INFORMATION EDSR 04-10-2006INFORMATION
ver
MEMORANDUM
TO: Mayor and City Council
Economic Development Authority
Housing and Redevelopment Authority
FROM: Heidi Steinmetz, Assistant Director of Economic Development
DATE: April 10, 2006
SUBJECT: Eminent Domain Legislation
Attachments
• Senate File 2750
• Proposed House File 2846 (final version not posted in time fox this memo)
• "House Restricts Eminent Domain," Star "lrzbune, April 7, 2006
Background
The 2005 Kelo v. New London, Connecticut U.S. Supreme Court decision to uphold the use
of eminent domain fox economic development and redevelopment purposes prompted
significant legislative activity in Minnesota despite the fact that the Supreme Court decision
did not change the law in any substantive way fox Minnesota.
The City Council adopted a resolution on February 22, 2006 in general support of the
League of Minnesota Cities' efforts to preserve the authority of Minnesota cities to use
eminent domain (with modifications). The EDA and HRA provided input to the resolution
prior to the Council meeting. Mayor Klinzing sent a letter with the resolution to Elk River's
four legislators.
Sherburne County also passed a resolution on March 14, 2006 strongly opposing the
Johnson/Bakk bill as unduly restrictive, however stating that the Board of Commissioners
does not sanction the use of eminent domain to acquire propext<~ from a private party fox
transfer to a non-public entity.
Update
• Senate File 2750 was passed on March 27, 2006 with a vote of 64 (includes Senators
Wexgin and Jungbauex) to 2.
• House File 2846 was passed on April 6, 2006 with a vote of 115 (includes
Representatives Olson and Hackbaxth) to 17.
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S.F. No. 2750, 4th Engrossment - 84th Legislative Session (2005-2006) Posted on Mar 28, 2006
1.1 A bill for an act
1.2 relating to eminent domain; defining public use or purpose; prohibiting the use
1.3 of eminent domain for economic development; requiring clear and convincing
1.4 evidence for certain takings; providing for attorney fees and other additional
1.5 elements of compensation; making other changes in the exercise of eminent
1.6 domain; amending Minnesota Statutes 2004, sections 117.025; 117.036; 117.055;
1.7 117.075, subdivision 1, by adding a subdivision; 117.085; 117.51; 117.52,
1.8 subdivision 1, by adding a subdivision; 163.12, subdivisions 1a, 1b; proposing
1.9 coding for new law in Minnesota Statutes, chapter 117.
1.10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. [117.012] PREEMPTION• NO IMPLIED AUTHORITY.
1.12 Subdivision 1. Preemption. Notwithstanding any otherprovision of law including
1.13 any charter provision, ordinance, statute or special law, all condemning authorities
1.14 including home rule charter cities and all other political subdivisions of the state, must
1.15 exercise the power of eminent domain in accordance with the provisions of this chapter,
1.16 including all procedures definitions, remedies, and limitations. Additional procedures
1.17 remedies, or limitations that do not deny or diminish the substantive and procedural rights
1.18 and protections of owners under this chapter may be provided by other law, ordinance,
1.19 or charter.
1.20 Subd. 2. No implied authoritk The power of eminent domain shall not be implied.
1.21 In order to exercise the power of eminent domain, the condemning authority must have an
1.22 express grant of eminent domain authoritk
1.23 Subd. 3. Requirement of public use or public purpose. Eminent domain may
1.24 only be used for a public use or public purpose.
2.1 Sec. 2. Minnesota Statutes 2004, section 117.025, is amended to read:
2.2 117.025 DEFINITIONS.
2.3 Subdivision 1. Words, terms, and phrases.
2.4 ,For the purposes of this chapter and any
2.5 other general or special law authorizing the exercise of the power of eminent domain the
2.6 words, terms, and phrases defined in this section have the meanings given them.
2.7 Subd. 2. Taking. "Taking" and all words and phrases of like import include every
2.8 interference, under the right of eminent domain, with the possession, enjoyment, or value
2.9 of private property.
2.10 Subd. 3. Owner. "Owner" includes all persons i#eFested-i+~-seek with any interest
2.11 in the property subject to a taking, whether as proprietors, tenants, life estate holders,
2.12 encumbrancers, beneficial interest holders. or otherwise.
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2.13 Subd. 4. Condemning authorik "Condemning authority" means a person or
2.14 entity with the power of eminent domain
2.15 Subd. 5. Abandoned propertk "Abandoned property" means property that: 1 has
2.16 been substantially unoccupied or unused for any commercial or residential purpose for at
2.17 least one year by a person with a legal or equitable right to occupy the property (2) has not
2.18 been maintained• and (3) for which taxes have not been paid for at least two previous years
2.19 Subd. 6. Blighted area. "Blighted area" means an area:
2.20 (1) that is zoned and used for urban use: and
2.21 (2) where more than 50 percent of the buildings are structurally substandard
2.22 Subd. 7. Structurally substandard. "Structurally substandard" means:
2.23 (a) a building
2.24 (1) that was inspected by the appropriate local government and cited for one or more
2.25 enforceable housing, maintenance, or building code violations
2.26 (2) in which the cited building code violations involve one or more of the following
2.27 (i) a roof and roof framing element;
2.28 (ii) support walls, beams and headers
2.29 (iii) foundation, footings and subgrade conditions:
2.30 (iv) light and ventilation:
2.31 (v) fire protection, including egress
2.32 (vi) internal utilities. including electricity gas and water
2.33 ~i~ flooring and flooring elements; and
2.34 (viii) walls. insulation and exterior envelope
2.35 (3) in which the cited housing maintenance or building code violations have not
2.36 been remedied after two notices to cure the noncompliance• and
3.1 ~4) has uncured housing maintenance and building code violations satisfaction
3.2 of which would cost more than 50 percent of the assessor's taxable market value for the
3.3 building, excluding land value as determined under section 273 11 for property taxes
3.4 payable in the year in which the condemnation is commenced' or
3.5 L) a building that, as of the date the condemnation is commenced is unsafe or
3.6 lacking in basic equipment.
3.7 A local government is authorized to gain access to inspect any building in a proposed
3.8 development or redevelopment area upon showing of probable cause that the building is
3.9 structurally substandard. Items of evidence that support a conclusion of probable cause
3.10 may include recent fire or police inspections on-site property tax appraisals housing
3.11 inspections. exterior evidence of deterioration or other similar reliable evidence
3.12 Subd. 8. Environmentally contaminated area. "Environmentally contaminated
3.13 area" means an area:
3.14 f1) in which more than 50 percent of the parcels contain any substance defined
3.15 regulated or listed as a hazardous substance hazardous material hazardous waste toxic
3.16 waste pollutant, contaminant or toxic substance or identified as hazardous to human
3.17 health or the environment under state or federal law or requlatiorr and
3.18 (2) for which the estimated costs of investigation monitoring and testing and
3.19 remedial action or removal. as defined in section 1158 02 subdivisions 16 and 17
3.20 respectively, including any state costs of remedial actions exceed 100 percent of the
3.21 assessor's estimated market value for the contaminated parcel as determined under section
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3.22 273.11, for property taxes payable in the year in which the condemnation commenced or
3.23 for which a court of competent jurisdiction has issued an order under law or regulations
3.24 adopted by Minnesota or the United States. that clean up or remediation of a contaminated
3.25 site occur and the property owner has failed to comply with the court's order within
3.26 a reasonable time.
3.27 Subd. 9. Public nuisance. "Public nuisance" means a public nuisance under
3.28 section 609.74.
3.29 Subd. 10. Public service corporation. "Public service corporation" means a
3.30 utility as defined by section 116C 52 subdivision 10' pas electric telephone or cable
3.31 communications company cooperative association natural gas pipeline company crude
3.32 oil or petroleum products p~eline company' municipal utility municipality when
3.33 operating its municipally owned utilities; or municipal power agency Public service
3.34 corporation also means a municipality or public corporation when operating an airport
3.35 under chapter 360 or 473, a common carrier. a watershed district. or a drainaq_e authoritk
4.1 Public service corporation also means an entity operating a regional distribution center
4.2 within an international economic development zone designated under section 469.322
4.3 Subd. 11. Public use;public purpose. Ia) "Public use" or "public purpose" means.
4.4 exclusively:
4.5 (1) the possession, occupation, ownership, and enjoyment of the land by the general
4.6 public, or by public agencies;
4.7 (2) the creation or functioning of a public service corporation
4.8 (3) mitigation of a blighted area, remediation of an environmentally contaminated
4.9 area reduction of abandoned property or removal of a public nuisance' or
4.10 (4) the provision of physical or financial assistance to a governmental unit or
4.11 nonprofit organization that provides emergency shelter and services for homeless persons
4.12 in a first class city.
