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Economic Development authority 1\~tinutes February 13, 2006 Page 6 were the best people to decide on the use of eminent domain in their communities, rather than at the state or national level. Ms. Steinmetz provided a summary of what cities, HRA's and EDA's can use eminent domain for in the State of Minnesota. She noted that the courts do give local authority to decide whether to use eminent domain. Ms. Steinmetz reviewed the eminent domain process and explained the protections for property owners. Mr. Clark noted that property owners can challenge the public purpose. Ms. Steinmetz stated that is typically one of the first steps in the process. Ms. Steinmetz noted that cities have historically used eminent domain as a last resort and cited statistics to support the limited use of eminent domain in Minnesota. She provided details on Elk River's use of eminent domain. In addition, she provided examples of other cities' (Coon Rapids and Brooklyn Pazk) use of eminent domain. Mr. Clark added that 85% of the 250,000 squaze foot Brooklyn Pazk property was vacant and the City of Brooklyn Park invested $17 million to buy the property (approximately 120 acre site). Seven pazcels outside of this area were acquired which could not have been acquired outside of this project He stated that this was a very arduous process including a formal redevelopment plan and tax increment plans. Ms. Steinmetz reviewed the two bills being introduced in the legislative session; the Minnesota Auto Dealers Association (MADA) and the Institute for Justice bill and the Local Government Bill, also known as the League of Minnesota Cities bill. The League bill stresses the use of responsible eminent domain. She provided more details on each of the bills. She stated that the upcoming MN State legislative session begins March 1~~ and that this is a hot topic. Ms. Steinmetz restated that eminent domain is used by cities as a last resort in most cases. It is a critical tool for a healthy, financially strong community. She reviewed three options recommended by staff: 1. Do nothing. 2. Support legislation upholding the use of eminent domain for redevelopment projects and limited economic development projects (such as the League of Minnesota Cities bill). 3. Draft a resolution indicating the City's policy on eminent domain. Mx. Clark stated that there axe basically three types of uses for eminent domain: - Original traditional powers (roads, schools, parks) - True redevelopment (such as the downtown) - Economic development (not a true blight test, but prove value) He stated that the City's concern would be the collateral damage that would result from the loss of eminent domain powers, which would severely limit redevelopment and affect traditional eminent domain uses such as public road easements. President Gongoll stated that he was not sure which direction to take.