10.0 EDSR 02-13-2006 - Laserfiche WebLink

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Pms'cnCi[ion nn Proposal P:rrunent Domain I,ogislnCion 14~bmary 13, 2006 ISDA Mecfing Pagc 3 of 3 Mimi. Statute 469.101 gives EDAs the power of eminent domain to acquire pxoperry needed to create "economic development districLS" though the districts axe defined as a tax increment redevelopment district. The broadest economic development authority is in Minn. Stat. 469.124 where the legislature stated that providing employment opportunities and improving the tax base axe a public purpose. How often is eminent domain used in Minnesota Attached is an article summarizing case studies of Minnesota cities that have used eminent domain responsibly. The article also mentions a survey the League of Minnesota Cities completed regarding cities' use of eminent domain in Minnesota. Below is a summary of the survey: • In a survey of the 824 cities that axe members of the League of Minnesota Cities, 635 responses were submitted (77%). • 100 cities used eminent domain during the past 6.5 years. • 34 cities used it fox redevelopment, removal of hazardous building, ox economic development. • On average cities used eminent domain an average of 78 times per year since 1999, of which only 27 times per year were to turn the property over to another private owner. In the same period, there was an average of more than 81,000 real estate transactions per year in Minnesota. Issue Staff will provide a PowerPoint presentation about the eminent domain issue, including case studies of Minnesota cities' use of eminent domain. The presentation template was developed by the City of Brooklyn Park Economic & Redevelopment Director and distributed to Economic Development Association of Minnesota members for the purpose of educating local public officials on the issue. Staff Recommendation Staff xecotnmends that the EDA, HRA and City Council provide direction to staff regarding the City's policy on eminent domain. Below axe three options to consider: • Do nothing. • Support legislation upholding the use of eminent domain for redevelopment projects and limited economic development projects (such as the League of Minnesota Cities bill). • Draft a resolution indicating the City's policy on eminent domain.