# Amicus Curiae Brief — Kelo v. New London

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URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385016_0031%3A40

## Record

- **Collection:** Supreme Court brief
- **Document type:** Amicus Curiae Brief
- **Published:** January 1, 2005
- **Citation:** 545 U.S. 469

## Text

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No. 04-108 AN 9° 9nnr
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Supreme Court of the United States

SUSETTE KELO. THELMA BRELESKY. PASQUALE CRISTOFARO,
WILHELMINA AND CHARLES DERY. JAMES AND LAURA
GURETSKY. PATAYA CONSTRUCTION LIMITED PARTNERSHIP,
AND W LLIAM VON WINKLE,

Petitioners.
Vv.

Ciry oF NEW LONDON AND
NEW LONDON DEVELOPMENT CORPORATION.
Respondents.

On Writ of Certiorari to the
Supreme Court of Connecticut

BRIEF OF THE NATIONAL LEAGUE OF CITIES,
NATIONAL CONFERENCE OF STATE LEGISLATURES,
U.S. CONFERENCE OF MAYORS, COUNCIL OF STATE

GOVERNMENTS, NATIONAL ASSOCIATION OF
COUNTIES, INTERNATIONAL MUNICIPAL LAWYERS
ASSOCIATION, AND INTERNATIONAL CITY/COUNTY

MANAGEMENT ASSOCIATION AS AMICI CURIAE
SUPPORTING RESPONDENTS

PiIMOTHY J. DOWLING RICHARD RUDA*
JENNIFER BRADLEY Chiet Counsel
COMMUNITY RIGHTS COUNSEI STATE AND LOCAL LEGAL
1301 Connecticut Ave.. N.W. CENTER
Suite 502 444 North Capitol Street, N.W.
Washington, D.C. 20036 Suite 309
(202) 296-6889 Washington, D.C. 20001

202) 434-4850
J. PETER BYRNI (202) 434-48
GEORGE TOWN UNIVERSITY * Counsel of Record tor the

LAW CENTER Amici Curiae
600 New Jersey Avenue, N.W.

Washington, D.C. 20001
(202) 662-9066

WILSON-EPES PRINTING CO., INC (202) 789-0096 — WASHINGTON, D. C. 20001

QUESTION PRESENTED

Whether using eminent domain, with payment of just com-
pensation, to promote economic development in a depressed
local economy—thereby creating jobs, alleviating human
suffering, and otherwise promoting the public welfare—
constitutes a public use under the Fifth Amendment.

(i)

TABLE OF CONTENTS

Ne |)
pp eh

TT aiaiiisitiiseeinsanaenareesesenetercccecsccesccsccrscoeecoesces

ECONOMIC DEVELOPMENT IS A PUBLIC
USE UNDER THE FIFTH AMENDMENT .....

A. Longstanding Precedents Show that Eco-
nomic Development is a Public Use............

B. The Text, Structure, and History of the
Fifth Amendment Show that Economic
Development is a Public Use...................04..

_C. Petitioners’ Proposed Heightened Scrutiny
is Unprecedented and Unworkable..............

EXISTING STATE AND LOCAL PRO-
TECTIONS FOR PROPERTY OWNERS IN
EMINENT DOMAIN CASES REFLECT
THE APPROPRIATE DIVERSITY OF OUR
TNE ys ) | | | Er

EMINENT DOMAIN IS A VITAL ECO-
NOMIC DEVELOPMENT TOOL’ FOR
MANY COMMUNITIES. ..........cccccccccesseeeeeesenes

B. The Canton Success Story ...........::ccccccceeees

SITTIN ssesttendeicmencnesasceseneceesessosecscescevseccssccosceses

12

17

23
26
29

iv
TABLE OF AUTHORITIES
Cases Page
Berman v. Parker, 348 U.S. 26 (1954) ......cccccceee passim

Board of Regents v. Roth, 408 U.S. 564 (1972)... 12
Brown v. Legal Found. of Wash., 538 U.S. 216

ET cscnscsscarscsetuiniimciiaehiaieiaaamaiaaeaaadiailaaaa 5
Charles River Bridge v. Warren Bridge, 36 U.S.

re i vccessstiniteitticscciisimairinanitaintanriiaaeipenaianin 6, 6-7
Clark v. Nash, 198 U.S. 361 (1905) .............0ceeeeee 12, 13
County of Wayne v. Hathcock, 684 N.W.2d 765

I, Sati i cncnceinsittiaicenitiennenennienacinantiasaimisaitants 14
Dolan v. City of Tigard, 512 U.S. 374 (1994)....... 1]
Fallbrook Irrigation Dist. v. Bradley, 164 U.S.

PEs Ce coreicsisilicsitsinssietiniindaiapaiinbiianntindsiipataanitaiaaias 5, 7,13
First English Evan. Luth. Church v. County of

Los Angeles, 482 U.S. 304 (1987) .......cccccceeeeees 5
Hawaii Housing Auth. v. Midkiff, 467 U.S. 229

REESE ITEP A SID He sete ow ae veceses passim

Head v. Amoskeag Mfg. Co., 113 U.S. 9 (1884) ...5, 12, 14
Keystone Bituminous Coal Ass'n v. DeBene-

dictis, 480 U.S. 470 (1987)........ccccccceseeeeteeeeneeees 5
Manufactured Housing Communities of .Wash-

ington v. State, 13 P.3d 183 (Wash. 2000)........ 14
Missouri Pacific Ry. Co. v. Nebraska, 164 U.S.

SP Grr ncenerencasensnicicnenennitainiianpiaaiiitinatianinniaiaies 7
National R.R. Passenger Corp. v. Boston & Me.

Can, FE ls Gar Ce Oe cccrsaninnneninns passim
Nollan v. California Coastal Comm'n, 483 U.S.

See crercnceceienpntatninteinienntinetsiiiiaiaidiabimuunintan 11
Pegram v. Herdrich, 530 U.S. 211 (2000) ............ 9
Pequonnock Yacht Club, Inc. v. City of Bridge-

port, 790 A.2d 1178 (Conn. 2002) 20.0.0... 16
Rindge Co. v. Los Angeles County, 262 U.S. 700

CU crecicnsianmmnaniacnsnineaiaiacmmndnniesiaiaisiiiiemaaiaaianin 12

Ruckelshaus v. Monsanto Co., 467 U.S. 986
SERS Re Onrer ise mene a es Semen eee 5,8

Vv

TABLE OF AUTHORITIES

Page

Ryerson v. Brown, 35 Mich. 333 (1877)...........0..+. 14
Southwestern Ill. Dev. Auth. v. National City
Envil., L.L.C., 710 N.E.2d 896 (Ill. App. Ct.

1999), aff'd 768 N.E.2d 1 (Ill. 2002)................. 7
Strickley v. Highland Boy Gold Mining Co., 200

SORA: SE UTI cesiesneniinreninpscininiaieniioasitinaaiigiainamatietae 5,14
United States v. 564.54 Acres of Land, 441 U.S.

ee aeiitciiuniesiclptainaiidaiandiiiadtesiaisiaiieiuaniatiietd tintin 15

Statutes

National Environmental Policy Act, 42 U.S.C.

§ 4321 ef seq........ somainasnemaiinendiimaniiciedeitaiitiiaatetadiass 16
National Historic Preservation Act, 16 U.S.C.

