From: Rabbi Akiva Eiger
To: Rabbi Yaakov Lorberbaum
Rabbi Akiva Eiger rules that relocating a cemetery for public welfare is clearly permitted, citing Rabbi David Oppenheim's teshuvah in the Chavos Ya'ir. Regarding the prohibition of benefit from treading on cemetery earth, he confirms Rabbeinu Yeshaya's stringent view but rules leniently based on several converging factors: the majority of poskim reject Rabbeinu Yeshaya, the Rashdam holds the grave prohibition is only rabbinic, and the original forbidden earth is nullified by the majority of permitted earth added over time.
Source: Shu"t Rabbi Akiva Eiger §45