Eminent Domain Extortion?

Since the landmark case Kelo v. City of New London (see decision, oral argument transcript) in which the US Supreme Court held that the government can take private property for the purpose of economic development by commercial developers, 34 states have adopted stricter rules limiting the scope of eminent domain (see article). The American public disagrees strongly with the consequences of the ruling; various polls report between 65% and 97% in disagreement.

A new case seeks to limit the broad power upheld by the Court in Kelo. As described in the Volokh Conspiracy blog, a private developer in New York approached two property owners and asked for either $800,000 or a 50% interest in their business. If the owners refused, the developer would have the town seize the property by way of eminent domain for the purpose of economic development. If the Court decides to hear the case, in what way might this blatant extortion scenario alter the underlying basis for the Kelo case?