That's my opinion, too... unfortunately, the issue of using eminent domain for economic development projects has made its way to the Supreme Court.
http://www.cnn.com/2004/LAW/09/28/seizing.property.ap/
The USSC might say it is legal, but that doesn't mean it is right, ethical, moral, or coherent with the ideals behind the founding of the country or even a good idea. It is a close cousin to the Teapot Dome scandal.