The City of San Ysidro, a community on the border of San Diego, is currently contemplating whether it should extend its eminent domain powers, which expired last year. The backlash from the Supreme Court's decision in Kelo v. City of New London appears to still be taking its toll, as the City's advisory committee, the San Ysidro Project Area Committee, is currently deadlocked on the topic.
Liam Dillon covers the story in a Voice of San Diego article, Masters of Their Domain, which provides some great examples of the positives and negatives of the City's use of eminent domain.
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