4.13 (b) The public benefits of economic development, including an increase in tax base
4.14 tax revenues, employment or general economic health, do not by themselves constitute
4.15 a public use or public purpose.
4.16 Sec. 3. [117.027] CONDEMNATION FOR BLIGHT MITIGATION AND
4.17 CONTAMINATION REMEDIATION.
4.18 Subdivision 1. Buildings that are not structurally substandard in areas of blight
4.19 mitigation: feasible alternatives. In taking property to mitigate blight a condemning
4.20 authority must not take buildings that are not structurally substandard unless there is no
4.21 feasible alternative to the taking of the parcels on which the buildings are located in
4.22 order to remediate the blight and all possible steps are taken to minimize the taking of
4.23 buildings that are not structurally substandard
4.24 Subd. 2. Uncontaminated property in environmental contamination
4.25 remediation areas: feasible alternatives. In taking property to remediate environmental
4.26 contamination. a condemning authority must not take uncontaminated parcels in the area
4.27 unless there is no feasible alternative to the taking of the uncontaminated parcels in order
4.28 to complete remediation of the contaminated parcels and all possible steps are taken to
4.29 minimize the taking of the uncontaminated parcels
4.30 Subd. 3. Contribution to condition by developer disallowed If a developer
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4.31 involved in the redevelopment of the aroiect area contributed to the blight or environmental
4.32 contamination within the project area the condition contributed to by the developer must
4.33 not be used in the determination of blight or environmental contamination.
5.1 Sec. 4. Minnesota Statutes 2004, section 117.036, is amended to read:
5.2 117.036 APPRAISAL AND NEGOTIATION REQUIREMENTS
5.4 ?HR~PA6~6.
5.5 Subdivision 1. Application. This section applies to the acquisition of property
5.6
5.7 under this chapter.
5.8 Subd. 1 a. Definition of owner. For the purposes of this section. "owner" means
5.9 fee owner, contract purchaser, or business lessee who is entitled to condemnation
5.10 compensation under a lease.
5.11 Subd. 2. Appraisal. (a) Before commencing an eminent domain proceeding under
5.12 this chapter, the acquiring authority must obtain at least one appraisal for the property
5.13 proposed to be acquired. In making the appraisal, the appraiser must confer with one or
5.14 more of the owners of the property, if reasonably possible. ^.,t;e~~ The acauiring
5.15 authority must provide the owner with a copy of each appraisal the acquiring authority has
5.16 obtained for the property at the time an offer is made. but no later than 60 days before
5.17 presenting a petition under section 117.055,
5.18 and inform the °•••~~- -` "- -°•- -'- owner of the right
5.19 to obtain an appraisal under this section. Upon request, the acquiring authority must
5.20 make available to the owner all appraisals of the property. If the acquiring authority is
5.21 considering both a full and partial taking of the property, the acquiring authority shall
5.22 obtain and provide the owner with appraisals for both types of takings
5.23 (b) The owner may obtain an appraisal by a qualified appraiser of the property
5.24 proposed to be acquired. The owner is entitled to reimbursement for the reasonable costs
5.25 of the appraisal from the acquiring authority up to a maximum of $1,500 wiH~ifl-39~deys
5.26 a#er~He for single family and two-family residential property agricultural property and
5.27 minimum damage acquisitions and $5 000 for other types of property provided that the
5.28 owner submits to the acquiring authority the information necessary for reimbursement,
5.29 including a copy of the owner's appraisal within 69 90
5.30 days after "- -•••--- ----`••-- receiving the appraisal from the authority under paragraph
5.31 (a) and at least five days before a condemnation commissioners' hearing For purposes
5.32 of this paragraph a "minimum damage acquisition" means an interest in property that a
5.33 qualified person with appraisal knowledge indicates can be acquired for a cost of $10 000
5.34 or less For purposes of this paragraph "agricultural property" has the meaning~iven
5.35 in section 583.22, subdivision 2.
6.1 (c) The acquiring authority must pav the reimbursement to the owner within 30
6.2 days after receiving a copy of the appraisal and the reimbursement information Upon
6.3 agreement between the acquiring authority and the owner, the acouirino authority may pav
6.4 the reimbursement directly to the appraiser.
6.5 Subd. 3. Negotiation. In addition to the appraisal requirements under subdivision 2,
6.6 before commencing an eminent domain proceeding, the acquiring authority must make a
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6.7 good faith attempt to negotiate personally with the owner of the property in order to
6.8 acquire the property by direct purchase instead of the use of eminent domain proceedings.
6.9 In making this negotiation, the acquiring authority must consider the appraisals in its
6.10 possession, including any appraisal obtained and furnished by the owner if available
6.11 and other information that may be relevant to a determination of damages under this
6.12 chapter. If the acquiring authority is considering both a full and partial taking of the
6.13 property the acquiring authority must make agood-faith attempt to negotiate with respect
6.14 to both types of takings.
6.15 Subd. 4. Use of appraisal at commissioners' hearing_ An appraisal must not be
6.16 used or considered in a condemnation commissioners' hearing nor may the appraiser who
6.17 prepared the appraisal testify unless a copy of the appraiser's written report is provided to
6.18 the opposingparty at least five days before the hearing_
6.19 Sec. 5. [117.04121 LOCAL GOVERNMENT PUBLIC HEARING
6.20 REQUIREMENTS.
6.21 Subdivision 1. Definitions. For the purposes of this section:
6.22 (1) "local government" means the elected governing body of a statutory or home
6.23 rule charter city, county or township; and
6.24 (2) "local government agency" means a subdivision agency authority or other
6.25 entity created by or whose members are appointed by the local government including a
6.26 port authority economic development authority housing and redevelopment authority or
6.27 other similar entity established under law.
6.28 Subd. 2. Public hearing• vote by local government governing bodx 1a) Before a
6.29 local government or local government agency commences an eminent domain proceeding
6.30 under section 117.055, a public hearing must be held as provided in this section The
6.31 local government must notify each owner of property that may be acquired in writing
6.32 by certified mail of the public hearing on the proposed taking post the public hearing
6.33 information on the local government's Web site if any and publish notice of the public
6.34 hearing in a newspaper of general circulation in the local government's jurisdiction
6.35 Notice must be provided at least 30 davs but not more than 60 days before the hearing
7.1 (b) Any interested person must be allowed reasonable time to present relevant
7.2 testimony at the public hearing The proceedings of the hearing must be recorded and
7.3 available to the public for review and comment at reasonable times and a reasonable place
7.4 At the next regular meeting of the local government that is at least 30 days after the public
7.5 hearing the local government must vote on the question of whether to authorize the local
7.6 government or local government agency to use eminent domain to acquire the propertk
7.7 Subd. 3. Resolution. If the taking is for the mitigation of a blighted area
7.8 remediation of an environmentally contaminated area reducing abandoned property or
7.9 removing a public nuisance then the resolution of a local government or local government
7.10 agency authorizing the use of eminent domain must:
7.11 (1) identify and describe the public costs and benefits that are known or expected
7.12 to result from the program or project for which the property interest is proposed to be
7.13 acquired: and
7.14 (2) address how the acquisition of the property interest serves one or more identified
7.15 public uses or public purposes and why the acquisition of the property is needed to
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7.16 accomplish those public uses or public purposes
7.17 Sec. 6. Minnesota Statutes 2004, section 117.055, is amended to read:
7.18 117.055 PETITION AND NOTICE.
7.19 Subdivision 1. Petition. In all cases a petition, describing the desired land, stating by
7.20 whom and for what purposes it is proposed to be taken, and giving the names of all persons
7.21 appearing of record or known to the petitioner to be the owners thereof shall be presented
7.22 to the district court of the county in which the land is situated praying for the appointment
7.23 of commissioners to appraise the damages which may be occasioned by such taking.
7.24 Subd. 2. Notice. Notice of the objects of the petition and of the time and place of
7.25 presenting the same shall be served at least 20 days before such time of presentation upon
7.26 all persons named in the petition as owners as defined in section 117.025, subdivision 3,
7.27 and upon all occupants of such land in the same manner as a summons in a civil action.
7.28 (b) The notice must state that
7.29 L1) a party wishing to challenge the public use or public purpose necessity or
7.30 authority for a taking must appear at the court hearing and state the objection or must
7.31 appeal within 60 days of a court order and
7.32 (2) a court order approving the public use or public purpose necessity and authority
7.33 for the taking is final unless an appeal is brought within 60 days after service of the
7.34 order on the partk
8.1 ~If any such owner be not a resident of the state, or the owner's place of residence
8.2 be unknown to the petitioner, upon the filing of an affidavit of the petitioner or the
8.3 petitioner's agent or attorney, stating that the petitioner believes that such owner is not
8.4 a resident of the state, and that the petitioner has mailed a copy of the notice to the
8.5 owner at the owner's place of residence, or that after diligent inquiry the owner's place
8.6 of residence cannot be ascertained by the affiant, then service may be made upon such
8.7 owner by three weeks' published notice. If the state be an owner, the notice shall be
8.8 served upon the attorney general. Any owner not served as herein provided shall not be
8.9 bound by such proceeding except upon voluntarily appearing therein. Any owner shall
8.10 be furnished aright-of-way map or plat of all that part of land to be taken upon written
8.11 demand, provided that the petitioner shall have ten days from the receipt of the demand
8.12 within which to furnish the same. Any plans or profiles which the petitioner has shall be
8.13 made available to the owner for inspection.
