In a legal sense, this decision makes sense. Read the decision, read the cases it references. Economic improvement is a reasonable public use of land.
Of course, the smart thing would be for the owners to just sell to the developers anyway. I will almost guarantee that the developers will pay more for the land directly than if the local government invokes eminent domain.
Of course, any decision can be justified in any way by any court by referencing cases which, they argue, are binding to the case. Of course, there are dozens of other cases that could be cited to lead one to believe that the minority opinion "makes sense" from a common law or Constitutional perspective.
If economic concerns govern who can own property and who can't, it has potentially scary results. For example, lets say you own 10 acres in Napa, California, on which you plant maybe 80 acres of Gamay grapes. Let's say that Constellation Brands wants to start a winery on that land and uproot your vines and instead plant Cabernet Sauvignon grapes. According to this ruling, the Government can seize your property and let the corporation use it for its commercial venture which it believes will be more profitable, and hence more profitable in regard to tax revenues. Because there is no land of that size available (normally) in Napa, you have to leave the town, lest you wish to rent a house on apartment on no acreage.
How about a church? Certainly they aren't profitable, and a McDonalds would yeild far more tax revenues on the land. What if that is part of the Government's economic revitalization plan for the area? Should the Government be able to raze a church to squeeze some money out of the land?