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Kelo v. City of New London | 545 U.S. 469 (2005)
Following the closure of a federal naval center in New London, Connecticut, the City faced significant economic challenges and eventually was designated a “distressed municipality” by the state. The City had been hoping to entice a large pharmaceutical company (Pfizer) to build a global research and development headquarters there. The state’s municipal development statute authorized taking private property for economic development projects, and the City promised to use its eminent domain power to acquire the land that would become part of the redevelopment area to benefit Pfizer. Officials claimed the project would benefit New London in the form of jobs, increased tax revenues, and the revitalization of economically depressed areas.
In Kelo v. City of New London, Susette Kelo and nine other property owners (plaintiffs) sued the city in state court, challenging the use of eminent domain for the project. The plaintiffs argued that, because their properties were being taken for sale to private entities, the takings were not “for public use” as required by the Fifth Amendment.
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