8.14 Sec. 7. Minnesota Statutes 2004, section 117.075, subdivision 1, is amended to read:
8.15 Subdivision 1. Hearing on taking: evidentiary standard. Upon proof being
8.16 filed of the service of such notice, the court, at the time and place therein fixed or to which
8.17 the hearing may be adjourned, shall hear all competent evidence offered for or against the
8.18 granting of the petition, regulating the order of proof as it may deem best.
8.19 (b) If the taking is for the mitigation of a blighted area remediation of an
8.20 environmentally contaminated area reducing abandoned property or removing a
8.21 public nuisance. then notwithstanding any other provision of general or special law a
8.22 condemning authority must show the district court by preponderance of the evidence that
8.23 the taking is necessary and for the designated public use
8.24 (c) A court order approving the public use or public purpose necessity and authority
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8.25 for the taking is final unless an appeal is brought within 60 days after service Of the
8.26 order on the party.
8.27 Sec. 8. Minnesota Statutes 2004, section 117.075, is amended by adding a subdivision
8.28 to read:
8.29 Subd. 1b. Attorney fees. If the court determines that a taking is not for a public use
8.30 or public purpose or is unlawful. the court shall award the owner reasonable attorney fees
8.31 and other related expenses fees and costs
8.32 Sec. 9. Minnesota Statutes 2004, section 117.085, is amended to read:
8.33 117.085 COMMISSIONERS, POWERS, DUTIES.
9.1 The commissioners, having been duly sworn and qualified according to law, shall
9.2 meet as directed by the order of appointment and hear the allegations and proofs of all
9.3 persons interested touching the matters to them committed. They may adjourn from time
9.4 to time and from place to place within the county, giving oral notice to those present of
9.5 the time and place of their next meeting. All testimony taken by them shall be given
9.6 publicly, under oath, and in their presence. They shall view the premises, and any of
9.7 them may subpoena witnesses, which shall be served as subpoenas in civil actions are
9.8 served, and at the cost of the parties applying therefor. If deemed necessary, they may
9.9 require the petitioner or owner to furnish for their use maps, plats, and other information
9.10 which the petitioner or owner may have showing the nature, character, and extent of the
9.11 proposed undertaking and the situation of lands desired therefor. In proper cases they may
9.12 reserve to the owner aright-of-way or other privilege in or over the land taken, or attach
9.13 reasonable conditions to such taking in addition to the damages given or they may make
9.14 an alternative award, conditioned upon the granting or withholding of the right specified.
9.15 Without unreasonable delay they shall make a separate assessment and award of the
9.16 damages which in theirjudgment will result to each of the owners of the land by reason
9.17 of such taking and report the same to the court. The commissioners shall not reduce the
9.18 amount of the damages awarded because the land being taken is, at the time of the taking,
9.19 valued under section 273.111, designated as an agricultural preserve under chapter 473H.
9.20 The commissioners, in all such proceedings, may in their discretion allow and show
9.21 separately in addition to the award of damages, reasonable appraisal fees not to exceed a
9.22 total of $696 $1 500 for single family and two-family residential property agricultural
9.23 property and minimum damage acquisitions and $5 000 for other types of property. Upon
9.24 request of an owner the commissioners shall show in their report the amount of the award
9.25 of damages which is to reimburse the owner and tenant or lessee for the value of the land
9.26 taken, and the amount of the award of damages, if any, which is to reimburse the owner
9.27 and tenant or lessee for damages to the remainder involved, whether or not described in
9.28 the petition. The amounts awarded to each person shall also be shown separately. The
9.29 commissioners shall, if requested by any party, make an express finding of the estimated
9.30 cost of removal and remedial actions that will be necessary on the taken property because
9.31 of existing environmental contamination.
9.32 Sec. 10. [117.784] COMPENSATION FOR REMOVAL OF LEGAL
9.33 NONCONFORMING USE.
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9.34 Notwithstanding any law to the contrary, an ordinance or regulation of a political
9.35 subdivision of the state or local zoning authority that requires the removal of a legal
10.1 nonconforming use as a condition or prerequisite for the issuance of a permit license, or
10.2 other approval for any use structure, development, or activity constitutes a taking and
10.3 is prohibited without the payment of iust compensation. This section does not apply if
10.4 the permit, license, or other approval is requested for the construction of a building or
10.5 structure that cannot be built without physically moving the nonconforming use.
10.6 Sec. 11. [117.186] COMPENSATION FOR LOSS OF GOING CONCERN.
10.7 Subdivision 1. Definitions. For purposes of this section:
10.8 (1) "going concern" means the benefits that accrue to a business or trade as a result
10.9 of its location, reputation for dependability, skill or quality, customer base, good will, or
10.10 any other circumstances resulting in the probable retention of old or acquisition of new
10.11 patronage and
10.12 (2) "owner" has the meaning given in section 117.025 and includes a lessee who
10.13 operates a business on real property that is the subject of an eminent domain proceeding-
10.14 Subd. 2. Compensation. (a) In all eminent domain proceedings, the owner of
10.15 a business or trade must be compensated for the loss of a going concern if the owner
10.16 establishes that:
10.17 (1) the business or trade has been destroyed as a result of the taking;
10.18 (2) the loss cannot be reasonably prevented by relocating the business or trade in the
10.19 same or a similar and reasonably suitable location as the property that was taken, or by
10.20 taking steps and adopting procedures that a reasonablyprudent person of a similar age
10.21 and under similar conditions as the owner would take and adopt in preserving the going
10.22 concern of the business or trade: and
10.23 (3]_compensation for the loss of going concern will not be duplicated in the
10.24 compensation otherwise awarded to the owner of the business or trade.
10.25 (b) If an eminent domain proceeding involves the condemnation of agricultural
10.26 property, as defined in section 583.22, subdivision 2 the owner of the agricultural property
10.27 must be compensated for the loss of the productive value of the agricultural property for a
10.28 period of at least five years after commencement of the eminent domain proceeding The
10.29 productive value is calculated based on average productive capacity of the property during.
10.30 the five vears preceding commencement of the eminent domain proceeding~
10.31 Subd. 3. Procedure. In all cases where an owner will seek compensation for loss
10.32 of a going concern, the damages, if any shall in the first instance be determined and
10.33 reported by the commissioners under section 117.105 as part of the compensation due t_o
10.34 the owner. The owner shall notify the condemning authority of the owner's intent to claim
10.35 compensation for loss of going concern within 60 days of the first hearing before the court
11.1 as provided in section 117 075. The commissioner's decision regarding any award for loss
11.2 of going concern may be appealed by anyparty in accordance with section 117.145.
11.3 Subd. 4. Driveway access. A business owner is entitled to reasonable compensation
11.4 not to exceed the three previous years' revenues minus the cost of goods sold if the owner
11.5 establishes that the actions of a government entity permanently eliminated 51 percent or
11.6 greater of the driveway access into and out of a business and as a result of the loss of
11.7 driveway access revenue at the business was reduced by 51 percent or greater A claim
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11.8 for compensation under this section must be made no later than one year after completion
11.9 of the project which eliminated the driveway access
11.10 Sec. 12. [117.1871 MINIMUM COMPENSATION.
11.11 When an owner must relocate, the amount of damages payable at a minimum must
11.12 be sufficient for an owner to purchase a comparable property in the community and not
11.13 less than the condemning authority's payment or deposit under section 117.042 to the
11.14 extent that the damages will not be duplicated in the compensation otherwise awarded to
11.15 the owner of the property
11.16 Sec. 13. [117.188] LIMITATIONS.
11.17 The condemning authority must not require the owner to accept as part of the
11.18 compensation due any substitute or replacement property The condemning authority
11.19 must not require the owner to accept the return of property acquired or any portion of the
11.20 property.
