American Institute of Certified Planners (AICP) Practice Exam

What was the significance of the Kelo v. City of New London case?

1. It prohibited the use of eminent domain

2. It affirmed the use of eminent domain for public parks

3. It affirmed the use of eminent domain for economic development

4. It restricted the use of eminent domain to residential properties

The correct answer is: It affirmed the use of eminent domain for economic development

The Kelo v. City of New London case, decided by the U.S. Supreme Court in 2005, is significant because it affirmed the use of eminent domain for economic development purposes. The Court's ruling indicated that taking private property for the benefit of private developers could qualify as a "public use" if it was intended to promote economic revitalization and job creation. This decision has had a lasting impact on how governments can utilize eminent domain, broadening the interpretation of what constitutes public use. In this context, the ruling acknowledged that the government has the authority to transfer land from one private owner to another if it serves a greater economic purpose, which has led to both support and controversy regarding property rights and local government powers. Other potential interpretations, such as restrictions or prohibitions on eminent domain, were not part of the ruling, thus demonstrating the expansive view the Supreme Court took towards the concept of public use in relation to economic development.