2/23/2005

Private land vs. public control: The Philadelphia (PA) Inquirer, 2/23/05

Phila. area is watching as justices weigh Conn. eminent-domain case

By Stephen Henderson

The Supreme Court yesterday appeared sympathetic toward a group of New London, Conn., homeowners fighting to keep their land, but the justices seemed equally skeptical of their own power to keep the city from seizing the property to create an upscale development.

It is the first significant case on eminent domain, the power of the government to condemn property for redevelopment, to reach the high court in years.

The case is being closely watched in the Philadelphia area. On Monday, protesters gathered in Ardmore in Montgomery County and Westville and Haddon Township in South Jersey to oppose plans to use eminent domain to seize private property and then develop condominiums, shopping centers or other projects.

The justices fired relentless questions at a lawyer representing the New London residents about why he thought the court should be involved in the eminent-domain dispute and how he would have them distinguish between proper and improper property seizures.

But they also questioned the city's position that it could use eminent domain to condemn any property to have it developed into something that produces more tax dollars or creates more jobs.

"Say you have a Motel 6, and the city wants to turn it into a Ritz-Carlton," Justice Sandra Day O'Connor said. "Is that sufficient reason?"

Wesley W. Horton, the lawyer representing New London, said it was. As long as the first owner is compensated, and the city determines there is a public benefit in upgrading the use of the land, the Constitution's protections against improper seizures do not apply, he said.

Scott Bullock, a lawyer with the Institute for Justice, which is representing the New London residents, said Horton's standard could threaten all private property owners.

"Every home or church could be replaced by a Costco, a shopping mall or private building that would produce more tax dollars," Bullock said. "This is about limiting eminent domain to public use."

Over the years, the Supreme Court has deferred to the decision-making of elected state and local officials.

The court said in 1954 that it was legal for urban renewal to encompass non-blighted commercial buildings in a blighted neighborhood. In 1984, the court upheld a Hawaii law that broke the grip of large landowners, with property being taken and then resold to others.

The New London residents say taking property from one private owner and giving it to another who will pay more taxes is not covered under the public-use requirement in the Fifth Amendment.

New London, which is backed by many other cities, counters by saying economic development is a legitimate public purpose. New London, a town of less than 26,000, once was a center of the whaling industry and later became a manufacturing hub.

If the court sides with the Connecticut residents, it would cast doubt over projects around the country involving land for waterfront entertainment districts, high-rise office buildings, big-box stores, and even baseball stadiums.

Justice Antonin Scalia seemed more moved yesterday by the sense of impending loss by the homeowners. Even though the New London residents will be compensated for their property, "what this lady wants is not money," Scalia said of Susette Kelo, who brought the suit against New London. "It's her home."

Hers is an "objection in principle," Scalia said.

Other justices struggled to define how the court could draw lines between what was or was not for the public benefit and which kinds of developments could justify property seizures.

O'Connor admitted that the court's prior decisions on this issue left little room for "second-guessing" the power of eminent domain.

"I guess I'm not sure what role there is for us here," she said.

Chief Justice William H. Rehnquist, who is battling thyroid cancer, did not attend the arguments in the case, Susette Kelo v. City of New London and New London Development Corp. Justice John Paul Stevens was out of town and missed the day's arguments.


The Philadelphia Inquirer: www.philly.com

2/22/2005

Homeowners fight eminent domain decision: WSFB TV3 (CT), 2/22/05

Imagine you've finally paid off your mortgage, then you're charged rent for the land you thought you owned!

That's what's happening to seven homeowners in New London's embattled Fort Trumbull neighborhood.

Mathey Dery says, "My first thoughts are these are our homes. We don't owe anybody to live here."

Matt Dery's family has called Fort Trumbull their home for four generations.

"This property has been mortgage free since 1958," he says. "My parents are in their mid 80's. They live here, they want to collect rent from them. They want to collect rent from us on our own home and also wanted our tenants to pay them."

The neighborhood was taken over thru eminent domain by the New London Development Corporation. They won a long battle last winter when the state Supreme Court ruled in their favor for the right to seize property.

Now, the city's development arm is asking the Dery's and other homeowners to pay use and occupancy fees.

A nearly $230,000 figure is now owed by the Dery's. That's $76,633 over the past three years or $6,386 a month.

"I guess if we stay here a few more years we're going to have to give them our furniture and a couple of dogs," Dery says.

Eyewitness News made several attempts to talk with the NLDC about the occupancy fee issue, but they gave no comment.

This eminent domain war is not over. According to homeowners, the occupancy fee issue is just another skirmish which they vow to fight.

As previously reported, the NLDC is holding in escrow the money to buy the property from the seven owners.


WSFB TV3: www.wfsb.com

Taking sides on eminent domain: The Philadelphia (PA) Inquirer, 2/22/05

Foes see a loss of rights. Others say it is needed at times to secure redevelopment's benefits. U.S. justices are to hear a case today.

By Wendy Ruderman

Residents from three towns in the region took to the streets yesterday, rallying against what they call an unholy alliance between local governments and developers.

The protesters in Ardmore in Montgomery County and Westville and Haddon Township in South Jersey are upset at politicians using their power to seize private property and give it to developers seeking to profit from building condominiums, shopping centers or other projects.

"I was under the impression that the right of home ownership and the right to protect your property was granted to us in the Constitution, but I've since learned that it's not. It's a privilege granted to us by local government," said George Baker, whose Westville home on Big Timber Creek sits in the path of a potential waterfront development.

The battle over eminent domain, the government's long-held right to take private property in the interest of public good, is making headlines across the country.

Today, the U.S. Supreme Court is scheduled to hear arguments in a case pitting Connecticut residents against officials wanting to boost tax revenue with more upscale homes and shops.

Critics say politicians should not be in the real estate business - especially not when developers donate to political campaigns.

Public officials counter that most redevelopment does not involve hostile property takeovers, but that those that do are necessary for revitalization.

If developers profit in the process, so be it.

Collingswood Mayor M. James Maley, a redevelopment lawyer, said he wanted the developer "to make money, but I want him to make money in a way that improves the community of Collingswood."

Collingswood, once troubled by crime and neglected properties, has become a kind of poster child of redevelopment, with trendy shops and restaurants. So much so that mayors across the region want to duplicate its Cinderella story, which did involve some eminent domain.

Maley, with the Marlton law firm of Parker McCay, is a consultant on more than two dozen redevelopment projects in the region.

Elected officials said critics were overlooking dozens of redevelopment success stories in the region that had not involved taking people's homes.

"Redevelopment is not synonymous with eminent domain," said Louis Bezich, a former business administrator for Camden County whose Haddonfield consulting firm, Public Solutions, was hired to help drive redevelopment in economically depressed towns along the White Horse Pike, including Barrington.

A few years ago, Barrington obtained the 2.6-acre Custom Metal Arts site on Gloucester Pike through tax foreclosure and courted redevelopers using financial incentives. The vacant building was refurbished and is now occupied by SAR Automotive Equipment, a distributor and installer of garage lifts.

Once an area is declared a redevelopment zone, local officials can harness a variety of powerful tools, such as eminent domain. They also can select a developer without competitive bidding, grant long-term tax exemptions and abatements, issue bonds to pay for the project without a public referendum, and more.

In many cases, the developer provides the financial backing for a project that would otherwise fall to taxpayers. Under the Westville proposal, the developer, Fieldstone Associates of Doylestown, is expected to shoulder the estimated $40 million cost.

In Haddon Township, Fieldstone is proposing housing and retail space in the long-vacant Dy-Dee Diaper Service building on Haddon Avenue. The township would issue $5 million in bonds, and the developer would pick up the rest.

Without financial incentives to sweeten deals, many developers wouldn't look twice at most proposals, redevelopment supporters said.

"The government needs to be involved to help make it happen, because it is obvious that the private marketplace is not doing it," Maley said.

The problem is, town officials across the nation find themselves giving away more and more, said Dan Emerine of the Smart Growth Network, a federally funded coalition of organizations dedicated to tackling sprawl.

"A lot of times, jurisdictions compete against each other, and eventually everyone loses because it creates a race to the bottom in terms of providing tax incentives to encourage economic development," Emerine said.

While many experts agree that redevelopment is often a good thing, some say the system invites corruption and cronyism.

And too much redevelopment could create intense competition to attract a limited number of retailers and consumers, dooming some projects.

At the heart of the debate is who benefits most.

Among those making money from the redevelopment boom are politically connected consultants, bond counsels, bond underwriters, engineers and architects, union workers, and developers.

"I am making money. That's why I work," Maley said. "Some people will get financial benefits out of it, absolutely. The question is: Is there a greater public good that is served by accomplishing the redevelopment?"

Westville resident Alan Peters thinks so.

"We'll reap the benefit of it eventually," said Peters, who estimated that the value of his waterfront home, which is not part of the redevelopment proposal, would increase by as much as $50,000.


The Philadelphia Inquirer: www.philly.com

Eminent Domain Stirs Wal-Mart Controversy in Ogden: KSL TV5 (Salt Lake City UT), 2/21/05

By John Daley

A new Wal-Mart store is once again stirring controversy, this time in Ogden. The fight's over a tool governments use called "eminent domain."

That means property owners can be forced to sell.

