I remember one of the first cases in my business law class was about immenent domain and how it was found that the government has no obligation to follow through with their reasoning for taking your land.
Kelo v. New London is an (in)famous Supreme Court case holding that "public use" for eminent domain can include just handing the property over to private interests, on the theory that doing so could produce economic development.
The actual New London development fell through anyway and the area is just vacant. A large Pfizer presence nearby was a major reason behind the plan in the first place; in the wake of mergers and with the tax breaks that lured them there in the first place expiring, Pfizer pulled up stakes.
Pretty messed up.