INFORMATION #2 EDSR 03-13-2006INFORMATION
MEMORANDUM
TO: Economic Development Authority
FROM: Heidi Steinmetz, Assistant Director of Economic Development
DATE: March 13, 2006
SUBJECT: Eminent Domain Resolution
Attachments
• Ciry of Elk River Resolution 06-23
• House File 2895 status, authors and bill dated February 16, 2006)
• Senate File 2694 status, authors and bill dates March 1, 2006
Background
A joint City Council, EDA and HRA meeting was held on February 13, 2006 regarding the
proposed eminent domain legislation fox the current session of the Minnesota State
Legislature. The session began on March 1, 2006.
Staff was directed to draft a resolution for the City Council to consider at the February 22,
2006 Council meeting. The EDA and HRA provided input to the draft resolution prior to
the CouncIl meeting.
Update
The attached resolution in general support of the League of Minnesota Cities' efforts to
preserve the authority of Minnesota cities to use eminent domain (with modifications) was
adopted by the Ciry Council on February 22, 2006.
Also, after the City Council, EDA and HRA joint meeting took place, the below list of
authors for both the House and Senate versions of the "League bill" were announced.
House authors:
Rep. Pete Nelson, (R) District 17B (Chisago City, Wyoming, Stacy area)
Rep. Moxxie Lanning, (R) District 9A (Moorhead area)
Rep. Erhardt, (R) District 41A (Edina area)
Presentation on P~oposcd Nminent Domain Legislation
Pcbmary 13, 2006 F.DA Mcering
Page 2 of 2
SeIIate aUthOTS:
Senator Don Betzold, (DFL) District 51 (Blaine, Spring Lake Park, Fridley, area)
Senator Belanger, (R) District 40 (Bloomington area)
Senator Pogemillex, (DFL District 59 (Minneapolis area)
The status and recent versions of both bills axe attached.
In addition, as of March 2, 2006, the League informed staff that new eminent domain bills
have been introduced: House Files 3069 and 3113. The League also told staff that a newly
published report by the Fitch Rating Service provides some very interesting cautions fox
those seeking to restrict the use of eminent domain, particularly on a local unit of
government's credit quality. The complete report, titled "Beyond Kelo: Reactions,
Responses, and Credit Quality" is available online at
http:/iwww.fatchratu~gs.com/corporate ~report5/report franc cfni~r_~id==265888.
RESOLUTION 06-23
A RESOLUTION OF THE CITY OF ELK RIVER
A RESOLUTION IN GENERAL SUPPORT OF
THE LEAGUE OF MINNESOTA CITIES'
EFFORTS TO PRESERVE THE AUTHORITY OF
MINNESOTA CITIES TO USE EMINENT
DOMAIN (VNITH MODIFICATIONS).
WHEREAS, the City of Elk River is currendy authorized under Minnesota State Statutes to eserdse
eminent domain for public purposes including redevelopment, housing and securing property for
infrastructure and other revitalization efforts that provide employment opportunities, improve the
City's tas base and to mitigate conditions caused by blight; and,
WHEREAS, redevelopment activities aze essential for Minnesota dries to mitigate deteriorating
properties that cause valuation losses to suaounding properties and create an atmosphere where
property reinvestment ceases, and also to coaect market conditions and to combat public safety
issues; and,
WHEREAS, the City of Elk River understands that while eminent domain is a necessary
tool for the City, it is also a great responsibility that potentially changes the lives of those it
affects; and,
WHEREAS, the City of Elk River on very few occasions has eserdsed or threatened to eserdse its
authority of eminent domain to acquire properties to implement redevelopment plans Qeated
through public meetings and lengthy public processes and for traditional public improvements
(and, in recent uses, such actions were only threatened at the request of the affected landowner fox
taa reasons); and,
WHEREAS, it is critical that the City of Elk River maintains its authority of eminent domain for
traditional public improvement acquisitions such as public road easements, pazks, utilities and
in&asuucture; and,
WHEREAS, the Elk River City Counal, in conjunction with the City's Economic Development
Authority and Housing and Redevelopment Authority, recognizes that the changes proposed in the
Johnson-Bakk bill and similar bills to modify state and federal statutes and regulations will severely
undermine the ability of local communities to undergo critical redevelopment activities and to secure
necessary public improvements; and,
WHEREAS, the City of Elk River recognizes that improvements to the cuaent eminent domain
processes aze appropriate to ensure transpazenry for all those involved and that some reasonable
restrictions on the use of eminent domain may be wanxanted; and,
WHEREAS, the League of Minnesota Cities is proposing legislation that would preserve the
authority of Minnesota dries to use eminent domain while suggesting amendments to improve the
eminent domain process, but that additional reasonable restrictions on eminent domain use may be
appropriate.
NOW, THEREFORE, BE IT RESOLVED by the City Councl of the City of Elk River to
generally support the League of Minnesota Cities' efforts to preserve the authority of Minnesota
dries to use eminent domain, provided that additional restrictions on a city's approval of the use of
eminent domain be included which still reserves the derision-making in the City Council (e.g.,
requiring that such approval would require asuper-majority vote of the Council instead of a mere
simple majority; and requiring that, in the case of an economic development project, that
substantially all of the property encompassing the development project area be purchased by the
developer or be subject to binding purchase agreements with the developer poor to any action by the
City Counal to authorize the use of eminent domain).
Passed and adopted this 21n day of Febmary ?006. ,
ATTEST: °
Jon Schmidt, City Clerk
~/
~' / uJ
Stepha>~ie HIinzing, Mayo ~
HF2895 Status in House for Legislative Session 84
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None HFZS95(House) - None
HF2895 Status in House for Legislative Session 84
Bill Name: HF2895 Companion: SF2694
Bill T_ext_ Bill Text
Bill Status
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House
Authors
short
Description
Long
Description.
Nelson, P.; Lanning; Erhardt
Revisor Number: 06-5594
Use, notice, hearing, appeal, and procedure of eminent domain clarified, attorney fees
authorized, and technical changes provided.
Unofficial Actions (includes committee actions and House Research Summary
initial committee hearings)
Body Date Action Description /Committee Page Roll Cal
House 03/01/2006 Introduction and first reading,
referred to Civil Law and Elections 5.1..1.8
House 03/01/2006 Author added Erhardt 5153 C
Please direct all comments concerning issues or legislation
to your House Member or State. Senator.
For Legislative Staff or for directions to the Capitol, visit the Contact. Us page.
_G_eneral questions or comments.
last updated: 72/28/2005
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H.F. No. 2895, as introduced - 84th Legislative Session (2005-2006) Page 1 of 8
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H.F. No. 2895, as introduced - 84th Legislative Session (2005-2006) Posted on Feb 16, 2006
1 .1 A bill for an act
1 .2 relating to eminent domain; providing for and regulating the use of eminer
1 .3 domain; providing for notice, hearing, appeal, and other procedural requir
1 .4 allowing attorney fees under certain conditions; providing for a right of
1 .5 refusal; providing definitions; making clarifying, conforming, and technic
1 .6 changes; amending Minnesota Statutes 2004, sections 117.036; 117.055;
1 .7 117.075, by adding subdivisions; 117.085; 117.51; 117.52, subdivision 1, t
1 .8 adding a subdivision; 163.12, subdivisions la, lb; 469.012, subdivision lc
1 .9 proposing coding for new law in Minnesota Statutes, chapters 117; 469.
1 .10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1 .11 Section 1. Minnesota Statutes 2004, section 117.036, is amended to rea
1 .12 117.036 APPRAISAL AND NEGOTIATION REQIIIRENENTS
1 .13
1 .14 YIIADGCw,iS.
1 .15 Subdivision 1. Application. This section applies to the acquisition of
1 .16 tar gubliF'^:~~~, ^t,.r. °.^ ^...,^ ,,, °.... ...-~.. ..;~ c_^;,;
1 .17 ~-^^^^^-~^~~^^ °,^~'~~'^^ under this chapter.
