Chapter 22. Problem 3BCP0 Bookmark Show all steps: ON Problem Eminent Domain. Some Catholic organizations proposed to build a private independent middle school in a run-down neighborhood in Philadelphia, Pennsylvania. They asked the Redevelopment Authority of the City of Philadeliphia to acquire specific land for the project and sell it to them for a nominal price. The land indluded a house on North Eighth Street owned by Mary Smith, whose daughter Veronica lived there with her family. The Authority offered Smith $12,000 for the house and initiated a taking of the property. Smith filed a suit in state court against the Authority, admitting that the house was a \"substanbard structure in a blighted area,\" but arguing that the taking was unconstitutional because its beneficiary was private. The Authority asserted that only the public purpose of the taking should be considered, not the status of the property\'s developer. On what basis can a government entity use the power of eminent domain to take property? What are the limits to this power? How should the court rule? Why? (See Limitations on Property Rights.) Step-by-step solutiorn Solution The theory of eminent domain refers to the right of the government to take land for the publc from the private owners of the land in lieu of the compensation. Governmnet entity can take private property if they have valid reasons that the acquistion would give chance to the community to upflit and prosper. As held in Kelo Vs City of New London, the government can seize private land in blightened community for a private company to develop the land into commercial area. It was argued that this wll help in making the area and the land in generating revenue and jobs for the community. The limitation here is that the acquistion should not result in benifit to the particular religion or the particular person. It should benifit comminity as a whole. Here, the court shall rule in favour of the school as although it will be religious school for the one religion, but since proper compensation was paid and community as a whole will get benifitted, they can allow the acquisition of land..