Use of minent domain for redevelopment activities in some San Francisco Bay Area cities is controversial.
In light of Kelo v. New London, Carol Lloyd discusses some Bay Area cities' controversial use of eminent domain as a redevelopment tool. The State of California requires that urban redevelopment zones exhibit blight before a locality may consider eminent domain. Some local residents, especially those in locations attractive to development, believe a declaration of blight threatens their homes.
In San Jose, which Lloyd writes "declared a full third of its area 'blighted,'" the city has used the drawing of redevelopment zones as a way of directing property tax increments, including those from Silicon Valley industry, into investments for specific neighborhoods in need. However, given the possibility of eminent domain, a resident of one such redevelopment zone asks, "Do I really own my home?"
Thanks to Michael Patrick
FULL STORY: A Blight on Urban Renewal: Are Bay Area cities abusing eminent domain as a redevelopment tool?

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