In Kelo v. City of New London, the U.S. Supreme Court ruled 5-4 that state and local governments could use eminent domain authority to take private property against the owners' will for use in private development. The issue was whether, "the city's proposed disposition of this property qualifies as a public use within the meaning of the Takings Clause of the Fifth Amendment to the Constitution." The court held that the city's taking of the property did qualify as a public use within the meaning of the Takings Clause.

[ http://straylight.law.cornell.edu/supct/html/04-108.ZS.html ]