Well yes, a developer should be protected from people trying to blackmail them for millions of dollars for property that is worth far less. If you're in a City and you're living next to the slum, you might appreciate why you'd want it bulldozed and redeveloped. It improves the livelihood of the entire city.
If one takes a risk and it doesn't turn out, trying to get government to force the other party to forfeit it's private property rights is wrong.
In 1988 Kaaren was quoted as saying about The Donald, "He wants to buy up all of New York. The man is a greedy slob." She'd change her tune some ten years later when she told the New York Times, "He's handsome. He's very energetic. He's very ambitious. He's into real estate and beautification. I don't think he's into it for the accumulation of wealth as much as the spirit of development." She added, "He's wonderful ... I wish him the best of luck."
http://immortalephemera.com/11208/suzanne-kaaren-blackmer-biography/
Is using eminent domain to “improve the livelihood of the entire city” by taking the homes of poor people your idea of small government?