A major redevelopment project planned in Morehead City has been scrapped following strong public opposition over the use of eminent domain.
Dubbed “Project Grander,” Morehead City began exploring plans in 2025 to redevelop the downtown waterfront. The proposal would have required the city to acquire several privately owned properties. At a Jan. 13 public meeting, the city council unanimously voted to halt the project.
Eminent domain is a process used by governments to acquire private property for public use. Under state and federal law, the government must demonstrate that the property serves a legitimate public purpose and must provide the property owner with fair compensation, typically based on market value. The authority is most commonly used for roads and utilities, though its use in redevelopment efforts often sparks controversy.
Brian Balfour, senior vice president of research at the John Locke Foundation, stressed the importance of using eminent domain for clear public use.
“It’s encouraging that the Morehead City Council unanimously rejected this case of eminent domain abuse,” said Balfour. “Eminent domain should be restricted only to clear cases of ‘public use,’ such as sewers and highways, and in those cases there should be every measure taken to avoid taking private land and property.”
Balfour also called on the General Assembly to take action to protect private property owners.
“Government at any level exploiting eminent domain for illegitimate purposes should be stopped,” Balfour told Carolina Journal. “Meanwhile, state legislators should pass legislation clarifying North Carolina’s constitution to state that property takings under eminent domain be only for public use and with just compensation.”
In 2025, Merry Oaks Baptist Church, between Moncure and New Hill, was demolished alongside 27 homes and five businesses after being acquired using eminent domain for a planned $4 billion electric-vehicle manufacturing plant in Chatham County, a project that has since been delayed.
Former Pamlico County Commissioner and current John Locke Foundation board member Chris Mele, expressed gratitude to citizens who showed up to voice concerns.
“Throngs of outraged taxpayers showed up at city hall to protest their city commissioners proposed action to create a waterfront ‘grander’ parkground,” said Mele. “Action would have necessitated the use of eminent domain to ‘take’ a local restaurant and property. The owner of the property had no interest in selling her business that her neighbors and customers had enjoyed for decades.”
“Well-the neighbors, friends, clients and any opposed to a government take-over showed up, and the proposal was stopped in its tracks,” Mele said. “The average citizen believes the use of eminent domain is for road widening, location of public utilities — not for recreation facilities or to re-sell what a few elected officials believe is a better use.”
