United Liberty

The New York Court of Appeals ruled against a group of home and business owners yesterday who had sued to prevent a developer from working with political leaders in New York City to take private property to build a new arena for the New Jersey Nets basketball team:

After enduring three years of delays, several lawsuits and the collapse of the real estate market, the $4.9 billion Atlantic Yards project in Brooklyn took a major step forward on Tuesday when New York’s highest court ruled that the state can seize private property for the 22-acre development.

The Court of Appeals ruled 6 to 1 that the state could exercise eminent domain in claiming businesses, public property and private homes for economic development projects like Atlantic Yards. In doing so, the court backed the state’s assessment that the area in question — where some holdouts had refused to sell their property — fit the legal definition of being blighted.

The ruling also had broader implications — reaffirming New York’s use of eminent domain even as many state legislatures are seeking to curb government’s power to condemn private property.

The project’s opponents had argued that eminent domain on behalf of the private developer, Bruce C. Ratner, was improper and unconstitutional. They vowed to continue their battle, but there was no question that the cloud of uncertainty that has been hanging over Atlantic Yards for more than a year had been lifted.

The property owners are planning to press forward, though ‘m not sure they will be treading through favorable waters. If you’ll recall, the Supreme Court redefined the Takings Clause of the Fifth Amendment in 2005 through the Kelo v. New London decision.

The Court ruled that a government could take private property for economic development, labeling it as a legitimate public purpose. However, the Founders meant eminent domain to be used for public use, such as a road.

The only “good” thing about Kelo was it gave states the ability to determine their own eminent domain, and many states took up the issue in their respective legislatures. Unfortunately, New York receives a failing grade from the Castle Coalition in protecting the property of its citizens.

We should hope that the property owners can get some traction and turn the tide as this case presses forward.