1 .18 Subd. 2. Appraisal. (a) Before commencing an eminent domain proceedinc
1 .19 this chapter, the acquiring authority must obtain at least one appraisal f
1 .20 proposed to be acquired. In making the appraisal, the appraiser must confe
1. 21 more of the fee owners or contract purchasers of the property, if reasona;=
1. 22 '^^^' Notwithstanding section 13.44 or any other law to the contrary, t
1. 23 authority must provide the fee owner or contract purchaser with a_,co~y _of
--- _-
1. 24 at the time an offer is made, but no later than 20 days before presenting
1. 25 section 117.055, *'~° ^ •~'~^°~ ~^ m •' a^ ~''^ ' ~'^ ^
1. 26 ~~ and inform the ^` ~''° fee owner or contract purcha
2. 1 to obtain an appraisal under this section. Upon request, the acquiring cut
2. 2 available to the fee owner or contract purchaser all appraisals of the prc
2. 3 (b) The fee owner or contract purchaser may obtain an appraisal by a quali
2. 4 appraiser of the property proposed to be acquired. The fee owner or contra
2. 5 is entitled to reimbursement for the reasonable costs of the appraisal frc
2. 6 authority up to a maximum of $1,500 •.:i~'~'^ '^ a, •^ ,'~^'- ~'^^ for single fa
2. 7 two-family residential property, agricultural property, and minimum damage
2. 8 and $5,000 for other types of property, provided that the fee owner or cor
2. 9 submits to the acquiring authority the information necessary for reimburse
2. 10 ~'~^' "'° °° •'^°^ ^^ including a copy of the fee owner's or contract pux
2. 11 appraisal, within bA 90 days after ^'^^ °^ receiving the apprai
2. 12 authority under paragraph (a) and at least 30 days before a condemnation c
2. 13 hearing. For purposes of this paragraph, a "minimum damage acquisition" me
2. 14 interest in property that a qualified person with appraisal knowledge indi
2. 15 acquired for a cost of $10,000 or less. For purposes of this paragraph, '
2. 16 property" has the meaning given in section 583.22, subdivision 2.
2. 17 (c) The acquiring authority must pay the reimbursement to the fee owner ox
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H.F. No. 2895, as introduced - 84th Legislative Session (2005-2006)
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2.18 purchaser within 30 days after receiving a copy of the appraisal and the x
2.19 information. Upon agreement between the acquiring authority and either the
2.20 or contract purchaser, the acquiring authority may pay the reimbursement c
_.
2.21 the appraiser.
2.22 Subd. 3. Negotiation. In addition to the appraisal requirements under
2.23 before commencing an eminent domain proceeding, the acquiring authority mL
2.24 good faith attempt to negotiate personally with the fee owner or contract
2.25 property in order to acquire the property by direct purchase instead of tt
2.26 domain proceedings. In making this negotiation, the acquiring authority mL
2.27 the appraisals in its possession, including any appraisal obtained and fur
2.28 owner or contract purchaser if available and other information that may Y
2.29 determination of damages under this chapter.
2.30 Subd. 4. Condemnation coaunisaioners' hearing• Notwithstanding section
2.31 an appraisal must not be used or considered in a condemnation commissioner
2.32 nor may the appraiser who prepared the appraisal testify, unless a copy of
2.33 written report is provided to the opposing party at least_five days before
2 .34 Sec. 2. Minnesota Statutes 2004, section 117.055, is amended to read:
2 .35 117.055 PETITION AND NOTICE.
3 .1 Subdivision 1. Petition. In all cases a petition, describing the desix
3 .2 whom and for what purposes it is proposed to be taken, and giving the name
3 .3 appearing of record or known to the petitioner to be the owners thereof st
3 .4 to the district court of the county in which the land is situated praying
3 .5 of commissioners to appraise the damages which may be occasioned by such t
3 .6 Subd. 2. Notice. (a) Notice of the objects of the petition and of the
3. 7 presenting the same shall be served at least 20 days before such time of F
3. 8 all persons named in the petition as owners as defined in section 117.02=_
3. 9 and upon all occupants of such land in the same manner as a summons in a c
3. 10 (b) The notice must state that: (1) a party wishing to challenge the publi
3. 11 necessity, or authority for a taking must appear at the court
hearing and
3. 12 _
(2) failure to appear and object is deemed a waiver of any objection; and
3. 13 approving the public purpose necessity and authority for the taking is f
3. 14 appeal is brought within 60 days after service of the order on the party.
3. 15 (c) If any such owner be not a resident of the state, or the owner's place
3. 16 be unknown to the petitioner, upon the filing of an affidavit of the petit
3. 17 petitioners agent or attorney, stating that the petitioner believes that
3. 18 a resident of the state, and that the petitioner has mailed a copy of the
3. 19 owner at the owner's place of residence, or that after diligent inquiry tY
3. 20 of residence cannot be ascertained by the affiant, then service may be mac
3. 21 owner by three weeks' published notice. If the state be an owner, the noti
3. 22 served upon the attorney general. Any owner not served as herein provided
3. 23 bound by such proceeding except upon voluntarily appearing therein. Any ov.
3. 24 be furnished a right-of-way map or plat of all that part of land to be tak
3. 25 demand, provided that the petitioner shall have ten days from the receipt
3. 26 within which to furnish the same. Any plans or profiles which the petition
3. 27 made available to the owner for inspection.
3
3.
3. .28
29
30 Sec. 3. Minnesota Statutes 2004,
to read:
Subd. la. Appeal of order. A__part section 117.075, is amended by addinc
y wishing to challenge the public pux
3. 31 necessity or authority for a taking must appear at the court hearing regL
3. 32 1 and state the objection. Failure to appear and object is deemed a waiver
3. 33 A court order approving the public purpose necessity, and authority for t
3. 34 unless an appeal is brought within 60 days after service of the order on t
4.
4.
4. 1
2
3 Sec. 4. Minnesota Statutes 2004,
to read:
Subd. lb. Attorney feea. If the c section 117.075, is amended by addinc
ourt determines that a taking is not
4. 4 purpose or is unlawful the court may award the owner reasonable attorney
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H.F. No. 2895, as introduced - 84th Legislative Session (2005-2006)
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4 .5 Sec. 5. Minnesota Statutes 2004, section 117.085, is amended to read:
4 .6 117.085 COMlQISSIONERS, POP7ERS, DDTIES.
4 .7 The commissioners, having been duly sworn and qualified according to law,
4 .8 meet as directed by the order of appointment and hear the allegations and
4 .9 persons interested touching the matters to them committed. They may adjoux
4 .10 to time and from place to place within the county, giving oral notice to t
4 .11 the time and place of their next meeting. All testimony taken by them shal
4 .12 publicly, under oath, and in their presence. They shall view the premises,
4 .13 them may subpoena witnesses, which shall be served as subpoenas in civil a
4 .14 served, and at the cost of the parties applying therefor. If deemed necess
4 .15 require the petitioner or owner to furnish for their use maps, plats, and
4 .16 which the petitioner or owner may have showing the nature, character, and
4 .17 proposed undertaking and the situation of lands desired therefor. In prope
4 .18 reserve to the owner a right-of-way or other privilege in or over the lane
4 .19 reasonable conditions to such taking in addition to the damages given or t
4 .20 an alternative award, conditioned upon the granting or withholding of the
4 .21 Without unreasonable delay they shall make a separate assessment and aware
4 .22 damages which in their judgment will result to each of the owners of the 1
4 .23 of such taking and report the same to the court. The commissioners shall r
4 .24 amount of the damages awarded because the land being taken is, at the time
4 .25 valued under section 273.111, designated as an agricultural preserve unde
4 .26 The commissioners, in all such proceedings, may in their discretion allow
4 .27 separately in addition to the award of damages, reasonable appraisal fees
4 .28 total of $,SGQ $1,500 for single family and two-f amily
residential property
4 .29 _
Qroperty, and minimum damage acquisitions and $5 000 for other types of ps
4 .30 request of an owner the commissioners shall show in their report the amour
4 .31 of damages which is to reimburse the owner and tenant or lessee for the va
4 .32 taken, and the amount of the award of damages, if any, which is to reimbux
4 .33 and tenant or lessee for damages to the remainder involved, whether or not
4 .34 the petition. The amounts awarded to each person shall also be shown sepax
4 .35 commissioners shall, if requested by any party, make an express finding of
5 .1 cost of removal and remedial actions that will be necessary on the taken p
5 .2 of existing environmental contamination.
5 .3 Sec. 6. [117.2267 RIGHT OF FIRST RSFIISAL.
5 .4 (a) If the governing body of the acquiring authority determines that publi
5. 5 property acquired under this chapter has not been used and is no longer ne
5. 6 purpose for which it was originally acquired, the authority must offer to
5. 7 to the owner from whom it was acquired. If the former owne r
can be locates
5. 8 _
authority must offer to sell the property at the current fair market value
5. 9 the current fair market value is less than what the acquiring authority ps
5. 10 the acquiring authority must offer to sell the property for the amount tha
5. 11 authority paid when it originally acquired the property.
