Kelo: 20 Years Later

On June 23, 2005, the United States Supreme Court delivered a 5-4 decision in Kelo v. City of New London providing that private property may be taken for private development that serves an economic benefit. Recently, 20 years later, the Supreme Court declined to revisit the issue in Bowers v. Oneida County, keeping Kelo intact yet reinforcing the ongoing debate.

Kelo (2005): A Turning Point

The case involved Susette Kelo and other homeowners in New London, Connecticut, whose properties were condemned to make way for a planned redevelopment project intended to boost the local economy. Although the project never materialized, the ruling set a national precedent.

The Supreme Court ruled that transferring property from one private owner to another to promote economic development can qualify as a valid public use under the Fifth Amendment. This decision proved controversial and prompted nationwide legislative responses.

• A key issue was the designation of properties as “blighted”—a term often used to describe buildings or areas considered dilapidated, unsafe, or detrimental to public health or welfare.

• Notably, the Kelo properties were not “blighted,” raising concerns about the scope of government power.

• Although the Supreme Court declined to prohibit the takings, it left the door open for states to provide greater protections.

• In response, 43 states re-examined and revised their eminent domain laws, with some expanding property owner protections while others retained broader interpretations.

Florida: Strong Constitutional Protections

In the wake of Kelo, Florida passed a constitutional amendment and legislation to strengthen property rights.

Article X, Section 6 of the Florida Constitution was amended to ensure that property taken by eminent domain must be for a public use, not just a public benefit, prohibiting takings solely for economic development or tax revenue increases.

• Several statutes were amended in response to Kelo, and a new statute was passed, Florida Statutes 73.013, which prohibits the transfer of condemned property to a private party within 10 years of condemnation.

Florida’s approach reflects a firm commitment to protecting private property while still allowing for legitimate public projects.

Why It Matters

Eminent domain affects infrastructure, housing, economic growth, and community development. Kelo prompted states, especially Florida, to enshrine stronger protections in law. Twenty years after Kelo, we continue to see that eminent domain evolves as a vital part of American legal and civic life, shaped by local values, legal history, and public priorities.

A Historical Perspective on Eminent Domain: From Ancient Irrigation to Florida Law

 

Eminent domain—the government’s authority to take private property for public use—is often viewed as a modern legal issue. However, its origins span thousands of years, from ancient monarchies to early American political theory. Understanding its history provides essential context for how we protect property rights today.

Ancient Foundations of Eminent Domain

Long before legal codes, rulers in Mesopotamia and ancient Egypt regularly took land and labor to support the public good. Property was often seized for irrigation systems, temple construction, and royal tombs.

Because land was considered the domain of kings or pharaohs, takings were rarely questioned and compensation was almost unheard of.

However, in the Roman Empire eminent domain began to take legal form. The state had the right to claim land for roads, aqueducts, and forts, but it was expected to provide compensation. This balance between public interest and private rights would become a legal precedent in Western law.

Eminent Domain in Medieval and Early Modern Europe

During the Middle Ages, European monarchs took land for military fortifications and royal castles as a matter of necessity. However, such powers were increasingly challenged:

• In 1215, the Magna Carta limited English royal authority and asserted that property couldn’t be seized without due process.

• In the 1620s, Dutch jurist Hugo Grotius became one of the first to argue that just compensation must accompany any public taking.

• By 1689, the English Bill of Rights reinforced the principle that private property was a core civil liberty.

These developments laid crucial groundwork for modern notions of property rights and shaped the way governments would justify and regulate land seizures in centuries to come.

Eminent Domain in the American Colonies

In early America, British authorities exercised eminent domain-like powers during the Siege of Boston (1775–1776) by seizing private property for military fortifications. Compensation was inconsistent, and the practice fueled growing resentment.

The U.S. Constitution and Property Rights

By the time the U.S. Constitution was drafted in 1789, protecting private property was a core concern. Influenced by John Locke and other Enlightenment thinkers, the Fifth Amendment declared:

“…nor shall private property be taken for public use, without just compensation.”

This clause formally recognized both the necessity of eminent domain and the rights of individuals to be fairly compensated.

Florida’s Modern Approach to Eminent Domain

Florida’s Constitution strengthens these protections in Article X, Section 6  which requires that any taking must be for public use and include full compensation.

• Full compensation includes the value of the taking and severance damages, as well as reasonable fees and costs.

• Attorney’s fees typically consist of an amount equal to a percentage of the benefit achieved to the owner, paid in addition to the owner’s recovery.

In 2005, the Supreme Court’s Kelo v. City of New London decision expanded the definition of “public use,” allowing governments to transfer property from one private owner to another for economic development. Florida responded to this decision with laws prohibiting any such transfers.

These provisions reflect centuries of legal evolution, from Egyptian temples to American highways, eminent domain has long been used to serve the public good. But as history shows, the legitimacy of this power depends on protecting private rights. Florida’s legal framework continues the tradition of ensuring that when the state must take, it also must compensate.

What does “full compensation” mean in eminent domain proceedings?

When the government takes your property for public use, you may feel like you are losing out on a significant investment. However, the Florida Constitution guarantees you certain terms of compensation for any land appropriated under eminent domain.

How is full compensation calculated?

