3.9. SR 02-21-2006
Item Description
Consider a resolution in support of the League
of Minnesota Cities' efforts to preserve the
authority of Minnesota cities to use eminent
domain.
Item Number
3.9
Prepared by
Heidi Steinmetz, Assistant Director of
Economic Develo ment
Reviewed by
Catherine Mehelich, Director of
Economic Development
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
Consent February 21, 2006
Introduction
A PowerPoint presentation was held for the City Council, EDA and HRA on February 13, 2006
regarding the proposed legislative changes to eminent domain in the upcoming session of the Minnesota
State Legislature beginning on March 1, 2006. The City Council, EDA and HRA directed staff to draft a
resolution stating the City's position on the proposed eminent domain legislation. The attached draft
resolution includes input received on February 13th including a recommendation from City attorney,
Peter Beck, that the City support the League of Minnesota Cities' efforts to preserve the authority of
Minnesota cities to use eminent domain. Due to the nature of this issue, staff understands that the
Council may wish to remove this item from the consent agenda.
Other organizations that support the League's efforts are the Economic Development Association of
Minnesota, the Association of Metropolitan Municipalities, the Association of Minnesota Counties and
Metropolitan Inter-County Association. In addition, cities who have passed or are in the process of
passing similar resolutions or policies are the Cities of Brooklyn Park, Coon Rapids, Hutchinson and
Bloomington. Those resolutions and policies are attached for your reference.
Discussion
It is important that the City consider the attached resolution supporting the League of Minnesota Cities'
efforts to preserve eminent domain as soon as possible since the Minnesota State Legislature could
consider changes to eminent domain legislation early in the session due to the fact that this issue has
received a considerable amount of attention within the media.
Financial Impact
The Minnesota Auto Dealers Association and Institute for Justice are proposing changes to eminent
domain legislation that could eliminate eminent domain as a redevelopment tool for Minnesota Cities.
For example, one of the fmancial impacts, if this legislation passes, could be a permanent loss of tax
base due to the increased difficulties for the City to redevelop blighted areas. This legislation also
proposes to amend the eminent domain process in a way that would increase the City's cost to acquire
property.
Attachments
. City of Elk River draft resolution
. City of Brooklyn Park adopted resolution
. City of Coon Rapids draft resolution (to be considered on February 21, 2006)
. City of Hutchinson draft resolution (to be executed on February 17, 2006)
. City of Bloomington eminent domain policy
Action Requested
Staff requests the City Council consider approving the attached draft resolution in support
of the League of Minnesota Cities' efforts to preserve the authority of Minnesota cities to
use eminent domain.
Council Action
Motion by _
Second by _
Vote
Follow Up
RESOLUTION 06-
A RESOLUTION OF THE CITY OF ELK RIVER
A RESOLUTION IN SUPPORT OF THE LEAGUE
OF MINNESOTA CITIES' EFFORTS TO
PRESERVE THE AUTHORITY OF MINNESOTA
CITIES TO USE EMINENT DOMAIN.
WHEREAS, the City of Elk River is currently authorized under Minnesota State Statutes to exercise
eminent domain for public purposes including redevelopment, securing property for
infrastructure and other revitalization efforts that provide improve the
City's tax base and to mitigate conditions caused by blight; and,
WHEREAS, redevelopment activities are essential for
properties that cause valuation losses to surrounding
property reinvestment ceases, to correct market
to mitigate deteriorating
an atmosphere where
issues; and,
WHEREAS, the City of Elk River on very
domain to acquire properties to implement
processes and for traditional public improvements;
of eminent
public
WHEREAS, it is critical that the
traditional public improvement
infrastructure; and,
WHEREAS, the Elk
Authority and
federal statutes
critical
Economic Development
changes proposed to state and
of local communities to undergo
and,
to the current eminent domain
those involved; and,
proposing legislation that preserves the authority of
amendments to improve the eminent domain process;
WHEREAS,
legislation
the use of eminent
of lvUnnesota Cities' efforts, the City of Elk River supports a
require a super majority vote for lvUnnesota cities to proceed with
NOW, BE IT RESOLVED by the City Council of the City of Elk River to
support the League of lvUnnesota Cities' efforts to preserve the authority of lvUnnesota Cities to use
eminent domain.
