a service of the Nevada Policy Research Institute

Issue: Eminent Domain

Eminent domain ruling returns
to bite Supreme Court justice

High court jurist’s house to be razed for new hotel?

 

By Steven Miller
BusinessNevada

In the wake of last week’s U.S. Supreme Court’s widely criticized Kelo vs. City of New London eminent domain decision, a Los Angeles media company is seeking to make at least one high court justice experience first hand the meaning of his action.

On Thursday, June 23, the U.S. Supreme Count ruled that local governments can seize the private property of homeowners or small business for development by other private companies if local politicians decide such takings will produce more tax revenue for them to spend.

Accordingly, on Monday, June 27, Freestar Media Group, a limited liability corporation, notified the code enforcement office of the City of Weare, New Hampshire, that Freestar is entering real estate development and intends to build a hotel on land in Weare currently owned by one David H. Souter—not so coincidentally, a justice on the same U.S. Supreme Court.

Faxed to Code Enforcement Officer Chip Meany was the following letter:

Monday, June 27, 2005

Mr. Chip Meany

Code Enforcement Officer

Town of Weare, New Hampshire

Fax 603-529-4554

Dear Mr. Meany,

I am proposing to build a hotel at 34 Cilley Hill Road in the Town of Weare. I would like to know the process your town has for allowing such a development.

Although this property is owned by an individual, David H. Souter, a recent Supreme Court decision, “Kelo vs. City of New London” clears the way for this land to be taken by the Government of Weare through eminent domain and given to my LLC for the purposes of building a hotel. The justification for such an eminent domain action is that our hotel will better serve the public interest as it will bring in economic development and higher tax revenue to Weare.

As I understand it your town has five people serving on the Board of Selectmen. Therefore, since it will require only three people to vote in favor of the use of eminent domain I am quite confident that this hotel development is a viable project. I am currently seeking investors and hotel plans from an architect. Please let me know the proper steps to follow to proceed in accordance with the law in your town.

Thank you.

Sincerely,

Logan Darrow Clements

Freestar Media, LLC

 

An accompanying press release explains why no property other than 34 Cilley Hill Road will serve the public interest:

“The proposed development, called ‘The Lost Liberty Hotel,’ will feature the ‘Just Desserts Café’ and include a museum, open to the public, featuring a permanent exhibit on the loss of freedom in America. Instead of a Gideon’s Bible each guest will receive a free copy of Ayn Rand’s novel, Atlas Shrugged.”

Clements explained that the hotel must be built on this particular piece of land because it is a unique site—being the home of someone largely responsible for destroying property rights for all Americans.

Freestar Media has been deluged by attention since announcing the Lost Liberty Hotel project. On Tuesday, June 18, its website recorded over 380,000 unique visitors and is still logging record traffic, loading only after some significant delay.

The company has posted a notice saying, “PLEASE DO NOT SEND E-MAIL OR CALL US unless you are an accredited investor capable of high risk investments of $75K or greater or a member of the media. This is NOT an offer to sell securities however. If you are in the media make sure your station name appears on your outgoing caller ID as we must screen calls. Thank you to all the well-wishers but please don't send any more e-mails or make any more phone calls. We are overwhelmed.”,