New London, City Of

Landmark 5–4 Supreme Court decision in 2005 affirming the constitutionality of a condemnation of land where the public purpose was the economic development of the town (in this case, New London, Connecticut). The decision allowed taking of private property for public use under eminent domain to include takings for commercial developments that benefit the community (if only through increases in property tax revenue). Cite as Kelo vs. City of New London, 545 (U.S.) 469 (2005).


Example: Euless, Texas, condemned houses behind a shopping center so that the shopping center could be enlarged and remain competitive.
The City sold the land to the shopping center owner, who expanded. The City would benefit from increased sales tax revenue.
The condemnation occurred despite the fact that many people thought it exceeded the government’s constitutional rights. Since the City of New London case, Texas and other states have passed laws to strengthen property owners’ rights and limit takings.

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