Passed and adopted this 21st day of February 2006.
Stephanie Klinzing, Mayor
ATTEST:
Joan Schmidt, City Clerk
THE~OOKL~ECONOMIC DEVELOPMENT AUTHORITY
HE CITY OF BROOKLYN PARK
RESOLUTION #2006-3
RESOLUTION IN SUPPORT OF EFFORTS TO PRESERVE
THE AUTHORITY OF ECONOMIC DEVELOPMENT
AUTHORITIES TO USE EMINENT DOMAIN TO FURTHER
THE REDEVELOPMENT GOALS OF BROOKLYN PARK
AND LOCAL CITIES.
WHEREAS, the Brooklyn Park Economic Development Authority (ED A), is responsible
under state statute for activities to increase the welfarc of the residents of Brooklyn Park through
encouraging creation of employment and housing; and,
WHEREAS, rcdcvelopment activities are essential for a city with aging and blighted
parcels that do not meet the needs of residents; and,
WHEREAS, the EDA has in very few occasions exercised its authority of eminent
domain to acquire blighted land that was negatively impacting the community and only did so to
implement redevelopment plans created through lengthy public process; and,
WHEREAS, only through this use of condemnation could significant public
improvements be creatcd ineluding new jobs, housing, public parks, and other public amenities;
and,
WHEREAS, the EDA recognizes that improvements to the processes are appropriate to
ensure transparency and simplicity for all those involved; and,
WHEREAS, changes proposcd to state and fedcral statutes and rcgulation undcrmine
local communitics from redeveloping consistent with plans approved tJlTough community
processes;
NOW, THEREFORE, BE IT RESOLVED by the Brooklyn Park Economic Development
Authority:
1. That the Authority pursue activities to ensure cminent domain authority remain
granted to local authoritics for housing and redevelopment purposes;
2. That the Authority support efforts to increase transparcncy and simplicity of eminent
domain proceedings.
RESOLUTION #2006-31N SUPPORT OF EFFORTS TO PRESERVE THE AUTHORITY OF
ECONOMIC DEVELOPMENT AUTHORITIES TO USE EMINENT DOMAIN TO
FURTHER THE REDEVELOPMENT GOALS OF BROOKLYN PARK AND LOCAL ClTIES
PAGE 2
The foregoing resolution was introduced by EDA Commissioner Gearin and duly seconded by
EDA Commissioner Meyer. The following voted in favor of the rcsolution: Gearin, Lampi,
Mata, Meycr, Schmitz, Simmons & Trepanier. The following votcd against: None. The
following were absent: None. Whereupon thc rcsolution was adoptcd.
ADOP": JANUARY 9,2006
~(.
1:dd- t! .? l .
;. ~ ;qIW~
ROBERT SC EIER
ASSISTANT EXECUTIVE DIRECTOR
STEVE LAMPI
PRESIDENT
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF BROOKLYN PARK
I, the undersigned, being the duly qualificd Sccrctary of the Brooklyn Park Economic
Dcvelopment Authority, hereby ccrti fy that the above rcsolution is a truc and correct copy of the
rcsolution as adopted by the Brooklyn Park Economic Development Authority of thc City of
Brooklyn Park on January 9, 2006.
WITNESS my hand officially as Economic Development Authority Secretary this .1..-
day of January, 2006.