SOD HI ccitsnsentdntennabibdntinnpaiietadieanesebanmscanidiaen 16
Department of Transportation Act, § 4(f), 49

aia UF STII ideiedishinsinenitaiishidintetattesenainmianiitiiiiniins 16

Conn. Gen. Stat. § 8-266 ef 8€q. .........cccccccceeeeeeeeees 16

Comm. Gam. Stat. § B-12S(B)....ccccccccccccccccceccccececesees 16

Other Authorities

Rick Alm, Learning From Past Mistakes Paved
Way for Kansas Speedway's Success, Kan.
eg eee 23, 24, 25
Alan Altshuler & David Luberoff, Mega-
Projects: The Changing Politics of Urban
Public Investment (2003 ).............0cccccsseeeeeeeseeeees 16
Cindi Andrews, Some in Norwood Fight to
Sell Homes, Cincinnati Enquirer, Oct. 11,

Associated Press, Loss of Manufacturing Jobs
Hits Milwaukee's Black Community Hard, St.
Paul Pioneer Press, Dec. 9, 2004 0000.0.....c.cccceeees 17

vi

TABLE OF AUTHORITIES

Associated Press. Loss of Manufacturing Jobs
Means a Makeover for. Baltimore, AP News-
SS Se

Shashank Bengali, Loss of Manufacturing Jobs
Cuts Especially Deep in Southwest Missouri
Town, Kan. City Star, Feb. 17, 2003 .................

Dana Berliner, Public Power, Private Gain
(Institute for Justice 2004)... eccceeeeeeeeee

Paul Blustein, On Pins and Needles: As Quotas
Expire, U.S. Textile Industry Braces for
Change, Wash. Post, Dec. 31, 2004 ............000

Reed Branson, Mississippi OKs $295 Million in
Incentives for Nissan, Commercial Appeal,
SUID, ip SET cccrensciietantnsennnsscenentsceiiieentineniasliianes

Colorado Municipal League, ef al., Urban
Renewal in Colorado (C. White ed., Sept.

a ccnccesccsnsnnsctinonmansennnsesesumeesnnnsssnssnnsessannss 19,

Randy Covitz, Track is Green Light for County;
Speedway Brings a lot to Wyandotte, Kan.
er I, GE, Gy Fi cccesccnnccssenensstenntennasnemnnens

Lance Dickie, NASCAR's Lucrative Lure; Is It
Right for the Northwest?, Seattle Times, Sept.
STAs aiieitesciesininideteinitdesenaniialtaindiiasinteanasitibaiiiaeainiiiiines

Bruce Fein, Eminent Domain, Eminent Nonsense,
Wash. Times, Oct. 12, 2006 ..........cccccccecsessessees

David Firestone, Black Families Resist Missis-
sippi Land Push, N.Y. Times, Sept. 10, 2001 ...

Dale Garrison, The Biggest Deals of the Past 30
Years, Ingram’s, Jan. 2004 ............cccseeeeseeeeeeees

Glimpse of the Future 2: Residents Describe
Plant's Massive Impact on Area, Montgomery
Advertiser, Aug. 22, 2006 ...........ceiscsersscssesseeees

17

18

20, 22

23, 24

Vil
TABLE OF AUTHORITIES

Matthew P. Harrington, “Public Use” and the
Original Understanding of the So-Called
“Takings” Clause, 53 Hastings L. J. 1245
GTEa i shcnicsictiessicabasionemsinsiniiuieiaitandainamsainiiapiaiuinidinieians

Brian Headd, Redefining Business Success:
Distinguishing Between Closure and Failure,
21 Small Bus. Econ. 51 (2003)...

Lynne Jeter, The Nissan Effect, a Better Mis-
sissippi All Around, Miss. Bus. J., June 23,
rn On Oe TE

Lynne Jeter, Driving Change: Nissan Adds
Punch to Region's Economy, Miss. Bus. J.,
Sena, Sem MEO neninciercieasenitbnnnineiianeniitnnianbesiaminie

Steve Kemme, Norwood Battle Puts Life on
Hold, Cincinnati Enquirer, July 18, 2004..........

Steve Kemme, Residents Remain in Limbo,
Cincinnati Enquirer, Mar. 28, 2004...................

Rox Laird, Kansas City-Wyandotte County Have
Merged—and Become a Top Tourist Destina-
tion, Des Moines Register, Oct. 17, 2004..........

John Lewis, A Treatise on the Law of Eminent
TAIN ae ene ee em

P. Nichols, Eminent Domain (3d ed. 2003, J.
iii iil alain

Gary Pettus, Nissan + 1], Thanks to Better Pay,
Bills Lighter, Dreams Brighter, Workers Say,
Clarion-Ledger, May 30, 2004 .00.........:cccccceeeee

John Poretto, Last Owners Settle in Nissan Land
Fight, Commercial Appeal, April 10, 2002.......

Barbara Powell, Economy Will be Barbour’'s Big
Challenge as Governor, Commercial Appeal,
DRI, Tei aE wenusvesennnccnsastentensommnsenieisesnieantemenes

Page

10, 11

26, 27

Vill
TABLE OF AUTHORITIES

Lisa Scheller, Where Did They Go? Wyandotte
Residents Displaced by Kansas Speedway Now
Settled In, Tonganoxie Mirror, July 28, 2004...

Eric Stringfellow, Utility Chief Needs New
Economic Agenda, Clarion-Ledger, July 6,
NC

Elizabeth A. Taylor, The Dudley Street Neigh-
horhood Initiative and the Power of Eminent
Domain, 36 B.C. L. Rev. 1061 (1996) ..............

U.S. Census Bureau, State Rankings—Statistical

Abstract of the United States (2004)...

Josee Valcourt, Spending $365 million: Is State's
Investment in Nissan Paying Off?, Clarion-
On

Josee Valcourt, Southern Auto Plants: Fringe
Benefits Keep Packages Competitive, Clarion-
I 9G yy

Willem van Vliet, ed.. The Encyclopedia of

I Ge cnscnstasteennsenserinnaenninemninnete
N. Webster, American Dictionary of the English
Language (1st €d. 1828) ............sseccccesssssseseeseees
Webster's Encyclopedic Unabridged Dictionary

Mark Wiebe, Village West to Get New Tenants,
Kan. City Star, Jan. 29, 2003 .............ccccsssessesees
Douglas M. Wrenn, Urban Waterfront Develop-
ment, 15 St. Mary’s L. J. 555 (1984)...

Page

24, 26

27

20

26

28

INTEREST OF THE AMICI CURIAE

This case is of vital importance to amici, whose members
include state and local governments and officials throughout
the United States.' These officials use eminent domain for
many purposes, including as a fundamental tool for economic
development in distressed cities like New London. Eminent
domain is often indispensable for revitalizing local econo-
mies, creating much-needed jobs, and generating revenue that
enables cities to provide essential services. At the same time,
the condemnation power should be used prudently, as is being
done by New London here. Because of the importance of
these issues to amici and their members, amici submit this
brief to assist the Court in its resolution of this case.

SUMMARY OF ARGUMENT

1. During the last 50 years, this Court has handed down no
less than seven rulings reaffirming that public use under the
Fifth Amendment is coterminous with the police power, and
that where a government objective is legitimate, “the right to
rculize it through the exercise of eminent domain is clear.”
Berman v. Parker, 348 U.S. 26, 33 (1954). These rulings are
not fact-based, as Petitioners suggest, but instead rooted in a
broad rationale recognizing that courts should defer to a
legislative finding of public use unless that finding lacks a
rational basis, even where a private actor stands to benefit.
Early decisions of this Court likewise recognize the propriety
of using eminent domain for economic ends. These long-
standing rulings faithfully capture the original understanding
and plain meaning of the Fifth Amendment as reflected in its
text, structure, and history.

' This brief was not authored in whole or in part by counsel for a party,
and no person or entity other than the amici, their members, and their
counsel made a monetary contribution to the preparation or submission of
this brief. The parties have consented to the filing of amicus briefs and
have filed letters of blanket consent with the Clerk of the Court.

