There are about 100 reasons why Detroit is what it is today. More than that. But one of them, according to the attached article, is the city’s abuse eminent domain over the years.
(From The Volokh Conspiracy)
For many years, Detroit aggressively used eminent domain to promote “economic development” and “urban renewal.” The most notorious example was the 1981 Poletown case, in which some 4000 people lost their homes, and numerous businesses were forced to move in order to make way for a General Motors factory.