(.,\
'---\, ~ ;;".5..., J '-../'...c. I! n\)
THERESA FREUND
EDA SECRET AR Y
RESOLUTION NO. 06 -35
RESOLUTION SUPPORTING EFFORTS TO PRESERVE
THE AUTHORITY OF CITIES TO USE EMINENT DOMAIN
FOR REDEVELOPMENT FOR PURPOSES
WHEREAS, the 6v r of Coon R~ in conjunction..;:~ith its Housing and
Redevelopment Authority (HRA) and its Economic Develop~Fi:t.Authority (EDA), is
responsible under state statute for activities to increase th~:ielfare of the residents of
Coon Rapids through encouraging creation of employme:~~E:ar'l~~~.j;tpusing; and
WHEREAS, redevelopment activities are ess~~i.9IfQr a citY:~!~~::.aging and blighted
parcels that do not meet the needs of residents; af!i:cr=
WHEREAS, the City Council has in \,{eij~~'t' occa~;j.qns exercisedI~~authority of
eminent domain to acquire blighted land that was n~ietiv~Wlmpacting the Qommunity and
only did so to implement redevelopment plans create'ij~~~6ugh lengthy public process; and
WHEREAS, only through this;;7i~~of condemR'ili~Q cguld significant public
improvements be created including the~mln'~~!~~.?f blight,Tflif~~ean up of contamination,
the addition of new housing, and the inslallmen~:~f;:g:t~er pu~.lic amenities; and
<;,~ .',','.'.'.','".,.,. ...~.,.,.,.,.,.,.;.,.,.,.,.,.,.,.,.".,,";;;;
WHEREAS, theJii!y:'CounciI recogn::izes that improvements to the processes are
_-~------""^''';:----i' """"""".. .,..,....
appropriate to ensu~~transparenpy and simplicity for all those involved; and
WHEREAS, chaf:\~~s ~posed to state and federal statutes and regulation
undermine 10c;.C!Lc;ommunitigf:i;;iffim redeveloping consistent with plans approved through
community.~l"6eesses.':::' .... ....
.;ts[QW, THEREFORE, BE lT RESOLVED by the Coon Rapids City Council:
Thai;tee City pursue activities to ensure eminent domain authority remain granted to
local a'€lt~rities for~ldevelopment purposes;
That the Clty~~:I;!~jort efforts to increase transparency and simplicity of eminent
domain ~.
proceedings.''::
Adopted this 21st day of February, 2006, by the Coon Rapids City Council.
Tim Howe, Mayor
ATTEST:
Joan A. Anderson, City Clerk
RESOLUTION #
RESOLUTION IN SUPPORT OF EFFORTS TO PRESERVE THE ABILITY OF ECONOMIC
DEVELOPMENT AUTHORITIES TO USE EMINENT DOMAIN TO FURTHER ECONOMIC
DEVELOPMENT & REDEVELOPMENT IN THEIR COMMUNITIES.
WHEREAS, the~u~~hin~conomic Development Authority (EDA) is responsible for
increasing the welfare 0 t e community by creating jobs, local tax base and
facilitating redevelopment; and,
WHEREAS, redevelopment activities are essential
parcels that no longer meet the needs of residents; and,
domain process are
and,
WHEREAS, the City has rarely exercised its
when all other alternatives have been exhausted
whole; and,
WHEREAS, eminent domain can be a
improvements that result in new jobs, a larger
housing, public parks, and other public amenities; and,
WHEREAS, the City recognizes tfiiliijj,;!~ements to
appropriate to ensure transparency, simplidl~~ ancr~a{~~ for all
-__""______";,"_,;"",,,,,,,,,,,,"'''",W
WHEREAS, chang~~~~g~osed to staf~~tatutes ana[~~gulations substantially undermine
the ability of CitY's~E:E:;EOA1~~e use emir1~nt domairf for economic development and
redevelopment purP<1~~~that ben!=!~! the commu8ity as a whole,
NOW, THEREF01{~~E 1~'1:~~~g~~ED by!~e Hutchinson City Council that it:
1.RS'~Hests that th6:~::~tate Legislature preserve the ability of local Economic
,Development Author1~ to utilize eminent domain for economic development and
,:~::;.,~ redevelopment purposes; and
2. "::.~upports reasonable efforts to increase the transparency, simplicity and fairness of
emlnent domain proceedings for all involved parties; and,
Adoptea~t,I;liHutchinson City Council this 14th day of February, 2006.
ATTEST:
Gary Plotz
City Administrator
Steven W. Cook
Mayor
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