Justice Stevens argument does amount to a declaration that the seizure was justified because the city had a plan to implement the common good. As opposed to individual rights, which are now secondary in the USA apparently.
In any case, you are right, government is making a top down decision on the common good of the community, and implementing it with central planning. It's pure socialism. And since the beneficiary and partner in crime is business development, it's also socialism's first cousin, fascism.
Utilitarianism. Which brings it right into line next to abortion, euthanasia, and the medical community's advancement toward organ removal. All for the common good. All about best use of a resource.