5. 12 (b) The acquiring authority must attempt to locate the former owner by:
5. 13 (1) sending notice of the right of first refusal
by first class mail to tY
5. 14 _
address of the former owner; and
5. 15 (2) providing two weeks' published notice of the right of first refusal it
5. 16 of general circulation.
5. 17 (c) If the former owner cannot be located or declines to repurchase the px
5. 18 within 60 days of providing the notice described in paragraph (b) the ace
5. 19 shall prepare a certificate attesting to the same and record the certifica
5. 20 county recorder or county registrar of titles, as appropriate, to
evidence
5. 21 __
the right of first refusal.
5. 22 (d) This section shall not apply:
5. 23 (1) if the acquiring authority has an alternative use for the property ans
5. 24 would remain in public ownership or
5. 25 (2) to acquisitions of property for transportation purposes made by the
cc
5. 26 ___
of transportation.
5. 27 Sec. 7. Minnesota Statutes 2004, section 117.51, is amended to read:
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H.F. No. 2895, as introduced - 84th Legislative Session (2005-2006)
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5.28 117.51 COOPERATION WITH FEDERAL AUTHORITIES.
5.29 In all acquisitions undertaken by any acquiring authority and in all volur
5.30 rehabilitation carried out by a person pursuant to acquisition or as a cor
5.31 the acquiring authority shall cooperate to the fullest extent with federal
5.32 agencies, and it shall take all necessary action in order to insure, to tY
5.33 possible, federal financial participation in any and all phases of acquisi
5.34 provision of relocation assistance, services, payments and benefits to dis
6.1
6.2
6 .3 Sec. 8. Minnesota Statutes 2004, section 117.52, subdivision 1, is ame
6 .4 Subdivision 1. Lack of federal funding. In all acquisitions undertaker
6 .5 acquiring authority and in all voluntary rehabilitation carried out by a F
6 .6 to acquisition or as a consequence thereof, in which, due to the lack of f
6 .7 participation, relocation assistance, services, payments and benefits undo
6 .8 Relocation Assistance and Real Property Acquisition Policies Act of 1970,
6 .9 Code, title 42, sections 4601 to 4655, as amended by the Surface Transport
6. 10 Uniform Relocation Assistance Act of 1987, Statutes at Large, volume 101,
6. 11 to 256 (1987), are not available, the acquiring authority, as a cost of ac
6. 12 provide all relocation assistance, services, payments and benefits require
6. 13 Relocation Assistance and Real Property Acquisition Policies Act of 1970,
6. 14 the Surface Transportation and Uniform Relocation Assistance Act of 1987,
6. 15 regulations adopted pursuant thereto, and either (1) in effect as of -~
6. 16 2006, or (2) becoming effective after Su'~~.~.,~°O~ January 1, 2006, folloti
6. 17 hearing and comment. Comments received by an acquiring authority within 3C
6. 18 the public hearing must be reviewed and a written response provided to the
6. 19 organization who initiated the comment. The response and comments may be a
6. 20 another public hearing by the acquiring authority before approval.
6 .21 Sec. 9 . Minnesota Statutes 2004, section 117 .52, is amended by adding
6. 22 read:
6. 23 Subd. la. Reestablishment costa limit. For p urposes of relocation bene
6. 24 accordance with this section the limitation in Code of Federal Requlatior
6. 25 24.304, wi th respect to reimbursement of reestab lishment expenses for nonx
6. 26 moves, an acquiring authority shall reimburse up to $50,000 for such expel
6 .27 Sec. 10. Minnesota Statutes 2004, section 163.12, subdivision la, is
6 .28 Subd. la. Petition, notice, and access to information. (a) Upon passac
6 .29 resolution specified in section 163.11, subdivision 2, a petition must be
6 .30 district court of the county in which the land is located. The petition mL
6 .31 tract of land through which the highway passes, state the purposes for whi
6 .32 proposed to be taken, and list the names of all persons appearing of recox
6 .33 the county to be the landowners.
7 .1 (b) Notice of the objects of the petition and of the time and place of pre
7 .2 notice must be served, together with a copy of the resolution, upon each c
7 .3 each tract of land through which the highway passes at least 20 days befox
7 .4 under subdivision lb. If an owner is not a resident of the state, or the c
7 .5 residence is unknown to the county, service may be made by three weeks' pL
7. 6 notice following the filing of an affidavit on behalf of the county by the
7. 7 attorney stating that the county:
7. 8 (1) believes that the owner is not a resident of the state; and
7. 9 (2) has either mailed a copy of the notice to the owner at the owner's las
7. 10 residence address or, after diligent inquiry, the owner's place of resider
7. 11 ascertained by the county.
7. 12 If the state is an owner, the notice must be served upon the attorney gene
7. 13 not served as provided in this subdivision is not bound by the proceeding,
7. 14 owner voluntarily appears in the proceeding.
7. 15 (c) Within ten days of an owner's demand, the owner must be furnished a
7. 16 right-of-way map or plat of all that part of the owner's land to be taken.
7. 17 plans or profiles that the county possesses must be made available to the
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H.F. No. 2895, as introduced - 84th Legislative Session (2005-2006)
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7. 18 inspection.
7. 19 (d) The not ice must state that: (1) a party wishing to challeng e the publi
7. 20 necessity, or authority for the taking must appear at the court hearing ar
7. 21 objection; (2) failure to appear and ob'ect is deemed a waiver of any obje
7. 22 court order approving the public purpose, necessity and author ity for the
7. 23 unless an a ppeal is brought with in 60 days after service of the order on t
7.24 Sec. 11. Minnesota Statutes 2004, section 163.12, subdivision lb, is a
7.25 Subd. lb. Finding of necessity. When proof of service of the notice re
7.26 subdivision la is filed with the court, the court shall hear all competent
7.27 for or against granting the petition at the time and place fixed in the nc
7.28 by the court. On finding that the proposed taking is necessary and authori
7.29 court shall order the proceedings to commence pursuant to the remaining px
7.30 this section. The court order finding the taking necessary and authorized
7.31 order and must be appealed within 60 days from_its service on the party.
7 .32 Sec. 12. Minnesota Statutes 2004, section 469.012, subdivision lg, is
7 .33 Subd. lg. Get property; eminent domain. (a) An authority may, within i
7 .34 operation, acquire real or personal property or any interest therein by gi
8 .1 exchange, lease, transfer, bequest, devise, or otherwise, and by the exert
8 .2 of eminent domain, in the manner provided by chapter 117, acquire real prc
8 .3 may deem necessary for its purposes, after the adoption by it of a resolut
8 .4 the acquisition of the real property is necessary:
8 .5 (1) to eliminate one or more of the conditions found to exist in the resol
8 .6 pursuant to section 469.003 or to provide decent, safe, and sanitary hour
8 .7 of low and moderate income; or
8 .8 (2) to carry out a redevelopment project.
8 .9 (b) Real property needed or convenient for a project may be acquired by tl
8 .10 authority for the project by condemnation pursuant to this section and sec
8 .11 ~„~ -. a,.rf; ..F ,.,..f; .i.,..-; ..~...T_..
R ~ ^~prpm~r
8 .12 coa3cmnatiwr~ Chc~3ccccrni~r~yo3} cf tkc •~~'~^-~~}~ ^u^t '^^'a r
8 .13 .. ,,a ., n;f;,.., .. Ff...- .... s.,: nt,va .,
8 .14 b~~t=z ~.~=~k-.aunt h= ^a3c '~C lc ~c t_nro time ~aC lccc-Y'~_.~
8 .15 ~^ a^:~ ,. t~-tso_a~to_o~-tw^ ~.^-.,-;^J Tlae r~ctice mcs~ yeas®~aa~l~, dws^-
8 .16 H„ „a .,a -,tee ..,^. .,.,, e ..F ~,.,. ,.,.., r:^ ;a^_
8 .17 0 0 0 ..F •1.., „-1....-.f..i ..F n e..f .~....._; n,..f to f1.., .ice
B . 1 8 Y..... ,-; .... ..f ; .... ..F fl... L,^., ,-; .... ... .. , n... l..-. ... ; , ..a fl.., ., F h
8 .19 ~,, ti.,, ^ _-..a t-...~ F,; ,,,,..,. ~ _;,,.a ... anFo,.~., .s.,. .,
8 .20 - ^i;a.,. «u.,, fs,., ..F :,..a _
8. 21 ia--accex3~ncc iri tla cccCion~37a G71, cub3i~~^~^^ ,^~ ~-~
8. 22 ~ (c) Property acquired by condemnation under this section may include a
8. 23 property devoted to a public use, whether or not held in trust, notwithsta
8. 24 property may have been previously acquired by condemnation or is owned by
8. 25 utility corporation, because the public use in conformity with the provisi
8. 26 469.001 to 469.047 shall be deemed a superior public use. Property devote
8. 27 use may be so acquired only if the governing body of the municipality has
8. 28 its acquisition by the authority.
