In 1998, New London, CT decided to transform a residential neighborhood into a commercial district. Many homeowners agreed to sell their property to the city, however some refused. Determined to keep their homes, seven petitioners who owned 15 homes (Susette Kelo, Bill VonWinkle, Wilhelmina Dery and Family, James Guretsky, Byron Athenian, Richard Beyer, and the Cristofaro Family), sued the City of New London. Undeterred, the city used its eminent domain power and forced them out. The case ruling permitted significant expansion of government power over citizens with respect to private property rights. Over 20 years later, the land remains undeveloped. (Below: initial notice to residents from NLDC provided by landowner)
The case originated in the 1990’s following closure of the naval research facility and the subsequent economic depression in New London, CT (often referred to as a blighted city). City officials in conjunction with the Governor, John Rowland, established the New London Development Corporation (NLDC), a private non-profit corporation tasked with revitalizing the Fort Trumbull neighborhood in the City of New London. The head of the NLDC, Claire Guadiani, President of Connecticut College. The pharmaceutical giant, Pfizer Inc., had just announced plans to expand their research headquarters in New London, building a new $350 million dollar facility and bringing in an accompanying 2000 jobs. A development plan (referred to as Project Phoenix) generated by the NLDC in conjunction with the CT Govornor and Pfizer Inc., consisted of constructing new housing, office space, a conference center, a luxury hotel, and other facilities designed to support a new Pfizer headquarters. There was just one problem, the site identified to build was currently occupied by ~90 private homes and several businesses spanning across 90 acres. The cities solution, the homes would have to go. (Below: The schematic prior to demolition of roads and location of Pfizer site in comparison to Kelo Home)
The owners of the 15 properties, led by Susette Kelo, challenged the Connecticut state court, claiming the City of New London (through the NLDC) violated the Constitution of taking their private property, whether used for homes, land, or businesses without just compensation. The CT Superior court did not agree with the petitioners. Again, led by Kelo, the petitioners challenged this ruling by appealing to the CT Supreme Court, however the state upheld the Superior Court's ruling indicating that the City of New London’s actions were reasonably necessary for the city’s revitalization. The owners finally, and with the assistance of donors and through the backing of the Institute for Justice, appealed to the U.S. Supreme Court, claiming to be violated by the Fifth Amendment's Takings Clause. (See Supreme Court Ruling)
