Case 6.3
KELO V. CITY OF NEW LONDON, CONNECTICUT
Supreme Court of the United States
545 U.S. 469; 125 S. Ct. 2655; 2005 U.S. LEXIS 5011 [June 23, 2005]
FACTS:
The city of New London, Connecticut, approved a development plan that had been submitted by
the development agent.
The plan called for construction of a waterfront hotel, restaurants, retail stores, residences, and
office spaces.
Portions of the development areas were for marinas and for support services.
The city authorized the agent to purchase property in the development area or to acquire it by
eminent domain.
The agent purchased most of the needed property, but 9 owners refused to sell.
PROCEDURE: The trial court prohibited the taking of certain properties. The Connecticut Supreme
Court reversed that finding and upheld the takings.
ISSUE: Should a city’s decision to take property for the purpose of economic development satisfy the
“public use” requirement of the Fifth Amendment?
RULE: “A State may transfer property from one private party to another if future ‘use by the public’ is
the purpose of the taking.”
REASONING:
1. Community redevelopment programs need not, by force of the Constitution be on a piecemeal
basis – lot by lot, building by building.
2. The City has carefully formulated an economic development plan that it believes will provide
taken for the project and the need for a particular tract to complete the integrated plan rests with
the legislative branch.
ADDITIONAL INFORMATION:
Justice Thomas, in his dissenting opinion, declined to view economic development takings as a
the city a “distressed municipality.”
There were many reasons why the 9 owners refused to sell their property. Petitioner Susette Kelo