WSJ on the Pfizer Pull-Out from New London, CT
The Wall Street Journal editorializes on what yours truly blogged about yesterday, casting doubt on the alleged development expertise of those who wear black robes:
Pfizer and Kelo’s Ghost Town
Pfizer bugs out, long after the land grab.The Supreme Court’s 2005 decision in Kelo v. City of New London stands as one of the worst in recent years, handing local governments carte blanche to seize private property in the name of economic development. Now, four years after that decision gave Susette Kelo’s land to private developers for a project including a hotel and offices intended to enhance Pfizer Inc.’s nearby corporate facility, the pharmaceutical giant has announced it will close its research and development headquarters in New London, Connecticut.
The aftermath of Kelo is the latest example of the futility of using eminent domain as corporate welfare. While Ms. Kelo and her neighbors lost their homes, the city and the state spent some $78 million to bulldoze private property for high-end condos and other “desirable” elements. Instead, the wrecked and condemned neighborhood still stands vacant, without any of the touted tax benefits or job creation.
That’s especially galling because the five Supreme Court Justices cited the development plan as a major factor in rationalizing their Kelo decision. Justice Anthony Kennedy called the plan “comprehensive,” while Justice John Paul Stevens insisted that “The city has carefully formulated a development plan that it believes will provide appreciable benefits to the community, including, but not limited to, new jobs and increased tax revenue.” So much for that.
One other point that should not be overlooked: Pfizer isn’t officially going to be fully “bugged out” of New London until its 10-year tax abatement period runs out in 2011.
When will people learn that government / umions / corporations are just another form of mafia ?
To save america these thre pillars should be destroyed.
Comment by matthew — November 11, 2009 @ 8:08 pm
Let Pfizer know that what they are doing is morally corrupt. Refuse to use products developed by Pfizer; ask your physician/ pharmacist for an alternate medication. HIt them where it hurts… in the profits.
Comment by lisa — November 13, 2009 @ 8:27 am
Lisa, I understand the sentiment, but I think the bigger lesson is that the government of NL should never have done the tax-abatement deal in the first place. Even if a company is angelic at the time the agreement begins, you can’t predict whether it will be around in 10 years (Merged, out of business, whatever), or whether it will be run by the same type of people at that point.
The real unfairness beyond the obvious eminent domain matter is that NL taxpayers got saddled with a disproportionate share of the cost of services in the hopes of a windfall years later …. which isn’t going to happen.
This happens in a lot of tax abatement deals. I’ve never understood why they’re even constitutional.
Comment by TBlumer — November 13, 2009 @ 8:35 am
What a horrible slap in the face for the people who live there.
Comment by Chris R — November 13, 2009 @ 2:21 pm