They have the same law in the UK it's called "Compulsary Purchase" but it's only done for public works projects like roads.
http://www.odpm.gov.uk/stellent/grou...609211-01.hcsp
Usually it's a sweatheart deal as they use the taxable value of the property. If there is a sniff of a compulsary purchase people are lining up at the door.
A few years ago there was a whisper of a new town to be built where my parent live and they were central downtown. The talk in the local pub for weeks was what the locals would do with the money.