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This bothers everyone, everwhere. A few states have already passed lows disallowing this kind of use of condemnation. But even those have already found themselves having to grant deviatons and variances to themselves so they can get certain things done.
The issue of "economic development" means so much to so many people; and of course you have people at many levels of elected government who are just into politics to line their own pockets. Just imagine the nightmare scenario of the rock quarry owner being one (which is what I live in). How many developments do you think have been declined by this individual, who'll sell all the rock for the earthwork?
I would add to your list:
roads
schools
hospitals
community centers
health clinics
eldery care centers
trails, recreation facilities
parks, regional parks
libraries
police stations
fire stations
and the more and more you think about a City and it's needs, the list tends to grow. It's why over-simplifications of what government should do and should not do tend to fall apart in the extremes.
So, to play devil's advocate, there are programs called "Transportation Parternship" where private developments, through part of the mitigation for building their homes or shopping centers, have to commit to also widening streets, adding traffic signals, adding turn lanes, adding bus service, funding schools, etc. So then the local agency throws in some money to do a little more, and then based on this "partnership", the Federal government (via your state highway department) will toss in even more to ensure the projects are adequate, environmentally compliant, functional, etc.
Imagine in the extreme someone putting 1,000 homes into a development. The mitigation required is enormous, since these 4,000 more vehicle trips per day have a serious impact to the economy, standard of living, school system, congestion, etc.
So, basically, the program is then that a private developer is funding the government to add infrastructure improvements... but you have the 90 year old lady with her record shop which is in unavoidable conflict with the new widened roadway? The scenario is your local agency will end up condemning the property, since they are getting free money to do improvemtns, plus through the Parternship scheme getting all kinds of free grant money to augment the improvements with more bus stops, bike connections to regional trails, etc.
In one person's eyes, this is government condemning someone for the profit of other (in this case the housing developer). In other's eyes, including the US Supreme Court, the local agency is legally acting to promote the greater good (which can include economic) at the expense of a private property owner. Ultimately, the money is yours from your taxation; but at the same time, if such partnership and mitigation isn't required, then you are overtly subsidizing developments without any compensation from the people causing the hardship.
ALL these scenarios fall into the grey area, and very quickly.