2

Petitioners contend that this Court should jettison its tra-
ditional rational basis test and impose heightened scrutiny
that would prohibit condemnation for economic development
unless there is a high degree of certainty~that the con-
demnation will yield the expected public benefits. But the
Court repeatedly has held that it “need not make a specific
factual determination whether the condemnation will accom-
plish its objectives.” National R.R. Passenger Corp. v.
Boston & Me. Corp., 503 U.S. 407, 422-23 (1992). The
proposed heightened scrutiny would be unworkable and
transform courts into super-legislatures.

2. The variation in eminent domain law among the States
properly reflects the appropriate diversity of our federal
system. A narrow federal constitutiona! constraint on the
scope of public use would inappropriately impose a uniform
standard on States facing highly diverse challenges. This
Court repeatedly has recognized that maintaining a tolerant
federal standard permits adaptation of eminent domain to
varying local conditions. The just compensation requirement
ensures that condemnees are treated justly, as do other state
constitutional and statutory protections.

3. Local communities across the country face daunting
economic challenges that must be addressed through rede-
velopment programs that require the use of eminent domain.
The private sector often cannot accomplish the job alone due
to a range of market failures, including holdouts; obstacles to
assembling an appropriate development site in urban and
suburban areas; the risks associated with cleaning up
“brownfield” sites; clouded property title on key parcels; and
the need to improve street patterns. The Kansas City
Speedway and associated retail development, as well as the
Nissan auto plant in Canton, Mississippi, illustrate how
eminent domain is essential to the rebirth of many eco-
nomically distressed municipalities and regions.

3
ARGUMENT

I. ECONOMIC DEVELOPMENT IS A PUBLIC
USE UNDER THE FIFTH AMENDMENT.

Of all the public purposes advanced by eminent domain,
Petitioners argue that economic development alone is not a
“public use” under the Fifth Amendment. On this reading,
local officials could condemn Petitioners’ property to create a
park, enhance a scenic river vista, or pursue any other public
purpose. But they cannot condemn the same property to
promote economic revitalization that will create jobs and
alleviate the human suffering and social devastation caused
by unemployment and reduced public services. On
Petitioners’ view, economic development is always off-limits
as a justification for eminent domain, no matter how fair the
compensation, no matter how compelling the public interest
in new jobs and renewed prosperity. See Pet. Br. 11-27.

Alternatively, Petitioners argue that the Court should
jettison the traditional rational basis test and replace it with a
heightened “reasonable certainty” standard of judicial review.
See id. at 27-48. This position is both contrary to established
precedent and wholly unworkable.

A. Longstanding Precedents Show that Economic
Development is a Public Use.

For 50 years, without dissent, the Court repeatedly has held
that the scope of public use is coterminous with the police
power and that courts must defer to legislative determinations
of public use. Those decisions rejected arguments, similar to
those advanced by Petitioners, that private benefits generated
by a condemnation render it suspect. It is not surprising,
then, that every Justice on the Connecticut Supreme Court
concluded that economic revitalization is a public use. See
Pet. App. 171 (dissent) (agreeing with the majority that

—

4

“private economic development projects . . . satisfy the tak-
ings clauses of the federal and state constitutions”).

Petitioners cite no federal constitutional authority remotely
suggesting that economic development does not constitute a
legitimate public use, and there is none. In fact, established
precedent compels the contrary conclusion. In Berman vy.
Parker, 348 U.S. 26 (1954), two owners of non-blighted land
challenged an urban redevelopment program in Washington,
D.C. The Court unanimously held that Congress may use
eminent domain to improve the quality of the urban fabric:
“The concept of the public welfare is broad and inclusive.
The values it represents are spiritual as well as physical,
aesthetic as well as monetary.” /d. at 33 (citation omitted).
Berman stressed that where a government objective is
legitimate, “the right to realize it through the exercise of
eminent domain is clear.” /d.

Several factors make this case easier than Berman. Here,
private developers will have only leasehold interests, sub-
jecting them to ongoing oversight by the city’s agent, the
redevelopment agency. See Pet. App. 6. Moreover, the
specific plan to use eminent domain here was approved by the
city council and subject to extensive public input (Resp. Br.
3-5), affording greater democratic participation than in
Berman. See Berman, 348 U.S. at 29-30.

In Hawaii Housing Auth. v. Midkiff, 467 U.S. 229 (1984),
another case involving transfer of condemned land to private
individuals, the Court unanimously confirmed that public use
is “coterminous” with the police power. /d. at 240. Eight
years later, the Court again unanimously reaffirmed that
public use “is coterminous with the regulatory power,” even
where a condemnation “result[s] in the transfer of ownership

from one private party to another.” National R.R. Passenger
Corp. v. Boston & Me. Corp., 503 U.S. 407, 422 (1992).

5

Repeated decisions of this Court reaffirm these bedrock
principles.”

Petitioners argue that these cases can be explained away
because they have “facts of independent public significance.”
Pet. Br. 24. But the rationale of Berman, Midkiff, National
Railroad, and similar rulings is not fact-based. These rulings
stand on an expansive and common rationale recognizing that
the concept of public use is as inclusive as the police power.
Even the amici professors supporting Petitioners acknowl-
edge that the ruling below is “in keeping with” Midkiff. Br.
Am. Cur. David Callies ef al. 3.

Older cases, too, approve the use of eminent domain to
foster economic development. In Head v. Amoskeag Mfg.
Co., 113 U.S. 9 (1885), the Court upheld a state “Mill Act,”
which authorized downstream mill builders to flood land of
upstream riparian owners, to secure “the advantages inuring
to the public from the improvement of water power and the
promotion of manufactures.” /d. at 19; see also Strickley v.
Highland Boy Gold Mining Co., 200 U.S. 527 (1906) (ap-
proving condemnation of a right of way for an aerial bucket
line for a private mining company); Fallbrook Irrigation Dist.
v. Bradley, 164 U.S. 112, 161 (1896) (approving condem-
nation for the irrigation of private land and comparing public
use justifications for eminent domain with those for taxation).
New London’s use of eminent domain for economic
development falls squarely within this longstanding tradition.

* Brown v. Legal Found. of Wash., 538 U.S. 216, 232 (2003) (govern-
ment may condemn property for any reason justifying a tax or user fee);
First English Evan. Luih. Church v. County of Los Angeles, 482 U.S. 304,
321 (1987) (“[T]he decision to exercise the power of eminent domain is a
legislative function ‘for Congress and Congress alone to determine.’”)
(citations omitted); Keystone Bituminous Coal Ass'n v. DeBenedictis, 480
U.S. 470, 491 n.20 (1987); Ruckelshaus v. Monsanto Co., 467 U.S. 986,
1014 (1984).

6

B. The Text, Structure, and History of the Fifth
Amendment Show that Economic Development
is a Public Use.

Berman, Midkiff, National Railroad, and similar precedents
faithfully capture the original meaning of the Takings Clause.
The term “public use” never was intended to limit eminent
domain only to condemnations where the public would own
or have access to the expropriated property. As has been long
noted, the language of the Takings Clause does not impose
any limitation other than the payment of just compensation.
See John Lewis, A Treatise on the Law of Eminent Domain ii
(1888). There is no evidence the Framers were concerned
about the purposes for which eminent domain is employed
where it is subject to legislative control. See Matthew P.
Harrington, “Public Use” and the Original Understanding of
the So-Called “Takings” Clause, 53 Hastings L. J. 1245,
1299-1301 (2002).

