The case involves a suburban Kansas City shopping center the city of Gladstone declared blighted in 2003 as part of a redevelopment plan that later fell through. With the threat of eminent domain looming for five years, the shopping center’s owners say they’ve lost millions of dollars from tenants not renewing leases and a resulting decline in their property’s value. The court dubbed the threatened use of eminent domain that never occurs but causes financial losses for the property’s owners as “condemnation blight.”
The ruling allows a lawsuit for damages brought by the shopping center owners to proceed and overturns a Clay County judge’s summary ruling in favor of the city. The case is Clay County Realty Co. and Edith Investment Co. v. City of Gladstone.