11.21 Sec. 14. [117.1891 PUBLIC SERVICE CORPORATION EXCEPTIONS.
11.22 Sections 117 012 subdivision 2' 117 036' 117 055 subdivision 2 paragraph (b)'
11.23 117.075, subdivision 1b' 117.186: 117.187 117 188' 117 196' and 117 52 subdivision 1a
11.24 do not apply to public service corporations For purposes of an award of appraisal fees
11.25 under section 117.085 the fees awarded may not exceed $500 for all types of property
11.26 Sec. 15. [117.1981 ATTORNEY FEES.
11.27 Subdivision 1. Judgment or award in excess of last written offer. If the final
11.28 judgment or award of damages is at least 20 percent greater than the last written offer of
11.29 compensation made by the condemning authority before the filing of the petition the court
11.30 may award the owner reasonable attorney fees and costs in addition to other compensation
11.31 and fees authorized by this chapter.
12.1 Subd. 2. Increase in market value. If three months or more pass from the date of
12.2 the last written offer of compensation and the filing of the petition for the purposes of
12.3 determining whether the final judgment or award for damages is more than 20 percent
12.4 greater than the last written offer. the value of the offer must be adjusted on a pro rata basis
12.5 for the annual rate of increase in the estimated market value of existing~roperty in the
12.6 subject property's use class within the same city or township The annual rate of increase
12.7 shall be derived by comparing the most recent abstract filed with the commissioner of
12.8 revenue under section 270C 89, subdivision 1 with the abstract of the prior year
12.9 Subd. 3. Exception. No attorney fees and costs may be awarded under this section if
12.10 only a portion of a property located not more than 50 feet from the border of the property
12.11 is being acquired and the final judgment or award of damages does not exceed $25 000
12.12 Sec. 16. [117.2261 RIGHT OF FIRST REFUSAL
12.13 (a) Notwithstanding section 161 23 if the governing body of the condemning
12.14 authority determines that publicly owned property acquired under this chapter has not
12.15 been used and is no longer needed for a public use the authority must offer to sell the
12.16 property to the owner from whom it was acquired if the former owner can be located
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12.17 at the original price determined by the condemnation process or the current fair market
12.18 value of the property whichever is lower
12.19 Lb~ If the former owner cannot be located within ten days a written notice and offer
12.20 to sell the property must be sent by certified mail to the last known address of the former
12.21 owner and must be published for at least 30 days on the condemning authority's Web site
12.22 if any and in a newspaper of general circulation in the jurisdiction where the property is
12.23 located If the former owner declines to repurchase the property the condemning authority
12.24 shall prepare a certificate attesting to the same and record the certificate in the office of the
12.25 county recorder or coin registrar of titles as appropriate to evidence the termination of
12.26 the right of first refusal.
12.27 Sec. 17. Minnesota Statutes 2004, section 117.51, is amended to read:
12.28 117.51 COOPERATION WITH FEDERAL AUTHORITIES.
12.29 In all acquisitions undertaken by any acquiring authority and in all voluntary
12.30 rehabilitation carried out by a person pursuant to acquisition or as a consequence thereof,
12.31 the acquiring authority shall cooperate to the fullest extent with federal departments and
12.32 agencies, and it shall take all necessary action in order to insure, to the maximum extent
12.33 possible, federal financial participation in any and all phases of acquisition, including the
12.34 provision of relocation assistance, services, payments and benefits to displaced persons.
13.1
13.2
13.3 Sec. 18. Minnesota Statutes 2004, section 117.52, subdivision 1, is amended to read:
13.4 Subdivision 1. Lack of federal funding. In all acquisitions undertaken by any
13.5 acquiring authority and in all voluntary rehabilitation carried out by a person pursuant
13.6 to acquisition or as a consequence thereof, in which, due to the lack of federal financial
13.7 participation, relocation assistance, services, payments and benefits under the Uniform
13.8 Relocation Assistance and Real Property Acquisition Policies Act of 1970, United States
13.9 Code, title 42, sections 4601 to 4655, as amended by the Surface Transportation and
13.10 Uniform Relocation Assistance Act of 1987, Statutes at Large, volume 101, pages 246
13.11 to 256 (1987), are not available, the acquiring authority, as a cost of acquisition, shall
13.12 provide all relocation assistance, services, payments and benefits required by the Uniform
13.13 Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended by
13.14 the Surface Transportation and Uniform Relocation Assistance Act of 1987, and those
13.15 regulations adopted pursuant thereto, and either (1) in effect as of drr4~-4-988 January 1,
13.16 2006, or (2) becoming effective after de4~-~B88 January 1.2006, following a public
13.17 hearing and comment. Comments received by an acquiring authority within 30 days after
13.18 the public hearing must be reviewed and a written response provided to the individual or
13.19 organization who initiated the comment. The response and comments may be addressed in
13.20 another public hearing by the acquiring authority before approval.
13.21 Sec. 19. Minnesota Statutes 2004, section 117.52, is amended by adding a subdivision
13.22 to read:
13.23 Subd. 1a. Reestablishment costs limit. For purposes of relocation benefits paid by
13.24 the acouiring authority in accordance with this section the provisions of Code of Federal
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13.25 Regulations title 49, section 24.304, with respect to reimbursement of reestablishment
13.26 expenses for nonresidential moves are applicable except that the acquiring authority shall
13.27 reimburse the displaced business for expenses actually incurred up to a maximum of
13.28 50 000.
13.29 Sec. 20. Minnesota Statutes 2004, section 163.12, subdivision 1a, is amended to read:
13.30 Subd. 1a. Petition, notice, and access to information. (a) Upon passage of the
13.31 resolution specified in section 163.11, subdivision 2, a petition must be presented to the
13.32 district court of the county in which the land is located. The petition must describe each
13.33 tract of land through which the highway passes, state the purposes for which the land is
14.1 proposed to be taken, and list the names of all persons appearing of record or known to
14.2 the county to be the landowners.
14.3 (b) Notice of the objects of the petition and of the time and place of presenting the
14.4 notice must be served, together with a copy of the resolution, upon each occupant of
14.5 each tract of land through which the highway passes at least 20 days before the hearing
14.6 under subdivision 1 b. If an owner is not a resident of the state, or the owner's place of
14.7 residence is unknown to the county, service may be made by three weeks' published
14.8 notice following the filing of an affidavit on behalf of the county by the county's agent or
14.9 attorney stating that the county:
14.10 (1) believes that the owner is not a resident of the state; and
14.11 (2) has either mailed a copy of the notice to the owner at the owner's last known
14.12 residence address or, after diligent inquiry, the owner's place of residence cannot be
14.13 ascertained by the county.
14.14 If the state is an owner, the notice must be served upon the attorney general. An owner
14.15 not served as provided in this subdivision is not bound by the proceeding, except if the
14.16 owner voluntarily appears in the proceeding.
14.17 (c) Within ten days of an owner's demand, the owner must be furnished a
14.18 right-of-way map or plat of all that part of the owner's land to be taken. Any applicable
14.19 plans or profiles that the county possesses must be made available to the owner for
14.20 inspection.
14.21 (d) The notice must state that:
14.22 (1) a party wishing to challenge the public use or public purpose necessity or
14.23 authority for the taking must appear at the court hearing and state the objection; and
14.24 (2) a court order approving the public use or public purpose necessity and authority
14.25 for the taking is final unless an appeal is brought within 60 days after service of the
14.26 order on the party.
14.27 Sec. 21. Minnesota Statutes 2004, section 163.12, subdivision 1 b, is amended to read:
14.28 Subd. 1 b. Finding of necessity. When proof of service of the notice required in
14.29 subdivision 1a is filed with the court, the court shall hear all competent evidence offered
14.30 for or against granting the petition at the time and place fixed in the notice or otherwise set
14.31 by the court. On finding that the proposed taking is necessary and authorized by law the
14.32 court shall order the proceedings to commence pursuant to the remaining provisions of
14.33 this section. The court order finding the taking necessary and authorized by law is a final
14.34 order and must be appealed within 60 days from its service on the part
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15.1 Sec. 22. REVISOR'S INSTRUCTION.
15.2 The revisor shall change the phrase "right of eminent domain" where found in
15.3 Minnesota Statutes and Minnesota Rules to "power of eminent domain "
15.4 Sec. 23. EFFECTIVE DATE.
15.5 This act is effective the day following final enactment and applies to condemnation
15.6 proceedings for which service of notice of the petition under Minnesota Statutes section
15.7 117.055 is made on or after that date except the act does not apply to an action by a
15.8 condemning authority if the action satisfies one of the following conditions:
15.9 (1) if the municipality, as that term is used in Minnesota Statutes section 469.174
15.10 subdivision 6 by the day following final enactment has approved a tax increment
15.11 financing plan under Minnesota Statutes section 469 175 before April 1 2006 and one
15.12 or more of the following conditions exists in connection with the tax increment financing
15.13 Ip an:
15.14 (i) the developer has acquired property by June 1.2006 in reliance on the
15.15 condemning authority's contractual obligation to condemn property or
15.16 (ii) the condemning authority has issued, sold or entered a binding agreement to
15.17 issue or sell bonds or other financial instruments to finance the costs of the tax increment
15.18 financing plan or district by June 1.2006: or
15.19 (2) creation of the tax increment financing district was authorized under a special
15.20 law that received local approval or became effective without local approval before April 1
15.21 2006, and the condemning authority commences the action within the later of
15.22 (i) five years after the municipality approved the tax increment financingplan~ or
15.23 (ii) the time period permitted under the special law for making expenditures to
15.24 comply with Minnesota Statutes. section 469 1763. subdivision 3 but not to exceed_a
15.25 ten-year period: or
15.26 ~) the condemning authority has commenced a condemnation action before June 1
15.27 2006 to complete land assembly for a project financed in whole or part with abatement_
15.28 under Minnesota Statutes sections 469.1813 through 469 1815 and the abatement
15.29 resolution was adopted by one of the participating political subdivisions before A
15.30 1, 2006.