The city of Ogden sees this new Wal-Mart as a key to downtown revitalization, bringing in 7,000 shoppers a day. But some property owners refused to sell, and are now fighting the city's attempt to use "eminent domain" to acquire the land.

The property is within a few blocks of Ogden's struggling downtown 21-acres now occupied by 34 homes and eight businesses. Most property owners agreed to sell to the city's redevelopment agency.

But when the city moved to use eminent domain to acquire the others, that sparked a revolt from the likes of Dorothy Littrell, who bought land in the neighborhood just so she could sue the city on constitutional grounds.

Dorothy Littrell/ Property Owner: "I am not going to sit by and let it happen without screaming all the way down."

Milton Rodriguez/ Property Owner: "We've spoken to them and they don't want to listen to the people around here. It's all about the money."

Cris Rodriguez/ Property Owner: "I think the city leaders are looking down here and they're not seeing people or businesses. They're seeing dollar signs."

But Ogden's mayor, Matthew Godfrey, says eminent domain was used only as a last resort, when a few property owners refused to sell.

He says: "We don't like to do this. We feel bad about the people who don't want to sell, but I think it's in the greater good that we redevelop this area."

The city and some property owners simply can't agree on what's a fair price. Protesters call it a case of Robin Hood in reverse — stealing from the poor and giving it to the rich.

Bill Glasmann/ Wal-Mart Opponent: "We've got a Wal-Mart what, maybe 15 blocks to the north of us, and 30 blocks to the south of us. And now they want to put a big box down here at the expense of these people."

Tom Owens/ Wal-Mart Opponent: "It's wrong. It's fundamentally wrong to kick people out of their homes and give them less than it's worth, because they got the power to do it through eminent domain, and then give that to the biggest company in the world."

I spoke with another resident of the neighborhood who says he's happy to sell his land and thinks he's getting a higher price than he could have without Wal-Mart coming.

If the city prevails in court, construction could begin later this year.


KSL TV5: http://tv.ksl.com

Eminent Domain or Legalized Robbery? : MensNewsDaily, 2/22/05

by Pete Jensen

This originally started as a blog entry, but the more I read about it, the madder I get.

Good reader, I like that computer you are using to read this. In my opinion, however, you aren’t really using it to the maximum potential for the good of everyone. You use it for games, and for net surfing, and little else of consequence. I, on the other hand, could use it in a variety of ways to generate jobs, income, and taxes for the betterment of all.

So, nice guy that I am, I am going to take your computer. Don’t worry, though. I will give you “fair market value” for the system. Of course, I will be the arbiter of fair market value, and the point of appeal if you don’t like it.

Now, I am willing to bet dollars to doughnuts (Unless you are one of those spineless arch-lefties who read me because you love the abuse) that if I showed up on your doorstep with such a spiel and a writ of confiscation that I’d be leaving with more than I bargained for, namely, a fat lip. I know if my abode and castle were set upon by the federales in the name of more taxes for them, I’d be tempted to leave them a little present (A breeder reactor) as a last great act of defiance and a way of saying “F**k your canoe!”*

But this is precisely the reasoning that the tyrants who are in control of many of our esteemed governmental institutions use when they decide that Megamart or the International Widget Factory could generate more money for their coffers than you with your simple home. They decide on a “fair market value” (Which always seems to be within the budgeted amounts – strange.) and assign it to you, then evict you at gunpoint and level your home in favor of putting up some development, or Superstore, or factory. Never mind that you may be a fourth generation owner of that property, or it may contain many memories for you or your children. You don’t need it anymore. Big Brother says so. And surely Brutus is an honorable man….

Today, Tuesday, the 22nd of February 2005, the United States Supreme Court will be hearing arguments in the case of Kelo et al. vs. City of New London. In this case, as in many others since the infamous Michigan Poletown decision, the land is being seized for private development, as opposed to public use, with the specious rationale that more tax dollars into the city coffers is “for the good of all.”

Poletown, for those not in the know, was a landmark eminent domain decision by the Michigan Supreme Court that allowed a massive government thieving of private property in Detroit during the 1981-1982 recession. The outcome of that case resulted in the government condemnation, seizure, and bulldozing of 1,400+ homes, 144 businesses, and 16 churches in the Poletown neighborhood on Detroit's Lower East Side so General Motors could build an assembly plant. This was enacted because GM threatened to pull up stakes and move that operation out of Detroit if the city didn’t capitulate to their demands. This little piece of government sanctioned corporate extortion has since been overturned, but it has provided for years many states and municipalities with the ammo to steal homes and businesses and turn around and transfer that land to bloated and moneyed developers in the name of providing “Mo’ Money, Mo’ Money, Mo’ Money!” for their unbalanced budgets, and short-sighted, harebrained legislation and boondoggles.

It’s cases like this that underline why I am not a capitalist, but a free-marketer; while I perfectly support the right of people to make money and even (gasp!) keep the fruits of their labor, the middle-class schmoe has as much right to his small slice of the pie as some mega-corporation, and deserves the right to extend an abrupt upward thrust of his middle finger to any such corporation trying to pressure him out of his house and land. Eminent Domain is one thing when used to build a needed military installation, or to create an easement for utilities and such, but such things fall under public use. The ostensible reason for private money is so that a big company like General Motors can upgrade an existing piece of land, run utilities to it, and thus make it theirs, and all the profits deriving from it as well. It’s not to let them attach like a lamprey to the public teat so Da Gubbmint can pay pennies on the dollar for private land and turn around and resell it to GM at bargain basement prices.

It’s crap. Pure crap.

Make no mistake, folks. When your ancestral home can be descended on by bean counters; a home which is not a pig-sty, is lived in, and which you do so lawfully and with title, when you are made an “offer” for someone else’s definition of fair market value, when you can be forced to take it, and run out by the sheriff so that the city fathers can sell it off to Gadgets-R-Us for the sake of enriching the city coffers, you have no property rights. It becomes tyranny. It’s intolerable, and is a make-or break single issue that should decide your vote every fall.

One of the few legitimate functions of government is to secure the rights of property, and furthermore it is the most fundamental of the rights in a free society; without the right to the fruits of your labors the rest of your liberty is in dire peril. This is the same attitude by which your property can be seized for a crime even without due process, without an indictment, and without a conviction. This is the same attitude by which the government mandates the breakup of families. This is the same attitude by which busybodies in their ivory towers tell you who you must or may not associate with, hire, fire, or let into your private clubs. And if let unchecked, it will not become smaller. This is what leads to being told what you are forbidden or are compelled to read, to watch, to learn, or to be employed at.

Since Poletown, this has been used by companies across American to leverage economic blackmail across the country. Once it is made clear that if the local government does not act, an established company will go elsewhere, municipalities have slavishly complied and driven thousand from their homes and businesses, often given a pittance of compensation for the sake of mandating sales to that company because the company is unwilling to pay a fair market value for prime real estate. The right thing for the SCOTUS to do would be to empower cities and towns to stand up to such extortion by removing the capability for them to deprive citizens of their property, and to correct the grave imbalance of power which they have abused and proven themselves unworthy of.

Turn a jaundiced eye eastward this day to Washington, my friends, and watch; and let your elected representatives know that they are being watched, and that if the Supreme Court refuses to act, you will in turn expect them to act.

For all you know, your house is next.

*Okay, for those who don’t know the joke, it’s a 3 missionaries captured by cannibals who tell them they will kill them, eat them, and make canoes out of their skins - but they get a last wish. The first two are conventional: Gourmet meal, night with a gorgeous woman, but the last wants a fork, whereupon receiving it he begins stabbing himself while shouting “F**k your canoe!!!”


mensnewsDaily: www.mensnewsdaily.com

Supreme Court justices hear eminent domain arguments: The (New London CT) Day, 2/22/05

By Pete Yost, Associated Press

Supreme Court justices expressed serious doubts Tuesday whether the court has the authority to protect some residents in New London, Conn., who face losing their homes to the city's ambitious program for economic revitalization.

Susette Kelo and several other homeowners filed a lawsuit after city officials announced plans to bulldoze their residences to clear the way for a riverfront hotel, health club and offices. The residents refused to move, arguing it was an unconstitutional taking of their property.

The case's outcome will have significant implications for so-called eminent domain actions.

Scott Bullock, representing the neighborhood residents, argued that government cannot take private property from one owner and provide it to another just because the new commercial project will give a boost to the city's finances.

"More than tax revenue was at stake," said Justice Ruth Bader Ginsburg. "The town had gone down and down" economically.

Justice Sandra Day O'Connor questioned whether the homeowners were asking the court to "second-guess" the power of eminent domain.

Chief Justice William Rehnquist, who is battling thyroid cancer, did not attend the arguments and will be absent for the next two weeks. He has not attended arguments since October.

There have been over 10,000 instances in recent years of private property being threatened with condemnation or actually condemned by government for private use, according to the Institute for Justice. The group represents the New London residents who filed the case.

The issue revolves around whether a government is serving a public purpose when it uses its power of eminent domain to take land. The Fifth Amendment prohibits taking private property for public use without just compensation. The New London case is not about the amount of compensation being offered, but whether the government can take the property at all.

Over the years, the Supreme Court has deferred to the decision-making of elected state and local officials.

The court said in 1954 that it is legal for urban renewal to encompass non-blighted commercial buildings in a blighted neighborhood. In 1984, the court upheld Hawaii's land reform law that broke the grip of large landowners, with property being taken and then resold to others.

