The University of Connecticut’s Commercial Real Estate Conference was held last week at the Hartford Marriott Farmington in Farmington.

New London’s now-famous eminent domain case continued to have an impact across the country last week, as citizens in 10 states voted in favor of legislation that weakens governments’ ability to take private property.

“This Kelo thing won’t quit!” said Dwight Merriam, an attorney at Robinson & Cole in Hartford, during the University of Connecticut’s Commercial Real Estate Conference at the Hartford Marriott Farmington in Farmington last week.

In the case known as Kelo v. City of New London, the U.S. Supreme Court last year ruled that New London and other municipalities could force homeowners to sell their properties in order to make way for private development. New London’s City Council decided to develop the 90 acres of land near the Thames River in the late 1990s, after Pfizer Inc. built its research facility nearby. The city subsequently transferred the power of eminent domain to the New London Development Corp., a private organization, and in 2000, the development corporation notified residents that their homes were being taken. Residents – including Suzette Kelo, the resident named on the lawsuit – decided to sue.

The case has drawn much attention, and several states have passed legislation to limit eminent domain. Connecticut passed a law that will introduce an ombudsman for property rights. The person would inform the public of their rights pertaining to eminent domain, advise public agencies about any actions that have potential eminent domain implications, mediate eminent domain disputes and recommend changes to the General Assembly pertaining to eminent domain laws.

And last week, voters in 10 other states passed eminent domain laws. Merriam cautioned businesspeople in Connecticut to keep their eyes on the laws. They reflect the view of Americans who do not like to have their private-property rights messed with, he explained, and there could be copycat legislation in the future.

‘Things Have Improved’

Florida passed probably the most far-reaching legislation, according to Merriam. The state’s voters passed a constitutional amendment, 69 percent to 31 percent, that prohibits transfers of private property taken by eminent domain to a person or private entity, unless the Legislature votes in favor of a transfer by a three-fifths vote.

Louisiana’s voters in September passed a constitutional amendment that Merriam predicted will raise questions in the future. The amendment bans the use of eminent domain for economic development, enhancement of tax revenue or a benefit that is only incidental to the public.

The amendment talks about private economic development, but does not define it, Merriam noted.

“Everyone is clueless,” he said.

The amendment could prove obstructive if, for example, a city or town needs an easement to lay sewer pipe to benefit a new office park, he added.

In New Hampshire, voters passed a constitution amendment, 86 percent to 14 percent, that will prohibit the use of eminent domain for private development or other private use. Merriam noted that, after that law was passed, a development like West Hartford’s Blue Back Square – a much-touted mixed-use project currently under construction – would not be possible in New Hampshire.

Not all initiatives that would limit eminent domain were passed by voters, however. A failure in Idaho could be obstructive to other states trying to pass similar laws, Merriam said

Idaho voters decided against a citizen initiative that would prohibit eminent domain for private economic development and would provide compensation for regulatory takings. That failed by a vote of 75 percent to 25 percent.

Two others failed, as well.

In California, voters decided against a proposition that would have restricted eminent domain and provided compensation for public regulation, which would have reduced the value of real estate. That vote was 52 percent to 47 percent.

Washington voters decided against an initiative that would have limited land use rules that reduce the value of property. It failed by a margin of 58 percent to 42 percent.

Merriam said while some of the laws that passed will raise questions, he approves of Connecticut’s ombudsman law.

“It shows respect for the property owners who are usually unrepresented,” he said.

Utah has a similar program, and it has cut that state’s eminent domain legislation in half, Merriam said.

The crowd of commercial real estate professionals also heard from Steven Lanza, executive editor of The Connecticut Economy. He said the state had been last in the country in terms of job growth, but is starting to move up.

“A big issue has been Connecticut’s sluggish job growth,” he said.

The state was last in the nation in the 1990s, but things are looking up, he said.

“We’re not quite in the middle of the pack, but it is true that things have improved,” Lanza said.

Connecticut tends to have a slower-growing economy in terms of jobs, overall. But residents registered their approval of the way the state is being run last week when they overwhelmingly voted for incumbents, including Gov. M. Jodi Rell.

“It seems as though residents are looking through these top-lying numbers like job growth and seeing other things they like,” Lanza said.

In Connecticut, jobs have followed population trends as far back as the 1930s.

“If people find this an attractive place to live or do business, the jobs follow,” he said.

At the moment, however, the growth rate of the working-age population is not encouraging.

“The prospects look pretty bleak,” Lanza said.

He said he anticipates growth in Connecticut’s population, but mostly in older demographics. The working age population will stay about the same. “We’ll probably keep cycling through high and low job levels without a big change in the top number,” he said.

There is a healthy turnover rate of jobs, though, which means the types of jobs in the state are changing, and the economy is still fairly dynamic.

“The economy is fundamentally different even though the job total might be the same,” Lanza said.

Connecticut seems to be changing from a manufacturing economy to a service economy. There are more jobs in education, health, government – including casinos – and business services. Connecticut has surged ahead in total compensation per job, which is an indicator that the changes have been good.

“We’ve been growing at a fairly consistent rate for years,” Lanza said.