HARRISBURG -- The power of eminent domain allowed Philadelphia to build affordable housing, community gardens and a grocery store in formerly run-down neighborhoods.

The same power could force Scott Mahan to lose a profitable family business so that Lower Merion, Montgomery County, can build apartments, stores and a parking garage.

The Senate Majority Policy Committee heard testimony from both sides yesterday during a public hearing on legislation that would prevent municipalities from forcing owners to sell property to make way for private businesses that generate more taxes.

If it passes, municipalities could continue to seize property under certain circumstances, for example to remove blighted structures that are beyond repair and unfit for habitation or to make way for utility lines, highways or other public projects.

Municipalities also could take unoccupied properties that have been tax delinquent for more than two years, have been abandoned by owners or have liens totaling more than 150 percent of market value.

Municipalities also could condemn an entire area if more than half the properties in it are eligible for seizure.

The Pennsylvania League of Cities and Municipalities, opposes the legislation, which was proposed by Sen. Jeffrey Piccola, R-Dauphin.

"Should one homeowner be able to stop a $350 million property development that will help an entire community? We believe the answer is no," said Richard J. Schuettler, the league's deputy executive director. "If you are going to revitalize urban areas, eminent domain must remain an available tool."

Herbert Wetzel, director of the Philadelphia Redevelopment Authority, agreed.

"Don't deprive local communities of renewing themselves," said Mr. Wetzel, whose city "has prudently used the powers of eminent domain to revitalize entire neighborhoods, serve large communities and protect green space."

In suburban Philadelphia, though, Lower Merion wants to seize thriving businesses in affluent downtown Ardmore. The neighborhood includes a thrift store, a Chinese restaurant, an Italian restaurant, a Veterans of Foreign Wars hall, a nail salon and Suburban Office Supply, the business Mr. Mahan's grandfather started in 1926.

"It's a charming area with a mix of businesses a lot of towns strive to achieve," Mr. Mahan said.

But the township considers the area blighted under current law, which allows property to be condemned if it could be put to another use that would generate more tax money.

"It's a bogus blight designation," Mr. Mahan said. "Anything can be declared blighted and then taken and turned over to someone else."

Mr. Piccola's legislation was prompted by a June decision by the U.S. Supreme Court, which ruled that the city of New London, Conn., could take private homes so Pfizer pharmaceutical company could build a research facility. The court, in its decision, said it didn't want to "second-guess" municipalities, but left open that states could create their own restrictions on the use of eminent domain.