7. EDSR 09-11-2006 - Laserfiche WebLink

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Focus on New Laws: Eminent domain Page 3 of 4 New procedural requirements The new law also contains several changes to the eminent domain process, including the following: . Appraisal and negotiation. Section 5 modifies the appraisal and negotiation requirements in Minn. Stat. 117.036 and applies these requirements to all acquisitions. It requires the exchange of appraisals and increases the appraisal reimbursement cap to $5,000 for non-residential property. It also provides that an appraisal must not be used or considered in a condemnation commissioners' hearing unless a copy of the appraiser's written report was provided to the opposing party at least five days before the hearing, and that documentation related to a loss of going concern claim must not be used or considered in a condemnation commissioners' hearing unless the documentation is provided to the opposing party at least 14 days before the hearing. . Public notice and hearing. Section 6 establishes new public hearing requirements for takings to mitigate a blighted area, remediate an environmentally contaminated area, reduce abandoned property, or remove a public nuisance. The law specifies certain notice and hearing requirements and requires approval by the local elected governing body at a subsequent meeting that is at least 30 days after the public hearing. It also requires the resolution authorizing eminent domain to identify the public costs and benefits known or expected from the project and address how the acquisition serves a public use and why the property is needed. . Right of first refusal. Section 15 specifies that if a condemning authority determines that property has not been used and is no longer needed for a public use, the authority must offer to sell the property back to the person from whom it was acquired at the original price or the current fair market value, whichever is lower. • Relocation assistance determination by ALJ. Section 19 requires relocation assistance to be determined by an administrative law judge under a contested case proceeding if the displaced person does not accept the condemning authority's offer. Public service corporations are exempted from many of the new provisions, including the new compensation requirements, increased appraisal reimbursement caps, new public notice and hearing requirements, and the use of administrative law judges for arbitrating relocation benefit disputes. Effective date and exemptions for existing projects The law is generally effective May 20, 2006, and applies to condemnation proceedings and eminent domain actions commenced on or after that date. For purposes of the law, an action is deemed commenced when service of the notice of the petition is made on the property owner. The law identifies exceptions for certain actions anticipated as part of a tax increment financing (TIF) plan, abatement project or a special law. Actions commenced between Feb. 1, 2006, and Feb. 1, 2008, that satisfy one of these conditions are grandfathered in and are not subject to any of the provisions of the new law. Actions commenced after Feb. 1, 2008, are not subject to the new public use requirements, but are subject to the compensation requirements and other procedural provisions of the new law. The law also provides an exception for actions to acquire property for highway projects that, by the day following final enactment, have been selected to receive federal funding and in which service of the notice of the petition is made on or before Jan. 15, 2007. Practical implications These changes to Minnesota's eminent domain law will significantly impact the ability of local governments to respond to community needs. The law goes well beyond addressing the concerns raised by the Kelo decision and includes several provisions that will affect all condemnation actions. http://www.Irnnc.org/bulletin/story.cfm?id=1227&title_id=1 8/16/2006