KELO - EMINENT DOMAIN

Yesterday's Wall Street Journal had a column and an editorial on the issue of "blight" and eminent domain. Below is an excerpt from the column, and then an excerpt from the editorial. Subscription required to see the entire article.

The 'Blight' Excuse

In Brandon, Ore. there lives a one-armed man named Scott Cook who owns income-producing timberland. The state revoked his license to drive a truck on account of his having only one arm. Then the government decided it wasn't quite through with him: Now his land is being taken by the town by eminent domain, so his neighbor's golf resort can be expanded. The town likes the resort because it supplies jobs. Mr. Cook feels certain he will never get what his land is worth. He is outraged that his town would take land from one man to give to another. This is called an "economic development" taking, and two years ago -- June 23, 2005 -- the nation was up in arms over this sort of thing. On that day the Supreme Court decided Kelo v. New London, and said that it is constitutional for the government to take your property and give it to someone else if doing so will rake in greater taxes for your town. Americans were instantly united in bipartisan fury. The U.S. Congress swiftly passed a resolution condemning Kelo, and the House and Senate introduced a slew of bills, to curb what so many perceived as the power of eminent domain run amok. More than a hundred bills were introduced in state legislatures to accomplish the same end, and two states passed moratoriums on economic development takings. Pundits spilled ink declaring that the Founding Fathers were spinning in their graves. Spittle flew as politicians grabbed the nearest mike, rushing to condemn Kelo as the unquestioned death knell of American property rights. But how is it we still have someone like the soon-to-be-timberless Mr. Cook? Well, a year went by and the moratoriums were lifted. Congress never did pass any of the bills. Reform was left to the states. Some states, such as Oregon (hence Mr. Cook's bad luck), California, New York and New Jersey passed no meaningful reforms. The latter three are among the most active in these kinds of takings. Some 28 states have passed substantive eminent domain reform since Kelo. Many enacted laws that prohibited private-to-private transfers for purposes of economic development. Sounds grand, right? But there's a loophole: blight....

Kelo's Consequences

Today marks the second anniversary of Kelo v. New London, the Supreme Court ruling that gave governments the authority to seize property on behalf of private developers. Since the 5-4 ruling, many state governments have taken some sort of action to limit these "takings." But in areas that legislators have failed to protect -- which usually turn out to be where low-income minorities reside -- citizens are still exposed to eminent domain abuse. A recent study by the Institute for Justice compared the demographic characteristics of 184 areas targeted by eminent domain to the surrounding communities. The report shows that eminent domain disproportionately affects poor, ethnic minorities with lower levels of education. Minorities comprised 58% of the population in areas targeted by eminent domain, compared to 45% in the surrounding communities. The median income of residents targeted by eminent domain is less than $19,000 per year, compared to more than $23,000 elsewhere. And 25% live at or below the poverty line, versus only 16% elsewhere. New Jersey resident Jim Keelen doesn't need statistics to define eminent-domain abuse. His home and business, located one block away from the Atlantic Ocean, have been slated for seizure by local government officials. His business, J&M Keelen Transportation Co., runs special-education transportation for public schools in two local counties. If the government is successful in seizing his property, Mr. Keelen and his 85 employees -- most of them low-income minorities -- will be forced to vacate their office, a restored historical building, so that private developers can tear it down and put up condominiums in its place. His home, located next door, would be torn down as well....