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 lJs page.
General questions or comments.
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H.F. No. 2846, 5th Engrossment - 84th Legislative Session (2005-2006) Page 1 of 7
~,, Legislature Nome ~ Links to the World ~ Help ~ At
Minnesota House of :Representatives
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House I Senate I Joint Departments and Commissions I Bill Search and Status I Statutes, Laws, and Rules
H.F. No. 2846, 5th Engrossment - 84th Legislative Session (2005-2006) Posted on Mar 27, 2006
1.1 A bill for an act
1.2 relating to eminent domain; defining public use or purpose; prohibiting the use
1.3 of eminent domain for economic development; requiring clear and convincing
1.4 evidence for certain takings; providing for attorney fees and other additional
1.5 elements of compensation; making other changes in the exercise of eminent
1.6 domain amending Minnesota Statutes 2004, sections 117.025; 117.075,
1.7 subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 117.
1.8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. [117.012] PREEMPTION: NO IMPLIED AUTHORITY.
1.10 Subdivision 1. Preemption. Notwithstanding any other provision of law including
1.11 any charter provision, ordinance, statute or special law all condemning authorities
1.12 including home rule charter cities and all other political subdivisions of the state, must
1.13 exercise the Dower of eminent domain in accordance with the provisions of this chapter
1.14 including all procedures. definitions, remedies, and limitations Additional procedures
1.15 remedies or limitations that do not deny or diminish the substantive and procedural rights
1.16 and protections of owners under this chapter may be Provided by other law, ordinance
1.17 or charter.
1.18 Subd. 2. No implied authoritk The power of eminent domain shall not be implied.
1.19 In order to exercise the power of eminent domain, the condemning authority must have an
1.20 express grant of eminent domain authority
1.21 Subd. 3. Extraterritorial use prohibited. No condemning authority may exercise
1.22 the power of eminent domain outside of its jurisdictional boundaries unless the governing
1.23 body of the local unit of government where the propertyproposed to be condemned is
1.24 located consents to the proposed use of eminent domain powers by the condemning
1.25 authority.
2.1 Sec. 2. Minnesota Statutes 2004, section 117.025, is amended to read:
2.2 717.025 DEFINITIONS.
2.3 Subdivision 1. Words, terms, and phrases.
2.4 ,For the purposes of this chapter and any
2.5 other general or special law authorizing the exercise of the power of eminent domain the
2.6 words, terms, and phrases defined in this section have the meanings given them.
2.7 Subd. 2. Taking. "Taking" and all words and phrases of like import include every
2.8 interference, under the right of eminent domain, with the possession, enjoyment, or value
2.9 of private property.
2.10 Subd. 3. Owner. "Owner" includes all persons +flYefested-i+i-sL+eH with any interest
2.11 in the property subject to a taking, whether as proprietors, tenants, life estate holders,
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2.12 encumbrancers, beneficial interest holders. or otherwise.
2.13 Subd. 4. Condemning authoritK "Condemning authority" mea ns any person or
2.14 entity with the power of eminent domain.
2.15 Subd. 5. Abandoned property "Abandoned property" means property not
2.16 occupied or used for any commercial or residential purpose by a p erson with a legal or
2.17 equitable right to occupy it and for which the condemning authorit y is unable to identify
2.18 and contact the owner despite making reasonable efforts.
2.19 Subd. 6. Blighted area. (al "Blighted area" means, exclusively at the time of
2.20 condemnation, an area:
2.21 (1) that is zoned and used for urban use; and
2.22 (2) where more than 50 percent of the buildings are dilapidated
2.23 Subd. 7. Dilapidated building "Dilapidated building" means e xclusively, a
2.24 building:
2.25 (1) that was inspected by the appropriate local government and cited for one or more
2.26 building code violations at least 12 months before the condemnation is commenced
2.27 (2) in which the building code violations cited have not been remedied as
2.28 determined by at least one reinspection that finds noncompliance after the due date for
2.29 compliance with an order to correct a building code violation: and
2.30 (31 that as of the date the condemnation is commenced, is structurally substandard
2.31 Subd. 8. Environmentally contaminated area. "Environmentally contaminated
2.32 area" means an area:
2.33 (1) where more than 50 percent of the parcels contain any substance or substances
2.34 defined, regulated, or listed as a hazardous substance, hazardous material hazardous
2.35 waste toxic waste, pollutant, contaminant, or toxic substance, or identified as hazardous to
2.36 human health or the environment under state or federal law or regulation• and
3.1 (2) for which the estimated costs of investigation monitoring and testing and
3.2 remedial action or removal as defined in section 1156.02, subdivisions 16 and 17
3.3 respectively, including any state costs of remedial actions, exceed 100 percent of the
3.4 assessor's estimated market value for the contaminated_parcel, as determined under section
3.5 273.11, for property taxes payable in the year in which the condemnation commenced or
3.6 for which a court of competent jurisdiction has issued an order under laws or regulations
3.7 adopted by Minnesota or the United States that cleanup or remediation of a contaminated
3.8 site occur and the property owner has failed to comply with the court's order within
3.9 a reasonable time.
3.10 Subd. 9. Public nuisance. "Public nuisance" means a public nuisance under
3.11 section 609.74.
3.12 Subd. 10. Public service corporation. "Public service corporation" means a
3.13 public utility;_gas electric telephone or cable communications company cooperative
3.14 association natura~as pipeline company crude oil or petroleum products pipeline
3.15 company municipal utility municipality when operating its municipally owned utilities
3.16 or municipal power agency "Public service corporation" also means a municipality or
3.17 public corporation when operating an airport under chapter 360 or 473 a common carrier,
3.18 a watershed district. or a drainage authority
3.19 Subd. 11. Public use;~public purpose (al "Public use" or "public purpose" means
3.20 exclusively:
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3.21 (1) the possession, occupation, ownership, and enjoyment of the land by the general
3.22 public, or by public agencies:
3.23 (2) the creation or functioning of a public service corporation or
3.24 (3) mitigation of a blighted area remediation of an environmentally contaminated
3.25 area, reduction of abandoned property, or removal of a public nuisance.
3.26 (b) The public benefits of economic development, including an increase in tax base
3.27 tax revenues, employment, or general economic health do not by themselves constitute
3.28 a public use or public purpose.
3.29 Subd. 12. Structurally substandard. (a) "Structurally substandard" means building
3.30 code violations related exclusively to the building's:
3.31 (1) roof and roof framing elements:
3.32 (2) support walls beams, and headers:
3.33 (3) foundation footings, and subgrade conditions•
3.34 (41 light and ventilation:
3.35 (5) fire protection including egress•
3.36 (6) internal utilities, including electricity gas, and water
4.1 (7) flooring and flooring elements; and
4.2 (8) walls, insulation, and exterior envelope.
4.3 (b) A building is not structurally substandard if the estimated costs of satisfying
4.4 the cited structural building code violations do not exceed 50 percent of the assessor's
4.5 estimated market value for the building, as determined under section 273.11, for property
4.6 taxes payable in the year in which the condemnation commenced.
4.7 Sec. 3. [117.027] CONDEMNATION FOR BLIGHT MITIGATION.
4.8 CONTAMINATION REMEDIATION.
4.9 Subdivision 1. Nondilapidated buildings in areas of blight mitigation: absolute
4.10 necessity. In taking property to mitigate blight a condemning authority must not take
4.11 nondilapidated buildings in the area unless there is no feasible alternative to the taking
4.12 of the parcels on which the buildings are located in order to remediate the blight and all
4.13 possible steps are taken to minimize the taking of nondilapidated buildings.
4.14 Subd. 2. Uncontaminated property in environmental contamination
4.15 remediation areas: absolute necessity. In taking property to remediate environmental
4.16 contamination, a condemning authority must not take uncontaminated parcels in the area
4.17 unless there is no feasible alternative to the taking of the uncontaminated parcel in order
4.18 to complete remediation of the contaminated parcel and all possible steps are taken to
4.19 minimize the taking of the uncontaminated parcels.
