Kelo V. City of New London - Subsequent Developments

Subsequent Developments

Following the decision, many of the plaintiffs expressed an intent to find other means by which they could continue contesting the seizure of their homes. Soon after the decision, city officials announced plans to charge the residents of the homes for back rent for the five years since condemnation procedures began. The city contended that the residents have been on city property for those five years and owe tens of thousands of dollars of rent. In June 2006, Governor M. Jodi Rell intervened with New London city officials, proposing the homeowners involved in the suit be deeded property in the Fort Trumbull neighborhood so they may retain their homes. A group of New London residents formed a local political party, One New London, to combat the takings. While unsuccessful in gaining control of the New London City Council, they gained two seats and continue to try to gain a majority in the New London City Council to rectify the Ft. Trumbull takings. The controversy was eventually settled when the city paid substantial additional compensation to the homeowners and agreed to move Kelo’s home to a new location. The land was never deeded back to the original homeowners, most of whom have left New London for nearby communities.Three years after the Supreme Court case was decided, the Kelo house was dedicated after being relocated to a site close to downtown New London. Susette Kelo, however, has moved to a different part of Connecticut.

In spite of repeated efforts, the redeveloper (who stood to get a 91-acre (370,000 m2) waterfront tract of land for $1 per year) was unable to obtain financing, and the redevelopment project was abandoned. As of the beginning of 2010, the original Kelo property was a vacant lot, generating no tax revenue for the city. It is still vacant.

Pfizer, whose employees were supposed to be the clientele of the Fort Trumbull redevelopment project, completed its merger with Wyeth, resulting in a consolidation of research facilities of the two companies. Both companies had had a major presence in southeastern Connecticut for many years, meaning that only one facility would likely survive the merger. Ultimately, Pfizer chose to retain the Groton campus on the east side of the Thames River, closing its New London facility in late 2010 with a loss of over 1000 jobs. This coincided with the expiration of tax breaks on the New London site that would have increased Pfizer's property tax bill by almost 400 percent.

After the Pfizer announcement, the San Francisco Chronicle in its lead editorial called the Kelo decision infamous:

The well-laid plans of redevelopers, however, did not pan out. The land where Susette Kelo's little pink house once stood remains undeveloped. The proposed hotel-retail-condo "urban village" has not been built. And earlier this month, Pfizer Inc. announced that it is closing the $350 million research center in New London that was the anchor for the New London redevelopment plan, and will be relocating some 1,500 jobs.

The Chronicle editorial quoted from The New York Times:

"They stole our home for economic development," ousted homeowner Michael Cristofaro told the New York Times. "It was all for Pfizer, and now they get up and walk away."

The final cost to the city and state for the purchase and bulldozing of the formerly privately held property was $78 million. The promised 3,169 new jobs and $1.2 million a year in tax revenues had not materialized.

In the aftermath of 2011's Hurricane Irene, the now-closed New London redevelopment area was turned into a dump for storm debris such as tree branches and other vegetation.