We're starting to see the effects of the Supreme Court's controversial decision in Kelo v. City of New London. In that case, the Court held that local governments enjoy far-reaching authority to exercise eminent domain power. A small city in the Bay Area has decided to exercise some of that authority--against Wal-Mart.
The City Council of the City of Hercules voted unanimously "to use the power of eminent domain to prevent Wal-Mart from" opening a store in Hercules. According to this AP story, Council Fights Wal-Mart on Eminent Domain, the City Council voted "to seize 17 acres where Wal-Mart intended to build a shopping complex."
Hercules of course will have to pay Wal-Mart fair market value for the property. If Hercules indeed pays Wal-Mart fair market value for the property, then Wal-Mart might have little choice but to move on. Stay tuned.
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