The Chfonkte’TetegramIWWISSK7Voters nix eminent domain proposalThe Associated PressLAKEWOOD — Voters rejected a proposal to allow the city io tear down homes to build an upscale shopping and housing districtLegal and urban affairs experts have been watching the issue closely because the outcome of a court challenge could set legal precedent The experts say it could determine whether suburbs and other local governments could use eminent domain as a way to rebuild neighborhoods, create jobs and boost tax revenues with private developmentOpponents said eminent domain is supposed to be use4’, only to secure land for public use.Proponents said the development was needed to secure revenue for public programs in this aging Lake Erie shoreline city of 37,000 just west of Cleveland.The proposal. Issue 47. failed Tuesday night by only 39 votes. A recount is expected.With all 69 precincts reporting, there were 7,913 votes against the proposal and 7.874 votes for itIssue 47 would have allowed public financing for the $15! million, 20*acre “Shops at West End project that would also include new horifes. *Voters here also dumped two-term Mayor Madeline Cain, who supported the project. Councilman Tom George, who also supported the project, was elected mayor Also defeated was a charter proposal that would require all future development to go to the ballotThe proposal required Lakewood to designate the neighborhood as blighted because some houses lacked such amenities as attached garages and central air conditioning.A dozen home and business owners whose property was considered blight sued Lakewood with the help of the Institute for Justice, a Washington, D.C.-based libertarian law firm.Last week. Institute lawyer Dana Berliner said a defeat of Issue 47 would not necessarily mean the end of the lawsuit because the properties — a well-maintained four-bedroom, colonial-style home overlooking the Rocky River for example — would still be considered blight