The U.S. Supreme Court's notorious 2005 decision in Kelo v. New London allowed state and local governments to condemn private land and transfer it to developers to construct shopping centers or other private development. The ruling led to a nationwide outcry, and last week voters in nine states adopted new restrictions on eminent domain to prevent such abuses. In September, Gov. Arnold Schwarzenegger signed five bills that he claimed would rein in abuses of eminent domain in California. Unfortunately, these laws accomplish little -- they simply tinker with procedural details while leaving the state's abusive redevelopment industry intact. For example,...