Full compensation in Florida almost always considers three factors:

  1. Your property’s fair market value – In an ideal situation, the government would compensate you the same amount you initially paid for your property. However, depreciation and real estate market fluctuations can change your compensation offer significantly. The government appoints appraisers to evaluate your land and come up with a number that reflects the amount of money you would receive if you sold the land privately. Oftentimes, the government selects these appraisers based on their tendencies to evaluate property on the lower end of the land’s market value. A skilled eminent domain lawyer can help you determine whether your appraisal was fair and accurate, which can help you receive better compensation.
  2. The market value decrease in your remaining property – An eminent domain action may seize only a portion of your property. As a result, the property that remains may diminish in value. In full compensation, the government would address that drop in market value in their eminent domain offer.
  3. Legal costs associated with your case – As with any legal agreement with the government, consulting an experienced attorney can help streamline the process and protect your interests. If you appeal the government’s initial appraisal of your property, you may incur significant legal expenses. Since attorney’s fees are an expected part of the eminent domain proceedings, the government may offer compensation to cover those costs.

What other factors may affect compensation?

In some cases, you may be entitled to business damages. If your business operated for at least five years on the property and the government does not take the full property, the loss of property could initiate costly changes or affect your everyday operations. In these instances, you can file a business damages claim within 180 days of your statutory notification. If the government takes your property whole, you would not be eligible for business damages.

An eminent domain action may mean uprooting your family or business and relocating, especially if the action claims most or all of your property. The government may cover your relocation costs in certain cases.

Review your offer with an attorney first

An attorney cannot help you prevent your property from being taken under eminent domain, but a skilled eminent domain lawyer can ensure that you receive full and fair compensation for the loss of your property.

06/29/2020 Florida’s Turnpike decides against Colonial Parkway toll road expansion in Orange County

Upon completion of its project development and environmental study, along with a preliminary traffic and revenue estimate, Florida’s Turnpike Enterprise concluded that revenue from the tolled lanes from its proposed project could only support 25-30% of the project costs. As a result, it will not be moving forward with the project.

The concept would have widened Colonial Parkway/ SR 50. The discarded plans included new travel lanes and new limited access toll lanes for a total of ten lanes as well as a design to reduce congestion, add continuous sidewalks and multi-use trails, and improve pedestrian and bicycle safety.

05/27/2020 – COVID-19, Now What?

COVID-19 has taken lives and disrupted lives in virtually every possible way. The impact to Florida’s economy could be particularly harsh. How long the battle lasts and the long term damage remain to be seen. Unfortunately, much of what has happened and is to come lies outside of our individual control, and that doesn’t feel good. As an alternative to panicking or running under the covers and binge watching Netflix, the best remedy for pandemic blues is likely doing whatever it is each of us does best. For us at HHBL, that’s representing our clients in eminent domain cases.

Indeed, during this pandemic, while adhering to all applicable orders and safety recommendations, we haven’t missed a beat. Each day we dedicate ourselves to responding to our clients’ needs, making sure their rights are protected, and moving closer to their goals at every opportunity. Over the past weeks, clients have routinely asked us to predict what the impacts of COVID-19 will be on their own cases and circumstances. Lacking a crystal ball, we often have to admit that we’re in part guessing and respond with our best predictions based on our training and experience. Usually, these interactions seem to bring comfort to our clients, as they’re then reminded that they have a team on their side covering their eminent domain needs. They can feel good knowing that eminent domain is at least one thing they don’t need to worry about. Regardless of the circumstances, we do our job, and doing our job makes us happy.

02/28/2020 – Spending $210 Million Dollars in Osceola County

Osceola County is planning on spending $210 million dollars within the next few years on road projects. The cash is available thanks to approximately $309 million in bonds sold in January 2020 to refinance the Osceola Parkway and existing reserves. The road projects moving to the front of the line include Neptune Road, Simpson Road, Boggy Creek Road, Bill Beck Boulevard, Poinciana Boulevard and Partin Settlement Road. Appraisers will likely soon be hired so that the county may begin purchasing property and shortly thereafter condemning property for the road projects through eminent domain lawsuits. Osceola County property owners don’t have to deal with the county and its team on their own. We can help. While we are unlikely to recover $210 million dollars for you, we’ll make sure that your property rights are protected and that you get your fair share.

02/27/2020 – Highest and best use in eminent domain cases

When the government takes property for a public purpose in Florida, the property must be valued according to its highest and best use. “Highest and best use” generally means the reasonable use of a vacant land that is easily supported, is feasible from an engineering perspective and is physically possible. It is the use that produces the highest value regardless of how the land is actually being used. For example, land currently being used for an agricultural purpose (e.g. grazing livestock) may have a highest and best use of commercial development. In that instance, the land would be valued as commercial. Notably, the condemning authority and landowner can can still disagree about value even when there is agreement about the land’s highest and best use.

02/13/2020 – What to do when you find out that your property may be condemned by the power of eminent domain

  1. Call us right away.
    1. There is no risk:
      1. If there is no condemnation, there is no fee.
      2. If there is a condemnation, then the government must pay our fees.
      3. We have long standing relationships with highly qualified eminent domain consultants and experts such as appraisers, land use experts, and engineers. They will work on your case and accept the fees paid by the taking authority at the end of the case. You have no obligation to pay them.
    2. We will monitor the project and keep you informed.
    3. We will advise you if there is anything you need to do before the condemnation.
  2. The government cannot take your property unless it makes what is called a “First Written Offer”. This offer must be based on a valid appraisal and the government must give you a copy of that appraisal.
    1. This is when we start to do our work in earnest.
    2. We will retain (at no risk to you) all the experts needed to get you Full Compensation.
    3. We will have a meeting in our office or wherever it is convenient to establish how we should proceed to maximize your compensation.
    4. Depending upon the difference between the government’s offer and what we believe the property is worth, we will try to settle in a pre-suit agreement, seek to settle at mediation which will be required by the court, and if need be, we will try the case.