More recently, many cities and towns have been accused of abusing their authority, razing nice homes to make way for parking lots for casinos and other tax-producing businesses.

New London, a town of less than 26,000, once was a center of the whaling industry and later became a manufacturing hub. More recently the city has suffered the kind of economic woes afflicting urban areas across the country, with losses of residents and jobs. City leaders say the private development will generate tax revenue and improve the local economy.

"The undisputed facts regarding the steady deterioration of New London's economy from the 1970s onwards demonstrate the dire need for such a development project," the city told the court.

The New London neighborhood that would be swept away includes Victorian-era houses and small businesses that in some instances have been owned by several generations of families.

Among the New London residents in the case is a couple in their 80s who have lived in the same home for over 50 years.

City officials envision a commercial development that would attract tourists to the Thames riverfront, complementing an adjoining Pfizer Corp. research center and a proposed Coast Guard museum.

The case is Kelo v. City of New London, 04-108.


The Day: www.theday.com

New London Plaintiffs Get Day in Court on Eminent Domain: Commercial Property News, 2/22/05

By Therese Fitzgerald

United States Supreme Court justices showed skepticm today for the plaintiffs’ position as they began their review of an eminent domain case in New London, Conn.

According to Associated Press reports, Justice Ruth Bader Ginsberg noted that the properties in question were being seized not just for tax revenue but to boost the local economy and provide jobs, while Justice Sandra Day O'Connor asked if the plaintiffs were petitioning the Court to "second-guess" eminent domain.

In the case of Susette Kelo, et al v. City of New London, Conn., et al., The Connecticut Supreme Court found it to be constitutional for the New London Development Corp. to condemn the homes of the plaintiffs — a group of homeowners who refused to sell — for the purpose of economic development. A private developer wants to build a waterfront hotel, conference center, office space and luxury condominiums in the Fort Trumbull neighborhood, near a new Pfizer plant.

The fifth amendment to the Constitution gives governments the right to seize private property for public use in exchange for just compensation. And it is the compensation, rather than the government's right, that is typically argued in court.

But, recently, as governments have become more aggressive in taking property for economic development purposes, private parties are arguing the government's rights to eminent domain and some are winning. Last July, in a legal decision that is impacting other decisions, the Michigan Supreme Court reversed a key 20-year-old decision in County of Wayne v. Hathcock. The court had previously upheld that it was a proper public use for Wayne County to clear an entire Detroit city block and turn it over to General Motors Corp. for an auto plant.

"It's a fundamental issue about under what circumstances the government has the right to take private property," said Caroline Harris, a land use attorney with Jenkens & Gilchrist P.C. "I hope the Supreme Court confronts the issue head-on."


Commercial Property News: www.cpnonline.com

2/21/2005

The end of eminent domain abuse: Develop Don't Destroy Brooklyn, 2/21/05

Opponents of eminent domain abuse today braved snowy conditions to gather at City Hall steps and celebrate tomorrow’s landmark Supreme Court hearing of Kelo v. City of New London — a case that will determine whether it’s legal for states to confiscate private property and give it to other private interests for reasons of “economic development.”

“Eminent domain has run amok in this country,” noted Civil Rights Attorney Norman Siegel told the crowd, arguing that private development for private profit does not meet the Constitution’s test for eminent domain. Brandishing a copy of the brief he filed with the Supreme Court on behalf of clients Develop Don’t Destroy Brooklyn (DDDb) and the West Harlem Business Group, Siegel said, “The Supreme Court’s decision will change the landscape in New York City. I call upon the Mayor and the Governor to suspend all use of eminent domain until the United States Supreme Court has spoken.”

In filing their “amicus curaie” (friend of the court brief) in support of the New London homeowners who are suing to keep their property, DDDb and the West Harlem Business Group joined over a hundred organizations such as AARP, the National Association of Homebuilders, the NAACP and the Southern Christian Leadership Conference.

The community leaders, residents, and political officials who stood on City Hall steps today said loudly and clearly that proposed developments by Bruce Ratner in Brooklyn and Columbia University in West Harlem cannot use eminent domain to condemn and demolish the homes and businesses of hundreds of citizens. DDDb spokesperson Daniel Goldstein said, “Bruce Ratner—with the vigorous support of Pataki, Bloomberg, and Markowitz—wants to level a neighborhood that includes my home and hundreds of others. In West Harlem, Columbia University also wants to destroy a community so they can expand. We will not stand by and let this happen!”

Goldstein’s vow was echoed by City Councilperson Letitia James, and by the West Harlem residents who spoke today: Nellie Hester Bailey (President, Harlem Tenants Council), Jordi Reyes Montblanc (Chairperson of West Harmen’s Community Board 9, which passed a unanimous resolution condemning eminent domain abuse), Harlem footprint resident Hamidullah Al-Amin (Coalition to Preserve Community) and Maritta Dunn (Manhattanville Area Consortium of Businesses).

Joe Wright, representing the Institute for Justice, which will argue for Kelo to the Court, concluded, “Individual rights are sanctified in the Constitution and are fundamental requirements for man’s life. The Founders in this respect were ingenious. They said these rights are “inalienable” which means that they cannot be violated or regulated by anyone, at any time, for any purpose whatsoever.”

“We believe the Supreme Court will make the right decision,” Goldstein stated. “If they do not, it’s open season on every property owner in America.”


Develop Don't Destroy Brooklyn: www.dddb.net

DDDb leads a broad-based community coalition, fighting for development that will unite our communities instead of dividing and destroying them.

Download the DDDb amicus brief at:
www.dddb.net/public/DDDBamicusbrief.pdf

Eminent domain hits home: Asbury Park (NJ) Press, 2/21/05

Marchers Don't Want Houses Taken for Redevelopment

By A Scott Ferguson and Justin Vellucci

Roughly seven years after losing his home in the city to eminent domain, Robert Hilton marched down Ocean Avenue on Sunday in hopes his neighbors would never meet the same fate.

"Eminent domain is everything that's rotten about New Jersey government," said Hilton, as he joined protesters in Long Branch to oppose the process by which the government acquires private land for a public use. "Eminent domain in New Jersey has been turned into a political patronage program."

At separate rallies in Long Branch, Neptune and Asbury Park, scores of concerned citizens slammed "land grabbing" on behalf of developers.

The protesters also voiced support for Kelo vs. City of New London in Connecticut, a U.S. Supreme Court case expected to be heard Tuesday, in which property owners are challenging the government's taking of their nonblighted homes for "economic development."

Yvonne Braime, an activist with Neighbors United for Neptune, set the day's tone early Sunday morning as she spoke through a bullhorn to a small crowd gathered outside the Neptune Municipal Building on Neptune Boulevard.

"We're not alone in this fight," said Braime, whose group is fighting a proposed development on West Lake Avenue in the Midtown section. "We understand that we have to fight to get the resolution that we want. I have a smile on my face today because we are happy about this protest."

The purpose of Sunday's rallies, organizers said, was to call attention to the use of eminent domain on behalf of private developers. Braime and her group hope the Supreme Court justices side with the property owners, which could mean the end of eminent domain for these type of developments.

Dorothy Argyros, the leader of Neighbors United, thinks developers and their allies would continue to use any means possible to take what they need for their projects.

"They want our valuable seaside land and they want it cheap," Argyros said.

Neptune Township Committeeman James W. Manning Jr. said his biggest concern was not with the concept of development but the specific means of promoting it.

"My issue is not against revitalization but against eminent domain," said Manning, who attended a Sunday rally and has opposed the West Lake Avenue development. "A profit-making enterprise should not use the tool of eminent domain. You can still have progress without eminent domain."

While rallies started Sunday with about 25 people in front of the Neptune Municipal Building, scores of vocal protesters, many of them carrying signs, formed a line that stretched for blocks as they walked down Ocean Avenue from Broadway nearly to the Monmouth Beach boundary.

Katina Tsakiris said she was thrilled to take part in the march. For her, it meant the issue of eminent domain was coming to a head.

"We've been living with this over our heads for 10 years," said Tsakiris, who is the fourth generation in her family to live in a Victorian home on Ocean Avenue that may be acquired through eminent domain. "We're happy things are moving because we can start fighting."

In between shouts of "No way! We stay!" Long Branch resident Tim Ryan contended officials were bending eminent domain rules by claiming that certain parts of the borough's beachfront need to be redeveloped.

"It's a beautiful neighborhood — it's not blighted," Ryan said. "(Officials) want tax revenue (from new development) at the expense of the person who's been here a long, long time."

JoAnne LaRosa, said she is a member of a proud family who would not blink in the face of an attempted land-grab.

"(Our house) has been in our family since 1944. They want to take it," she said. "We're not giving it up."

At the Neptune rally, Asbury Park City Councilman John J. Hamilton Jr. tackled another side of the issue, focusing on problems his city has had with developments in the past several years. In addition to raising rents for Asbury Park's longtime residents, Hamilton said, these development projects have not done enough to give back to the city's schools.

"We have to get out and get other people to join us," Hamilton told the group. "We have to make it our problem. We want to build our cities, but we want to be proud of them."

There were a number of development projects throughout the city where eminent domain had been used to force people out, Hamilton said.

Longtime Asbury Park resident George Kary has been fighting a number of eminent domain issues for the past 20 years. He is trying to save his home and his mother's house on Sixth Avenue.

