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'Atlantic Yards' Condemnation Upheld

BY Steven M. Silverberg
February 27, 2008

In Kelo v. City of New London, (545 U.S. 1158 (2005)) the United States Supreme Court created an uprising of sorts among legislatures and the public by articulating what has been the law of eminent domain in the United States for about 100 years. Yet, the Kelo case raised much public ire because it permitted the condemnation of private property for economic development purposes, which ultimately enriched private interests. In that decision, the Supreme Court raised the possibility that condemnation for economic development might be challenged in circumstances where economic development could be shown to be a mere pretext under which a private developer is allowed to acquire other private property using the government's power of eminent domain.

Public/Private Partnership

The so-called 'Atlantic Yards' project in Brooklyn is a typical case of public/private partnership to develop an area that has long been the location of urban blight. The issue, from the standpoint of those who challenged the condemnation of their property for that project is that the property, which is the subject of the recent Second Circuit decision in Goldstein v. Pataki (__F3d__ [2d Cir 2008]; NYLJ 2/7/08, p. 33, col. 1), for the most part is not considered blighted but is close or adjacent to blighted areas. Those challenging the condemnation claimed that the developer used his connections and influence with government officials to have the government condemn their private property for the developer's own enrichment and that any public benefit is merely incidental and a pretext for the primary goal of enriching a private individual.

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