While Virginia’s General Assembly and some three dozen other state legislatures wrestle with the implications of the Supreme Court’s decision in Kelo v. New London, BB&T, the bank with No. 2 market share in Virginia, is taking action on its own. The Winston-Salem, N.C., bank has announced that it “will not lend to commercial developers that plan to build condominiums, shopping malls and other private projects on land taken from private citizens by government entities using eminent domain.”
The Supreme Court ruling expanded eminent domain authority historically used primarily for utilities, rights of way and other public facilities.
“The idea that a citizen’s property can be taken by the government solely for private use is extremely misguided, in fact it’s just plain wrong,” said BB&T Chairman and Chief Executive Officer John Allison. “One of the most basic rights of every citizen is to keep what they own. As an institution dedicated to helping our clients achieve economic success and financial security, we won’t help any entity or company that would undermine that mission and threaten the hard-earned American dream of property ownership.”
Now, let’s see if Virginia’s lawmakers have as much respect for property rights as BB&T.
A bill submitted by Sen. Ken T. Cuccinelli, R-Centreville, would limit the use of eminent domain to public utilities and specifically exclude broader applications such as or private development, or an increase in the tax base, tax revenues, employment, or general economic health.
