Eminent Domain for Private Gain? The Kelo v. City of New London Decision and Aftermath

Abstract

Situated in southeastern Connecticut on Long Island Sound, the City of New London had experienced decades of economic decline resulting in large part from the federal government's decision in 1996 to close the Naval Undersea Warfare Center located in the Fort Trumbull area—a loss of 1,500 jobs. In 1998, with state assistance in the form of a $5.35 bond issue to support city economic development planning for the Trumbull area and a $10 million bond issue to help create the Port Trumbull State Park, the city reactivated a private nonprofit entity, the New London Development Corporation (NLDC), to prepare an economic development plan for the Fort Trumbull area. When later that same year the pharmaceutical company, Pfizer, announced plans to build a major research facility adjacent to Fort Trumbull, city planners saw the potential for the facility to draw new businesses to the area and to help stimulate economic development there.