"It's starting to come down to the wire now, but we're not leaving," Kary, 50, said. "We've got to make noise."


Asbury Park Press: www.app.com

High court to weigh eminent domain: Pittsburgh (PA) Post-Gazette, 2/21/05

By Michael McGough

When the U.S. Supreme Court returns to the bench tomorrow, it will hear arguments in a case that could lead to new rules on when government can seize private property from its owner and turn it over to another party in hopes of creating jobs and increasing tax revenue — a common "public use" far removed from the highways and bridges that were the traditional purpose of eminent domain.

In the audience will be a man for whom this is a landmark case in more ways than one. Bill Von Winkle owns three buildings in the Fort Trumbull area of New London, Conn., which the city and a development agency have sought to acquire by eminent domain for an elaborate redevelopment plan anchored by a Pfizer pharmaceutical company research center.

Von Winkle, who closed a delicatessen he operated in one of his buildings but continues to rent apartments on his property, is confident that he and eight other property owners will prevail in the Supreme Court.

"How could we possibly lose this?" Von Winkle said in an interview. "You can't do what they're doing. If Pfizer wants property, they've got to buy it, not steal it."

Actually, Von Winkle and the other property owners would receive payment for their property under Connecticut law and the Fifth Amendment to the U.S. Constitution, which says private property may not be "taken for public use without just compensation."

The question before the Supreme Court is whether the redevelopment of Fort Trumbull, which the city believes will invigorate the economy of New London, is a "public use" that overrides the owners' right to hold on to their land if they choose.

For Scott G. Bullock, the lawyer for the New London property owners, the answer is obvious: "This is a clear abuse of eminent domain. If they can take these properties, any neighborhood is up for grabs."

Bullock is an attorney for the Institute for Justice, a Washington-based libertarian public interest group well-known in Pittsburgh for its opposition to Mayor Tom Murphy's plans — later abandoned — to use eminent domain to assemble property for the redevelopment of the Fifth and Forbes retail area Downtown.

In interviews and in the institute's brief to the Supreme Court, Bullock argues that the New London case should be an easy one because — as is not the case with other uses of eminent domain — New London did not assert that the neighborhoods it seeks to condemn are "blighted." The redevelopment took place under a state law designed to revitalize older commercial and industrial areas.

"To petitioners, like most Americans, their homes are their castles," the institute's brief says. "In this case, they face the loss of the homes and neighbors they cherish through the use of eminent domain not for a traditional public use, such as a road or public building, nor even for the removal of blight. Rather, respondents — a local government and a private development corporation — seek to take petitioners' 15 homes to turn them over to other private parties in the hope that the city may benefit from whatever trickle-down effects those new businesses produce."

Supported by city governments — not including Pittsburgh's — and environmental organizations, New London argues in its brief that "employing the power of eminent domain to revitalize a municipality's economy satisfies the public use requirement. This is especially true in urban settings, in which the problem of land assembly often acts as a barrier to economic revitalization."

(The Bush administration has declined to take sides on the matter, which given the federal government's own past use of eminent domain is being interpreted as a victory for the property owners.)

Who's right? In 1954, the high court upheld the use of eminent domain by Congress for an urban renewal program in the District of Columbia.

Writing for the court, Justice William O. Douglas said, "We do not sit to determine whether a particular housing project is or is not desirable. The concept of the public welfare is broad and inclusive."

New London also cites a 1984 case in which the high court upheld Hawaii's use of eminent domain to condemn large tracts of leased residential property so it could break up an "oligopolistic pattern of landownership" left over from Hawaii's days as a monarchy.

New London and its allies insist that under these precedents Connecticut has the discretion to decide what a public purpose is without a federal judge second-guessing that decision.

Not surprisingly, the Institute for Justice reads the two Supreme Court precedents differently. Both, they said, limited the definition of "public use" to "the elimination of the undesirable conditions, not the land's subsequent use."

Although the Institute for Justice's preferred outcome would be for the court to rule that the trickle-down benefits of economic development never constitute a "public use," its brief offers the justices a fallback position: that even if such economic benefits can be a public use in some circumstances, the New London condemnations would not qualify because there is no "reasonable certainty" that the desired economic benefits will actually occur.

However the Supreme Court rules, experts on property law see this as a significant case, although one in which the court is unlikely to revoke the discretion it has given local governments to use eminent domain in "blighted" areas.

"Unless the Supreme Court uses this as a vehicle for revisiting [its 1954 ruling], the practical effect of a decision for the property owners would be small," said Paul Rosenzweig, senior legal research fellow at the Heritage Foundation's Center for Legal & Judicial Studies. "But I wouldn't underestimate the political effect of a decision in their favor. City councils will hesitate before ascribing blight to situations in which it didn't apply."

"This is an important case no matter how you look at it," agreed Laura S. Underkuffler, a property-law expert at Duke University.

"We've been operating, under a basic hands-off policy [regarding eminent doman] for a long time. Any incursion on that bedrock principle would be significant."

Underkuffler said she believed the court would rule narrowly in favor of the New London property owners.

"My guess is that the court will probably decline to craft some broad principle and will instead say that under the facts of this case this is not a public use," she said.

The willingness of the court to go further in reining in eminent domain may depend on how conservative justices resolve a tension between their support for property rights and their view that federal courts should not be "activist."

"This is a case where judges are being asked to trump legislative decisions," Underkuffler said, something conservative justices usually are reluctant to do.

Landmarks line eminent domain's path

It has been 50 years since the U.S. Supreme Court adopted an expansive view of the power of eminent domain in the case of Berman v. Parker, in which it upheld the condemnation of private property by the federal government as part of an urban renewal plan in the District of Columbia.

But the scope of eminent domain and the definition of the "public use" for which it may be employed have continued to generate controversy both in federal and state courts, whether the legal argument has focused on the Fifth Amendment to the U.S. Constitution or comparable provisions in state constitutions.

Some recent landmarks in the continuing legal debate:

  • 1981 — In Poletown Neighborhood Council v. City of Detroit, the Michigan Supreme Court upholds a plan under which private property is condemned to allow for the expansion of a General Motors plant. The majority opinion says that "eminent domain is to be used in this instance primarily to accomplish the essential public purposes of alleviating unemployment and revitalizing the economic base of the community. The benefit to a private interest is merely incidental."
  • 1984 — In the case of Hawaii Housing Authority v. Midkiff, the U.S. Supreme Court unanimously rules that the state did not violate the "public use" requirement by using eminent domain to transfer ownership from a small group of landowners to their tenants.
  • 2004 — In County of Wayne v. Hathcock, the Michigan Supreme Court overrules its holding in the Poletown case, calling the earlier decision "a radical departure from fundamental constitutional principles." In this case, dealing with a proposed acquisition of property near Detroit Metropolitan Airport, the court says that "Wayne County intends to transfer the condemned properties to private parties in a manner wholly inconsistent with the common understanding of 'public use' at the time our Constitution was ratified."
  • 2005 — This month, the Institute for Justice asked the Ohio Supreme Court to protect the vacant home of a couple in the city of Norwood who left the premises after lower courts ruled that the city did not exceed its authority in using eminent domain to acquire property for the expansion of a shopping mall.




Pittsburgh Post-Gazette: www.post-gazette.com

Eminent domain abuse: The Washington Times, 2/20/05

Commentary

By Timothy Sandefur

You may not know it, but your home is for sale. Across America, government and big business are teaming up to condemn people's homes, and replace them with shopping centers and megastores such as Costco, Ikea, and Home Depot. In fact, from just 1998 to 2003, there were 10,000 reported cases of cities and states condemning or threatening to condemn homes and businesses to make way for private companies to expand.

Government's power to take property against the owner's will is called eminent domain, and it is the subject of a case the U.S. Supreme Court will hear on Feb. 22. In Kelo vs. New London, the court will consider whether the Constitution places any limits on eminent domain.

The Fifth Amendment says private property may only be taken for "public use," which in the past meant highways or government buildings. But in the Kelo case, a Connecticut town decided to "revitalize" by taking several properties and replacing them with a hotel, a health club and a marina, to accompany a new research facility for the Pfizer Inc., the pharmaceutical company. Health clubs and corporate research are private uses, not public uses.

But the city argues "revitalization" would increase tax revenue and "create jobs." And a public benefit, the city says, is all the Constitution requires. The problem with that argument is most businesses benefit the public.

If our homes can be taken away whenever bureaucrats decide somebody else would use them more effectively, our property rights are rendered meaningless.

Consider the infamous Poletown case. In the early 1980s, the General Motors Corp. persuaded the city of Detroit — reeling from recession — to condemn a neighborhood called Poletown (due to the many Polish immigrants there) and sell it cheap to GM to build an auto factory.

The Michigan Supreme Court held the condemnation was legal: If the government declared a condemnation would benefit the public, the courts would not stand in the way. In a whirlwind of litigation that lasted only a few weeks, neighbors watched as their community was pulverized.

The Poletown decision led to an epidemic of eminent domain abuse. In 1999, the city of Merriam, Kan., condemned a Toyota dealership to sell the land to a BMW dealer instead.

That same year, Bremerton, Wash., condemned 22 homes to resell the land to private developers. In one notorious case, billionaire Donald Trump convinced Atlantic City, N.J., to condemn an elderly widow's home so he could build a limousine parking lot.

