneys for Norwood and the developer will] contend that Norwood was serving the public good by trying to replace a deteriorating neighborhood with a new development that would create jobs, housing and generate badly needed tax revenue.
Cincinnati Business Journal, Rookwood heads for showdown
Lead plaintiff Joe Horney... said it's not about money.
"I feel very strongly that my case can re-establish property rights and protect Ohioans from what I believe to be a terrible injustice," Horney said. "The fact that they took my case speaks very loudly that my case has merit, and that to me is perhaps just as important as winning."
Lawyers for each side will get 15 minutes to present. A ruling could take months.
AP, via Beacon Journal, Property rights case may set precedent
How the Ohio court deals with the issue of blight has important ramifications for municipalities around the country, said Steven Eagle, a George Mason University law professor.
For those who want to learn more about the Norwood case, check out, "The Condemned" published last year in Mother Jones.
Posted by lumi at January 10, 2006 8:26 AM