4.20 Subd. 3. Contribution to condition by developer disallowed If a developer
4.21 involved in the redevelopment of the project area contributed to the blight or environmental
4.22 contamination within the project area, the condition contributed to by the developer must
4.23 not be used in the determination of blight or environmental contamination.
4.24 Sec. 4. [117.031] ATTORNEY FEES.
4.25 (a) If the final judgment or award for damages, as determined at any level in the
4.26 eminent domain process or by the parties themselves is more than 20 percent greater than
4.27 the last written offer of compensation made by the condemning authority prior to the
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4.28 filing of the petition, the court shall award the owner reasonable attorney fees litigation
4.29 expenses, appraisal fees, other experts fees, and other related costs in addition to other
4.30 compensation and fees authorized by this section.
4.31 (b) In any case where the court determines that a taking is not for a public use or
4.32 is unlawful, the court shall award the owner reasonable attorney fees and other related
4.33 expenses, fees. and costs in addition to other compensation and fees authorized by this
4.34 section.
5.1 Sec. 5. Minnesota Statutes 2004, section 117.075, subdivision 1, is amended to read:
5.2 Subdivision 1. Hearing on taking: evidentiary standard. Upon proof being
5.3 filed of the service of such notice, the court, at the time and place therein fixed or to which
5.4 the hearing may be adjourned, shall hear all competent evidence offered for or against the
5.5 granting of the petition, regulating the order of proof as it may deem best.
5.6 (bl If the taking is for the mitigation of a blighted area, remediation of an
5.7 environmentally contaminated area, reducing abandoned property, or removing a
5.8 public nuisance, then, notwithstanding any other provision of general or special law, a
5.9 condemning authority must show by clear and convincing evidence to the district court
5.10 that the taking is necessary and for the designated public use.
5.11 Sec. 6. [117.184] COMPENSATION FOR REMOVAL OF LEGAL
5.12 NONCONFORMING USE.
5.13 Noiwithstanding any law to the contrary, an ordinance or regulation of a political
5.14 subdivision of the state or local zoning authority that requires the removal of a lec,~al
5.15 nonconforming use as a condition or prerequisite for the issuance of a permit license, or
5.16 other approval for any use, structure, development, or activity constitutes a taking and
5.17 is prohibited without the payment of lust compensation. This section does not apply if
5.18 the permit, license, or other approval is requested for the construction of a building or
5.19 structure that cannot be built without physically moving the nonconforming use. This
5.20 section does not apply to regulations or ordinances relating to adult uses.
5.21 Sec. 7. [117.18451 OTHER REGULATORY TAKINGS.
5.22 A state or local government preservation designation adopted on or after August 1.
5.23 2002, that reduced the fair market value of real property or interferes with the owner's use
5.24 and quiet enjoyment of the property, constitutes a regulatory taking for which the owner
5.25 must be paid just compensation. The state or local government may repeal or amend the
5.26 official control or historic preservation designation to eliminate the adverse impact on
5.27 the property instead of ~ayinq damages.
5.28 Sec. 8. [117.1861 COMPENSATION FOR LOSS OF GOING CONCERN.
5.29 Subdivision 1. Going concern defined. For purposes of this section. "going
5.30 concern" means the benefits that accrue to a business or trade as a result of its location
5.31 reputation for dependability, skill or quality customer base good will or any other
5.32 circumstances resulting in probable retention of old or acquisition of new patronage
6.1 Subd. 2. Compensation for loss of going concern If a business or trade is
6.2 destroyed by a taking the owner shall be compensated for loss of going concern unless the
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6.3 condemning authority establishes any of the following by clear and convincing evidence:
6.4 (1) the loss is not caused by the taking of the property or the injury to the remainder
6.5 (2) the loss can be reasonably prevented by relocating the business or trade in the
6.6 same or a similar and reasonably suitable location as the property that was taken or by
6.7 taking steps and adopting procedures that a reasonablyprudent person of a similar age
6.8 and under similar conditions as the owner, would take and adopt in preserving the going
6.9 concern of the business or trade or
6.10 (3) compensation for the loss of going concern will be duplicated in the
6.11 compensation otherwise awarded to the owner.
6.12 Subd. 3. Procedure. In all cases where an owner will seek compensation for loss
6.13 of a going concern, the damages, if any shall in the first instance be determined by the
6.14 commissioners under section 117 105 as part of the compensation due to the owner The
6.15 owner shall notify the condemning authority of the owner's intent to claim compensation
6.16 for loss of going concern within 60 days of the first hearing before the court as provided
6.17 in section 117.075. The commissioner's decision regarding any award for Toss ofgoing
6.18 concern may be appealed by any party in accordance with section 117 145.
6.19 Subd. 4. Use of appraisal at commissioners' hearing. An appraisal of the going
6.20 concern must not be used or considered in a condemnation commissioner's hearing nor
6.21 may the appraiser who prepared the appraisal testify, unless a copy of the appraiser's
6.22 written report is provided to the opposing party at least five days before the hearing_
6.23 Sec. 9. [117.1865] COMPENSATION FOR LOSS OF ACCESS.
6.24 An owner, as defined in section 117.025 may bring an action for damages and must
6.25 be compensated by the governmental entity if the owner establishes that the governmental
6.26 entity's action permanently eliminated 51 percent or more of the driveway access into and
6.27 out of the place of business, and that as a result the owner has a loss of revenues of 51
6.28 percent or mare. Determination of the loss must be based on a comparison of revenues in
6.29 the year immediately prior to the project resulting in the loss of access
6.30 A claim for compensation under this section must be made no later than one year
6.31 after the completion of the project that eliminated the driveway access Compensation
6.32 must not exceed (1) the addition of revenue from the two previous years minus U the
6.33 addition of cost of goods sold from the two previous years
6.34 Sec. 10. [117.187] MINIMUM COMPENSATION.
7.1 When an owner must relocate the amount of damages payable at a minimum must
7.2 be sufficient for an owner to purchase a comparable property in the community and not
7.3 less than the condemning authority's payment or deposit under section 117 042 to the
7.4 extent the damages will not be duplicated in the compensation otherwise awarded to
7.5 the owner of the property.
7.6 Sec. 11. [117.188] LIMITATIONS.
7.7 The condemning authority may not require the owner to accept as part of the
7.8 compensation due any substitute or replacement property Nor shall the condemning
7.9 authority require the owner to accept the return of property acouired or any portion thereof
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7.10 Sec. 12. [117.189 PUBLIC SERVICE CORPORATION EXCEPTION.
7.11 Sections 117 031 117 186 117.187, and 117.188 do not apply to public service
7.12 corporations.
7.13 Sec. 13. [117.1905~PUBLIC HEARING.
7.14 Subdivision 1. Definitions. (a) For the purposes of this section, "local government"
7.15 means the elected governing body of a statutory or home rule charter city county or
7.16 township.
7.17 (b) For the purposes of this section "agency" means any subdivision agency
7.18 authority or other entity of the local government including a port authority economic
7.19 development authority housing and redevelopment authority or other similar entity
7.20 established under general or special law.
7.21 Subd. 2. Public hearing• vote by local government governing body Before a
7.22 local government or agency acquires property by the exercise of the power of eminent
7.23 domain the local government must notify each affected property owner in writing of a
7.24 public hearing on the proposed taking post the public hearing information on the local
7.25 government's Web site if any, and publish notice of the public hearing in the official
7.26 newspaper Notice must be provided at least 30 days but not more than 60 days before the
7.27 hearing_ Any interested person must be allowed reasonable time to present testimony at
7.28 the public hearing The proceedings of the hearing must be recorded and available to the
7.29 public for review and comment at reasonable times and a reasonable place. At the next
7.30 regular meeting of the local government that is at least 30 days after the public hearing the
7.31 local government must vote on the question of whether to authorize the local government
7.32 or agency to use eminent domain to acquire the property.
8.1 Subd. 3. Resolution. If the takingis for the mitigation of a blighted area,
8.2 remediation of an environmentally contaminated area reducing abandoned property,
8.3 or removing a public nuisance then the resolution of a local government or agency
8.4 authorizing the use of eminent domain must:
8.5 (1) identify and describe the public costs and benefits that are known or expected
8.6 to result from the program or project for which the property interest is proposed to be
8.7 acguired• and
8.8 (~ address how the acquisition of the property interest serves one or more identified
8.9 ~blic uses or public purposes and why the acquisition of the property is needed to
8.10 accomplish those purposes.
