The Pfizer Corporation has announced that it will close down its headquarters in New London, Connecticut. [HT: my former student Josh Blackman, and other VC readers]. As our regular readers may recall, Pfizer played a key role in instigating the notorious condemnations that led to the Supreme Court’s decision upholding the taking of private property for “economic development” in Kelo v. City of New London. Pfizer lobbied state and local governments to undertake the condemnation so that the land could be transferred to developers who would build facilities that were expected be useful to the firm and its employees. The head of the New London Development Corporation — the quasi-governmental agency that ordered the takings — had close ties to Pfizer and was married to a Pfizer executive.
The Kelo condemnations inflicted great harm on the people who lost their homes and businesses and led to the expenditure of some $80 million in public funds. To date, however, nothing has been built on the site, and there is no prospect that anything will be in the foreseeable future. Pfizer’s decision to leave New London makes it even less likely that anything productive will be done with the condemned land anytime soon. So far, the main beneficiaries of the Kelo takings seem to be the feral cats who have settled in the area. Far from producing the “economic development,” the Kelo condemnations have actually damaged the local economy by destroying taxpaying homes and businesses and expending large amounts of public money for no return.
For reasons I discuss in much greater detail in this article, this outcome should not be surprising. State and local governments that undertake “economic development” condemnations have strong incentives to approve takings that are expected to benefit well-connected interest groups even if they destroy more development than they create.
Cornellian says:
Feral cats have rights too!
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November 9, 2009, 9:32 pmArthurKirkland says:
Most of the sweetheart deals (sweet for the favored economic interest, at least) involving condemnation and subsidies I have observed have been disappointments; of those that appear to have worked, not all required subsidies and/or condemnation.
This does not control the legal issues, but it should influence those who would engage in these giveway/takeaway deals.
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November 9, 2009, 9:34 pmOff Kilter says:
The ultimate irony, perhaps, is that this government intervention has likely gone to naught because of another government intervention: the healthcare reform legislation is likely signally Pfizer that there isn’t going to be as much money to be had from R&D in future...
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November 9, 2009, 10:23 pmTallulahdahling says:
Even when giving a business the power to take over someone else’s land “works” — when everything goes as planned and more development does happen, it’s still a major violation of the rights and security of the people who were forced to move. Takings should be rare and NOT simply to improve the tax base.
This is the kind of slippery slope that could lead to a revolutionary spirit.
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November 9, 2009, 10:32 pmTuck says:
We’re governed by morons. The Supreme Court being the exemplars.
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November 9, 2009, 10:41 pmRandy says:
The real morons are the local government officials who bought the Pfizer line in the first place. SCOTUS merely enabled them to display the fullness of their moronity.
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November 9, 2009, 11:01 pmrpt says:
Don’t worry. Billy Tauzin has Big Pharma well covered in this deal. Those of you who see the legislation as some sort anti-business legislation let their ideology blind them to the reality of lobbyist domination.
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November 9, 2009, 11:19 pmTweets that mention The Volokh Conspiracy » Blog Archive » Pfizer Corporation Plans to Abandon New London Headquarters that Led to the Kelo Takings -- Topsy.com says:
[...] This post was mentioned on Twitter by Wanpeirui, London Posse. London Posse said: The Volokh Conspiracy » Blog Archive » Pfizer Corporation Plans to ... http://ow.ly/160CgP [...]
Shameful: Pfizer abandons site of infamous Kelo eminent domain taking « Josh Blackman's Blog says:
[...] The Volokh Conspiracy » Blog Archive » Pfizer Corporation Plans to Abandon New London He... Says: November 9, 2009 at 10:20 pm [...]
juris imprudent says:
Well you always knew that Kelo was going to be a longer standing landmark than whatever edifice the New London Development Corp would erect.
Perhaps Kelo will end up as short-lived as the con-game that spawned it.
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November 10, 2009, 12:28 amJohn Skookum says:
The solution to this problem lies with jury nullification.
If a landowner in this situation put a bullet between the eyes of any government myrmidon who showed up to turn him out of his hearth and home, and I were sitting on the jury, there would be no conviction.
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November 10, 2009, 2:39 amTHESMOPHORON says:
Thankfully, most people have a bit better appreciation for the rule of law than you do. Regardless of what you think about Kelo, there are plenty of legitimate uses of eminent domain. Even if that were not the case, however, life is a more important right than property, and is almost universally recognized as such in modern Western democracies (and not a small number of non-Western ones). The idea that you would kill a person for attempting to comply with a legitimate government decision speaks more of your moral deficiency than of any sort of outrage at the potential for abuse of eminent domain.
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November 10, 2009, 7:53 amPfizer to Abandon Land Taken for Them by Big Brother « Count Us Out says:
[...] to Abandon Land Taken for Them by Big Brother Pfizer Corporation Plans to Abandon New London Headquarters that Led to the Kelo Takings by Ilya [...]
Widmerpool says:
More proof of the Axiom of Wimpy: I will gladly provide you with economic development Tuesday for condemnation today.
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November 10, 2009, 8:32 amegd says:
Lobbyist domination in legislation is, by it’s very nature, anti-business. This is rent seeking of the basest nature.
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November 10, 2009, 8:41 ampireader says:
OffKilter–“the healthcare reform legislation is likely signally Pfizer that there isn’t going to be as much money to be had from R&D in future.”