8. 29 4.a>- (d) An award of compensation shall not be increased by reason of any i
8. 30 in the value of the real property caused by the assembly, clearance or rec
8. 31 proposed assembly, clearance or reconstruction for the purposes of section
8. 32 to 469.047 of the real property in an area.
8.
8.
9. 33
34
1 Sec. 13. [469.401] ACQUISITION BY EMINENT DOMAIN UNDER THIS
CHAPTER.
Subdivision 1. Application. Sections 469.401 to 469.403 apply
to the e
9. 2 eminent domain powers by a condemning authority under this chapte r if the
9. 3 interest to be acquired by eminent domain is intended to be sold, transfer
9. 4 conveyed to a person or nongovernmental entity without the power of eminer
9. 5 Subd. 2. Public hearing and notice required. Prior to adoption of a re
9. 6 authorizing the use of eminent domain the governing body of the condemnir
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H.F. No. 2895, as introduced - 84th Legislative Session (2005-2006)
9.7
9.8
9.9
9.10
9.11
9.12
9.13
9.14
9.15
9.16
9.17
9.18
9.19
9.20
9.21
9.22
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9.25
9.26
9.27
9.28
9.29
9.30
9.31
9.32
9.33
9.34
9.35
10.1
10.2
10.3
10.4
10.5
10.6
10.7
10.8
10.9
10.10
10.11
10.12
10.13
10.14
10.15
10.16
10.17
10.18
10.19
10.20
10.21
10.22
10.23
10.24
10.25
10.26
10.27
10.28
10.29
10.30
Page 6 of 8
must hold a public hearing on the proposed acquisition after published not
newspaper of general circulation in the governing body's jurisdiction and
body's Web site, if applicable which must be made at least one time not 1
weeks nor more than 60 days prior to the date of the_hearinq. The notice rt
describe the property interest to be acquired state that the purpose of t
consider acquisition by eminent domain state that comments may be submitt
at the hearing or in writing prior to or at the hearing, and specify an_ac
written comments may be mailed. Not less than two weeks before the hearinc
the hearing must also be mailed to the owner of each parcel proposed to be
defects in the notice do not invalidate the acquisition For the purpose c
notice, owners are determined as provided by section 429.031, subdivision
(a). The resolution authorizing the use of eminent domain must not be adoF
meeting or on the same day as the public hearing.
Subd. 3. Resolution. The resolution authorizing the use of eminent dort
(1) identify and describe the public benefits that_are known or expected t
from the program or proiect for which the property interest is proposed tc
(2) identify and describe the private benefits that are known or expected
from the anticipated conveyance of the property interest proposed to be ac
(3) summarize and respond to any oral comments made at the public hearing
written comments received at or prior to the public hearing; and
(4) address how the acquisition of the property interest serves one or mor
public purposes and why the acquisition of the property is reasonably nece
accomplish those purposes.
Subd. 4. Summary of findinga. The governing body of a condemning authc
must summarize the findings adopted in the resolution authorizing the use
domain in the notice of petition required under section 117.055.
Sec. 14. [469.402] DEFINITIONS.
Subdivision 1. Scope. For purposes of sections 469.401 to 469.403, the
terms have the meanings given to them.
Subd. 2. Abandoned. "Abandoned" means that at least 75 percent of a bL
area has been substantially unoccupied for at least one year prior to the
in a blighted area.
Subd. 3. Blighted area. "Blighted area" is an area where the condemnir
finds that the conditions provided in clauses (a), (b), and (c) exist:
(a) the land is or has been in urban use;
(b) at least one of the following conditions exist:
(1) 50 percent or more of the buildings in the area are structurally subst
or abandoned or a combination thereof•
(2) 30 percent or more of the parcels in the area constitute an environme_r
contaminated area; or
(3) (i) 20 percent or more of the buildings in the area are structurally
or abandoned or a combination thereof, and (ii) an additional 30 percent c
buildings in the area are obsolete as evidenced by lack of investment base
nuilainq permits Tor repair or improvements in the previous five years; ar
(c) at least one of the following conditions is present:
(1) diversity of ownership or defective or unusual conditions o_f_ title pre
free alienability of land within the area
(2) there is inadequate infrastructure in the area•
(3) the crime rate in the area is higher than in the remainder of the tour
municipality;
(4) 30 percent of the tax parcels have had delinquent taxes or special ass
a period of two years or more prior to inclusion in the area; or
(5) negative market conditions exist in the area
Subd. 4. 8nvironmentally contaminated area. "Environmentally contamina
area" means:
(1) any parcel that would be eligible for contamination cleanup grants frc
Department of Employment and Economic Development's contamination clean
account under section 116J.552, subdivision 3, or 116J.554, subdivision 2,
(ii) the Metropolitan Council's tax base revitalization account under sect
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H.F. No. 2895, as introduced - 84th Legislative Session (2005-2006)
Page 7 of 8
10 .31 (2) an area that qualifies as a soils condition district under section 46c
10
10 .32
.33 subdivision 19.
Subd. 5. Inadequate infrastructure. "Inadequate infrastructure" means
10 .34 publicly owned physical infrastructure including sanitary sewer systems, v,
10 .35 streets, wastewater treatment and pretreatment systems, storm water manage
10 .36 natural gas systems, and electric utility systems which are inadequate to
11 .1 existing or projected users in the blighted area because the system is unc
11 .2 meet current design standards or is significantly deteriorated.
11 .3 Subd. 6. Market area. "Market area" means the geographic or locational
11 .4 delineation of the market for a specific Cate ory of real estate.
11 .5 Subd. 7. Negative market conditions. "Negative market conditions" are
11 .6 by one or more of the following factors for similarly classified property
11 .7 are lower than in the remainder of the market area, are increasing at rate
11 .8 than in the remainder of the market area, or are decreasing compared to tt
11 .9 the market area; (2) vacancy rates are higher than in the remainder of the
11 .10 or (3 )_ other comparable evidence of negative market conditions in the blic
11
11 .11
.12 compared to the market area as a whole. ~~
Subd. 8. Public nuisance. "Public nuisance" has the meaning given in =
11
11 .13
.14 609.74.
Subd. 9. Structurally substandard. "Structurally substandard" means a
11. 15 that contains defects in structural elements or a combination of deficient
11. 16 utilities and facilities light and ventilation and fire protection incluc
11. 17 which significant defects or deficiencies justify substantial renovation
c
11. 18 _
building is not structurally substandard if it is in compliance with the k
11. 19 applicable to new buildings or could be modified to satisfy the building c
11. 20 less than 20 percent of the cost of constructing a new structure of the sa
11. 21 and type on the site. The municipality or condemning authority may find tY
11. 22 not disqualified as structurally substandard under the previous sentence c
11. 23 reasonably available evidence such as the size type, and age of the buil
11. 24 cost of plumbing electrical or structural repairs or other similar reli
11. 25 municipality or the condemning authority may not make such a determination
11. 26 interior inspection of the property but need not have any independent, ex
11. 27 prepared of the cost of repair and rehabilitation of the building. An into
11. 28 of the property is not required if the municipality finds that: (1) the n
11. 29 condemning authority is unable to gain access to the property after using
11. 30 obtain permission from the party that owns or controls the
property and
11. 31 otherwise supports a reasonable conclusion that the building is structural
11. 32 Items of evidence that support such a conclusion include recent fire or pc
11. 33 on-site property tax appraisals or housing inspections exterior evidence
11. 34 or other similar reliable evidence. Written documentation of the findings
11. 35 an interior inspection was not conducted must be made and retained. Failux
12. 1 to be disqualified under the provisions of this subdivision is a necessary
12. 2 condition by itself to determine that the building is substandard.
12
12 .3
.4 Sec. 15. [469.403] LIMITATION ON USE OF HMINENT DOMAIN.
Subdivision 1. Limitation. Notwithstanding any other provision of law
12 .5 condemning authority under this chapter may exercise the power of eminent
12 .6 property interest to be acquired is intended to be sold, transferred, or c
12 .7 to a person or nongovernmental entity without the power of eminent domain,
12 .8 condemning authority finds that the use of eminent domain is necessary to
12
12. .9
10 or more of the purposes in subdivision 2.
