The Ramifications of Post-Kelo Legislation on State Transportation Projects

In the 2005 United States Supreme Court case of "Kelo v. the City of New London," the Court held that the use of eminent domain to take nonblighted, private property for a city-approved, privately implemented economic development plan was constitutional. Forty-three states enacted legislation that either restricted the use of eminent domain for economic development or restricted the eminent domain process. This new legislation could also significantly impact the acquisition of private property for transportation projects. More importantly, the desire to constrain condemnation for redevelopment purposes has the potential for influencing the cost and timely delivery of state transportation projects. This digest reports on research that reveals the consequences of new legislation by examining how the new legislation has affected 1) using eminent domain for economic development, 2) condemning blighted and nonblighted property, 3) restricting transfers of condemned property to private parties, and 4) redefining "public use." States and localities considering more confining legislation would benefit from the identification of restrictions that could most significantly or adversely affect the cost and timely delivery of state transportation projects. Transportation officials and attorneys should gain helpful insight in dealing with the overall impacts of such legislation. The digest should be useful to transportation administrators; attorneys; transportation planners; state, city, and county legislators; property owners; and real estate professionals.