7. EDSR 09-11-2006 - Laserfiche WebLink

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Focus on New Laws: Eminent domain Page 2 of 4 "public nuisance" for eminent domain purposes. The new law also limits the ability of local governments to assemble property for redevelopment purposes. In particular, section 3 prohibits the taking ofnon-structurally substandard buildings and non- contaminatedparcels unless there is "no feasible alternative" in order to remediate blight or contamination in the area and all possible steps are taken to minimize the taking ofnon-structurally substandard buildings or non-contaminated parcels. Finally, section 8 of the new law provides that takings to mitigate a blighted area, remediate an environmentally contaminated azea, reduce abandoned property, or remove a public nuisance require a preponderance of evidence showing if challenged in court. A court order approving the public purpose, necessity, and authority for a taking is final unless an appeal is brought within 60 days. New compensation requirements Minnesota's new eminent domain law contains several provisions that will increase the cost of all eminent domain proceedings, including those for traditional public uses, such as roads and parks. These new provisions include the following: • Payment of attorney fees. Section 4 provides that the court may award reasonable attorney fees and costs if the final awazd is between 20 percent and 40 percent greater than the last written offer made by the condemning authority before filing a condemnation petition. If the award is more than 40 percent greater than the last written offer, then the court must award a property owner his or her attorney fees. This section prohibits an award of attorney fees if the final judgment or award is less than $25,000. It also specifies that, for the purposes of determining the entitlement to attorney fees, the final award does not include compensation for loss of going concern unless it was included in the last written offer made by the condemning authority before filing the petition. • Compensation for loss of going concern. Section 11, subd. 2 requires compensation for loss of going concem if a business is destroyed by a taking unless the condemning authority proves by a preponderance of evidence that the loss is not due to the taking, the loss could have been avoided with reasonable measures, or that going concern compensation would duplicate compensation otherwise being awarded. It defines "owner" to include lessees who operate a business on real property that is the subject of an eminent domain proceeding and requires an owner to give the condemning authority notice of intent to seek compensation for loss of going concern within 60 days of the first court hearing. • Minimum compensation. Section 12 provides that when an owner is required to relocate, the amount of damages payable must be sufficient to purchase a "comparable property" in the community, and not less than the condemning authority's quick take deposit. "Owner" is defined as the person or entity that holds fee title to the property. • Re-establishment reimbursement. Section 18 requires an acquiring authority to reimburse up to $50,000 in re-establishment expenses to displaced businesses. • Compensation for removal of a nonconforming use. Section 10 requires a local government to compensate the owner of a nonconforming use if the local government requires its removal as a condition of granting a permit, license, or other approval for a use, structure, development or activity. • Compensation for loss of driveway access. Section 11, subd. 4 requires compensation if a governmental entity permanently eliminates 51 percent or more of the driveway access to a business that results in a loss of revenues of 51 percent or more. Installation of a median does not constitute elimination of driveway access. http://www.lmnc.org/bulletin/story.cfin?id=1227&title id=1 8/16/2006