11) Lancaster, California, located about 45 miles from Los Angeles, was trying to build its local economy but was tripped up by the United States Constitution. Costco, a big0box retailer, wanted to expand into next-door space leased to 99 Cents Only Stores. Costco told the city it would move to Palmdale if it could not expand. Lancaster tried to buy 99 Cents under $40,000 per year in sales taxes generated with Costcos more than $400,000. 99 Cents then sued the city seeking an order blocking the effort to take the 99 Cents property.
a) How would you have ruled on the case when it was tried in 2001? Explain.
b) Would the result be any different today after the Supreme Courts 2005 decision in the New London, Connecticut, case? Explain. See 99 Cents Only Stores v. Lancaster Redevelopment Agency, 237 F. Supp. 2d 1123 (C.D. Cal. 2001). Appeal dismissed, 2003 U.S. App. LEXIS 4197.
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