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Eminent Domain is the power of a governmental body (municipality, county, etc) to take personally owned real estate forpublic use for just compensation. Issues of fairness often arise when the government takes private property for public use. One issue is whether it is fair for the government to take property by eminent domain and then convey it to private developers. For example, the town thinks there should be a large parking lot for a privately owned sports stadium or that land is needed for a new manufacturing plant that will bring in jobs. But is the land really being taken for public use as required by the Fifth Amendment to the U.S. Constitution. In 2005, the U.S. Supreme Court ruled that the power of eminent domain may be used to further economic development. (Kalo v. City of New London, Connecticut, 545 U.S.. 469 (2005). At the same time, the U.S. Supreme Court recognized that individual states had the right to pass laws that prohibit taking for economic development. Since 2005 many states have passed such laws.

What do you think? Should eminent domain be used to promote private development?

Operation Management, Management Studies

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