The plain meaning of the term “public use,” both now and
at the Founding, encompasses not only public ownership and
access, but also the public enjoyment of benefits.’ In keeping
with this plain meaning, as early as 1837 the Court recog-
nized that eminent domain could be used to promote “the
public interest and convenience.” Charles River Bridge v.
Warren Bridge, 36 U.S. 420, 542 (1837) (observing that state
legislators had taken and extinguished a ferry franchise
through eminent domain because “the public interest and
convenience would be better promoted by a bridge in the
—same place”). The public interest plainly includes economic
prosperity since “[t]he object and end of all government is to

* E.g., Webster's Encyclopedic Unabridged Dictionary 2097 (1996)
(meaning of “use” includes “service or advantage in” and “help; profit;
resulting good”); | N. Webster, American Dictionary of the English
Language (\st ed. 1828) (meaning of “use” includes “advantage” and
“production of benefit”).

7

promote the happiness and prosperity of the community.”
Id. a4, 547.

Because the language of the Takings Clause does not
impose any limitation other than the payment of just
compensation, the constitutional text suggests that the means-
end validity of eminent domain generally should be
determined under the Due Process Clause, as it would be for
any legislative action. Indeed, to our knowledge, only once
in its entire history has this Court invalidated government
action under the U.S. Constitution for taking property for a
purely private use, and it did so under the Due Process
Clause. In Missouri Pacific Ry. Co. v. Nebraska, 164 U.S.
403 (1896), the Court set aside as a violation of due process
an order of a Nebraska agency requiring a railroad to allow
farmers to build a grain elevator on the station grounds. In
Midkiff, the Court noted the extremely limited reach of
Missouri Pacific, emphasizing that the “order in question was
not, and was not claimed to be, . . . a taking of private
property for a public use under the right of eminent domain.”
Midkiff, 467 U.S. at 241 (quoting Missouri Pacific, 164 U.S.
at 416; emphasis added in Midkiff). *

In the end, it makes no practical difference whether the
Court embraces the Due Process Clause as the means-end
limitation on eminent domain, or treats “public use” as
“coterminous with the scope of a sovereign’s police powers.”
Midkiff, 467 U.S. at 240. Where “the eminent domain power
is rationally related to a conceivable public purpose, the Court

* See also Fallbrook Irrigation Dist., 164 U.S. at 160 (public use issues
raised by condemnation “where there is no color of necessity therefor . . .
and simply for the purpose of gratifying the taste of the owner”);
Southwestern Ill. Dev. Auth. v. National City Envtl., L.L.C., 710 N.E.2d
896, 902 (Ill. App. Ct. 1999) (invalidating a taking where the condemning
agency characterized it as one “for private use”), aff'd, 768 N.E.2d | (Ill.
2002).

8

has never held a compensated taking to be proscribed by the
Public Use Clause.” /d. at 241.

C. Petitioners’ Proposed Heightened Scrutiny is
Unprecedented and Unworkable.

Petitioners alternatively argue that this Court should
impose heightened scrutiny for economic development
projects. They contend that courts should allow eminent
domain for economic development only where “the gov-
ernment can show that there is reasonable certainty that the
project will . . . yield the public benefits that are used to
justify the condemnation.” Pet. Br. 36.

This proposal is wholly untethered from this Court's
eminent domain jurisprudence. Longstanding precedents
under the public use provision explicitly reject such
heightened scrutiny. “The proper inquiry before this Court is
not whether the provisions in fact will accomplish their stated
objectives. Our review is limited to determining that the
purpose is legitimate and that Congress rationally could have
believed that the provisions would promote that objective.”
Ruckelshaus, 467 U.S. at 1015 n.18; accord National
Railroad, 503 U.S. at 422-23 (“[W]e need not make a specific
factual determination whether the condemnation will
accomplish its objectives.”).

Petitioners’ proposed heightened scrutiny also is unwork-
able. They leave their “reasonable certainty” standard largely
undefined, but even a “reasonable likelihood” test would be
highly problematic. It often is impossible to predict the
future success of a new economic enterprise of the size and
complexity of the Fort Trumbull project, or of the individual
businesses that make up that project.” Potential delays caused

* See Brian Headd, Redefining Business Success: Distinguishing
Between Closure and Failure, 21 Small Bus. Econ. 51, 58 (2003),

9

by years of litigation over provability of success would likely
preclude the use of eminent domain for economic develop-
ment in many cases. Heightened scrutiny would alter market
signals by injecting additional risk, and markets would pro-
tect against this risk by increasing costs through higher inter-
est rates for municipal bonds or terminating the development

opportunity.

If government officials pursue ill-considered ventures, the
appropriate remedy should be left to the voters. Democratic
oversight works well for redevelopment projects using
eminent domain because the entire community bears the cost
of acquiring the land and thus has a strong interest in ensuring
that condemnations are prudent. Public proceedings, like the
extensive public meetings and hearings held in New London
(see Resp. Br. 3-5), allow condemnees to bring these issues to
the fore, and media scrutiny promotes public consideration
and participation. Market signals, such as investor interest in
municipal bonds, also help affirm the viability of redevel-

opment projects.

In contrast, the judiciary is ill-equipped to predict the
outcome of complex economic undertakings. While legisla-
tures have the resources and time to engage in complex fact-
finding and economic analysis, such decisions “are not wisely
required of courts.” Pegram v. Herdrich, 530 U.S. 211, 221
(2000); accord Midkiff, 467 U.S. at 243 (“[E]mpirical debates
over the wisdom of takings—no less than debates over the
wisdom of other kinds of socioeconomic legislation—are not
to be carried out in the federal courts.”). Petitioners would
have courts review contracts and land use laws to ensure there
are binding “contractual, statutory, or other minimum stand-
ards” that will make economic success a reasonable certainty.
Pet. Br. 37. Heightened scrutiny would transform the courts

http://www.sba.gov/advo/stats/bh_sbe03.pdf (about one-third of new bus-
inesses fail).

10

into super-legislatures or boards of land use appeal, inun-
dating them with requests by holdouts to review the details of
economic development projects across the board.

Petitioners’ “reasonable certainty” standard also would
harm many landowners. When a municipality announces a
development project, many affected landowners want to sell
their land as soon as possible. The marketplace often is
unavailing because ordinarily few people want to buy land
that will be acquired by the government. But the munic-
ipality often is unable to proceed with land acquisition until it
can acquire al/ land needed for the project; developers
reasonably insist on assemblage of the entire project site
before proceeding with a multi-million dollar project. Under
current law. land acquisition can begin when local officials
have a rational basis for believing the project will advance a
public purpose. But under heightened scrutiny, acquisitions
might be delayed for years because local officials could not
condemn land held by holdouts until the officials could show
to a reasonable certainty that the project would be successful.
And these holdouts would have every incentive to challenge a
“reasonable certainty” showing in court to gain leverage in
extorting large compensation awards.

These concerns are by no means hypothetical. In Nor-
wood, Ohio, about 70 properties were needed to expand a
complex of shops and offices to promete economic growth in
that financially strapped city.° More than 60 owners agreed
to sell voluntarily, but they could not sell because a handful
of owners held out, even though they were offered 125% of
market value.’ So outraged were the 60+ landowners that
many joined with the city in opposing the holdouts’ lawsuit,

® See Cindi Andrews, Some in Norwood Fight to Sell Homes, Cincin-
nati Enquirer, Oct. 11, 2003, available at 2003 WL 62434526.

” Steve Kemme, Norwood Battle Puts Life on Hold, Cincinnati En-
quirer, July 18, 2004, available at 2004 WL 79970802.

planting yellow signs in their yards protesting that they were
being “Held Hostage” by the holdouts’ counsel." Among the
landowners held in limbo were the Vogelsongs, who were
forced to pay two mortgages and exhausted one of their
pension funds and tapped into another until the holdout issue
was resolved. Michelle Vogelsong directed her anger not at
the city, but at the holdouts’ counsel: “It’s aggravating.
People who aren’t even residents here are holding up the best
thing that’s happened to Norwood in a long while.” For
Jeanne Dawson, an 83-year-old blind retiree, the delay
“meant the loss of three opportunities to move into a
retirement home.”'° Heightened scrutiny would allow many
more holdouts to exploit their monopoly position at the
expense of other landowners.

