Hi,
I'm not sure about the details of the case you specify so I do not mean to specifically respond to your point.
Eminent domain is supposed to be the right of government to take for a fair market value a piece or property for the public good. It is intended for use in cases where aquiring a public ROW for a road or railroad might be held up by a single person wanting to sell only at an unreasonable price.
The item has to be determined to be a to be needed for the public good first.
There are two questionable cases in the Southeast that I know of right now.
The first was about a year ago in Alabama. A new Walmart went in and part of the deal was that the city (or maybe the county) would widen a road for more access to the Walmart (as I recall this was for a secondary enterence). The homeowners along the street did not want to sell, They liked their neighborhood. The government condemed the property and widened the road anyway. The issue was the road was being widened strictly for the walmart and radio talk shows slanted the issue into the condemnation being for Walmart (which it was to some degree).
The other is in Georgia. In the 1920's (I think - I was not there ), Georgia amended eminent domain to include power line ROW for private companies. Essentially, Georgia Power can condem private property to put in a transmission line. Supposedly this falls under "public good" in the eminent domain definition.
My point is, although eminent domain has a basic definition to all, each state has altered its definition to suit themselves.
About the only eminent domain use that can not be done (if I recall correctly) is the candemnation if Federal government property by the state.
I hope this helps, but it probably confuses.
Doug