Revitalization Projects Hinge On Eminent-Domain Lawsuit

In 1997, Pfizer Inc., the giant pharmaceutical firm that makes such drugs as Zoloft, Viagra and Celebrex, began discussions with state and local officials about a $300 million research plant in New London that would bring 2,000 jobs. It was the first time a major manufacturer had expressed interest in moving to New London in more than 100 years.

In a March 1999 letter, George M. Milne Jr., president of Pfizer's Central Research Division, wrote that the company's New London expansion "requires the world class redevelopment planned for the adjacent 90 acres," which included Kelo's neighborhood, encompassing about 115 properties. Milne said Pfizer needed a 200-room waterfront hotel, a conference center, a physical fitness area, extended-stay residential units and 80 units of housing.

Kelo learned about the government's plan for her property when a real estate agent showed up on her doorstep in early 1998, telling her that her home was scheduled for demolition and that she had better sell quickly. Kelo bought the two-bedroom, one-bathroom house for $53,000 in 1997. The real estate agent offered her $68,000. Kelo told the agent to get off her property. Other area residents were easier to persuade.

The issue of compensation was a sticking point. When Kelo bought her house, the Fort Trumbull area was run down, wedged between a decommissioned military installation and a ramshackle marina, near a malodorous sewage-treatment plant. But by the time demolition of the neighborhood began, there was a blue-chip corporate research center and an attractive waterfront park with bike trails and green lawns. The sewage smell had abated. And when Pfizer decided to build a state-of-the-art day care center for the children of its employees, the corporation bought homes near its compound, paying prices considerably higher than the previous going rates. One house reportedly sold for $400,000. Kelo said the final government offer she received was $125,000.

In a statement, Pfizer said it is not a party to the suit and has no stake in its outcome. It said it had been a "good citizen" in New London and is now the city's largest taxpayer.

Kelo decided to fight the condemnation and got support from area activists who also opposed the project. With the backing of the Institute for Justice, Kelo and eight other property owners sued and won at the Connecticut Superior Court, but the city appealed to the state Supreme Court, which sided with the city. In February, the U.S. Supreme Court held oral arguments on the case, and a ruling is expected sometime this spring.

No construction has occurred at the site because prospective developers were frightened away by the lawsuits and controversy, said New London city manager Richard M. Brown.

In the meantime, the city's financial plight has worsened. In a recent budget statement, Brown reported that the city lost $1 million in expected tax revenue, partially because the Fort Trumbull neighborhood that had once paid taxes has been destroyed. The city's budget had relied on projected building permit fees that never materialized. Homeowners will likely face higher taxes, city officials said. The city took another blow last week, when the Pentagon announced plans to close the U.S. Naval Submarine Base, one of the city's largest employers, eliminating 7,096 military jobs and 952 civilian jobs.

For Kelo, not much of a victory is possible. Her house faces a gated state park with the modernist, six-story Pfizer research headquarters looming overhead. The blocks where her neighbors lived are a flattened expanse of dusty, rock-strewn soil with a handful of remaining structures poking out desolately. A nearby vacant lot is a dumping ground for smashed and abandoned buses and burned-out cars.

"It was always a quiet neighborhood," Kelo said. "Now it's just quieter. I don't like the fact they're all gone, but what can you do?"