Some amici supporting Petitioners make the peculiar
argument that Nollan v. California Coastal Comm'n, 483
U.S. 825 (1987), and Dolan v. City of Tigard, 512 U.S. 374
(1994), support heightened scrutiny of eminent domain. Br.
Am. Cur. David Callies et al. 24. But Nollan and Dolan
address situations where the government sought to acquire
property interests without paying any compensation by
imposing permit conditions requiring dedications of property.
The opinions carefully explain that heightened scrutiny was
justified by the concern that government could extort property
for free in the guise of granting permits. See Nollan, 483 U.S.
at 841 (noting “heightened risk that the purpose is avoidance
of the compensation requirement”); Dolan, 512 U.S. at 385
(relating heightened scrutiny to doctrine of “unconstitutional
conditions”). One obvious remedy for the Nollans and Mrs.

* See Andrews, supra note 6.

* Kemme, supra note 7. Donna Laake, who also is paying two mort-
gages, lamented: We haven't had our side of the story told too much.”
Andrews, supra note 6.

'° Steve Kemme, Residents Remain in Limbo, Cincinnati Enquirer,
Mar. 28, 2004, available at 2004 WL 72712753.

1?

oan

Dolan was payment of compensation. It defies logic, as well
as precedent, to extend these exaction decisions to fully
compensated takings where such risks do not exist.

Il. EXISTING STATE AND LOCAL PROTEC-
TIONS FOR PROPERTY OWNERS _ IN
EMINENT DOMAIN CASES REFLECT THE
APPROPRIATE DIVERSITY OF OUR
FEDERAL SYSTEM.

The Court has long recognized that different States have
different approaches to eminent domain and public use due to
the diversity of local circumstances. Indeed, “[p]roperty
interests . . . are not created by the Constitution. Rather they
are created and their dimensions are defined by existing rules
or understandings that stem from an independent source such
as state law.” Board of Regents v. Roth, 408 U.S. 564, 577
(1972). As early as 1923, the Court stressed that the deter-
mination of an appropriate public use “is influenced by local
conditions,” and courts “should keep in view the diversity of
such conditions and regard with great respect the judgments
of state courts upon what should be deemed public uses in
any state.” Rindge Co. v. Los Angeles County, 262 U.S. 700,
705-06 (1923).

To our knowledge this Court has never reversed a state
court decision finding that a taking constitutes a public use,
regardless of whether similar takings might violate con-
Stitutional or statutory constraints in another State. For
example, the Court upheld New Hampshire’s “Mill Act”
against a federal constitutional challenge even though other
States had concluded similar statutes violated “their
respective Constitutions.” Head, 113 U.S. at 18.

In Clark v. Nash, 198 U.S. 361 (1905), the Court explained
this deference to state court judgments on public use, up-
holding a Utah statute that permitted condemnation of rights

13

of way for irrigation ditches necessary for private farming

and mining:
Where the use is asserted to be public, and the right of
the individual to condemn land for the purpose of
exercising such use is founded upon or is the result of
some peculiar condition of the soil or climate, or other
peculiarity of the State, where the right of condemnation
is asserted under a state statute, we are always, where it
can fairly be done, strongly inclined to hold with the
state courts, when-they uphold a state statute providing
for such condemnation. . . .

... This court has stated that what is a public use may
frequently and largely depend upon the facts sur-
rounding the subject, and we have said that the people of
a State, as also its courts, must in the nature of things be
more familiar with such facts.

Id. at 367-68; accord Fallbrook Irrigation Dist., 164 U.S. at
159-60 (“[W]hat is a public use frequently and largely
depends upon the facts and circumstances surrounding the
particular subject-matter . . . .”).

In other words, the irrigation measure like that upheld in
Clark might not be a public use in Connecticut. But while
Connecticut is not arid, it does have several older urban areas
with seriously declining economic bases, the economic
redevelopment of which requires the use of eminent domain.
A narrow federal requirement for public use would im-
properly impose a uniform standard on States facing highly
diverse challenges. Maintaining a flexible federal standard
permits adaptation of eminent domain to the diverse needs of
States, as has been the practice throughout our history.

Petitioners and their amici discuss various state court
decisions that limit eminent domain. But nothing in the
Federal Constitution prevents States from placing greater
restrictions on the use of eminent domain as a matter of state
constitutional or statutory law, and several have done so. In

14

rejecting the federal public use claim of one property owner
who relied extensively on state precedents, Justice Holmes
wrote for a unanimous Court: “If the state constitution
restricts the legislature within narrower bounds that is a local
affair, and must be left where the state court leaves it.”
Strickley, 200 U.S. at 531.

Washington's constitution, for example, provides an “abso-
lute prohibition against taking private property for private
use” (subject to specific exceptions) and also expressly makes
“the question of public versus private a judicial question.”
Manufactured Housing Communities of Washington v. State,
13 P.3d 183, 188 (Wash. 2000). Washington's courts thus do
not follow Berman or Midkiff due to the different language of
its constitution. /d. at 189.

Michigan provides another pertinent example because
Petitioners offer County of Wayne v. Hathcock, 684 N.W.2d
765 (Mich. 2004), as a model for how this Court should
construe the federal Constitution. But the history of
Michigan's interpretation of its own Takings Clause shows
why Hathcock should have no influence on interpreting the
federal Constitution. Michigan had long viewed economic
development not to be a public use; it had even held its own
Mill Act to be unconstitutional, in contrast to this Court's
construction of the federal Takings Clause. Compare Ryerson
v. Brown, 35 Mich. 333 (1877) (necessity for general mill act
less than in other States) with Head v. Amoskeag Mfg. Co.,
113 U.S. at 26 (upholding New Hampshire's Mill Act). The
Hathcock court’s decision turns entirely on its reading of
where Michigan law stood when the state constitution was
adopted in 1963; it pointedly ignores Berman and Midkiff, as
well as general questions of the balance between individual
and community interests. Hathcock, 684 N.W.2d at 780-85.
It would be bizarre for this Court to accord weight to a

15

Michigan decision that affords no weight to this Court's
precedents. ''

Most States have anticipated or adopted the general
approach to public use charted by this Court, although with
variations. See 2A P. Nichols, Eminent Domain § 7.02[5] (3d
ed. 2003, J. Sackman ed.). For example, the court below took
a “flexible approach” (Pet. App. 30) but still ruied as a matter
of Connecticut constitutional law that a taking would violate
the public use clause if “the taking was primarily intended to
benefit a private party, rather than primarily to benefit the
public.” Jd. at 68. It carefully reviewed the lower court
findings and the record before concluding that the project
constituted a public use.

This Court’s longstanding deference to state and local
approaches to public use will not result in any systematic
unfairness to property owners. All condemnees receive what
the Takings Clause guarantees them: just compensation.
Petitioners suggest that homeowners suffer intangible losses
that are not compensated, but even if true it would not support
a restrictive reading of public use. Rather, the argument bears
on the Court’s interpretation of “just compensation.” See,
e.g., United States v. 564.54 Acres of Land, 441 U.S. 506, 512
(1979). That issue is not before the Court here.'?

'' In any event, the rule embraced in Hathcock provides far too rigid an
interpretation of public use for the U.S. Constitution. It is insensitive to
the locally determined need for economic development or the care with
which it is carried out. The rule applies only when a private entity will
own the property, but not to cases where a public entity retains ownership,
which would perversely encourage governments to maintain ownership
and control of developments that might be better managed by private
enterprise. Hathcock also protects to the same extent long-term home-
owners and short-term speculators in undeveloped land, even though the
former might suffer subjective losses but not the latter.

