Sounds like a city trying to use a redevelopment agency to obtain and consolidate property to sell to a developer.
In a deteriorated urban area these agencies may be useful; but, the problem with some of these actions is that the land does not need to be redevelopment (in some cases it has never been developed). These agencies have to been seen for what they are -- political organizations -- and the agenda is often to increase tax revenue not to improve quality of life or something like that.
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Now the company that I work for is a private water utility in Southern California and it has land with water wells within the flood basin of an US Army Corp of Engineers flood control dam. When the Corp was obtaining the land a condemnation action was taken against the water company; all that the Corp could get was an easement to flood the land and it had to pay for improvements to protect the wells and pipes. Purhapes the condemnation action was taken to get a court ajudication as to the value to be paid.
Sorry for getting off topic.
Brian Norden