Yep, the previous closest examples were sports stadiums. Where a city
would take property to build a stadium effectively for a private company.
However, the title of the stadium, no matter how sweet a deal for the
sports team, remained in the hands of the city. Because of this, it
technically was acceptable as the stadium was a public facility like an
airport or a fieldhouse or any other countless examples.

As if that would stop the government. They wouldn't even test it.

Oh and that brings up a case in NJ. The town government decided they
needed to preserve 'open space' so took a family's farm with an offer far
less than market value to a developer. But that's not the end of it, the
government last I heard was considering fining the family for
environmental cleanup of the property... thusly wiping out what they were
going to 'pay' for it.

But that's not all.... the local government would not in any way be bound
to keep the property as open space, but may sell it to developers.

Most of the more recent articles are gone from the web, but last I heard
they had been forced to leave the Farm.

http://www.weeklystandard.com/Content/Public/Articles/000/000/012/650seaos.asp?pg=1

is the most up to date I can find.

Of note:
"Over the years, the Halpers have claimed they've been subjected to all
sorts of harassment, from Larry getting charged with animal cruelty for
allegedly not providing veterinary care to two horses, to their daughter
being cited for jaywalking in a Shop-Rite parking lot, to cops showing up
on their property and beaming lights in their window. The Halpers fight
back. Clara once filed a complaint against a town councilman who she said
manhandled her when she was trying to videotape one of their meetings.
She also ran for mayor as an independent to bring visibility to their
plight, garnering a third of the votes of Democratic mayor Brian Wahler,
who has helped lead the charge against them."

and:

"The township's attorney actually had the nerve to argue that recent real
estate appreciation shouldn't be a factor since Piscataway's condemnation
of the Halper farm has lessened its value."

and:

"It's been the township's position that the reason for taking the
Halpers' property was that the family was going to sell to developers. As
proof, the township has publicized two unsolicited offers the Halpers
received of up to $13.8 million almost ten years ago."

Note: government offer is $4 million.

and:

"As soon as Gordon finishes assuring me the township has no intention of
cheating the Halpers, she tells me exactly how the township will likely
cheat the Halpers. "There's going to be a tremendous chemical clean-up of
that property," she says, adding that any clean-up costs will
"unfortunately come off the top of their money." Gordon's never been on
the property, nor does she know of any "definitive test" that's been done
that would bear out her charges, but she speculates wildly. "Oil drums
may be buried there. I don't have any evidence of that, but there may be
people who do."

Just as an exercise--God forbid we jump to conclusions--I ask her to give
me a rough guesstimate of how pricey this could get for the Halpers.
Gordon grows coy. Of the tests that have already been run, she says, "I
don't know what they show," therefore "I don't want to estimate, but
somebody--and I don't know if it's accurate at all--said it could be $3
million. There's a feeling that there's been so much property damage on
there we don't know about. Listen, I hope there's not.""