1. Eminent Domain: The Kelo Case and its Implications for North Carolina Richard Ducker School of Government UNC – Chapel Hill

2. Four Types of Eminent Domain (1)Government facility (2)Public utility (3)Urban redevelopment (4)Economic development

7. Kelo v. City of New London: The Holding Use of eminent domain for economic development may meet “public-use” test even if property acquired is not in blighted area or in poor condition “Public-use” test is met if government pursues public purpose

8. Kelo v. City of New London: Just the Facts New London: designated “distressed” city, losing population, unemployment nearly twice that of state, Navy closed Undersea Warfare Center Original Fort Trumbull area: 90 acres, 115 private properties New development plan: hotel, marina, river walk, office and commercial area in urban village, 80 residences, Coast Guard Museum, state park of 20 acres Adjacent Pfizer facility: 90,000 square feet of research and development

9. The “Public –Use Test” Fifth Amend., U.S. Const. - “nor shall private property be taken for public use, without just compensation” Art. I, sec. 19, N.C. Const. - no person shall be “disseized of his freehold” or deprived of his property “but by the law of the land.” Art. V, sec. 2(1), N.C. Const. - the power of taxation shall be exercised for “public purposes only” N.C. 40A-3 - the power of eminent domain may (only) be used for “the public use or benefit”

10. For Which of the Following may Eminent Domain be Used in North Carolina? Nonconforming uses under zoning ordinance Historic landmarks Road access to landlocked land

11. Kelo v. City of New London: Lingering Questions In projects like Fort Trumbull does it make a difference if the government retains title to acquired land under long-term ground lease? Does it help if identity of eventual developers of site are unknown when land is acquired? How important is the process for developing plan and providing assurance the plan will be carried out? When should fees of property owner’s attorneys be awarded? Should formula for “just compensation” be adjusted when project is for “economic development”?

12. Idea of the Three-Cornered Stool Primary players when eminent domain is used for economic development –Government –Developer –Condemnee