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Preservation nn P~opased Lxrvrent Domain Lebnslauor <br />Pebmary 13, 2006 I~UA Meefing <br />Pagi 2of3 <br />Proposed Minnesota Le,¢islation <br />Attached are the two bills that contain proposed legislative changes for Minnesota. <br />Summaries of both draft bills axe provided below. <br />Minnesota Auto Dealers Associatio~MADA) and Institute for Justice bill <br />This bill redefines "public use" to exclude economic development, narrows the definition of <br />"blight", and increases costs to public agencies. It also suggests requiring the <br />courts to review eminent domain challenges with a higher level of scrutiny, instead of the <br />usual deference given to legislative actions. It is also important to note that at the federal <br />level, numerous bills have been drafted. Congress attached a rider to the Txanspoxtafion <br />funding bill that prohibits the use of federal funding fox any project that uses "Kelo-type" <br />condemnation. Also, the US House of Representatives passed a bill that would prohibit any <br />city receiving federal funds from using condemnation. The bill awaits action in the Senate <br />and would preclude even most "redevelopment" condemnation. <br />League of Minnesota Cities bill <br />This bill improves the process and clarifies which public purposes authorized in law justify <br />the use of eminent domain. 'these may include: <br />• Procedural changes to provide a more transparent and predictable process fox all <br />acquisitions under Minn. Stat. 117. <br />• A list of specific purposes fox which an acquiring authority may exercise eminent <br />domain under Minn. Stat. 469, such as: remedying an environmentally contaminated <br />area; removing a public nuisance; mitigating a blighted area; or developing affordable <br />housing that is eligible fox state ox local financial assistance. <br />• Cleaxex, more objective criteria fox determining "blight" fox the purposes of using <br />eminent domain. <br />• Prohibiting the use of eminent domain fox economic development, unless the <br />development involves state financial assistance. <br />• Possible compensation provisions that acknowledge property owners costs, but don't <br />remove incentives to negotiate. <br />There are sufficient cases where local units of government have taken greater liberty than the <br />intent of current legislation which makes valid and important such changes as those under <br />consideration by the League. <br />F,lk River's use of eminent domain <br />Over the last twenty years, the City of Elk River has used eminent domain once. Several <br />properties were acquired for the east Elk River road project and redevelopment project. <br />What authority do cities cuxxendy have to use eminent domain? <br />Under state law, cities may acquire private property fox public purposes upon payment of <br />just compensation. The acquiring authority must establish that the property is needed fox a <br />particular, identifiable public purpose within a reasonable time period. <br />HRAs are explicitly given the (redevelopment) authority in Minnesota Statute 469.012 to <br />eliminate substandard, slum ox blighted areas through eminent domain. <br />