The state supreme court is reviewing a similar case, with the opportunity to reduce the eminent domain power provided to local governments in Kelo, in this commentary.
"The majority in Kelo, fortunately, said states have the authority to place their own limits on eminent domain, acknowledging that 'many states already impose public use requirements that are stricter than the federal baseline' as a 'matter of state constitutional law.' It is up to the respective state courts, they said, to determine what is an acceptable public use or purpose to justify a taking. The first test of that freedom is playing out now before the Ohio Supreme Court."
"In Ohio, the city of Norwood, a suburb of Cincinnati, sought to force the sale of several homes and businesses on behalf of a private property developer so he could build a multimillion dollar complex of offices, rental apartments and chain retail stores. By all accounts, the homes and businesses in the area were well kept and the neighborhood was in good condition."
FULL STORY: States Left to Respond to Eminent Domain Abuse

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City of Albany
UCLA Lewis Center for Regional Policy Studies
Mpact (formerly Rail~Volution)
Chaddick Institute at DePaul University
City of Piedmont, CA
Great Falls Development Authority, Inc.
HUDs Office of Policy Development and Research