8.11 Sec. 14. [717.226 FIRST RIGHT OF REFUSAL.
8.12 (a) If the governing body of the condemning authority determines that publicly
8.13 owned property acquired under this chapter has not been used and is no longer needed
8.14 for a public use the authority must offer to sell the property to the owner from whom it
8.15 was acquired if the former owner can be located at the original price determined by the
8.16 condemnation process or the current fair market value of the property whichever is lower
8.17 (b) If the former owner cannot be located or declines to repurchase the property,
8.18 the condemning authority shall prepare a certificate attesting to the same and record the
8.19 certificate in the office of the county recorder or county registrar of titles as appropriate,
8.20 to evidence the termination of the right of first refusal.
http://www.revisor.leg. state.mn.us/bin/bldbill.php?bill=H2846. S.html&session=ls84&print=l 4/7/2006
H.F. No. 2846, 5th Engrossment - 84th Legislative Session (2005-2006)
Page 7 of 7
8.21 Sec. 15. [117.58] INFORMATION ON OWNERS RIGHTS AND PROCEDURES.
8.22 The attorneygeneral shall prepare and make available to the public a statement that
8.23 summarizes the significant legal rights and obligations of condemning authorities, owners,
8.24 and tenants The statement shall describe the significant provisions of this chapter and
8.25 any applicable federal law and provide an overview of the procedures and time frames
8.26 involved in an eminent domain action. The statement shall include information for owners
8.27 and tenants on where else they may pet information on how to protect their interests in
8.28 eminent domain. The attorney general shall revise the statement annually to ensure that
8.29 it continues to describe accurately the statutory and case law governing the rights and
8.30 obligations of condemning authorities owners, and tenants.
8.31 Sec. 16. REVISOR'S INSTRUCTION.
8.32 The revisor shall change the phrase "right of eminent domain" where found in
8.33 Minnesota Statutes and Minnesota Rules to "power of eminent domain."
9.1 Sec. 17. EFFECTIVE DATE.
9.2 This act is effective the day following final enactment and applies to condemnation
9.3 proceedings commenced on or after March 1, 2006.
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 questions or comments..
http://www.revisor.leg. state.mn.us/bin/bldbill.php?bill=H2846. S.html&session=ls84&print= l 4/7/2006
A longer school year?
dents say: Don't go there
By NORMAN DRAPER • ndraper@startribune.com
FRIDAY, APRIL 7, 2006 STAR TRIBUNE TWIN CITIHS BS
House restricts
ds think about a proposal to add five weeks to the school yeaz? The Senate Education Committee got an
embers of the committee's Youth Advisory CouncH sat in on discussions of the proposal. The idea, which
vnnesota school superintendents, doesn't stand a chance of passing this yeaz and has slim~prospects for
years to come. That's partly because of the cost - $700 million a yeaz in extra teacher pay and program-
ntingair conditioning -and partly because of lost summer vacation. Elden the proposal's chief Senate au-
2-Edina, noted that his stance has made him unpopular among his own four daughters. But proponents say
onal classroom days aze needed if Minnesota students are to compete with students from other countries
aze in school a lot longer. Here's what some Youth Advisory Council members had to say:
SINTHENATION?)) ELIZABETH STEYER Junior,MinnesotaStateAcademyfortheDeaf
700 MILLION (IN ADDITIONAL COSTS) INCLUDE
iIING FOR THE SCHOOLS? I CAN TELL YOU THAT
UNE OR JULY AND IT'S 95 DEGREES AND HUMID
D TI"S CALCULUS CLASS, I WILL NOT BE PAYING
ATTENTION. I CAN GUARANTEE YOU THAT. )>
DYLAN KHLLY Seniox,HighlandPazkHighSchool,St.Pau1
(( LET'S USE THAT
MONEY AND MAKE
THE TIME WE
ACTUALLY HAVE
BETTER. LOWER
CLASS SIZES AND
eminent domain
• The move by the House reins in govemment power
to seize property, but it didn't end debate for good
By DAVID PETERSON
dapeterson@s[artribune.com
The Minnesota House vot-
ed115-171ate'Thursday torein
in the use of eminent domain,
the process by which govern-
ments can take private prop-
erty for community or rede-
velopmentprojects.
But a lengthy battle over
whether to exempt two proj-
ects seemed to foreshadow a
future in which hazd-pressed
rnmmunities wme forward to
make the case that important
ventures could be blocked.
Forthe timebeing,however,
advocates of the status quo ac-
knowledgedthat the vote, rnm-
ingafter aneven more lopsid-
edvote inthe Senate, amounts
to a rnmprehensive defeat.
"We have made a very sig-
nificant shift in this state on
eminent domain;' said Louis
Jambois, executive duector of
the Association of Metropol-
itanMunicipalities. "We have
gone from a reasonably liber-
al position, nationally, to be-
ing one of several states that
now severely restrict its use:'
Eminent domain could
still be used for its tradition-
al purposes of acquiring land
for things such as roads and
schools, thoughboth sides con-
cededthat extra layers of pro-
tection for property owners
would be liable to add millions
[o the cost of those deals.
What it seeks to throttle
backis an increasingmunicipal
aggressiveness, ascities age, to
acquire blighted properties
and tum them over to devel-
opers of new projects. Proper-
ties deemedblighted rnuld still
be acquired. but some cities say
the bill sets the bar so high that
that will razely happen. Leaders
of both parties agree, however,
that the bar bas been much too
low in the past.
"The prior standard for
blight was too low, but this
bill will gradually erode the
very core of our cities;' said
Rep. Keith Ellison, DFL-Min-
neapolis. "People who live in
place with real blight, real mn-
tantination, their lives will get
worse. People will move to
pristine green fields instead."
But Jeff Johnson, R Plym-
outh, the bID's chief author,
said it rights a situation in
which government powers
grew "extremely expansive,"
to the point where things be-
gan happening that."many
people couldn't believe were
happening in America."
The bill is part of a nation-
al explosion of legislation in
response to last summer's
controversial U.S. Supreme
Court decision allowing gov-
ernment agencies to acquire
private property, regazdless
of whether the owners wish
to sell it, for purposes of eco-
nomic development
People on both sides of
the Minnesota bill predicted
a future in which cities make
special appeals for their own
projects -and Thursday's
session offered evidence.
Two legislators - a Dem-
ocrat from a fast-ring suburb
and a Republican from a rural
city -asked their colleagues
to exempt major projects un-
derway in tbeir rnmmunities.
Rep. Bazbaza Goodwin,
DFL-Columbia Heights, saiu
the bill endangers a proj-
ect many df her constituents
support. Along Central Av-
enue neaz the city's south-
ernborder with Minneapolis,
she said, the city has invested
neazly $1 million already in a
project that involves no pri-
vate homes, only businesses,
but is stalled by a single hold-
out. "I have never heazd any-
one object to this project;'
she said, but it wouldn't qual-
ify for eminent domain un-
der the bill's new rules, she
added.
An amendment that would
exempt that project, and a
bridge in Sauk Rapids, ulti-
mately was not adopted, but
backers said they'd try again
when aHouse-Senate con-
ference committee meets.
David Peterson • 612-673-4440.
BENEFIT FOR THE STUDENTS OF MINNESOTA WHEN WE'RE ALREADY ONE OP
Photos by RENEE JONES 6CFBVEIDER
reneejones@ startribune.com
DEED Regional Analysis & Outreach Unit
Cameron Macht, Central & Southwest MN
320-231-5174 ext. 7535
^ameron.macht@state.mn. us
~tk Rrver EDA
April 10 Meeting
• Cameron Macht,
~l~ ~ Regional Analyst
•7 • Minnesota Department of
Employment and Economic
Development (DEED)
~ '` • Analysis & Evaluation Ofrice
+ry;T~,M • www.deed.state.mn.usllmi
Regional Analysis & Outreach Unit
Analysis 8 Evaluation Office
The Fast and the Furious
~ Central Minnesota is the fastest growing region
of the state for many reasons:
• New, available, and affordable housing
• Lakes and other recreational amenities
• TRANSPORTATION ACCESS
• Sherburne County was the 2nd fastest
growing county in MN from 2000-2004
• Added 14,613 people (22.7%)
• Elk River added 3,793 people (23.1%)
• Z6% o/Sherbume growth; 6•om 16,447 to Y0,240 people
• Wright Co. was 3ro (18.6%); +16,748 people
• Scott Co. was fastest (25.8%)
Regional Analysis 8 Outreach Unit
Analysis & Evaluation Office
1
DEED Regional Analysis & Outreach Unit
Cameron Macht, Central & Southwest MN
320-231-5174 ext. 7535
~ameron.macht@state.mn.us
Along Four-lane Highways
• Between 2000-2004, Central Minnesota added over 64,000 people
• 11.2% growth rate over the last five years
• Minnesota added over 225,000 people; a 4.6°k growth rate
• The 231 cities and townships not on four-lane highways
added 11,000 people; a 5.0% growth rate r,
• The 149 cities and townships within 5 miles of
a metro-bound four-lane highway added
53,453 people; a 15.0% increase
• Central Minnesota added over 10,000
net new jobs from 2000 to 2004
• More than 1,500 net new firms started
• Sherburne Co. added 2,685 jobs and 307 firms; a 14.1%job increase
• Elk River added 1,423 jobs (16%) and 69 net new firms (10.3%)
• 53% of total job expansion in Sherburne Co. happened in Elk River
Regional Analysis & Outreach Unil
Analysis & Evaluation Office
Big Boxes & Bigger Paychecks
• Influx of "big-box" fuels the perception that growth is in lower-
paying services at the expense of higher paying mfg. jobs...