Well, word hasn’t reached the stock market yet. Pfizer’s stock is at $17.43, approximately where it was in summer 2008 ... before health-care reform, Obama, the financial crisis, etc.
Maybe the money runners figure that signing up millions of people for health insurance makes pharma R&D more attractive, not less.
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November 10, 2009, 9:18 amcookiemonsta says:
Susette Kelo got almost $450,000 for her little pink house. Didn’t she get paid while real estate prices were peaking, before the crash? Lucky lady. Besides, I like feral cats, and Pfizer gives me boners.
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November 10, 2009, 9:34 amRichard Aubrey says:
Forensic audits for life for any official involved in such vileness.
And, hey, isn’t juror null the next-to-last refuge of an oppressed citizenry?
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November 10, 2009, 9:55 amcookiemonsta says:
Ahh, can someone draw up a list of when killing a cop is good and just and freedom fighting against oppression, and when it’s awful?
these things are confusing
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November 10, 2009, 10:08 amDaniel says:
A couple months ago, I took some pictures of the land the city of New London took from Susette Kelo and her neighbors: http://www.dr5.org/kelo-v-new-london-the-aftermath/
It’s sad story.
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November 10, 2009, 11:37 amluagha says:
Why isn’t this whole thing actionable?
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November 10, 2009, 1:16 pmRandy says:
cookie: “Susette Kelo got almost $450,000 for her little pink house. Didn’t she get paid while real estate prices were peaking, before the crash? Lucky lady.”
Some people may actually value things other than money. One would think that if money were the main point, she would have taken money and not bothered with the headaches of the court system.
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November 10, 2009, 1:22 pmMark Arnold says:
Something similar occurred in a suburb of St. Louis. A developer had his eye on a perfectly respectable subdivision with plans to convert it into a strip mall. The city, eager for the additional tax revenue, agreed to blight the area and give the developer eminent doman powers. Most of the residents agreed to sell to the developer without condemnation; many moved out; and the rest stopped maintaining their homes. Then the developer lost its financing and the project collapsed. Today, the subdivision is truly blighted.
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November 10, 2009, 2:23 pmPersonFromPorlock says:
THESMOPHORON:
Not saying we’re there yet... but there is a there there.
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November 10, 2009, 2:56 pmlosantiville says:
a list of when killing a cop is good and just and freedom fighting against oppression
It’s legal to kill peace officers in self defense. Here are some acquittals from the ‘80s and early ‘90s on charges of murder, conspiracy to commit murder or attempted murder of peace officers: Ramona Africa of Philadelphia, Pennsylvania (for shooting at peace officers during their attack on the MOVE house), Larry Davis of the Bronx, New York (for wounding six transit cops who were trying to arrest him for murder), Randy Weaver & Kevin Harris of Ruby Ridge, Idaho (for killing one US Marshall), Eleven Branch Davidian survivors (for killing 4 BATF agents during the initial attack on their church).
Your results may vary.
It would be better for the Kelo victims (or the current victims of judicial famine in the Central Valley) to harass the government employees involved in their oppression. Perfectly legal and anyone would get tired of people following them everywhere, twittering their locations and what they and their families are doing, and posting public information about them. Likewise calling, faxing, writing, and visting.
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November 10, 2009, 3:17 pmcookiemonsta says:
“cookie: “Susette Kelo got almost $450,000 for her little pink house. Didn’t she get paid while real estate prices were peaking, before the crash? Lucky lady.”
Some people may actually value things other than money. One would think that if money were the main point, she would have taken money and not bothered with the headaches of the court system. ”
Ya it definitely wasn’t about the money. But someone who received $450,000 for a $100,000 house isn’t the first thing I think of when I think “victim of government abuse.”
I’d love to get eminently domained.
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November 10, 2009, 3:38 pmcookiemonsta says:
“It would be better for the Kelo victims to harass the government employees involved in their oppression.”
Actually Kelo did do that, according to this.
She sent out postcards to the seizers reading: “Here is my house that you did take From me to you, this spell I make Your houses, your homes Your family, your friends May they live in misery That never ends. I curse you all May you rot in hell To each of you I send this spell For the rest of your lives I wish you ill I send this now By the power of will”
To be honest, after reading this, it sounds very mean spirited and sort of insane. Cursing the seizers is one thing, but hoping that their families suffer misery in life and rot in hell afterwards is a bit crazy. She’s a nutter huh
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November 10, 2009, 3:45 pmGlenn Bowen says:
from a friend–
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November 10, 2009, 6:11 pmThe Volokh Conspiracy » Blog Archive » More on the Implications of Pfizer’s Decision to Close Down its New London Headquarters says:
[...] ongoing debate over the use of eminent domain to promote economic development. As I explained in this post, the construction of this Pfizer facility was at the center of the firm’s successful efforts to [...]
Richard Aubrey says:
So who, outside of the unfortunate residents, lost any money on this?
What did Pfizer pay? What will they get back in tax breaks, if any; deductible losses, if any; sale to another party, if any?
The city?
Could this be done on spec, with nobody having any skin in the game and if it doesn’t work out, “whatever”?
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November 11, 2009, 1:38 pmLink Archipelago « Let A Thousand Nations Bloom says:
[...] Pfizer decides it doesn’t like New London after all; Kelo takings were pointless and costly. [...]