Unfortunately, the victims of eminent domain are most often the elderly, the poor and minorities. They lack the money and political power to persuade the government to respect their rights. But corporate lobbyists are very effective at convincing cities to give them someone else's land on the pretense it will create jobs and improve the neighborhood — especially when it will increase the city's tax base.

Fortunately, things may be changing. Last year, the Michigan Supreme Court overturned its Poletown decision:

"If one's ownership of private property is forever subject to the government's determination that another private party would put one's land to better use, the ownership of real property is perpetually threatened by the expansion plans of any large discount retailer, 'megastore,' or the like."

Now it's up to the U.S. Supreme Court to end eminent domain abuse nationwide. When the Kelo case is argued before the court, the justices will be asked a simple question: Does "public use" mean the government can take people's homes and small businesses and resell the land to Pfizer, Donald Trump or other private parties?

The answer should be no. All property owners, rich or poor, should have the same right to be secure in their homes and businesses. Otherwise, our property rights will be only permissions granted by the government — revokable at will.


The Washington Times: www.washingtontimes.com

Timothy Sandefur (Tmsandefur@aol.com)is a lawyer with Pacific Legal Foundation, a public interest legal organization dedicated to defending private property rights and individual freedom. Mr. Sandefur wrote the Foundation's amicus brief supporting the property owners in Kelo vs. New London.

The Battle Of Fort Trumbull: The Christian Science Monitor, 2/16/05

In essence, the city's plan is to destroy a neighborhood in order to help save the city.

By Warren Richey

Economic redevelopment is supposed to be about progress and prosperity. But in the battle over the future of this city's Fort Trumbull neighborhood, longtime residents say the city's tough tactics have caused them only hardship and suffering.

This is particularly so, they say, among the neighborhood's elderly residents, many of whom have lived their golden years in fear and dread of losing their most prized possession - their home.

"I am a 93-year-old homeowner of Fort Trumbull [and] have lived here all my life. This is our home. My wife and I do not want to leave here." Walter Pasqualini wrote those words in 1998 in a plea to discourage the city from taking court action to seize and demolish his house.

"The last thing he said before he died was, 'What are they going to do with my house in Fort Trumbull?'" says Susette Kelo, a neighbor.

Ms. Kelo and a handful of other residents are all that remain of more than 80 families whose homes and businesses were targeted for demolition by the city of New London to make way for a 90-acre economic redevelopment project.

They aren't alone. Their plight mirrors similar battles under way nationwide.

Now, as the debate over the redevelopment effort heads to a Supreme Court hearing next week and a possible landmark ruling in late June, residents are speaking out about what they see as hard-fisted tactics they have endured while trying to save their homes from wrecking cranes and bulldozers.

Although the Constitution authorizes public seizure of private property, this case - Kelo v. New London - tests the limits of that power. At issue is whether a government entity, the New London Development Corp. (NLDC), can seize and demolish private homes and then turn the vacant land over to a private developer.

The precise issue before the high court is whether this kind of arrangement between a city and a private developer violates the Fifth Amendment mandate that private property may be taken by the government only for "public use."

Lawyers for the residents say public use is something like a road, school, or park - projects that broadly benefit the community. New London officials say an economic development project run by a private company qualifies as public use because it will ultimately attract new businesses to the city and increase the city's tax revenues, which is also a benefit to the community.

The underlying legal debate is only a small part of the Fort Trumbull residents' tale. They say the city tried to frighten them away. When those threats did not work, the city waged what some call a psychological war.

"They did everything they could to make us miserable," says Kelo.

"Every day it was something else," adds William Von Winkle, a neighborhood resident and landlord for 21 years. "Anything to aggravate you."

City officials offer a different perspective. When the drug company Pfizer decided to locate its $300 million global research headquarters on an abandoned riverfront factory site near Fort Trumbull, local leaders saw it as a golden opportunity to revitalize the city's stagnant tax base. The influx of highly paid scientists and potential spinoff companies might transform the area into a mecca of scientific innovation and commerce.

The plan calls for construction of a waterfront complex of offices, condos, a hotel, a conference center, and a marina - all within a short walk of the Pfizer compound.

Much of the development is slated for vacant land once occupied by a US Navy research facility. But the plan also calls for the destruction of the adjacent Fort Trumbull neighborhood, which lies between the vacant land and the Pfizer compound.

The NLDC was authorized to use eminent domain powers to seize and demolish any properties where homeowners refused to leave voluntarily. Under the plan, once the land is cleared it is to be leased for $1 a year for 99 years to a private company to build and manage the project. All profits revert to the company. The benefit to the city: an increased tax base.

Residents say that if New London wins its case at the Supreme Court, any private property in the country could be targeted for economic development through eminent domain to facilitate increased tax revenues. Lakeside cottages, they warn, could be snatched away to permit high-rise condominium developments. And mom and pop grocery stores could be torn down to make way for more profitable stores.

The issue is at the center of what has become a seven-year battle between neighborhood residents seeking to remain in their homes and city officials struggling for a chance to realize their broader vision of a revitalized New London. In essence, the city's plan is to destroy a neighborhood in order to help save the city.

"The New London City Council that voted to do this, they were friends and neighbors of these people," says NLDC attorney Edward O'Connell. "This was a very difficult situation. This was not some unthinking, unfeeling municipal machine that simply ground down there."

In the 1800s New London was a thriving whaling port, and later it was a manufacturing center. By 1990, the state designated New London as a "distressed municipality." Unemployment is 7.6 percent - twice the statewide average.

But the real source of the problem is a lack of sizable tracts for commercial development. The city is relatively small - less than six square miles - and more than 55 percent of that area is occupied by tax-exempt land used for colleges, government buildings, and hospitals. Tax revenues cover only half the city's annual budget; the rest is paid by state subsidy.

To city officials, the project is an opportunity to guide the city back toward economic prosperity.

"New London had this opportunity to do something," says Mr. O'Connell. "Should [city leaders] let the private sector drift along as it has been for 100 years without doing anything at all? Or should they seize this opportunity that will occur only once in the history of the city?"

Fort Trumbull residents say they are not opposed to redevelopment. But why can't their homes - which occupy 1.54 acres of the 90-acre project tract - be retained as part of the redevelopment process, they ask. That would probably be the outcome should they win their case, analysts say.

The city has rejected such a compromise. O'Connell says it is up to the City Council to decide upon the best plan, not a handful of holdouts.

Fort Trumbull residents say they've long been slighted by the city. When New London needed a place to locate the sewage treatment plant, Fort Trumbull won the prize. On hot summer days with no breeze, the stench blanketed the area, but residents say their complaints and protests were routinely ignored.

The pervasive odor spewed forth for years - until the arrival of Pfizer. The city and state spent $11.2 million to upgrade the sewage plant in 2001.

Neighborhood residents were excited when they heard Pfizer was coming. But it soon became clear that there was no place for them in the city's plans.

What happened next is what Matt Dery calls "neighborhood cleansing."

Residents say they were told they had no alternative, they could either accept the amount being offered by the city for their homes or the city would seize their property under eminent domain powers.

"The majority of the elderly people moved because they were afraid or felt threatened," says Suzanne Dery.

"We don't want that to happen to my parents. That's our perspective on this," adds her husband, who works in the circulation department of the local newspaper. His family has occupied the property at the same street corner in Fort Trumbull for almost a century. "All my family as far back as my great-grandmother were on this property," he says.

His mother, now 86, was born in the blue house with white trim on the corner of Walbach and East Streets in 1917. It is the only house in which she has ever lived. Mr. Dery's father has lived with her in the blue house since they were married in 1945.

When the city first approached Dery, he was offered $208,000 for all four multistory houses on the family's property. When he turned down the offer, the property was seized through eminent domain.

Dery says low-ball appraisals were part of a deliberate strategy. "Their whole plan hinged on us being the kind of people who didn't have the financial wherewithal to fight this," he says. "They had all the money, and they were going to stretch us out financially so we would crack."

Dery and his neighbors admit that had it not been for the pro bono intervention of lawyers from the Institute for Justice, in Washington, they would have lost their homes long ago.

Under the eminent domain process, the city can negotiate the voluntary sale of a targeted property. It can offer whatever it thinks a homeowner might accept. If an offer is refused, the city can continue to negotiate or file papers in court to have the property seized. Once the property is seized, the owner has a right to challenge in court the fairness of the price. But to launch such a challenge, the owner would have to go through the expense of hiring a lawyer and paying open-ended trial costs. These are expenses most working-class and elderly Fort Trumbull residents could not afford.

City officials decline to discuss individual cases, but say that they negotiated in good faith with every resident.

O'Connell says all the other neighborhood residents have been successfully relocated. He adds that the city does not have to tailor its plans to a small group of holdouts.

"We certainly sympathize with their plight. Everyone understands that it is a wrenching circumstance," the NLDC attorney says. "You think we are so heartless that we don't care about these people?"

Dery's neighbor, Mr. Von Winkle, was offered $300,000 for his three buildings, including a three-story brick apartment house. "Their offer was less than I paid for the materials to renovate the buildings," he says.

After his buildings were seized, city officials approached Von Winkle's tenants and offered to cut their rent from $650 to $450 a month if they would pay their rent to the city rather than Von Winkle. When Von Winkle complained that rent money was his only source of income, the city offered $4,500 cash to any tenant who moved out.

