A 1991 Texas Land Deal and the Reaction to Kelo
According to a front page report NYTimes by John Broder, the reaction to the recent Kelo Decision of the Supreme Court has begun in the state capitols where "In a rare display of unanimity that cuts across partisan and geographic lines, lawmakers in virtually every statehouse across the country are advancing bills and constitutional amendments to limit use of the government's power of eminent domain to seize private property for economic development purposes.
The conflict arises over government actions to seize private homes or businesses as part of a redevelopment project that at least partly benefits a private party like a retail store, an apartment complex or a football stadium.
Gov. Rick Perry, a Republican, signed a bill on Sept. 1 that prohibits use of eminent domain to benefit a private party, with certain exceptions. Among those exceptions is the condemnation of homes to make way for a new stadium for the Dallas Cowboys.
According to Tom Farrey , of ESPN
in January 1991 citizens of Arlington Texas approve public funds for a $191 million baseball park. In April of the same year, The Texas Rangers organization shepards through the Texas legislature a bill that creates Arlington Sports Facilities Development Authority (ASFDA), a quasi-governmental entity that is given the power of eminent domain. Gov. Ann Richards signed it into law, and 13 acres of private proterty are seized for the Rangers' new ballpark, prompting two law suits.
June 1998 Tom Hicks buys the Rangers for $250 million. January 1999 The Rangers agree to future payments to the ASFDA that will total $22.2 million to cover costs that the ASFDA incurred related to litigation over the seizure of private property for the ballpark. This closes a dispute that occurred when the Rangers refused to reimburse the authority after a court judgment.
That my dears is how it is done. Who needs the Kelo decision or the subsequent state legislation, when a model of corporate rectitude stands before us with little, apparent public scrutiny. Leave aside the other ambiguities of what one investor said when asked by reporters about his involvement in the Texas Rangers Land Deal. His reponse was: "It was always a land deal." And so it was because it involved not only the new Ballpark but housing and retail development around the Ballpark.
That particular Rangers investor turned $606,302 into $14.9 million in less than seven years. Now that is a real deal.




