I think therein is the issue. Who is to say that the small piece of property isn't worth the "unreasonable" amount to that owner?
My home is worth $X on the market, but I don't want to sell it. Why shouldn't it be worth 10 * $x if a company wants to buy it from me? Why should I be forced to sell?
In general the common result seems to be that for the "public good" the government has relatively large leeway (+/- political pressure) for things like roads, freeways, transit, utilities, etc.
The line gets blurred when some of those are technically for-profit companies like some (many) utilities are. Often the end result is relatively fair for "everyone" but still the landowner is most affected (things like requiring power lines to be buried, or the power company has to build a driveway for the land owner, etc can happen). At extremes you have "town eminent domains your house so Walmart can build a parking lot on top of it."
Some cities plan very far in advance and basically put a "we will buy this property when the landowner dies" lien on it; and wait out the 30-50 years before doing the project.
https://en.wikipedia.org/wiki/Cataloochee_(Great_Smoky_Mount...
>In the 1920s, the increase in tourism and the destructive effects of logging gave rise to a movement to create a national park in the Smokies. For this to happen, the residents living in the proposed park boundaries would either have to sell their land or be forced out via eminent domain. In 1928, Reverend Pat Davis broke the news to the residents of Cataloochee at Palmer's Chapel, telling them the valley was within proposed park boundaries and that they would be forced to sell. Hattie Caldwell Davis, who was at the meeting, recalled women crying and men threatening to dynamite the roads and shoot anyone who tried to enter. Some men had the idea of blocking Cove Creek Gap so the government representatives would have to come in from the Tennessee side, where Mount Sterling residents would surely stop them.
A community that requires many shared goods: water, power, transit, sewage, waste disposal, etc.
Each of which require sacrifices to be made by all so that they can functionally exist.
Absolute ownership = no shared infrastructure can be constructed = everyone's land is worth less
They don't care about rural/farm vs urban/business.
They care about tax revenue and voters.
It's always going to be an uphill battle making the argument that $ tax revenue / acre farmland is more important than $$$ tax revenue / acre sub/urban use. And due to density that farmland represents one family of voters vs the >1 an equivalent urban footprint would impact.
- Everybody co-operates, everybody gets paid a little bit.
- One or two people make unreasonable demands, the builder caves and they get paid a lot.
- Several people make unreasonable demands, nobody gets paid.
It's more complicated than that because multiple routes are always considered simultaneously, but the basic large number non-iterated prisoners dilemma problem applies.