'? Many States and the Federal Government provide additional funding
to condemnees beyond just compensation. For example, Connecticut has

16

States also place many statutory and constitutional pre-
requisites on recourse to eminent domain, particularly for
economic redevelopment. For example, under Connecticut's
urban renewal laws that address blight, local officials may
condemn structures that are not substandard, but only if
“essential to complete an adequate unit of development.”
Conn. Gen. Stat. § 8-125(b). The Connecticut Supreme Court
reads this provision to require local officials to consider
whether existing owners can be integrated into redevelopment

projects. See Pequonnock Yacht Club, Inc. v. City of

Bridgeport, 790 A.2d 1178. 1185 (Conn. 2002). Under
Connecticut's economic development laws, the provisions
invoked by New London here, local officials must show that
condemnations are primarily intended to benefit the public
(Pet. App. 68). and provide other reasonable assurances that
condemnations will advance the public interest. /d. at 71-
110, 122-33. Commentators agree that redevelopment
projects today are carried out with greater sensitivity to the
value of existing communities.”

enacted the Uniform Relocation Assistance Act, Conn. Gen. Stat. § 8-266
et seq., under which more than $10 million in relocation assistance is
available to Petitioners and other landowners within the Fort Trumbull
site (on average more than $100,000 per affected landowner, in addition
to fair market value). J.A. 206-07.

'’ See Alau Altshuler & David Luberoff, Mega-Projects: The Chang-
ing Politics of Urban Public Investment 43 (2003) (“solidly entrenched”
consensus among local officials that redevelopments “should proceed
only if their negative side effects were negligible, or at least fully
mitigated”). The excesses of urban renewal during the 1950s and 1960s
that Petitioners’ amici discuss were curbed by federal legislation that
fostered more careful consideration of the consequences of demolition,
such as the National Historic Preservation Act, 16 U.S.C. § 470 ef seq.,
Section 4(f) of the Department of Transportation Act, 49 U.S.C.
§ 3303(c), and the National Environmental Policy Act, 42 U.S.C. § 4321
et seq. These statutes typically also restrict States when they use federal
money or require federal approvals for their redevelopment plans.

17

Ill, EMINENT DOMAIN IS A_ VITAL ECO-
NOMIC DEVELOPMENT TOOL FOR MANY
COMMUNITIES.

After acknowledging Petitioners’ personal dreams and
desires, thé trial court recognized that the city officials in
New London “have a dream also. The accomplishment of
their dream presents no opportunity of personal gain or favor.
... Their dream is for their city buffeted for decades by hard
times and until recently declining prospects.” Pet. App. 196.
State and local governments across the country face similarly
daunting economic challenges, particularly for the poorest
members of those communities. Some local economies have
been especially hard hit:

> Milwaukee, once known as the “toolbox to the
world,” has been devastated by relentless global com-
petition. African-American males in the city have
suffered almost twice the drop in employment that the
nation endured during the Great Depression. In one
generation, Milwaukee “has turned from a place of un-
rivaled opportunity for blacks into a locus of downward
mobility without equal among other big U.S. cities.”"*

Congress amended the federal urban renewal program several times and
finally terminated it in 1974.

Petitioners and their amici try to create the impression of an epidemic
of abuse by citing to an Institute for Justice document that purports to
identify instances of abuse. E.g., Pet. 8 (citing Dana Berliner, Public
Power, Private Gain (Institute for Justice 2004)); Br. Am. Cur. Better
Gov't Ass’n 5-6 (same). But the term “abuse” as used in this document
includes any project in which the land was to be turned over to a private
entity (Berliner, supra, at 2), a criterion rejected by Berman, Midkiff,
National Railroad, and countless other federal and state cases.

'* Associated Press, Loss of Manufacturing Jobs Hits Milwaukee's
Black Community Hard, St. Paul Pioneer Press, Dec. 9, 2004, at 3B,
available at 2004 WL 95865925.

18

> North Carolina residents know firsthand the local
devastation caused by the loss of textile jobs to overseas
production. During the last ten years, our nation has lost
more than half of its textile jobs. This year brings a
further lifting of federal protections for U.S. textile mills
from foreign competition, thereby “exposing an already
troubled industry to the full force of globalization.”'*

> Last year, General Motors announced it will close its
Baltimore plant, the most recent blow in a steady decline
of the city’s manufacturing base. Baltimore's steel
industry has been cut by about 90 percent, and during
the 1990s the city lost a shipyard and other large
employers, forcing city officials “into extreme make-
overs they would just as soon have lived without.”"®

> Missouri lost 94,500 jobs during the 20-month
period ending December 2003, the worst rate of decline
among the 50 States. A major clothing manufacturer
closed its plant due to lower labor costs in Latin
America, and other large employers also have left the
State for other countries.’

Petitioners’ amici belittle economic development projects
as a mere sop to politically connected private interests. F.g.,
Br. Am. Cur. Better Gov't Ass'n 5. This disparaging view
reflects a fundamental misunderstanding of local officials.
Local governments do not exist to enrich_a select few, but to
solve problems and provide services that all citizens need and
demand. The millions of dollars provided by revitalization

'S Paul Blustein, On Pins and Needles: As Quotas Expire, U.S. Textile
Industry Braces for Change, Wash. Post, Dec. 31, 2004, at El, available
at 2004 WL 101233910.

'° Associated Press, Loss of Manufacturing Jobs Means a Makeover for
Baltimore, AP Newswires, Nov. 17, 2004.

"” Shashank Bengali, Loss of Manufacturing Jobs Cuts Especially Deep
in Southwest Missouri Town, Kan. City Star, Feb. 17, 2003, available at
2003 WL 4025326.

19

projects can mean more jobs and more money for vital
government services across the board, including more police
officers and firefighters, support for senior citizens, better
pre-natal care, adolescent pregnancy prevention, more teach-
ers and better-equipped schools, and more effective child-
abuse prevention.

Urban waterfront redevelopment like New London’s is
especially attractive for several reasons. It draws people back
from the suburbs and into the city to live and play. It
capitalizes on the dramatic improvement in the water quality
of our rivers and lakes in recent decades.'* It creates jobs and
tax revenue. It breathes new life into abandoned waterfront
factories, warehouses, and shipyards rendered obsolete by
economic change. It often includes river walks and other
areas of public recreation that provide synergistic benefits and
unite the community. '

The use of eminent domain often is essential to assemble a
critical mass of property needed for development in metro-
politan areas because market failures make it impossible for
the private sector to do the job alone. These market failures
include the difficulty of assembling an appropriately-sized
development site due to holdouts; the legal risks associated
with cleaning up lightly contaminated “brownfield” sites;
clouded property title on key parcels; the need to improve
street patterns; and decisions by existing businesses to leave
nearby land vacant to prevent competitors from entering the
market.”” Local officials use eminent domain to address these
and other market failures by acquiring parcels, providing for

'® Douglas M. Wrenn, Urban Waterfront Development, 15 St. Mary’s
L. J. 555, 556 (1984) (improvements in water quality have stimulated
waterfront development).

'° See id. at 556-58.

° Colorado Municipal League, et al., Urban Renewal in Colorado 4\-
46 (C. White ed., Sept. 2004).

20

cleanup, clearing title, and removing other obstacles to
development.”! Amicus Norquist argues that economic
development should be left to the private sector. See Br. Am.
Cur. John Norquist 3. But in many instances market failures
require a public-private partnership, including the use of
eminent domain, to remove barriers to investment.”

