Final answer:
Eminent domain allows government seizure of private property for public use with just compensation. It is not exclusive to transportation projects but has extended to economic development, creating controversies like the Kelo v. New London case. Recent legal trends aim to refine and restrict its use.
Step-by-step explanation:
Eminent domain is the process by which the government can take private property for public use, ensuring that owners receive just compensation. The Department of Transportation is not exempt from this rule and must compensate landowners for property taken for projects such as road widening. Contrary to the notion of adverse possession, establishing eminent domain involves the government's obligation to prove the public use of the property and offer fair market value compensation. As for a rental property, the lease may not be automatically terminated upon condemnation; tenants' rights may be preserved under certain circumstances or state laws.
The principle and practice of eminent domain have been subjects of controversy, particularly when used for economic development purposes that benefit private entities, as highlighted in the Kelo v. City of New London case. This 2005 Supreme Court decision expanded the interpretation of public use to include economic development projects that purportedly benefit the community through growth and job creation. However, this broad interpretation drew criticism and led to legislative efforts at state and federal levels to narrow the scope of eminent domain to prevent abuse and ensure it's used primarily for projects ensuring tangible public benefits, such as transportation infrastructure or essential services.