In 2005, the U.S. Supreme Court held, in Kelo v. City of New London, that the U.S. Constitution does not prohibit a state from expropriating private land for “economic development,” e.g. a Wal-Mart. In reaction, Louisiana (like many other states) amended its state constitution to prohibit such an expropriation.
Louisiana’s amendments may have the unintended consequence of impeding New Orleans’ recovery from Katrina. For instance, they may prevent the state or the city from expropriating a blighted property burdened with tax liens, and turning the property over to, say, Habitat for Humanity. For an informative analysis of this potential problem, read this post on by Craig Williams on May It Please the Court.