Grassroots organizations often support these efforts. In
Boston, city officials have worked closely with a non-profit
community organization to provide affordable housing and
breathe life back into decaying neighborhoods.” Eminent
domain was the “only way to acquire a coherent area of land
on which to implement its plan” because “[d]eveloping only
the city-owned land would defeat the goals of critical mass
and community-controlled neighborhood redevelopment.”

Professor Epstein acknowledges that “holdout risks” can be
a serious impediment to economic development that requires
the use of eminent domain. See Br. Am. Cur. Cato Inst. 22.
He argues, however, that the market failure caused by hold-
outs is “a complete nonproblem” in New London because the

"Id
= Id

** See Elizabeth A. Taylor, The Dudley Street Neighborhood Initiative
and the Power of Eminent Domain, 36 B.C. L. Rev. 1061, 1077-81 &
n.190 (1996) (describing how a non-profit group formed by La Alianza
Hispana, Cape Verdean Community House, Casa Esperanza, St. Patrick's
Church, and other neighborhood organizations is helping to revitalize a
“wasteland” area of “trash-filled vacant lots” less than two blocks from
downtown Boston).

** 36 B.C. L. Rev. at 1080. Amicus Jane Jacobs argues that the private
sector can address holdouts because private developers can “use
specialized agents” and “negotiate with individual owners in secret” to
trick holdouts into selling. Br. 14. Takings jurisprudence, however,
should not turn on the availability of deceptive negotiating practices. In
contrast, New London’s redevelopment occurred in the sunshine of public
hearings and media scrutiny.

21

city could simply build around them. /d. at 23. But
Petitioners’ land is located in the middle of Fort Trumbull
peninsula, falls within a floodplain, and needs to be raised by
adding fill to allow for new development. J.A. 3-4; Pet. App.
95 n.85. Building around them would leave them literally
underground. More fundamentally, this myopic theory would
encourage countless holdouts in future projects to exploit
their monopoly position over land needed for economic
development to secure more compensation than is con-
stitutionally required. Because this compensation would
come from the municipal fisc, it would unfairly benefit a few
at the expense of the many.

Petitioners argue that the Fort Trumbull project is dis-
tinguishable from condemnations for economic development
previously approved by this Court, such as those under the
Mill Acts, because those early condemnations were location-
specific. Pet. Br. 21-23. They blithely assert that hotels and
offices are “ubiquitous” and can be built anywhere. /d. at 22.
But the Fort Trumbull project and other waterfront projects
are as location-specific as any mill. The Fort Trumbull
project is integrated with the historic state park and
economically tied to other facilities in the area that will
supply customers to the retail shops. The very purpose of
waterfront development is to revitalize areas abandoned by
water-dependent industries such as shipbuilding and ware-
houses that fell into disuse with the rise of jet aircraft, the
interstate highway system, and the decline of water-
dependent industries.”°

Petitioners might argue that because they do no: challenge
the holding in Berman, their argument does not jeopardize
projects where any portion of the project consists of blighted
property. But this position would be unacceptably arbitrary.
Federal constitutional authority to assemble land through

25 See Wrenn, supra, 15 St. Mary’s L. J. at 556-57.

22

eminent domain for redevelopment should not turn on
whether any portion of the land, however small, is blighted.
The concept of blight is itself an economic concept, “a pattern
of deterioration and decay of economic vitality in cities or
neighborhoods.” Willem van Vliet, ed., The Encyclopedia of
Housing 32 (1998). Thus, the line between blight and under-
use is sometimes exceedingly blurry, and attempts to
distinguish blight elimination from economic development
often elevate form over substance. For example, the highly
successful Riverside Plaza redevelopment in Estes Park,
Colorado, was driven by the need to revitalize the local

economy after a devastating flood in 1982. Although certain —

condemned parcels might have been blighted, the primary
purpose was not to remove eyesores, but to re-energize the
local economy.”°

Moreover, limiting eminent domain for redevelopment to
blight removal would have the unjust effect of confining
condemnation to the dwellings and businesses of the very
poor, while immunizing the more affluent. See Bruce Fein,
Eminent Domain, Eminent Nonsense, Wash. Times, Oct. 12,
2004, at Al6 (describing the Fort Trumbull project as a
“middle class reenactment of Berman” and _ criticizing
Petitioners’ effort “to make the Constitution pivot on Marxist-
like class distinctions” by limiting condemnation for
redevelopment to blighted land). It would be capricious in
the extreme to read the U.S. Constitution as prohibiting the
Fort Trumbull project, but to allow an identical project to go
forward in another community simply because a small portion
of the development site happens to be blighted.”’

*° Urban Renewal in Colorado, supra note 20, at 47-48.

*” To the extent Petitioners’ brief might be read to suggest that local
officials may condemn only blighted parcels, this position was cate-
gorically rejected in Berman, where the Court upheld the condemnations
at issue even though the complainants owned a non-blighted department
store. See 348 U.S. at 31.

23

Below, amici describe in greater detail two economic
redevelopment projects which, like Fort Trumbull, involved
condemnation of non-blighted land: the Kansas Speedway
and the Canton, Mississippi, auto plant. As is sometimes the
case when economic development projects are undertaken
pursuant to the democratic process, there were some
landowners who opposed these projects and did not sell
voluntarily. But their objections do not detract from the
enormous public benefits resulting from these projects or the
undeniable “public use” to which the land is now being put.
Nor was there any certainty that these projects, particularly
the speedway, were going to succeed, but succeed they did.
Petitioners would preclude every community from enjoying
the benefits of similar projects in the future.

A. The Kansas Speedway and Retail Success Story

In 1997, Kansas City, Kansas, and Wyandotte County had
been struggling economically for almost fifty years.” Gov-
ernment revenues were dropping, and tax rates were climb-
ing, creating “the kind of downward cycle that is hard to
reverse.””” The county had been burdened for generations by
poverty, crime, and a stagnant economy.”

What changed the fortunes of Kansas City and Wyandotte
County are the Kansas Speedway and the retail deveiopment
that it sparked. In order to save its residents from the
consequences of further economic decline like fewer job
opportunities, higher taxes, and weakened public services,
local officials made the difficult decision to use eminent

* Rick Alm, Learning From Past Mistakes Paved Way for Kansas
Speedway's Success, Kan. City Star, Oct. |, 2002, available at 2002 WL
26158033.

* Dale Garrison, Biggest Deals of the Past 30 Years, \Ingram’s, Jan.
2004, http://www. ingramsonline.com/jan_2004/bigdeals4.htm!.

* See Alm, supra note 28.

24

domain to acquire property for the speedway.*' The public
benefits of the speedway and related development are “a
glorious success for a once-struggling county.’

The speedway’s wealth also has been spread throughout
the region. One study found that.$89.3 million flowed into
the local economy on race days at the track during the first
season, and the larger metropolitan area reaped “$150 million
in economic activity, including $70 million in local workers’
wages and $10 million in increased business tax col-
lections.*’ But the most important economic impact of the
speedway has come from the retail development that the
speedway sparked, a 400-acre retail project called Village
West that is “headed toward 10 million visitors a year.”™*

Village West probably would not have been possible
without the speedway. As noted by Mayor Carol Mari-
novich, retailers were reluctant to go to Wyandotte County
because of its small population, and local officials needed to
create “a destination, a draw, that would bring retail,” even
without a large population.*°

The decision to use the speedway as a catalyst for eco-
nomic development was initially controversial, with critics
harping that the project was doomed to failure.°° But the
benefits for the people of Wyandotte County and Kansas City

' Lisa Scheller, Where Did They Go? Wyandotte Residents Displaced
by Kansas Speedway Now Settled In, Tonganoxie Mirror, July 28, 2004,
http: ’/www.tonganoxiemirror.com/section/archive/story/66 | 3.

