Poletown East is a neighborhood area of Detroit, Michigan bordering the enclave city of Hamtramck. The area was named after the Polish immigrants who originally lived in the area. A portion of residential area known as Poletown became the Hamtramck auto assembly plant in 1981 with those residents relocated by the city of Detroit which claimed eminent domain in order to make way for an automobile plant.[1]
First settled in the 1870s when the first waves of Polish immigrants came to Detroit, Poletown was the heart of Detroit's Polish community for many years. The nucleus of the community was the St. Albertus Catholic Church, which opened in 1873 and closed in 1990. Poletown experienced its greatest period of growth during the 1920s and 1930s as thousands of Polish immigrants came to Detroit in search of jobs in auto plants and the slaughterhouses that were in the area. Poletown was not only home to Poles, but also to Italians and Blacks. During the 1950s and 60s however, Poletown fell on hard times as freeway construction and urban renewal projects destroyed the neighborhood.
In 1981 the neighborhood was cleared to make way for the construction of the heavily subsidized General Motors Detroit/Hamtramck Assembly plant. The city of Detroit spent some $200 million on land acquisition. It used the power of eminent domain to evict the 4,200 people who lived in the area, along with their 1,300 homes, 140 businesses, six churches and a major hospital.[2] The plant was built at the boundary of Hamtramck and Detroit as a BOC factory (Buick-Oldsmobile-Cadillac) and became known as the "Poletown Plant". However, the rosy projections of 6000 jobs did not materialize. Employment at the new plant never exceeded half of that number. In the long run, General Motors had to file for bankruptcy.
The displaced residents sued the city to prevent the taking of their properties, arguing that this was a taking for private purposes, not for "public use" as required by the [Michigan] Constitution. However, a divided Michigan Supreme Court ruled that economic development was a permissible use of eminent domain. Public resistance especially from one Catholic parish led to national news attention and the involvement of Ralph Nader and the Gray Panthers. A 29-day sit-in at the Immaculate Conception Church came to an end on July 14, 1981 when police forcibly evicted 20 people from the church.
The decision of the court became a landmark case for "public use" eminent domain matters, and simultaneously a poster child for eminent domain abuse. The decision was overruled by the Michigan Supreme Court in the 2004 decision County of Wayne v. Hathcock. (Although the 2005 United States Supreme Court decision in the case of Kelo v. City of New London states that the use of eminent domain to promote economic development is constitutional on a federal level, the opinion in Kelo cites the Hathcock decision as an example of how states may choose to impose their own restrictions on the taking of property.)
And here is another brief summary of the Poletown decision and its subsequent overruling by the Michigan Supreme Court (link):
The Poletown case
In 1981, the Michigan Supreme Court decided one of the most controversial cases involving eminent domain. In that case, the city of Detroit had seized thousands of homes, businesses, and churches in an area called Poletown (named for the large Polish population in that area) so that General Motors could build a plant on the site. The city claimed that the “public use” limitation was met by virtue of the fact that the new plant would “create jobs” and increase the city’s tax base. Opponents contended that this wasn’t truly a “public use” because the property owners’ property was simply being taken from them to be given to General Motors.
The Michigan Supreme Court ruled in favor of the city, and the effects of that decision rippled out nationwide. As an article posted on NationalReviewOnline entitled “This Land Is Your Land,” by Timothy Sandefur, observed,
Eminent domain, once limited to public uses like roads or post offices, was unleashed in the service of any well-heeled private party able to persuade the local government to see things its way. In the years since Poletown, eminent-domain abuse has exploded nationwide. As Ramesh Ponnuru has pointed out, powerful corporations frequently send representatives to lobby cities for “free” real estate. The city takes a neighborhood, usually of modest homes, and gives it to a developer or a megastore, and then rakes in the higher taxes. The only losers are the home- and small-business owners, who lack the political influence necessary to persuade local officials to respect their rights. Poletown has become the leading symbol of eminent-domain abuse.In other words, what began as a power to seize property on which to build courthouses and police stations was extended to seizing and redistributing property to alleviate “blight” and then extended again to seizing and redistributing property to improve the economy and the government’s tax base. Of course, a cynic would be forgiven for concluding that the power was being used to take property from those who lacked political influence in order to give it to well-heeled, politically powerful friends of government officials.
A trend toward property rights
In July 2004 the Michigan Supreme Court overturned its infamous decision in the Poletown case. In Wayne County v. Hathcock, the county had condemned private property for the purpose of giving it to a private developer, arguing that the project would serve the public good through jobs and economic prosperity. The court held that the Poletown case had been wrongly decided and that the “public use” power could not encompass the taking of one person’s property for the purpose of giving it to another person. The August 4, 2004, issue of the Detroit News editorialized,
Michigan’s Supreme Court restored the sanctity of private property rights by reversing a quarter-century-old ruling that allowed the city of Detroit to uproot families and businesses in the Poletown neighborhood so General Motors Corp. could build a factory on their land. The original case was a blow to constitutional protections. The new, unanimous ruling restores the concept that government can’t just take away private property because it thinks someone else might use the property better. . .. Municipalities and developers can adjust. Wayne County is going ahead with the Pinnacle Park project. The developers will now have to work harder to obtain rights to land from private owners and pay a higher price. But few constitutional rights are as important as private property rights. The court, in bringing Michigan back into compliance with the intent of the Constitution, served Michigan property owners well.
