In fairness, I don't think this is the problem. The problem is the one or two people that are holding up a major development because they are demanding 10 million dollars for their $75,000 home.
Granted, there are certainly market solutions to the holdout problem, but I think this is the real sticker...
'Petitioners maintain that the Fifth Amendment prohibits the NLDC from condemning their properties for the sake of an economic development plan. Petitioners are not hold-outs; they do not seek increased compensation, and none is opposed to new development in the area. Theirs is an objection in principle: They claim that the NLDC’s proposed use for their confiscated property is not a "public" one for purposes of the Fifth Amendment.'