“Lance Dickie, NASCAR's Lucrative Lure; Is It Right for the North-
west”, Seattle Times, Sept. 19, 2004 at D1, available at 2004 WL
58951653.

* Alm, supra note 28.

* Dickie, supra note 32.

** Garrison, supra note 29. See also Dickie, supra note 32.
* Alm, supra note 28.

25

are now clear. The Village West tourism district wiil create
approximately 4,000 new jobs.*’ Within the next several
years, the state and local governments will receive $53 mil-
lion in annual tax revenue from the development.** The once
moribund housing market has revived, with single-family
housing starts increasing by 146% between 2000 and 2003.
In the last seven years, tax rolls have swelled with $700
million worth of new real estate development.”

None of these benefits would have occurred without the
use of eminent domain. Before the speedway existed, there
were no market forces swirling around the 400-acre Village
West site, which had previously been “in the middle of a
demographically barren nowhere.”*' The government had to
create the conditions for economic development, and it had to
use eminent domain to do so. Without the efforts of local
officials, including the use of eminent domain, the jobs for
local residents, the revenue for local businesses, and the funds
for local services simply would not exist.

Although some of the former landowners did not want to
leave their homes, many support the project seven years later.
For example, Joyce Vaught, one of the homeowners whose
land was condemned for the speedway, is one of these
converts: “At first I was pretty bitter about having to [move]
..., we'd lived there for so long. But now I love it.” She

*” Mark Wiebe, Village West to Get New Tenants, Kan. City Star, Jan.
29, 2003, available at 2003 WL 4023705.

*® Randy Covitz, Track is a Green Light for County; Speedway Brings
a Lot to Wyandotte, Kan. City Star, Oct. 9, 2004, available at 2004 WL
94408340.

* Rox Laird, Kansas City-Wyandotte County Have Merged—and
Become a Top Tourist Destination, Des Moines Register, Oct. 17, 2004, at
Ol, available at 2004 WL 90799574. ~~

” Laird, supra note 39.
* Alm, supra note 28.

26

also is pleased with how the speedway and Village West area
has grown. “It’s beautiful and . . . it just amazes me when you
go down there to eat how there are alt those places and
they’re busy. It’s just a beautiful thing.”*

B. The Canton Success Story

In the 2000 census, Mississippi ranked 49th in median
household income ($31,000), 50th in personal per capita
income ($20,000). first in overall poverty (20 percent), and
first in child poverty (27 percent).~ The State recently lost
more than 50,000 manufacturing jobs, suffering through
“several years of devastating factory closures.”

When the Nissan Motor Company chose Madison County,
Mississippi, as the site for a major manufacturing plant in
2000, state officials recognized | that this could have a
transformative effect on the State.** Mississippi used eminent
domain to acquire the more than 1,400 acres needed for the
Nissan plant. Landowners on the site received an average of
$18,000 an acre*® for property that had been selling for about
$2.300 an acre a few years earlier.*’ A handful of owners

© Scheller, supra note 31.

* See U.S. Census Bureau, State Rankings—Statistical Abstract of the
United States (2004), available at http://www.census.gov/statab/www/
ranks.html.

“ Barbara Powell, Economy Will be Barbour's Big Challenge as
Governor, Commercial Appeal, Nov. 16, 2003, at B4, available at 2003
WL 66406270.

* See, e.g., Reed Branson, Mississippi OKs $295 Million in Incentives
for Nissan, Commercia! Appeal, Nov. 7, 2000, at Al, available at 2000
WL 27940695.

* David Firestone, Black Families Resist Mississippi Land Push, N.Y.
Times, Sept. 10, 2001, at A10.

* John Porretto, Last Owners Settle in Nissan Land Fight, Commercial
Appeal, Apr. 10, 2002, at DSS, available at 2002 WL 3469169.

27

objected to the use of eminent domain for the Nissan project,
but they eventually settled with the State.

The State’s use of eminent domain authority has greatly
benefited its residents: “[T}he arrival of Nissan in Madison
County breathed new life into Mississippi.” The Nissan
plant employs 5,300 workers at full capacity.’ These work-
ers earn hourly wages of between $13.25 and $25 (between
$27,500 and $52,000 a year, well above the state-wide per
capita income), plus competitive fringe benefits. *' Tens of
thousands of more jobs are expected just in Madison County,
with 16,200 predicted by sometime this year, and 29,000
by 2010. ‘9

Not surprisingly, Madison County has felt the most di-
rect impact from the plant. “Madison County, especially its
southern areas, has become a synonym for growth.” The

“assessed value of land, property, vehicles, and utilities in the
county exceeded $1 billion for 2004, up 36 percent from the
year before.”** This higher tax base means more money for
public services that benefit county residents.

The Nissan plant’s benefits have also spread beyond Madi-
son County’s borders. The plant’s workforce comes from

48
Id.

* Lynne Jeter, Driving Change: Nissan Adds Punch to Region's
Economy, Miss. Bus. J., Nov. 29, 2004, at S12, available at 2004 WL
87315606.

© Id.

*' Josee Valcourt, Southern Auto Plants: Fringe Benefits Keep Pack-
ages Competitive, Clarion-Ledger, Feb. 22, 2004, at IC.

* Jeter, supra note 49.
-* Bric Stringfellow, Utility Chief Needs New Economic Agenda,
Clarion-Ledger, July 6, 2004, at 1B.

** Glimpse of the Future 2: Residents Describe Plant's Massive Impact
on Area, Montgomery Advertiser, Aug. 22, 2004, available at 2004 WL
84752391.

28 -

eighty of the State’s eighty-two counties, including many
places that were hard hit by other plant closures.” The
higher-than-average wages paid by Nissan and its suppliers
could eventually boost manufacturing wages throughout the
entire State, as other employers compete for skilled work-
ers. “It's a reality that Nissan’s being here is changing
things.” a representative for the Mississippi Manufacturers
Association told a reporter. “It's offering choices and op-
portunities for people.”

For individual Mississippians, the plant has been life-
transforming: “Before | came ‘« Nissan, it was like being
covered over with dirt. | was in debt. I was buried,” said one
Nissan worker.”* Another worker, who used to make $9 an
hour handling raw chicken parts on an assembly line, will
soon earn $21 an hour at Nissan. “My job has really changed
my life.” she said, “It keeps me going.””

* Josee Valcourt, Spending $365 million: Is State's Investment in
Nissan Paying Off’, Clarion-Ledger, Dec. 21, 2003, at IC.

© Lynne Jeter, The Nissan Effect, A Better Mississippi All Around,
Miss. Bus. J., June 23, 2003, at 19, available at 2003 WL 12776857.

” Id.

* Gary Pettus, Nissan + 1, Thanks to Better Pay, Bills Lighter, Dreams
Brighter, Workers Say, Clarion-Ledger, May 30, 2004, at 91.

* Valcourt, supra note 55.

29
CONCLUSION

The judgment of the Supreme Court of Connecticut should
be affirmed.

Respectfully submitted, |

TIMOTHY J. DOWLING RICHARD RUDA*
JENNIFER BRADLEY Chief Counsel
COMMUNITY RIGHTS COUNSEL STATE AND LOCAL LEGAL

1301 Connecticut Ave., N.W. CENTER

Suite 502 444 North Capitol Street, N.W.
Washington, D.C. 20036 Suite 309
(202) 296-6889 Washington, D.C. 20001

(202) 434-4850

* Counsel of Record for the
Amici Curiae

J. PETER BYRNE

GEORGETOWN UNIVERSITY
LAW CENTER 2

600 New Jersey Avenue, N.W.

Washington, D.C. 20001

(202) 662-9066

January 21, 2005

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385016_0031%3A40. Public record. Not legal advice.