Undeterred, Von Winkle re-rented his apartments. The city responded with a court order. "They filed an injunction to stop me from interfering with the peaceful enjoyment of their property," he says.

Byron Athenian lost his 24-year auto body business because it was on leased land and the owner sold the property to the NLDC. Mr. Athenian now works part time. He lives next door to the now-vacant lot in a house owned by his mother. She refuses to sell.

The house sits on sloping property adjacent to a tract slated for an office parking lot. Despite Athenian's continued presence in the house, city contractors raised the level of adjacent road and park lot tract, leaving the home and property in a man-made swale. "When it rains like in the spring the cellar [floods]," he says. "The fire department has been pretty good; they come down and pump it out."

O'Connell says eminent domain is a harsh but necessary tool of urban redevelopment. He asks if the debate would be any different if Fort Trumbull homes were being seized to make way for a road instead of an economic development project.

"Wouldn't there be turmoil and fear if it was a road? What if it was a school? Wouldn't there be turmoil and fear if it was a school?" he asks. "Is it OK to have turmoil and fear to move elderly people out for a road, but not for economic development?"

Walter Pasqualini's beloved white house with red trim is still standing nearly five years after his death. But it is barely habitable. Smith Street has been torn up and lies under six feet of fill dirt that forms a berm outside the Pasqualinis' front porch. Rainwater poured into the basement deep enough to douse the furnace pilot light.

Walter's wife, Cesarina, is 96. Unable to see and hear, she is living temporarily with her daughter across town. Even now, she refuses to sell. Neighbors say she hopes to return home to Fort Trumbull, soon.


The Christian Science Monitor: www.csmonitor.com

Interest Widespread In Trumbull Fight: Mulberry Street Coalition, 2/21/05

Litigants Hold Rally Before Trip To U.S. Supreme Court

Suzette Kelo took calls Sunday morning from California and New York, from Washington, D.C., and Pennsylvania.

“I get phone calls from everywhere in the country,” she said.

The strangers who contacted her, she said, have wished her and fellow Fort Trumbull property holdouts success when they go to the U.S. Supreme Court on Tuesday. That's when they expect to present their final arguments to keep the properties that the New London Development Corp. claims through eminent domain.

Kelo was among about 60 people who gathered for an hour Sunday afternoon in the city's downtown Parade to show support for her and the six other property owners who leave today for Washington, D.C.

“Why should the government take people's lands?” said Russell Kanning, who came from Keene, N.H., along with at least four others from the Granite State. Though Kanning said he does not fear the use of eminent domain in New Hampshire - that state's Supreme Court explicitly prohibited the use of eminent domain for private development in a 1980 ruling - he came to support the Fort Trumbull residents he first learned of about a year ago through media reports.

“I don't believe in eminent domain at all,” he said. “It's especially bad in this case, because you're taking property from one person and giving it to another.”
Under the NLDC plan, about 90 acres of land taken through eminent domain will be privately redeveloped with the promise of higher tax yields for the city.

The case before the Supreme Court will define the property rights of every American, not just those named in the suit, said George Mytrowitz, of Newark, N.J.
“We're hoping the Kelo case sets precedent around the country to show local governments they can't just wipe people out of their property for better taxes,” Mytrowitz said.

Mytrowitz and several neighbors who also attended the rally are at the heart of their own eminent domain fight. Newark's City Council has declared their neighborhood a blighted area, paving the way for a plan to build condominiums and retail space where homes and businesses now stand on Mulberry Street.

The owner of an auto body shop on the street, Mytrowitz formed the Mulberry Street Coalition with other property owners to fight the city's plan.

“We need the country to open its eyes. People don't realize what's happening until it hits home,” Mytrowitz said, calling eminent domain “an injury to the American people.”

The Coalition to Save the Fort Trumbull Neighborhood, which organized Sunday's rally and includes many city residents whose property is not at stake, has been in court since 2000. Although their attempts to derail the NLDC's plan have failed, they say they are still hopeful.

“Here we are, five years later, going to the Supreme Court. How great a nation is that?” said Michael Cristofaro, who leaves for Washington with family this morning. His father, Pasquale Cristofaro, owns 53 Goshen St., a Fort Trumbull property among those the city wants.

“They cannot push us out of our properties,” Cristofaro said. “Our properties are ours.”

Coalition co-chairman Fred Paxton said he, too, is hopeful. “The very fact that they've taken the case means they consider this something that needs a current statement from the court.”

Kelo, who largely stood on the sidelines Sunday as property owners, organizers and others took turns at the megaphone, said after the rally that she is optimistic.
“We just think positively that the justices will do the right thing,” she said. She said she never thought the case would make it to the high court and credited city residents for their perseverance and faith. She also thanked the legal representation of the Institute for Justice, in Washington, D.C., and a support network stretching across the country.

In conjunction with the court case, the Castle Coalition, a national organization against the use of eminent domain for private development, organized rallies in 27 cities in 15 states from Sunday through Tuesday.

In New London, another rally is scheduled for 8 a.m. Tuesday in front of New London Superior Court.


Mulberry Sreet Coalition: info@mulberrystcoalition.com

2/20/2005

National City issue up for vote Tuesday: San Diego (CA) Union-Tribune, 2/5/05

By Tanya Sierra

[National City CA] officials want to double the area where they can use their eminent domain authority, an option that might be key to their quest to revitalize the city with new homes and retail businesses.

In a joint meeting Tuesday, the Community Development Commission – made up of City Council members – will vote whether to expand the eminent domain area from National City Boulevard and the Harbor District to include Highland Avenue, the city's west side, East Plaza Boulevard, parts of the 8th Street corridor and parts of 30th Street and Sweetwater Road.

Several residents have spoken against expanding the city's eminent domain authority, which would ultimately allow the city to take over certain properties by court order if landowners do not want to sell their properties for redevelopment.

The city can use eminent domain to obtain property within its redevelopment area. Those properties include those zoned for commercial or industrial use and all vacant or abandoned properties regardless of their zoning designation, said City Attorney George Eiser.

Residential property will not be targeted, he said.

City officials seldom reach the point where a court order is necessary. Instead, they try to negotiate until the owner sells, said redevelopment director Ben Martinez.

Eminent domain authority lasts 12 years, then expires. If the expansion is successful Tuesday, the city can use eminent domain for another 12 years where it is already allowed and will add the new area for 12 years, as well.

When the proposal was first announced, about 250 residents showed up at city meetings in October and November to speak against it. They were concerned that with so much development, National City would lose its small-town feel and that small businesses would be forced out.

Martinez said previously, in response to those concerns, that "there are winners and losers in redevelopment," but he would "try to limit the losers" to businesses that don't fit with the city's plans to bring in more retail and improve its image.

The Constellation Property Group, for example, has offered to invest $130 million in a high-rise condominium and retail project on National City Boulevard between 11th and 12th streets.

The development would oust businesses on that block, including Lourdes Family Restaurant, the first Filipino restaurant in National City, according to owner Lourdes Barrera.

After 33 years in the same building, Barrera said she is negotiating with Constellation to reopen her business in the retail space on the first floor of the proposed 21-story building.

"As long as it's fair, I'm all for beautifying National City," she said. "It's time. For so long it's been stagnant."

Not everyone in the redevelopment area is as welcoming to developers. Some property owners have spoken at public meetings about being bothered by developers or their representatives who want to build on their property.

Daniel Ilko, who owns the property next to Lourdes restaurant, told city officials at a meeting this month that a real estate agent trying to acquire his land for Constellation harassed him and his family.

"They threatened us saying if we don't sell now, we'll lose the property," Ilko said during a Community Development Commission meeting. "They accosted my 9-year-old daughter."

Ilko wouldn't elaborate on his contact with Anthony Napoli, of Anthony Napoli Real Estate Group in Little Italy, who was representing Constellation. A message on Napoli's voice mail indicated he is out of the country, but representatives of Constellation said Napoli's behavior was not inappropriate.

"He was just trying to get the offers out," said Mark Astone, who is in charge of Constellation's marketing firm. "His intentions weren't to harass anyone. Two children answered the door with the maid. He just left the offer with the daughter. I don't think that's accosting."

City project manager Gerard Selby said Napoli's behavior was unprofessional.

"The behavior of the representative was overboard completely," Selby said at the meeting.

Barrera, who also dealt with Napoli, said she wasn't bothered by his approach.

"He has an attitude, but it didn't bother me because I threw back what he gave me," she said.

Condos in Constellation's project would sell for $400,000 to $750,000, according to a city report.

Tuesday's meeting is at 6 p.m. at City Hall, 1243 National City Blvd.


San Diego Union-Tribune: www.signonsandiego.com

Residents asking Supreme Court to block eminent domain in the name of development: San Diego (CA) Union-Tribune, 2/19/05

By Matt Apuzzo, Associated Press

Fifteen houses are all that remain of Fort Trumbull, a once vibrant immigrant neighborhood [of New London CT] flattened into expanses of rutted grass and gravel.

The homes stand in defiance of New London's plan to pave the way for a riverfront hotel and convention center, offices and upscale condominiums.

Refusing the city's efforts to get them to leave, seven families are going before the U.S. Supreme Court on Tuesday, arguing that the city has no right to take their private property solely for economic development. The rebellious homeowners include an elderly Italian immigrant, a mechanic and a former deli owner.

