In a 6-3 decision, written by Justice Brown, the Supreme Court of Texas upheld the power of the City of Rowlett to exercise eminent domain power to take property for a road that would increase traffic flow in a manner that would benefit an upscale grocery store.
The decision turned on the language in a post-Kelo statute that prohibits a taking that confers a private benefit on a particular private party through the use of the property, is for a public use that is merely a pretext to confer a private benefit, or is for economic development purposes. Tex. Gov't Code Sec. 2206(b). It seems to be at least arguable -certainly a matter for a trial - whether this taking would meet that standard. However, the statute contains another provision, which says that the section does not affect the authority of a taking for "transportation projects, including . . . public roads or highways." Tex. Gov't Code Sec. 2206.001(c)(1). The majority held that this provision acts as an exception, and since the record showed that this was a public road, the exception applied.
The other provision at issue was a constitutional amendment that was also passed post-Kelo, which prohibited the taking of property "for transfer to a private entity" for economic development or tax revenue enhancement. The dissent argued that the constitutional amendment changed the entire analysis of takings jurisprudence, and eliminated the deference that the courts gave to governmental determinations that a use was public. The majority rejected this argument, primarily on the basis that the landowner did not urge it. It seems to me, however, that the constitutional amendment was not implicated, because it is inarguable that the travelling public would "use" the road. A basis for analyzing the motivation behind the taking - the argument that the taking was simply to benefit another private development - is not found in the language of the constitutional amendment.
The opinion can be found at http://www.txcourts.gov/media/1444081/170850.pdf. The dissent, authored by Justice Blacklock, can be found at http://www.txcourts.gov/media/1444082/170850d.pdf.