• Slightly more than 80 percent of the jobs that have been added
in Central Minnesota have higher-than-average wages
• Average weekly wages increased 16.6% in Central MN and 15.6°h in Elk
River; only 15.1% in the state as a whole
• Sherburne Co. added 110 manufacturing jobs from 2003-2004
• But is still down -102 mfg. jobs from 2000 to 2004
• Elk River lost -186 mfg, jobs from 2000 to 2004
• Sherburne lost -243 retail trade jobs from 2003.2004
• But is still up 297 retail trade jobs from 2000 to 2004
• Elk River is up 382 retail trade jobs from 2000 to 2004
• Education Services is up 666 jobs from 2000.2004
• Construction is up 527 jobs from 2000.2004 (+233 jobs in Elk River)
• Accommodation & food Services is up 158 jobs (up +213 jobs in Elk River)
Regional Analysis & Outreach Unit
Analysis & Evaluation Office
2
DEED Regional Analysis & Outreach Unit
Cameron Macht, Central & Southwest MN
320-231-5174 ext. 7535
-ameron.macht@state. mn. us
Projected Population Change,
2005 to 2030
~ Twin Cities will continue to
expand north and west
~ RegTOnal centers and lakes areas
will also see continued growth
• Sherburne Co. _ +60.7%
• Elk River = 68.8% growth
• Expected to reach 121,920
~«ec°Ma
„Y °,, and 30,525 people in 2030•
moo,;,,,o,; •'=underestimated!
~ ~, e~~ • Fastest growing age groups
=~w~M~ are from 55 years and on
~ ~ ~~,os°• • 65-79 expected to more than
triple from 2005 to 20301
~ • 0.19 growing about 40%
l • Wright Co. _ +31.0%
~~. • Jumoina to 139.020 oeonle
Regional Analysis & Outreach Unit
Analysis & Evaluation Office
Young Married-Couple Families
• Central Minnesota has a 1N,rME CauPM f~mYM~°YAW MHO°t.M1eIM~
°°% •`-"'""
high percentage of young, . FYV,-p.
°°% ~~^~°°~-
married-couple families
• 84.6% of all families °%
• State = 82°k; U.S. = 76.7% sox
• Much higher in the younger so%
age groups: 25 to 34 years, .o%
35 to 44 years, 45 to 54 years
• Younger, married-couples 30%
tend to have more children 2°%
• Unlike other regions, Central to%
MN & Sherburne County is o%
still seeing growth in u.n.e cup. ,m+m,a ,eu.~m.a aw.~m.C
i.p.. ter... «,... ~.,...
o ulationundera e5 ~,„~.:,,.s~„„.,~,,..,
r~~r.rr~ Regional Analysis & Outreach Unit
°
~nnes6 a Analysis & Evaluation Office
~
3
DEED Regional Analysis & Outreach Unit
Cameron Macht, Central & Southwest MN
320-231-5174 ext. 7535
~ameron.macht@state.mn. us
Biggest Export
• Close proximity to the Twin Cities and St. Cloud produces commuters
~ IJlnrn 46~n 7 nrrf of uvnnr Z wnr4urc !R7 7°Ll in C6nrla vnn r`nrmhr
Average Commuting Times,
2000
~- - Commuting Counties
• Travel times increased 12°k
w in Sherburne County since
1990; times increased 10.2%
for workers in Wright Co.
• 26.7° of workers in
•v.aw ca"nw Sherburne had aone-way
""'""'°d commute that was 45
' ' ' "'°'" minutes or longer in 2000;
~ 'F°'°
IB.oII 12.4%carpooled
~ ~: °B • 25.5% of workers in Wright
~ ~ °~, had aone-way commute
that was over 45 minutes in
2000; 12.6% car-pooled i
~~ • State of MN = 21.9 minutes
~ '- ~
~uu.. U.S Giw3P'Y • Stearns County =19.3 minutes
+~~ Regional Analysis 8 Outreach Unit
itHy~orwr~ Analysis & Evaluation Office
4
~~~+r+~+ Regional Analysis 8 Outreach Unit
~1'fil'O'f~/P~ Analysis & Evaluation Office
DEED Regional Analysis & Outreach Unit
Cameron Macht, Central & Southwest MN
320-231-5174 ext. 7535
^ameron.macht@state.mn. us
Why are they going?
• In a late 2001 Labor Force Assessment, we interviewed over 400
residents in Sherburne County on a variety of workforce issues
• How much less pay would workers accept to take a job with a
shorter commute? (or how much more to drive fartheR)
• Workers are willing to ask 51.73 less per hour to drop below a
half-hour commute! (from 31 to 45 min. to 16 to 30 min.)
• On the other hand, 58°h wouldn't change their current travel time
Largest Employing
...
i ~.'. .'~..
Total,Alllndustries 21,712 5630 Industries
tt ~t~, tit~ti-
127 2,665
tit~ti-
14.1X
RehO TratM 3,221 5148 •243 2117 10.2%
Manufacturing 2,857 5839 110 -102 -3.4%,
Conetructlon 2,073 s1~ es 527 31.1%
Educational Service 1,961 5714 123 666 51.4%
Accommodation 8 Food Santee 1,832 5195 -80 158 9A%
Publk Adminisbation 1,344 5736 50 86 6.8X
un6n.e mz s1,4az 14 es 8.8%
Traneporta0on 8 Warehousing 819 5564 -8 157 23.7%
Other Servkes, Fx. PubOe AdmN. 755 5356 1 91 13.7%
WholesaM Trade 645 6606 19 113 21.2%
Spuce:OEED Cawstl Erripbymenf 8 weals tlMe
u,n~e~xw,~~
~y~~ ~.f'~r Regional Analysis & Outreach Unit
Analysis & Evaluation Office
~I~~My~~~My~~-r~ Regional Analysis & Outreach Unit
~yi/D~r,Rt~- Analysis & Evaluation Office
DEED Regional Analysis & Outreach Unit
Cameron Macht, Central & Southwest MN
320-231-5174 ext. 7535
Cameron. macht@state.mn.us
Largest Employing
...
ti- ~ ~..
ToUl, All lndustdes 10,306 5629 Industries
„
tt ~i~. trr ~ti.
10,239 1p23
itt -t~.
76.OX
RafaB Trade 2,016 5432 •90 382 23.4%
Manufacturing 7,016 5890 -31 -186 -15.5%
Aaommodatbn 8 Faad Ssrvkas 7,070 5272 -79 213 287%
Heahhcare 8 Social AseisUnce 810 5526 42 NA NA
Conetructbn 779 5837 52 233 42.7%
Publk Adminhtratbn 662 5788 10 70 71.BX
OBrsr Servka, Fx. Publk Admh. 456 5391 NA 78 20.9%
Finance 8lnsurence 415 5862 13 104 33.4%
AdmbdstreWaBwasU Servces 364 5607 4 •t -0.3%
Profecsbnal B Technical Services 257 5997 67 63 32.5%
Swas: DEED COwrNEmpbYmW dWeau 0W
b` Y ~r.~.++~w+
~y~~~r®~ Regional Analysis & Outreach Unit
Analysis & Evaluation Office
How can we help you get there?
• Collaborate with regional stakeholders on research
• Extend access to DEED reports and statistics
• Conduct presentations and trainin g on the local and
regional economy & labor market ~
• Original research and analysis
~
intended to answer : °° ~.s'
"the tough questions" /
• Five regional analysts •
~'
stationed across the state _ +~~,
-
• We're here to help you!
++~
~~~~~~ Regional Analysis 8 Outreach Unit
Analysis & Evaluation Office
6
DEED Regional Analysis & Outreach Unit
Cameron Macht, Central & Southwest MN
320-231-5174 ext. 7535
^ameron.macht@state. mn.us
Questions
Cameron Macht
• Regional Analysis & Outreach Unit
• 320.231.5174 ext. 7535
• cameron.macht(dstate.mn.us
~~,
Dept of Employment &
Economic Development
• LMI Analyst HelpLine
• 6511282.2714
• DEED Publications
• 6511296.6545
• DEED LMI Web Site
• www.deed.state.mn.usllmi
Regional Analysis & Outreach Unit
Analysis 8 Evaluation Office
7