Why is this a Federal issue?
It's a federal issue because the Bill Of Rights specifically precludes the taking of private property for public use without due process and compensation. The fact that it does not mention the taking of private property by the Government for "private " use clearly denies that right to the government. It becomes a federal issue since the 14th Amendmant establishes the rights enshrined in the Constitution as being protected by the Federal Constitution through the US govenment against abuse by the states.