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Under the [[Fifth Amendment]] of the [[United States Constitution|U.S. Constitution]], the government must pay "just compensation" to the owner of the private property that is taken.  However, "just compensation" usually does not include intangible values of the property, such as its business good will with customers or its personal sentimental value.  Often "just compensation" is set by a condemnation hearing that does not even give [[fair market value]].

Under the [[Fifth Amendment]] of the [[United States Constitution|U.S. Constitution]], the government must pay "just compensation" to the owner of the private property that is taken.  However, "just compensation" usually does not include intangible values of the property, such as its business good will with customers or its personal sentimental value.  Often "just compensation" is set by a condemnation hearing that does not even give [[fair market value]].

In the decision of ''[[Kelo v. New London]]'' (2005), the U.S. Supreme Court allowed states to include "public purpose" such as increased tax revenues as a substitute for "public use" in eminent domain.  This enables towns to take private property from homeowners and small businesses to give the property to large corporations.<ref>In one bizarre example, a home improvement store owned by 84 Lumber -- a northeastern centered chain -- was taken by the local government, so the property could be "redeveloped" -- as a home improvement store owned by national chain Home Depot.</ref>  This sparked a public outrage and several state courts (e.g., Michigan and Ohio) have required public use, as have several state legislatures.

In the decision of ''[[Kelo v. New London]]'' (2005), the U.S. Supreme Court allowed states to include "public purpose" such as increased tax revenues as a substitute for "public use" in eminent domain.  This enables towns to take private property from homeowners and small businesses to give the property to large corporations.<ref>In one bizarre example, a home improvement store owned by 84 Lumber -- a northeastern centered chain -- was taken by the local government, so the property could be "redeveloped" -- as a home improvement store owned by national chain Home Depot.</ref>  This sparked a public outrage and several state courts (e.g., Michigan and Ohio) have required an actual public use, as have several state legislatures.

In 2006, on the one-year anniversary of the ''Kelo'' decision, President [[George W. Bush]] issued an [[executive order]] that would limit eminent domain takings to those that would directly benefit the public, and not merely for the benefit of private parties.

In 2006, on the one-year anniversary of the ''Kelo'' decision, President [[George W. Bush]] issued an [[executive order]] that would limit eminent domain takings to those that would directly benefit the public, and not merely for the benefit of private parties.