Freedom Line Blog

Previously, I interviewed California Republican Assemblyman Chris Norby about the costs associated with taxpayer-funded redevelopment agencies (RDAs).  Along with liberal use – and threats – of eminent domain powers, RDAs siphon away local tax money from schools, roads and other public services to service the debt incurred to privilege certain businesses.

Writing for City Journal, Steve Greenhut of the Pacific Research Institute laments the dependency on RDA funding by local officials like the mayor of Glendora, CA.

When I spoke to Tessitor, I finally got to the heart of his redevelopment defense. The city relies on RDA funding for 15 percent of its budget, he said, and assuring the city’s financial future is “all I care about.” Individual cities have indeed become dependent on redevelopment money, but that doesn’t mean that the current system works. Nor does it change the reality of how these abusive agencies operate. I sympathize with the mayor’s budget worries, but if Glendora is an example of redevelopment done right—as he argues—then the situation is even worse than I thought.

For the all the protests to the contrary, it’s hard to shake the feeling that RDAs are crony capitalism by another name.

By now, most of you have heard that New York’s highest court, the Court of Appeals, has ruled in favor of New York City’s use of eminent domain.

This opinion strikes a huge blow to the state of property rights across the nation and it’s another sad consequence of the U.S. Supreme Court’s dreadful decision in Kelo v. New London.

The land in the New York case wasn’t blighted or vacant.  Instead, certain well-heeled individuals with connections to the city government thought that they could use their power to construct … a basketball arena for the New Jersey Nets.  Seeing as how the Nets haven’t won a game this year, perhaps they ought to take up residence in a local high school gym instead of forcing landowners out of their property.

If you have the stomach for it, the full New York Court of Appeals opinion is available here.