@tsarstepan,
There was no eminent domain involved. It is now simply an empty lot in a residential neighborhood. The city uses it to store dirt, fill material, which shouldn't be in a residential neighborhood anyway because of the dust problems during a drought.
There was no remaining hazard. It was simply a case of termite infestation, something not rare in Texas. I haven't been in the house, but it looked structurally sound from the outside. Last year a new roof was put on. The old lady who owned it was in a rest home, and her children took control of it, and apparently just wanted to get shed of it anyway.
But the point is it looks kind of sleazy for a city to be doing this, and possibly marginally illegal.