Eminent domain looms over University City residents as Costco nears completion

Only the driveways remain on Richard Court. Until recently, 18 tidy brick homes ringed this cul-de-sac in University City, but now even the street sign has been removed, replaced by construction fencing and a new sign directing deliveries for an under-construction Costco.

It’s not just this street that's changed in the shadow of the Costco. Nearby are two nearly identical cul-de-sacs, Elmore and Orchard, that are undergoing similar transformations for the $190 million development known as Markets at Olive.

City officials have touted the potential for tax revenue, and in 2019 the city council committed $70 million in tax increment financing to get the project rolling.

But as construction continues, residents watching the big-box retailer rise above their community are becoming increasingly worried about eminent domain, a legal process that allows governments to force the sale of private property.

Governments like University City's can use this process to clear space for needed public services, like roads or utilities. But in other cases, they can use eminent domain to clear property for private developers, even those just out to make a profit.