The Ohio Supreme Court ruled on July 26 that a city could not condemn land solely for economic benefits and that a finding that the area to be taken for commercial development was “deteriorating” was too vague to justify the eminent domain action.
The city of Norwood was a suburb of Cincinnati that had lost much of its industrial base. Rookwood Partners, a private developer, proposed to develop a 10-acre mixed-use area in the city with 200 condominiums, retail buildings and two parking garages. Owners of five of 71 homes on the site refused to sell. Rookwood conducted a study for the city to show that the neighborhood, while not a “slum, blighted or deteriorated area,” was “deteriorating.” The city agreed and condemned the properties. The five holdouts appealed, but a trial court ruled that the city’s discretion should be given deference. A state appeals court agreed with the ruling.