"It's a case of the rich eating the poor," said Matthew Dery, who lives in one of four houses on a compound his family has owned since 1901. "Sometimes the poor are difficult to digest."

Leading the charge is Susette Kelo, a 47-year-old nurse who bought her home in 1997.

"They have over 90 acres now," Kelo said. "It's more than enough room to build on. We never said they can't build. We just said 'We want to stay.'"

But Kelo's apricot-colored house, with a decorative outhouse in the front yard and wind chimes made of silverware, doesn't fit in the city's development plans.

"They just would not be compatible with all the other uses," said Edward O'Connell, an attorney representing the New London Development Corp., the quasi-public agency behind the redevelopment effort.

Whether building highways or public offices, laying railroad tracks or eliminating blight, governments have long relied on eminent domain laws to allow them to take private property.

The Fifth Amendment allows governments to take private property for "public use."

New York used eminent domain to improve Time Square, expand the New York Stock Exchange and build the World Trade Center. Baltimore replaced a downtrodden waterfront with a bustling harbor development.

But Fort Trumbull is not besieged by blight, poverty or crime and New London is not building a highway or government building, and the residents' appeal asks if "public use" allows governments to seize unblighted taxpayer property solely to encourage private development.

The Supreme Court has given governments broad power to take private property through eminent domain, provided the owner is given "just compensation." But in recent years many cities and towns have been accused of abusing their authority.

New London officials say the taxes generated by redeveloping Fort Trumbull ultimately will benefit the public, and the state Supreme Court ruled that was enough to justify the condemnation.

City officials have worked to remake the area since 1996, when the Naval Undersea Warfare Center left town with its 1,400 jobs. When pharmaceutical giant Pfizer opened a $350 million research center nearby that year, city officials saw an opportunity to create high-end housing, retail shops, a business park and a hotel.

All that was standing in the way were 115 homes.

Most owners accepted the city's buyout offers. Those who remain fall into two categories – people who simply won't leave and people who feel they're being cheated out of the fair value of their homes.

"The sentimental holdouts are the more difficult to deal with," O'Connell said. "No matter what you offer, they won't consider that sufficient or appropriate. They're just not motivated by the logic of the marketplace."

Kelo says it's not about the money for her. She was raised nearby, and when her children moved out she wanted a house by the water. Her small but cozy house has a front porch with a a great view of the Thames River.

Dery is upset that the city wants to take his property before putting a developer under contract and deciding exactly what will replace his neighborhood.

"What they're saying," Dery said, "is that anything that we put there will be better than you."


The Union-Tribune: www.signonsandiego.com

Testing Eminent Domain's Limits: The (New London CT) Day, 2/20/05

By Kate Moran

When the Kelo v. New London case heads to the U.S. Supreme Court on Tuesday, it will test whether the government can act as an all-powerful real estate broker that can seize property from one owner and give it to another to promote economic growth.

The Kelo case, which arose out of the city's efforts to redevelop the Fort Trumbull area, is an important milestone in determining the limits of government power under the Fifth Amendment to take property for “public use” as long as it provides “just compensation” to the original owner.

Governments have always been allowed to condemn property for public works projects such as the building of highways, railroads and schools, and in 1954 the high court allowed that the clearing of slums and blight also qualifies as a public purpose.

This year, the court will referee whether governments can take property not to clear blight but simply to incubate the kind of development that will promote a general public good by producing a greater share of tax revenue. A decision is expected by June.

The Institute for Justice, the firm representing the seven Fort Trumbull property owners who are challenging the use of eminent domain, will argue that the court should strike down economic development as a valid public purpose because it produces nebulous benefits for the public at large while giving a huge advantage to private developers.

The institute, a public interest law firm that has waged a nationwide battle to curtail the use of eminent domain, asserts that the court will bleed all meaning out of the Fifth Amendment's public use clause if it equates private enterprise, no matter how good for a community's economic health, with such pure public uses as the building of roads.

The institute argues that the Connecticut Supreme Court, which upheld the city's use of eminent domain in a March ruling, transformed private development into a public use “simply because of the ‘secondary' or ‘trickle-down' benefits a business may produce.”

Three members of that court dissented from the majority ruling, noting that the benefits promised by the Fort Trumbull project were too speculative to warrant the seizure of homes where some residents had lived for generations. Those justices urged the adoption of a “heightened scrutiny” test that would require cities to provide courts with proof that a proposed development had reasonable certainty of success.

The Institute for Justice hopes the Supreme Court will quash economic development as a valid public purpose, but as a second best option its attorneys are asking the court to require the sort of test recommended by the dissent in Connecticut.

Legal experts are skeptical that the high court, which has traditionally shown deference to the way legislative bodies define public use, will disallow economic development condemnations entirely. Yet they are waiting to see where the court might place some checks on the power of governments.

“It's very hard for the courts to start telling the legislative branches what is and is not in the public interest,” said Vicki Been, the director of the Furman Center for Real Estate and Urban Policy at New York University. “The Constitution, of course, says you can't take property except for public use. Well, is public use slum clearance, but not redevelopment of the slums that are cleared? How do you start drawing those lines?”

Attorneys for the New London Development Corp. will argue that decades of federal precedent support the sort of taking the agency is attempting at Fort Trumbull. The quasi-public agency asserts in its brief that courts have historically respected the way legislatures use eminent domain because judges do not have the professional capacity to evaluate economic development projects.

As they tell it, judicial checks on the use of eminent domain would handicap cities, with their dense neighborhoods and paucity of undeveloped land, in attracting the corporate campuses and industrial parks that now flock to the suburbs. In a friend-of-the-court brief filed on behalf of the NLDC, the Connecticut Conference of Municipalities argues that eminent domain helps to keep new development focused in the urban centers and prevents sprawl into the suburbs and the countryside.

Attorneys for the NLDC are urging the court to reject the “reasonable certainty” test advocated by the Institute for Justice that would require cities to have evidence of a project's viability, such as a contract with a developer, before they condemn private property. They say such a test would trap cities between impossible alternatives.

“On the one hand, the (institute) notes the constitutional bar against takings designed solely to benefit a private party,” they say in their brief. “On the other hand, (it) wants this Court to bar any plan unless it states who will develop the condemned land and for what specific uses.”

The Institute for Justice is pushing for a federal limitation on the ability of governments to use eminent domain because of what its attorneys call chaos and inconsistency in the state courts on the issue. Shortly after the Connecticut court upheld the use of eminent domain last spring, the institutes notes, Michigan's court overturned a 1981 decision that was among the first anywhere to allow the condemnation of private property for economic development.

The NLDC attorneys counter that the Michigan case was based solely on that state's constitution. To impose a federal limitation on condemnations would, they say, impinge on the federalist system that allows states to act with some degree of independence.

“It would be incongruous, to say the least, to have the federal courts micromanage state and local development projects,” their brief says. “Not only are judges professionally ill-suited to such a role, but that sort of heavy-handed intrusion into state and local affairs does not comport with our federalist system of government.”

David Barron, a professor at Harvard Law School, declined to guess where the Supreme Court might come down on the issue. He noted, however, that the Fort Trumbull redevelopment plan is not a simple case of a government seizing private property to hand it to a Wal-Mart or other big-box developer that do would little more for the public good other than increase the tax base. Instead, the plan was “a vision for an entire part of the city being used in a different way,” a re-imagining of old land-use patterns that would help open the waterfront to the general public.

“It's a very good plan, but it is also a long-range plan, and it is also speculative. There are so many features to the kind of taking that New London engaged in that there's a fair amount of room for the court to craft some limitations on the public use requirement,” Barron said. “If the court is interested in trying to develop some limitations to constrain the government's ability to take property and involve private developers in building it out, the rich factual setting of the New London land use plan provides them with a lot of different routes for establishing those limits. What I bet against is the court coming down with a bright-line rule one way or the other.”


The Day: www.theday.com

2/18/2005

Eminent Domain abuse posters: NewPatriot

By Bill Mabon

Two eminent domain abuse posters are online at the NewPatriot website:
www.newpatriot.us/image/tid/6

Pay attention, Long Branch: Asbury Park (NJ) Press, 2/8/05

TOPIC OF THE DAY: Eminent domain

By Lee and Denise Hoagland

On Tuesday, the U.S. Supreme Court is scheduled to hear the case of Kelo vs. New London, a hearing that may set precedent on nationwide use of eminent domain. The media seems to assume that this case will not have any effect on eminent domain abuses in Monmouth County. We strongly disagree. We believe our case to be even stronger than that of Kelo. There is no doubt that Long Branch is taking homes and properties and giving them to private developers.

Here are some questions Long Branch residents should be concerned about: Why is the city thinking of purchasing these properties through eminent domain first without the developer's involvement? Is the city banking more property? Where is the developer's agreement and contract? Where is the money coming from to purchase these properties? Another bond for the city's taxpayers to pay off? How much in bonds does that total? The city reportedly used all of a state redevelopment relocation grant, so who is going to pay for this? The developer? Think again! Why is it that Long Branch didn't have a revaluation of properties for 20 years and now there is going to be another assessment in 2007?

The appraisers hired by the city are preparing assessments and photographing the faults of homes, instead of the positives, in order to prepare for condemnation proceedings. They are not presenting fair market values. They also have been making suggestions to senior citizens and others that they cannot win this fight. This is not what I hope the city intended when it hired this firm.

