Tuesday, February 5, 2008

The New Jersey Nets are a "Public Use"


Just this week, the 2nd Circuit handed down an opinion about a development project in Brooklyn, New York - the site of the new home for the wickedly important New Jersey Nets. Apparently, there are 15 homes and businesses in the area where the arena is supposed to be built that are in the way of this project. The homeowners and business owners do not want to sell, so they are going to be forcibly removed by the power of eminent domain.

Now, the project is not just a basketball arena, but a group of 16 high-rise apartment buildings, and several office towers. The man behind the dream is the owner of the New Jersey Nets - Bruce Ratner - who not only gets the arena with public money, but help with his other real estate projects (the apartment buildings and the office towers).

The 2nd Circuit acknowledged that the power of eminent domain is a "fundamental and necessary attribute of sovereignty" but didn't really bother to explain how Mr. Ratner became the sovereign. The Court finally held that the federal courts couldn't be bothered with disputes over such things, and that if the private owners didn't like this, they should vote someone into office that would protect their interests. The Court carefully notes that the "government" has designated this area of Brooklyn as "blighted", and that many of the buildings there are vacant or underutilized. Some of the property is in irregularly shaped lots, and there is crumbling brick and flaking paint on others. In addition, the project may someday include affordable housing (on the order of 5% of the total units).

So, that's public use. When the people in America finally get tired of being run over by their government, I don't think that the change is going to be very pretty.

2 comments:

Anonymous said...

Hey Greg. nice post. I'm one of the owners and lead plaintiff on the case.

One correction: while there are 14 owners and tenants on this particular case, the "sovereign" Ratner used the threat of eminen domain, starting 4 years ago prior to any government decision, to methodically drive out about 300 of the 350 plus residents of the project site he designated as a "blighted" zone.

TheAdjunct said...

I would pay for copies of a portion of the case file. I am truly fascinated by these situations - which are not that uncommon. Send me an e-mail (White@namanhowell.com) if there is a possibility that I could obtain more information.