Does Government have a right to buy up problem properties or corporations?

With AIG, it's really becoming and issue, that's $85b of tax payers money. This is not the only cirstance of government involved in private industry. Southampton Township, NY is buying up problem properties and businesses left and right, or just taking them over, but Business man in the area won't stand up to them. You have to understand that by not allowing these problem properties like Hot Dog Beach/Hampton Beach Club (American iconic establishments from the 70's and 80's that has had a series of successful businesses and some tragic accidents) it should be a lower priced property for some hungry entrepreneur. Instead, Southampton has bought the property with tax payer's money and are planning on building condos, and they won't be for low income families. This is wrong and is a form of Communism, it has got to stop. Government should not control the private sector, if one wrong person gets into office we've got the gestapo all over (some people will tell you it's already happening). Government must stay out of the private sector and let Capitalism work otherwise we're going to have and elitist society, where only the super wealthy have a say. Honestly, it's already happening.