And the failure of the council to pass a pay-to-play bill is outrageous. Why? Because the whole redevelopment structure is based on pay-to-play.

Long Branch, this is going to affect all of you. Please join us Sunday [2/20/05] at 3 p.m. to Walk the Walk. We will be walking from Ocean Terrace to Broadway and back again to show the city that we are not going to lose our city to private developers.


Asbury Park Press: www.app.com

The Tyranny of Eminent Domain: Cybercast News Service, 2/18/05

Commentary

By Larry Salzman and Alex Epstein

On February 22nd, the future of property rights in America will be at stake as the Supreme Court begins oral arguments in the case of Kelo v. New London. The central question at issue is: should the government be able to use its power of eminent domain to seize property from one private party and transfer it to another?

The seven property owners on the side of Kelo are the last remaining of more than 70 families whose homes and businesses were targeted for demolition several years ago by the city of New London, Connecticut, to make room for a 90-acre private development.

The story of one of the owners, Susette Kelo, is representative. Kelo, a nurse, bought and painstakingly restored a home that initially was so run-down that she needed to cut her way to the front door with a hatchet.

After she had achieved her dream home, she was informed in November 2000 by the local government that her home was condemned, and ordered to vacate within 90 days. She and the other owners remain in their homes only by the grace of a court order, which prevents eviction and demolition until their appeals are exhausted.

What justifies this treatment of Kelo and the other owners, who simply want to be free to live on their own property? The seizures and transfers, the government says, are in "the public interest" — because they will lead to more jobs for New London residents and more tax dollars for the government.

This type of justification was given more than 10,000 times between 1998 and 2002, and across 41 states, to use eminent domain (or its threat) to seize private property.

The attitude behind these seizures was epitomized by a Lancaster, CA, city attorney explaining why a 99-Cents Only store should be condemned to make way for a Costco: "99 Cents produces less than $40,000 [a year] in sales taxes, and Costco was producing more than $400,000. You tell me which was more important?"

To such government officials, the fact that an individual earns a piece of property and wants to use and enjoy it, is of no importance — all that matters is "the public."

But as philosopher Ayn Rand observed, "there is no such entity as 'the public,' since the public is merely a number of individuals...the idea that 'the public interest' supersedes private interests and rights can have but one meaning: that the interests and rights of some individuals take precedence over the interests and rights of others."

In the context of the Kelo case, the idea that "the public interest" trumps private property rights simply means that the desires of some individuals for property they did not earn and cannot get from others voluntarily trump the rights of those who did earn it and do not want to sell it.

Why are their rights trumped? Because some gang with political pull doesn't happen to like how these individuals are using their property.

This is unjust and un-American. America was founded on the principle of individual rights, including the right to life, liberty, and the pursuit of happiness. What do these rights mean if an individual is not free to remain in and enjoy the house he chooses to build his life around, simply because others are clamoring for a shopping mall?

Just as it would be unjust for the government to shut down the printing presses of a newspaper because its reporting is unpopular, so it is unjust for the government to raze a house that an individual has earned, developed, and loves, no matter how many cry that the land should be put to other use.

If the Supreme Court rules against the property owners in Kelo, then no one's home or business is secure.

As Dana Berliner, an attorney for the owners, explains: "If jobs and taxes can be a justification for taking someone's home or business then no property in America is safe. Anyone's home can create more jobs if it is replaced by a business and any small business can generate greater taxes if replaced by a bigger one."

Matthew Dery, another property owner in Kelo warns that "People who've never experienced this sort of treatment at the hands of the government should realize that this could happen to them.

You take for granted that, in America, you own your property until you choose to sell it, but that's not the way it is in New London or in Connecticut. If the City [is] allowed to get away with [it] . . . , [t]he knock at your door could be next."


Cybercast News Service: www.cnsnews.com

(Larry Salzman is an attorney and Alex Epstein is a fellow at the Ayn Rand Institute in Irvine, Calif. The Institute promotes the ideas of Ayn Rand, best-selling author of "Atlas Shrugged"" and "The Fountainhead"" and originator of the philosophy she called Objectivism.)

Bill Would Curb Use Of Eminent Domain: The (New London CT) Day, 2/18/05

GOP Leader Inspired To Act By Situation At Fort Trumbull

By Ted Mann

To Rep. Robert Ward, the Republican leader in the [Connecticut] state House of Representatives, it's pretty simple: the government shouldn't take away your house because someone wants to build a hotel.

No potential economic benefit — not even an infusion of tax revenue in a struggling, cash-strapped city — can justify the use of eminent domain on behalf of a private business. For the second year in a row, Ward has introduced legislation to prohibit the state's eminent-domain law from being used to justify such a taking.

The veteran lawmaker's concerns about the use of eminent domain were galvanized by the controversial redevelopment efforts of the New London Development Corp., which invoked the law to condemn houses in the Fort Trumbull neighborhood, which the city and the NLDC hope to recast as a mixed residential and commercial neighborhood, complete with a hotel and a home for the Coast Guard Museum.

Seven property homeowners have held out, saying the seizure of their homes violates their right under the Fifth Amendment of the U.S. Constitution.

The U.S. Supreme Court will hear oral arguments on the case, Kelo v. New London, later this month, the first time the court has revisited the constitutional limits of eminent domain in decades.

Ward, meanwhile, has set to work on changing the law, with a bill that would ban the acquisition of some residential property by eminent domain if it is to be privately owned or controlled.

The bill would apply to owner-occupied property with four or fewer dwelling units. As currently drafted, it would not be retroactive, and thus would not apply to Fort Trumbull, but Ward said he would consider changing the language if he thought it would draw support.

“It's important because I believe our current law allows individual homeowners to lose their property so that private business interests can make more money,” Ward said. “I find that unacceptable and unjust.”

“If there is a blighted area, I have no objection to the use of eminent domain,” he said. “But you don't destroy non-blighted residential neighborhoods in the name of economic development. The strength of a city is in its people, and you don't make cities stronger by tearing down homes and building hotels.”

Ward's position echoes that of the Institute for Justice, the legal center that will argue the case of the Fort Trumbull homeowners before the court.

It also mirrors similar efforts in states like Colorado and Arizona, said Scott Bullock, the Institute's lead attorney on the case.

“The bills faced vociferous opposition, as I'm sure they will in Connecticut, from government bodies and from developers,” Bullock said in a message left for a reporter.

“In both of those states, watered-down versions of the bills passed,” he said. “... It wouldn't surprise me if the same thing happens in Connecticut on this bill.”

The NLDC and the city have their own vociferous defenders. Among the organizations filing friend of the court briefs on their behalf were development agencies in New York, Massachusetts and California, attorneys general from numerous states, and organizations like the American Planning Association.

Taking private property in order to foster private commercial development is a justified use of eminent domain law, the planning association argues, if the development will plausibly benefit the larger community.

“If you're going to have economic development, somebody's got to come in and assemble the property,” said Patricia Salkin, the chairman of the APA's amicus curiae committee and associate dean of the Albany School of Law.

Proposals like Ward's, she said, “run a significant risk of cutting off government's ability to be a part of the engine of economic development.”

That doesn't mean the proposal is unattractive.

Rep. Ed Jutila, D-East Lyme, said he had followed the New London case from afar, but felt “a little skeptical” that the NLDC's project would result in the boon to the city that the organization claims.

“I'm not sure that the government should be in the business of taking private residential property for other than public use, even though there may be some indirect public benefit that results from it,” Jutila said.

But he was also careful to say that he did not necessarily support Ward's bill, and that he felt sympathy for the city in its efforts to shore up a flagging tax base after years of attrition.

“Towns are out there groping for any means they can find, and I don't fault them for this,” he said.

To push his law through the legislature, Ward will have to focus on the first sentiment more than the second, but it is a feat that he and others say is not out of the question.

A proposal to restrict eminent-domain use “unites people that are typically across the ideological divide,” said Bullock of the Institute for Justice. “It wouldn't surprise me if some Democrats and Republicans who want to protect people's rights joined forces to try to make this happen.”

Ward's similar bill last year easily won approval in the Judiciary Committee last spring, but was killed by one vote in the committee on Planning and Development.

“This is a wild card, and because it's a wild card, the big thing is for him to get the bill out on the floor for a vote,” said Rep. Diana Urban, R-North Stonington, an economist who added that she was, like Jutila, “of two minds” about the proposal.

“The economist would look at this from a utilitarian perspective — the most good for the most people,” she said. “If eminent domain issues don't override ... it is clearly a benefit for the entire area. And I think that's what they're resting their hat on in the Fort Trumbull case.”

But Urban nevertheless seemed to lean toward Ward's position.

“Oftentimes we are using eminent domain to go into neighborhoods that work, that are clear communities that have created a community web, and we ruin them,” she said. “I really think that we have not carefully weighed the issues on a lot of these cases, and sort of just gone ahead with tunnel vision.”

“It's all about getting that bill to the floor,” Urban said, where Ward stands the best chance of getting his colleagues in line behind him. “You just can't draw party lines on this one.”

Ward seemed to expect an uphill battle, but having elicited a promise of a hearing from leaders of the Judiciary Committee, he was confident.

“I think it has a good chance,” he said.


The Day: www.theday.com