Subd. 2. Purposes. For purposes of carrying out the powers and authori
12. 11 under this chapter a condemning authority with the power of eminent domai
12. 12 this chapter may exercise that power to acquire land to accomplish one or
12.
12. 13
14 following purposes:
(a) the possession occupation or enjoyment of the land by the general pU
12.
12.
12. 15
16
17 by public agencies;
(b) to remedy a public nuisance
(c) to carry out a program to remedy or improve an environmentally contami
12. 18 area;
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H.F. No. 2895, as introduced - 84th Legislative Session (2005-2006) Page 8 of 8
12 .19 (d) to carry out a program to remedy or improve a blighted area• or
12 .20 (e) to facilitate development of housing for low or
moderate income person
12
12 .21
.22 _
defined under any federal, state or local program.
Subd. 3. 8conomic development. The public benefits of economic develoF
12 .23 including an increase in tax base tax revenues employment or general ec
12 .24 shall not by themselves constitute a public purpose except as provided in
12 .25 Subd. 4. Exceptions. Notwithstanding any other provision of law, a con
12 .26 authority under this chapter may condemn property if one or more of the fc
12
12 .27
.28 of financial assistance are present:
(1) a grant awarded by a state agency for_ economic development related pun
12. 29 a single business receives $200 000 or more of the grant proceeds;
12. 30 (2) a grant award to local units of government or development authorities
12.
12. 31
32 sections 116J.551, 116J.559, 116J.571, and 116J.8731;
(3) a loan or the guaranty or purchase of a loan made by a state agency fc
12. 33 development related purposes if a single business re
ceives $500,000 or mox
12.
13.
34
1 __
_
proceeds;
(4) a reduction, credit, or abatement of a tax assessed under chapter 297P
13. 2 where the tax reduction, credit, or abatement applies to a geographic area
13. 3 entire state and was granted for economic development related purposes; ox
13. 4 (5) an appropriation by the legislature to acquire or better property, in
13. 5 mart, with the proceeds of state general obligation bonds authorized to be
13. 6 article XI, section 5, clause (a) of the Minnesota Constitution.
13. 7 Financial assistance does not include payments by the state
o
f aids and cz
13.
13. 8
9 __
__
chapter 273 or 477A to a political subdivision.
Subd. 5. Disclosure. All applicants must indicate on applications for
13. 10 assistance under subdivision 4 whether the use of
eminent domain may be ne
13. 11 _
acquire property for the project. _
13
13 .12
.13 Sec. 16. EFFECTIVE DATE.
Sections 1 to 6 and 10 and 11 are
effective for condemnation proceedings t
13. 14 are commenced on or after August 1 2006 Sections 7 8 and 9 are effecti
13. 15 acquisitions in which the initial notice of eligibility is iven on or aft
13. 16 2006. Sections 12 to 15 apply to any property that is included in a redeye
13.
13.
13. 17
18
19 established on or after August 1
Sec. 17. SUNSET.
Sections 14 and 15 expire January 2006.
1 2009.
Please direct all comments concerning issues or legislation
to your House Member or State Senator.
For Legislative Staff or for directions to the Capitol, visit the Contact_Us page.
General ouestions or comments,
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SF2694 Status in Senate for Legislative Session 84
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Bill Name: SF2694 Companion: HF2895
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Senate Betzold; Belanger; Pogemiller
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Short Eminent domain provisions modifications
Description
Long. Unofficial Actions. (includes committee actions and
Description initial committee hearings)
Revisor Number: 06-5594
Body Date Action Description /Committee Page Roll Cal
senate 03/01/2006 Introduction and first reading 3821. C
senate 03/01/2006 Referred to Judiciary ~ ~
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last updated: 72/28/2005
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S.F. No. 2694, as introduced - 84th Legislative Session (2005-2006) Page 1 of 8
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S.F. No. 2694, as introduced -84th Legislative Session (2005-2006) Posted on Mar 01, 2006
1 .1 A bill for an act
1 .2 relating to eminent domain; providing for and regulating the use of eminer
1 .3 domain; providing for notice, hearing, appeal, and other procedural re quiz
1 .4 allowing attorney fees under certain conditions; providing for a right of
1 .5 refusal; providing definitions; making clarifying, conforming, and technic
1 .6 changes; amending Minnesota Statutes 2004, sections 117.036; 117.055;
1 .7 117.075, by adding subdivisions; 117.085; 117.51; 117.52, subdivision 1, Y
1 .8 adding a subdivision; 163.12, subdivisions la, lb; 469.012, subdivision lc
1 .9 proposing coding for new law in Minnesota Statutes, chapters 117; 469.
1 .10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1 .11 Section 1. Minnesota Statutes 2004, section 117.036, is amended to rea
1 .12 117.036 APPRAISAL AND NEGOTIATION REQUIRHMENTS
1 .13
1 .14 RiIADGSYt.
1 .15 Subdivision 1. Application. This section applies to the acquisition of
1 .16 c,.,- i., ~.~; ~,;~x.....7 .. ^.,-°„t^~ ..a^~ .,iio}~cr ai ~~e rt:c, macc Csar~c iT: ~acii;
1 .17 ~r^^^^^°~,~~^^ ',^~'~ under this chapter.
1 .18 Subd. 2. Appraisal. (a) Before commencing an eminent domain proceedinc
1. 19 this chapter, the acquiring authority must obtain at least one appraisal f
1. 20 proposed to be acquired. In making the appraisal, the appraiser must confe
1. 21 more of the fee owners or contract purchasers of the property, if reasonak
1. 22 r~ '°,^~ Notwithstanding section 13.44 or anY other law to the contrary, t
1. 23 authority must provide the fee owner or contract purchaser with a copy of
1. 24 at the time an offer is made, but no later than 20 days before presenting
1. 25 section 117.055, "'° ~"^^°~~~~ ^~^~ •'a^ ~'^^ ~~~~- -
1. 26 ~a1 and inform the ^{ ~'-° fee owner or contract_purcha
2. 1 to obtain an appraisal under this section. Upon request, the acqui r
i ng aut
2. 2 _
available to the fee owner or contract purchaser all appraisals of the prc
2. 3 (b) The fee owner or contract purchaser may obtain~an appraisal by a quali
2. 4 appraiser of the property proposed to be acquired. The fee owner or contra
2. 5 is entitled to reimbursement for the reasonable costs of the appraisal frc
2. 6 authority up to a maximum of $1,500 ,.^~'~~^ '^ a,~^ ,F'-°- ~'^° for single fa
2. 7 two-family residential property, agricultural property, and minimum .damage
2. 8 and $5,000 for other types of property, provided that the fee owner or cor
2. 9 submits to the acquiring authority the information necessary for reimburse
2. 10 including a copy of the fee owner's or contract pux
2. 11 appraisal, within Gal 90 days after "~~ _ receiving the apprai
2. 12 authority under paragraph (a) and at least 30 days before a condemnation c
2. 13 hearing. For purposes of this paragraph a "minimum damage acquisition" me
2. 14 interest in property that a qualified person with appraisal knowledge indi
2. 15 acquired for a cost of $10,000 or less. For purposes of this paragraph, "a
2. 16 property" has the meaning given in sect i
o
n 583.22, subdivision 2.
2. 17 __
_
(c) The acquiring authority must pay the reimbursement to the fee owner ox
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S.F. No. 2694, as introduced - 84th Legislative Session (2005-2006)
Page 2 of 8
2. 18 purchaser within 30 days after receiving a copy of the appraisal and the 1
2 .19 information. Upon a reement between the acguirin authority and either the
2 .20 or contract purchaser the acquiring authority may pay the reimbursement c
2. 21 the appraiser.
2. 22 Subd. 3. Negotiation. In addition to the app raisal requirements under
2. 23 before commencing an eminent domain proceeding, the acquiring authority mti
2. 24 good faith attempt to negotiate personally with the fee_owner or contract
2. 25 property in order to acquire the property by dir ect purchase instead of tt
2. 26 domain proceedings. In making this negotiation, the acquiring authority mti
2. 27 the appraisals in its possession, including any appraisal obtained and fur
2. 28 owner or contract purchaser if available and ot her information that may k
2. 29 determination of damages under this chapter.
2. 30 Subd. 4. Condemnation commissioners' hearing . Notwithstanding section
2. 31 an appraisal must not be used or considered in a condemnation commissioner
2. 32 nor may the appraiser who prepared the appraisal testif
y, unless a copy
of
2. 33 written report is provided to the opposing party _
at least five days before
2 .34 Sec. 2. Minnesota Statutes 2004, section 117.055, is amended to read:
2 .35 117.055 PETITION AND NOTICE.
