NEW YORK, NY June 23, 2005 —In a decision that could have implications for development proposals in Brooklyn and Queens, the U.S. Supreme Court has ruled cities can seize private homes and businesses for commercial economic development projects.

The 5 - 4 ruling arose from a dispute in New London, Connecticut. Writing for the majority, Justice John Paul Stevens said the new jobs and increased tax revenues from a riverfront hotel complex would afford a public benefit that trumped local property rights.

The decision has been closely watched in Brooklyn and Queens, where the city has reserved the right to use eminent domain to tear down private homes and businesses to build an arena for the Nets and a development near a new Mets stadium.

In Brooklyn Developer Forest City Ratner has purchased most of the private homes, saying that will alleviate the need to seize property against an owners will.