TheRifleman
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The problem with that logic is that pretty much anywhere convenient for government services will also have high land values. Sure, we could stick them all somewhere shitty to save taxpayer money, but it's going to suck for those that have to use them. And remember -- those that have to use government offices and courthouses, etc., include businesses (ask any litigation-heavy law firm about proximity to a courthouse). The land around the courthouse would inevitably become valuable anyway, and removing a courthouse to a remote location would be a drag on legal services and the local economy as a whole.
That said, did it need to be on the waterfront as opposed to a few blocks inland? No. It was put there to please powerful judges who wanted a pretty water view.
The history of development will not be kind to the Seaport District.