Pennsylvania Court Upholds Condemnation of Strip Club

The Commonwealth Court of Pennsylvania recently upheld the condemnation of a strip club for the use of a Charter School. The property, located in the City of Chester, Delaware County, Pennsylvania, was located in an area certified as blighted. The property owner challenged the condemnation primarily on the basis that the project would allegedly benefit the private developer retained for the project. Therefore, the property owner argued, the taking violated the Fifth Amendment’s requirement that condemnations must be for a “public use.”

The Commonwealth Court rejected the property owner’s argument and restated the principal that “a taking is proper if the benefit to the public is primary and any benefit to a private individual is only incidental.” In this case, the Court found the Charter School and the elimination of blight were “public uses” and the fact that the developer may profit from the project does not negate those public uses.

Supreme Court Asked To Reconsider Kelo

An appeal recently filed with the U.S. Supreme Court asks the Court to revisit its controversial decision in Kelo v. City of New London. In Goldstein, et al., v. Pataki, et al., property owners are challenging a project in Brooklyn known as the Atlantic Yards Arena and Redevelopment Project.  The properties were condemned for a new basketball arena for the New Jersey Nets as well as high rise apartments and office buildings. 

The challengers — owners of homes and businesses that would be taken to make room for a major part of the development — argue that the purpose of the project is to transfer property from one private owner to another.  The Second Circuit Court of Appeals affirmed the District Court’s dismissal of the lawsuit.  If the appeal is granted, it will be the Court’s first chance to revisit its 2005 Kelo decision. 

Click here to see the petition filed by the property owners.