By Larry Jones
June 19, 2006

Mayors turned out in large numbers for a June 5 panel discussion on eminent domain. The workshop, moderated by Mobile (AL) Mayor Samuel Jones, provided mayors and other delegates an update on pending legislative action and the opportunity to exchange ideas on using eminent domain to promote economic development in the aftermath of the Supreme Court’s decision in City of New London v. Kelo. In the decision, the Court affirmed the city’s use off eminent domain in taking private property to promote economic development. To frame the issue, Jones told mayors that because the decision was so unpopular, Congress and most state legislatures have introduced legislation to restrict (and in some cases prohibit) local use of eminent domain for economic development. This has left many economic development projects in a state of uncertainty.

Robert Dreher, from the Georgetown University Environmental Law and Policy Institute, told mayors that Congress approved legislation last year following the Court’s decision prohibiting local use of federal funds in connection with the use of eminent domain to promote economic development “that primarily benefits private entities.” While this language leaves the door open to for economic development, the House passed a more restrictive measure last November that would prohibit local use of eminent domain for economic development. A similar but less restrictive version of the bill has been introduced in the Senate. However, no action has been taken. At the state level, Dreher said 325 proposals have been introduced in 42 states following the Kelo decision. Of these states, 22 have enacted measures and bills in five other states. In summary, most states and at least one of the Houses of Congress are taking action to impose tighter restriction on local use of eminent domain for economic development. It is unclear where all of this will end up.

Carmel (IN) Mayor James Brainard discussed the importance of using eminent domain to avoid sprawl, reduce highway construction, revitalize neighborhoods and use infrastructure that is already in place. He discussed a number of projects where eminent domain was used to acquire abandoned buildings that have been condemned to make way for the new Carmel City Center, which has attracted residential, retail, commercial, recreational and entertainment outlets.

Riviera Beach (FL) Mayor Michael Brown discussed a redevelopment plan which involves a major comprehensive effort designed to promote economic revitalization on a 400-acre site in his city. Although the city has not used eminent domain to condemn any of private homes on the site, he predicts it may need to do so in a few cases. But he said most of the local residents support the city’s redevelopment plan which includes a marina, yacht slips, restaurants, hotels, low-income housing and training opportunities for area residents.

Without the use of eminent domain, both Brainard and Brown agree economic development will become increasingly difficult for urban areas.