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November 13, 2009
The final collapse of redevelopment plans in New London leads to new scrutiny of eminent domain for Atlantic Yards
Atlantic Yards Report
The Kelo vs. New London case is experiencing some serious blowback, now that the entire rationale for eminent domain there has unraveled.
While the commentary does not directly address Atlantic Yards--where the justification for eminent domain is the removal of blight, not the pursuit of economic development--the experience in New London may nudge judges (like, say, the New York Court of Appeals in the AY eminent domain case) and legislatures toward greater scrutiny and skepticism of eminent domain.
The court decision
Remember, the Supreme Court, in its controversial 5-4 2005 decision, upheld the city of New London's plan for eminent domain because, as the majority opinion concluded:
The City has carefully formulated an economic development plan that it believes will provide appreciable benefits to the community, including–but by no means limited to–new jobs and increased tax revenue.
Moreover, Justice Anthony Kennedy, in his nonbinding concurrence (seized on by plaintiffs in the unsuccessful Atlantic Yards federal eminent domain case), observed:
This taking occurred in the context of a comprehensive development plan meant to address a serious city-wide depression, and the projected economic benefits of the project cannot be characterized as de minimus.
(Emphases added)
The problem: Pfizer will close its global research and development headquarters in New London, ending any lingering hopes that anything would happen with the long-dormant plan.
Posted by eric at November 13, 2009 11:12 AM