Background for Prop 98 and 99

Both Propositions 98 and 99 are the result of a 2005 U.S Supreme Court decision, Kelo vs. City of New London, when the court ruled, in a 5-4 vote, that New London could invoke "eminent domain" to buy out 115 property owners and condemn their properties in favor of a redevelopment plan.

Fifteen owners, including ten who lived there, had refused the City's buy out offers arguing that their property was not being taken for public benefit, rather for the private benefit of a few owners, most notably Pfizer pharmaceuticals.

This decision sent shock waves around the country, invoking fear that eminent domain could be unjustly used by city governments for the sole purpose of increasing tax revenues. Until this decision, eminent domain could only be invoked to raze blighted or hazardous areas, or to make room for public works, like schools, waterways, or roads.