3 .1 Subdivision 1. Petition. In all cases a petition, describing the desix
3 .2 whom and for what purposes it is proposed to be taken, and giving the name
3 .3 appearing of record or known to the petitioner to be the owners thereof sY
3 .4 to the district court of the county in which the land is situated praying
3 .5 of commissioners to appraise the damages which may be occasioned by such t
3 .6 Subd. 2. Notice. (a) Notice of the objects of the petition and of the
3 .7 presenting the same shall be served at least 20 days before such time of F
3 .8 all persons named in the petition as owners as defined in section 117.02
3 .9 and upon all occupants of such land in the same manner as a summons in a c
3 .10 (b) The notice must state that (1) a party wishing to challenge the publi
3 .11 necessity or authority for a taking must appear at the court hearing and
3 .12 (2) failure to appear and object is deemed a waiver of any objection; and
3 .13 approving the public purpose necessity and authority for the taking is f
3. 14 appeal is brought within 60 days after service of the order on the party.
3. 15 (c) If any such owner be not a resident of the state, or the owner's place
3. 16 be unknown to the petitioner, upon the filing of an affidavit of the petit
3. 17 petitioner's agent or attorney, stating that the petitioner believes that
3. 18 a resident of the state, and that the petitioner has mailed a copy of the
3. 19 owner at the owner's place of residence, or that after diligent inquiry tY
3. 20 of residence cannot be ascertained by the affiant, then service may be mac
3. 21 owner by three weeks' published notice. If the state be an owner, the noti
3. 22 served upon the attorney general. Any owner not served as herein provided
3. 23 bound by such proceeding except upon voluntarily appearing therein. Any ox
3. 24 be furnished a right-of-way map or plat of all that part of land to be tak
3. 25 demand, provided that the petitioner shall have ten days from the receipt
3. 26 within which to furnish the same. Any plans or profiles which the petition
3. 27 made available to the owner for inspection.
3
3
3 .28
.29
.30 Sec.
to read:
Subd 3. Minnesota Statutes 2004,
. la. Appeal of order. A part section 117.075, is amended by addinc
y wishing to challenge the public pun
3 .31 necessit y or authority for a taking must appear at the court hearing regL
3 .32 1 and st ate the objection. Failure to appear and object is deemed a waiver
3. 33 A court order approving the public pu rpose necessity, and authority for t
3 .34 unless a n appeal is brought within 60 days after service of the order on t
4.
4.
4. 1
2
3 Sec.
to read:
Subd 4. Minnesota Statutes 2004, section 117.075, is amended by addinc
. lb. Attorney fees. If the court determines that a taking is not
4. 4 purpose or is unlawful the court may award the owner reasonable attorney
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S.F. No. 2694, as introduced - 84th Legislative Session (2005-2006)
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4 .5 Sec. 5. Minnesota Statutes 2004, section 117.085, is amended to read:
4 .6 117.085 COMMISSIONERS, PONERS, DUTIES.
4 .7 The commissioners, having been duly sworn and qualified according to law,
4 .8 meet as directed by the order of appointment and hear the allegations and
4 .9 persons interested touching the matters to them committed. They may adjoux
4 .10 to time and from place to place within the county, giving oral notice to t
4 .11 the time and place of their next meeting. All testimony taken by them shal
4 .12 publicly, under oath, and in their presence. They shall view the premises,
4 .13 them may subpoena witnesses, which shall be served as subpoenas in civil a
4 .14 served, and at the cost of the parties applying therefor. If deemed necese
4 .15 require the petitioner or owner to furnish for their use maps, plats, and
4 .16 which the petitioner or owner may have showing the nature, character, and
4 .17 proposed undertaking and the situation of lands desired therefor. In prope
4 .18 reserve to the owner a right-of-way or other privilege in or over the lane
4 .19 reasonable conditions to such taking in addition to the damages given or t
4 .20 an alternative award, conditioned upon the granting or withholding of the
4 .21 Without unreasonable delay they shall make a separate assessment and aware
4 .22 damages which in their judgment will result to each of the owners of the 1
4 .23 of such taking and report the same to the court. The commissioners shall r
4 .24 amount of the damages awarded because the land being taken is, at the time
4 .25 valued under section 273.111, designated as an agricultural preserve undo
4 .26 The commissioners, in all such proceedings, may in their discretion allow
4 .27 separately in addition to the award of damages, reasonable appraisal fees
4 .28 total of $~aG.0. $1,500 for single family and two-family residential property
4 .29 property, and minimum damage acquisitions and $5,000 for_other types of px
4 .30 request of an owner the commissioners shall show in their report the amour
4 .31 of damages which is to reimburse the owner and tenant or lessee for the va
4 .32 taken, and the amount of the award of damages, if any, which is to reimbus
4 .33 and tenant or lessee for damages to the remainder involved, whether or not
4 .34 the petition. The amounts awarded to each person shall also be shown sepax
4 .35 commissioners shall, if requested by any party, make an express finding of
5 .1 cost of removal and remedial actions that will be necessary on the taken F
5 .2 of existing environmental contamination.
5 .3 Sec. 6. [117.226] RIGHT OF FIRST REFUSAL.
5 .4 (a) If the governing body of the acquiring authority determines that publi
5 .5 Lroperty acquired under this chapter has not been used and is no longer ne
5 .6 purpose for which it was originally acquired the authority must offer to
5 .7 to the owner from whom it was acquired. If the former owner can be locates
5 .8 authority must offer to sell the property at the current fair market value
5. 9 the current fair market value is less than what the acguiring authority pa
5. 10 the acquiring authority must offer to sell the property for the amount tha
5. 11 authority paid when it originally acquired the property.
5. 12 (b) The acquiring authority must attempt to locate the former owner by:
5. 13 (1) sending notice of the right of first refusal by first class mail to tt
5. 14 address of the former owner; and
5. 15 (2) providing two weeks' published notice of the right of first refusal it
5. 16 of_general circulation.
5. 17 (c) If the former owner cannot be located or declines to repurchase the pr
5. 18 within 60 days of providing the notice described in paragraph (b), the ace
5. 19 shall prepare a certificate attesting to the same and record the certifica
5. 20 county recorder or county registrar of titles as appropriate to evidence
5. 21 the right of first refusal.
5. 22 (d) This section shall not apply:
5. 23 (1) if the acquiring authority has an alternative use for the property ans
5. 24 would remain in public ownership or
5. 25 (2) to acquisitions of property for transportation purposes made by the cc
5. 26 of transportation.
5.27 Sec. 7. Minnesota Statutes 2004, section 117.51, is amended to read:
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S.F. No. 2694, as introduced - 84th Legislative Session (2005-2006)
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5 .28 117.51 COOPERATION WITH FEDERAL AIITHORITIES.
5 .29 In all acquisitions undertaken by any acquiring authority and in all volur
5 .30 rehabilitation carried out by a person pursuant to acquisition or as a cor
5 .31 the acquiring authority shall cooperate to the fullest extent with federal
5 .32 agencies, and it shall take all necessary action in order to insure, to tt
5 .33 possible, federal financial participation in any and all phases of acquisi
5 .34 provision of relocation assistance, services, payments and benefits to dis
6 . 1 r., . ~,.,._; ~.. ; a,, e mx.., t ~ _,,, .
6 . 2 e e r.c a: ,.~, .. ~a s.....: ...,.....
6 .3 Sec. 6. Minnesota Statutes 2004, section 117.52, subdivision 1, is ame
6 .4 Subdivision 1. Lack of federal funding. In all acquisitions undertaker
6. 5 acquiring authority and in all voluntary rehabilitation carried out by a F
6. 6 to acquisition or as a consequence thereof, in which, due to the lack of f
6. 7 participation, relocation assistance, services, payments and benefits unde
6. 8 Relocation Assistance and Real Property Acquisition Policies Act of 1970,
6. 9 Code, title 42, sections 4601 to 4655, as amended by the Surface Transport
6. 10 Uniform Relocation Assistance Act of 1987, Statutes at Large, volume 101,
6. 11 to 256 (1987), are not available, the acquiring authority, as a cost of ac
6. 12 provide all relocation assistance, services, payments and benefits require
6. 13 Relocation Assistance and Real Property Acquisition Policies Act of 1970,
6. 14 the Surface Transportation and Uniform Relocation Assistance Act of 1987,
6. 15 regulations adopted pursuant thereto, and either (1) in effect as of -'
6. 16 2006, or (2) becoming effective after Sa'~.~ January 1, 2006, folloH
6. 17 hearing and comment. Comments received by an acquiring authority within 3C
6. 18 the public hearing must be reviewed and a written response provided to the
6. 19 organization who initiated the comment. The response and comments may be a
6. 20 another public hearing by the acquiring authority before approval.
