Question

Eminent Domain is the power of a governmental body (municipality, county, etc) to take personally owned real estate forpublic use for just compensation. Issues of fairness often arise when the government takes private property for public use. One issue is whether it is fair for the government to take property by eminent domain and then convey it to private developers. For example, the town thinks there should be a large parking lot for a privately owned sports stadium or that land is needed for a new manufacturing plant that will bring in jobs. But is the land really being taken for public use as required by the Fifth Amendment to the U.S. Constitution. In 2005, the U.S. Supreme Court ruled that the power of eminent domain may be used to further economic development. (Kalo v. City of New London, Connecticut, 545 U.S.. 469 (2005). At the same time, the U.S. Supreme Court recognized that individual states had the right to pass laws that prohibit taking for economic development. Since 2005 many states have passed such laws.

What do you think? Should eminent domain be used to promote private development?

Answer 1

In one of the verdicts of U.S. Supreme Court, it was stated that the government does not have the authority to take the private property of an individual and pass it to another private party for the sole commercial or business related purposes despite providing the just compensation for such acquisition. In its verdict, it was also stated that private property can only be acquired if it is going to be used by the general public.

Thus from above, it is quite clear that the objective of boosting the economic development cannot be a valid reason for acquiring the private property and passing it to another private party. Thus, eminent domain is not a valid ground which can be used to promote private development by acquiring private property.