Final answer:
The city does not have to let tenants of an apartment complex finish their lease terms when exercising eminent domain for a highway expansion, but it must provide just compensation to the tenants for their property interest.
Step-by-step explanation:
When a city evicts tenants of an apartment complex for a planned highway expansion by the power of eminent domain, the city does not have to allow the tenants to complete their lease term. However, the city will have to compensate the tenants. This practice is guided by the Takings Clause of the Fifth Amendment, which requires that just compensation be paid if private property is taken for public use. The tenants, being leaseholders, have a property interest that is recognized for the purposes of eminent domain.
The Supreme Court has upheld the use of eminent domain for economic development purposes, considering that it may serve a 'public purpose' and benefit the community as outlined in Kelo v. City of New London. However, this has led to considerable debate and subsequent legal restrictions in many states designed to limit the use of eminent domain primarily to traditional public uses like transportation and infrastructure projects.