History appears to be repeating itself. More than 23 years after New London, Connecticut, began its fateful journey to becoming one of the most infamous examples of eminent domain abuse, it appears state officials in North Carolina are on the same path—clearcutting a community to make way for what might turn out to be an ill-fated corporate project.
Officials in the Tar Heel state have handed out $1.25 billion in incentives and plan to bulldoze more than a dozen properties, including homes, businesses, and a church, all to make way for a new electric vehicle assembly plant in Chatham County, North Carolina. However, some are beginning to question the project’s viability after VinFast, the Vietnamese carmaker receiving all these benefits, announced it was delaying its plans to open the facility until 2028—a four-year delay to the original goal.
The announcement, paired with news of VinFast’s shifting priorities and its continued financial challenges, has caused some to doubt the project’s future. While officials remain confident, this story is following the same course as another eminent domain nightmare—one in which officials bulldozed an entire neighborhood to make way for a massive corporate project, believing the devastation they were causing would be worth it in the end (spoiler alert: it wasn’t).
Just like North Carolina officials, city leaders in New London, Connecticut, believed the arrival of pharmaceutical giant Pfizer, could transform the community around the company’s planned headquarters. Enchanted by dreams of grandeur, city officials decided to pair Pfizer’s arrival with its own plans to redevelop the working-class neighborhood next door to Pfizer’s proposed headquarters.
At the time, the Fort Trumbull neighborhood was home to approximately 70-80 homes, a few small businesses, and an abandoned Navy base. City officials wanted to replace the homes with a fancy hotel, offices, and new housing. They planned to use eminent domain to raze everything—including the home of Susette Kelo. Susette wasn’t willing to give up on the home she lovingly restored, so she sued with the help of the Institute for Justice. Together, Susette and IJ argued the Constitution doesn’t allow the government to take private property for private development.
Susette fought through state court, then up to the U.S. Supreme Court. Finally, four years after the ordeal began, the Supreme Court ruled that economic development was a “public use” under the Constitution, meaning the government could take anyone’s land then hand it over to private parties for redevelopment if there were perceived public benefits.
Ultimately, New London’s dreams of a redeveloped Fort Trumbull neighborhood never materialized. The neighborhood remained a barren wasteland for more than 20 years. Pfizer remained in New London until its tax breaks ran out. Susette moved out of New London. Her beloved home was saved from New London’s wrecking ball. It was moved to a new location in downtown New London.
And while Susette might’ve lost her case, her fight inspired a book, movie, and dozens of states nationwide to reform their eminent domain laws, including in North Carolina (the state still has plenty of room for improvement, only scoring a “C-” from IJ).
As Winston Churchill once said, “Those that fail to learn from history are doomed to repeat it.” It appears government officials still haven’t learned from New London. If they had, maybe North Carolina state officials would pause to consider their actions. What sense does it make to continue tearing families from their homes for a project that might not happen?
Ultimately, just like in New London, the government will be fine. North Carolina will recoup its losses and move on to court its next corporate white whale. It’s those the government is supposed to protect—those in the path of the project—who won’t be as fortunate. They’ll be the ones who had their entire lives ripped away, all to build a road that could feed into nothing.
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