Eminent domain

The government’s right to take private property for public use

In the United States, the United States, the Fifth Amendment to the Constitution requires that just compensation be paid when the power of eminent domain is used, and requires that the property be taken for "public use".
These requirements are sometimes called the "takings clause."
Most courts have used "just compensation" to be the fair market value of the condemned property.
Over the years the definition of "public use" has expanded to include economic development plans which use eminent domain seizures to enable commercial development for the purpose of improving the community.
[1] Critics contend this perverts the intent of eminent domain law and damages personal property rights.

The current Supreme Court understanding dates back to Justice O'Connor's Hawaii Housing Authority v. Midkiff, 467 U.S. 229 (1984) decision. Supporters contend that it is necessary to the improvement of communities in many situations in which transactions costs will prevent private parties from reaching efficient use of land.