I think it's extremely disturbing that a court would even spend more than 30 seconds on this before deciding in favor of the homeowner.
"You want to seize these homes and sell the property for commercial development?"
"That's correct, your Honor."
"You do realize that would violate the homeowners 4th amendment rights to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures?"
"You Honor, the extra tax revenue would benefit the city greatly."
"I've made my decision. I'm ruling in favor of the homeowner. I also find in favor of the homeowner on their countersuit, and order the city to pay 10 times the estimated property value as a penalty for violating the homeowner's constitutional rights."
Bang! Bang! (the gavel)
If the homes were bulldozed, it was settled. It was settled teh second they accepted the offer from the government.