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Q. Lancaster, California, located about 45 miles from Los Angeles, was trying to build its local economy but was tripped up by the United States Constitution. Costco, a big-box retailer, wanted to expand in next door space leased to $.99 cents only stores. Costco told the city that it would move to Palmdale if it could not expand. Lancaster tried to buy $.99 cents lease but the company refused. Lancaster then used his power of eminent domain to condemn the $.99 cents property for the purpose of making it available to Costco. The city noted that blight might follow if Costco left and the city contrasted $.99 cents under $40, 00 per year in sales tax generated with Costco's more than $400, 000. $.99 cents then sued the city seeking an order blocking the effort to take the $.99 cents property.
(a) Explain how would you have ruled on the case when it was tried in 2001? Explain
(b) Would the result be any different than it is today after the supreme's court 2005 decision in the New London, Connecticut Case? Explain.
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