6.
6.
6. 21
22
23 Sec. 9
read:
Subd. . Minnesota Statutes
la. Reestablishment 2004, section 117.52, is
costa limit. For purposes amended by adding
of relocation bene
6. 24 accordance with this section, the limitation in Code of Federal Regulation
6. 25 24.304, wi th respect to reimbu rsement of reestablishment expenses for nonx
6. 26 moves, an acquiring authority shall reimburse up to $50, 000 for such exper
6 .27 Sec. 10. Minnesota Statutes 2004, section 163.12, subdivision la, is G
6 .28 Subd. la. Petition, notice, and access to information. (a) Upon passac
6 .29 resolution specified in section 163.11, subdivision 2, a petition must be
6 .30 district court of the county in which the land is located. The petition mL
6 .31 tract of land through which the highway passes, state the purposes for whi
6. 32 proposed to be taken, and list the names of all persons appearing of recox
6. 33 the county to be the landowners.
7. 1 (b) Notice of the objects of the petition and of the time and place of pre
7. 2 notice must be served, together with a copy of the resolution, upon each c
7. 3 each tract of land through which the highway passes at least 20 days befox
7. 4 under subdivision lb. If an owner is not a resident of the state, or the c
7. 5 residence is unknown to the county, service may be made by three weeks' pL
7. 6 notice following the filing of an affidavit on behalf of the county by the
7. 7 attorney stating that the county:
7. 8 (1) believes that the owner is not a resident of the state; and
7. 9 (2) has either mailed a copy of the notice to the owner at the owner's lee
7. 10 residence address or, after diligent inquiry, the owner's place of resider
7. 11 ascertained by the county.
7. 12 If the state is an owner, the notice must be served upon the attorney gene
7. 13 not served as provided in this subdivision is not bound by the proceeding,
7. 14 owner voluntarily appears in the proceeding.
7. 15 (c) Within ten days of an owner's demand, the owner must be furnished a
7. 16 right-of-way map or plat of all that part of the owner's land to be taken.
7. 17 plans or profiles that the county possesses must be made available to the
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7. 18 inspection.
7 .19 (d) The not ice must state that: (1) a party wishing to challenge the publi
7. 20 necessity or authority for the takin g must appear at the court hearing ar
7. 21 objection; (2) failure to appear and object is deemed a waiver ofany obje
7. 22 court order approving the public purp ose necessity and authority for the
7. 23 unless an a ppeal is brought with in 60 days after service of the order on t
7
7
7
7
7
7
7
7 .24
.25
.26
.27
.28
.29
.30
.31 Sec. 11. Minnesota Statutes 2004, section 163.12, subdivision lb, is a
Subd. lb. Finding of necessity. When proof of service of the notice re
subdivision la is filed with the court, the court shall hear all competent
for or against granting the petition at the time and place fixed in the nc
by the court. On finding that the proposed taking is necessary and authori
court shall order the proceedings to commence pursuant to the remaining px
this section. The court order finding the taking necessary and authorized
order and must be appealed within 60 days from its service on the_party.
7 .32 Sec. 12. Minnesota Statutes 2004, section 469.012, subdivision lg, is
7 .33 Subd. lg. Get property; eminent domain. (a) An authority may, within i
7 .34 operation, acquire real or personal property or any interest therein by gi
8 .1 exchange, lease, transfer, bequest, devise, or otherwise, and by the exert
8 .2 of eminent domain, in the manner provided by chapter 117, acquire real prc
8 .3 may deem necessary for its purposes, after the adoption by it of a resolut
8 .4 the acquisition of the real property is necessary:
8. 5 (1) to eliminate one or more of the conditions found to exist in the resol
8. 6 pursuant to section 469.003 or to provide decent, safe, and sanitary hour
8. 7 of low and moderate income; or
8. 8 (2) to carry out a redevelopment project.
8. 9 (b) Real property needed or convenient for a project may be acquired by tt
8. 10 authority for the project by condemnation pursuant to this section and sec
8. 11 i^~ .. a,,.,~;.... ,.c ., ^,., ..~:,.., _..-,,,,_•
Y
8. 12 ,.., a....... _ «: ,... . ~.,,. ^. ,.
,... a.. ,, c . ~.. ° ^ .. s. ,.,,.; «
8. 13 p~epcc~-:.ea..;citaaa-a£ta~~ula~i^~-°a ^ F
~
8. 14 ~
^,: ~.. ...w;,.ti, U.° .. a,. ^f ,°
«
8. 15 36--cla~cF~,-; ,._ «,. She dato~£ the 3aoarar~q
'i'kao--n,.'-;^^ -
P~ L
8. 17 0 ° ^f ~w° .r,,.,-; ~.. ~
8. 18 ~,^...-; ., ° r.c .~.,. w°., ,-; .. ..~ ^,^ i.
8. 19 ,. ~..,. ,-,,a i...~ r,; ,...-° . ^;,,,a
8. 20 ^, ;a^. .~..° :~:,.., fs, ,. ^c _
^
8. 21 ^°a^^^° •~"'~' ^° AOa G7 i~
G11bG~iViCii1~ l~.jiw~.~~2..r~w-rte
^
8. 22 add- (c) Property acquired
by condemnation under this section may include a
8. 23 property devoted to a public use, whether or not held in trust, notwithsta
8. 24 property may have been previously acquired by condemnation or is owned by
8. 25 utility corporation, because the public use in conformity with the provisi
8. 26 469.001 to 469.047 shall be deemed a superior public use. Property devote
8. 27 use may be so acquired only if the governing body of the municipality has
8. 28 its acquisition by the authority.
8. 29 ~ (d) An award of compensation shall not be increased by reason of any i
8. 30 in the value of the real property caused by the assembly, clearance or rec
8. 31 proposed assembly, clearance or reconstruction for the purposes of section
8. 32 to 469.047 of the real property in an area.
8
8
9 .33
.34
.1 Sec. 13. [469.401] ACQUISITION BY EMINENT DOMAIN UNDER THIS
CHAPTER.
Subdivision 1. Application. Sections 469.401 to 469.403 apply to the E
9. 2 eminent domain powers by a condemning authority under this chapter if the
9. 3 interest to be acquired by eminent domain is intended to be sold, transf ex
9. 4 conveyed to a person or nongovernmental entity without the power of eminer
9. 5 Subd. 2. Public hearing and notice required. Prior to adoption of a re
9. 6 authorizing the use of eminent domain the governing body of the condemnir
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9 .7 must hold a public hearing on the proposed acquisition after published not
9 .8 newspaper of general circulation in the governing body's jurisdiction and
9 .9 body's Web site, if applicable, which must be made at least one time not 1
9 .10 weeks nor more than 60 days prior to the date of the hearing. The notice n
9 .11 describe the property interest to be acquired state that the purpose
of t
9 .12 _
consider acquisition by eminent domain state that comments may be submitt
9 .13 at the hearing or in writing prior to or at the hearing and specify an ac
9 .14 written comments may be mailed. Not less than two weeks before the hearinc
9 .15 the hearing must also be mailed to the owner of each parcel proposed to be
9 .16 defects in the notice do not invalidate the acquisition. For the purpose c
9 .17 notice, owners are determined as provided by section 429.031 subdivision
9. 18 (a). The resolution authorizing the use of eminent domain must not be adoF
9.
9. 19
20 meeting or on the same day as the public hearing.
Subd. 3. Resolution. The resolution authorizing the use of eminent don
9. 21 (1) identify and describe the public benefits that are known or expected
t
9. 22 _
from the program or project for which the property interest is,_p roposedtc
9. 23 (2) identify and describe the private benefits that are known
or expected
9. 24 _
from the anticipated conveyance of the property interest proposed to be ac
9. 25 (3) summarize and respond to any oral comments made at the public hearing
9. 26 written comments received at or prior to the public hearing; and
9. 27 (4) address how the acquisition of the property interest serves one or mox
9. 28 public purposes and why the acquisition of the property is reasonably
n
ece
9.
9. 29
30 _
_
accomplish those purposes.
Subd. 4. Summary of findings. The governing body of a condemn i_ng authc
9. 31 must summarize the findings adopted in the resolution authorizing the use
9. 32 domain in the notice of petition required under section 117.055.
9.
9. 33
34 Sec. 14. [469.402] DEFINITIONS.
Subdivision 1. Scope. For purposes of sections
469.401 to 469.403, the
9.
10 35
.1 _
terms have the meanings given to them.
Subd. 2. Abandoned. "Abandoned" means that at least 75 percent of a b~;
10 .2 area has been substantially unoccupied for at least one year prior to the
10
10 .3
.4 in a blighted area.
Subd. 3. Blighted area. "Blighted area" is an area where the condem
nir
10 .5 _
finds that the conditions provided in clauses (a) (b) and (c) exist:
10
10
10 .6
.7
.8 (a) the land is or has been in urban use;
(b) at least one of the following conditions exist:
(1) 50 percent or more of the buildings in the area are structurally subst
10
10 .9
.10 or abandoned or a combination thereof;
(2) 30 percent or more of the parcels in the area constitute an environmer
10
10 .11
.12 contaminated area; or
(3) (i) 20 percent or more of the buildings in the area are structurally s
10 .13 or abandoned or a combination thereof and (ii) an additional 30 percent c
10 .14 buildings in the area are obsolete as evidenced by lack of investment base
10 .15 building permits for repair or improvements in the previous five years; ar
10
10 .16
.17 (c) at least one of the following conditions is present
(1) diversity of ownership or defective or unusual conditions of title pre
10
10
10. .18
.19
20 free alienability of land within the area;
(2) there is inadequate infrastructure in the area
(3) the crime rate in the area is higher than in the remainder of the co
u
r
10.
10. 21
22 _
_
municipality;
(4) 30 percent of the tax parcels have had delinquent taxes or
special ass
10. 23 .
a period of two years or more prior to inclusion in the area; or
10.
10. 24
25 (5) negative market conditions exist in the area.
Subd. 4. Environmentally contaminated area. "Environmentally contamina
10.
10. 26
27 area" means:
(1) any parcel that would be eligible for contamination cleanup grants frc
10. 26 Department of Employment and Economic Development's contamination cleanup
10. 29 account under section 116J.552, subdivision 3, or _116J.554, subdivision 2,
10. 30 (ii) the Metropolitan Council's tax base revitalization account under sect
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10 .31 (2) an area that qualifies as a soils condition district under section 46;
10
10 .32
.33 subdivision 19.
Subd. 5. Inadequate infrastructure. "Inadequate infrastructure" means
10 .34 publicly owned physical infrastructure including sanitary sewer systems, u
10 .35 streets, wastewater treatment and pretreatment systems storm water manage
10 .36 natural gas systems, and electric utility systems which are inadequate to
11 .1 existing or projected users in the blighted area because the system is unc
11 .2 meet current design standards or is significantly deteriorated.
11 .3 Subd. 6. Market area. "Market area" means the geographic or locat i
o
nal
11 .4 _
_
delineation of the market for a specific category of real estate.
11 .5 Subd. 7. Negative market conditions. "Negative market conditions" are
11 .6 by one or more of the following factors for similarly classified property:
11 .7 are lower than in the remainder of the market area are increasing at rate
11 .8 than in the remainder of the market area, or are decreasing compared to t
Y
11 .9 _
the market area; (2) vacancy rates are higher than in the rem
afinder of the
11 .10 _
or (3) other comparable evidence of negative market conditions in the blic
11
11 .11
.12 compared to the market area as a whole.
Subd. 8. Public nuisance. "Public nuisance" has
the meaninq
given in s
11
11 .13
.14 _
_
609.74.
Subd. 9. Structurally substandard. "Structurally substandard" means a
11
.15 _
that contains defects in structural elements or a combination of deficient
11 .16 utilities and facilities, light and ventilation and fire protection incluc
11 .17 which significant defects or deficiencies justify substantial renovation
c
11 .18 _
building is not structurally substandard if it is in compliance with the t
11 .19 applicable to new buildings or could be modified to satisfy the building c
11 .20 les s_ than 20 percent of the cost of constructing a new structure of the sa
11 .21 and type on the site. The municipality or condemning authority may find tY
11. 22 not disqualified as structurally substandard under the previous sentence c
11. 23 reasonably available evidence, such as the size type and age of the
buil
11. 24 _
cost of plumbing, electrical, or structural repairs, or other similar reli
11. 25 municipality or the condemning authority may not make such a determination
11. 26 interior inspection of the property but need not have any independent, ex
11. 27 prepared of the cost of repair and rehabilitation of the building. An into
11. 28 of the property is not required if the municipality finds that: (1) the n
11. 29 condemning authority is unable to gain access to the__property after usi~
11. 30 obtain permission from the party that owns or controls the property; and
11. 31 otherwise supports a reasonable conclusion that the building is structural
11. 32 Items of evidence that support such a conclusion include recent fire or ~c
11. 33 on-site property tax appraisals or housing inspections, exterior evidence
11. 34 or other similar reliable evidence. Written documentation of the findings
11. 35 an interior inspection was not conducted must be made and retained. Failun
12. 1 to be disqualified under the provisions of this subdivision is a necessary
12. 2 condition by itself, to determine that the building is substandard.
12
12. .3
4 Sec. 15. [469.403] LINITATION ON IISE OF EMINENT DOMAIN.
Subdivision 1. Limitation. Notwithstanding any other_provision,of law,
12. 5 condemning authority under this chapter may exercise the power of eminent
12. 6 property interest to be acquired is intended to be sold, transferred, or c
12. 7 to a person or nongovernmental entity without the power of eminent domain,
12. 8 condemning authority finds that the use of eminent domain is necessary to
12.
12. 9
10 or more of the purposes in subdivision 2.
Subd. 2. Purposes. For purposes of carryin out the powers and authori
12. 11 under this chapter, a condemning authority with the power of eminen__t domai
12. 12 this chapter may exercise that power to acquire land to accomplish one or
12.
12.
13
14 __
following purposes:
(a) the possession occupation or enjoyment of_the land by the general pu
12.
12.
12. 15
16
17 by public agencies•
(b) to remedy a public nuisance•
(c) to carry out a program to remedy or improve an environmentally c
o
ntami
12. 18 _
__
area;
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12. 19 (d) to carry out a program to remedy or improve a blighted area; or
12. 20 (e) to facilitate development of housing for low or moderate income person
12.
12. 21
22 defined under any federal, state, or local program.
Subd. 3. Economic development. The public benefits of economic develoF
12. 23 including an increase in tax base, tax revenues, employment, or general ec
12. 24 shall not by themselves constitute a public purpose except as provided in
12. 25 Subd. 4. Exceptions. Notwithstanding any other provision of law, a con
12. 26 authority under this chapter may condemn property if one or more of the fc
12.
12. 27
28 of financial assistance are present:
(1) a grant awarded by a state agency for economic development related pux
12. 29 a single business receives $200,000 or more of the grant proceeds;
12. 30 (2) a grant award to local units of government or development authorities
12.
12. 31
32 sections 116J.551, 116J.559, 116J.571, and 116J.8731;
(3) a loan or the guaranty or purchase of a loan made by a state agency fc
12. 33 development related purposes if a single business receives $500,000 or mox
12.
13. 34
1 proceeds;
(4) a reduction, credit, or abatement of a tax assessed under chapter 297P
13. 2 where the tax reduction, credit, or abatement applies to a geographic area
13. 3 entire state and was granted for economic development related purposes; os
13. 4 (5) an appropriation by the legislature to acquire or better proper, in
13. 5 mart, with the proceeds of state general obligation bonds authorized to be
13. 6 article XI, section 5, clause (a) of the Minnesota Constitution.
13. 7 Financial assistance does not include payments by the state of aids and cx
13.
13. 8
9 chapter 273 or 477A to a political subdivision.
Subd. 5. Disclosure. All applicants must indicate on applications for
13. 10 assistance under subdivision 4 whether the use of eminent domain may be nE
13. 11 acquire property for the project.
13
13 .12
.13 SEC. 16. HFFECTIVE DATH.
Sections 1 to 6 and 10 and 11 are
effective for condemnation p
roceedings t
13. 14 are commenced on or after August 1, 2006. Sections 7, 8, and 9 are effecti
13. 15 acquisitions in which the initial notice of eligibility is giv en on or aft
13. 16 2006. Sections 12 to 15 apply to any property that is included in a redeve
13.
13.
13.
17
18
19
established on or after August 1,
Sec. 17. SUNSET.
Sections 14 and 15 expire January
2006.
1, 2009. _
Please direct all comments concerning issues or legislation
to your House Member or State Senator.
For Legislative Staff or for directions to the Capitol, visit the Contac(_Us page.
General. questions or comments..
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_. _. ._ _ _