7. EDSR 09-11-2006 - Laserfiche WebLink

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Focus on New Laws: Eminent domain Page 4 of 4 Local officials should be aware of the following impacts of this new law: All condemnation actions will cost more. The new law will add millions of taxpayer dollars to the costs of public projects, including acquisitions for traditional public uses such as roads and parks. The prospect of attorney fees will necessitate higher offers, and while property owners may settle in some cases, it's likely that attorney fees will be awarded in many circumstances. In addition, greater relocation benefits, higher reimbursement of property owners' appraisal fees, and compensation for loss of going concern will increase costs substantially. The process will take longer In addition to appraisers, local governments will now need to tap the expertise of real estate brokers, accountants and business valuation experts to help them determine the appropriate level of compensation due to a property owner. Local governments will also need to spend more time and effort documenting the public use and necessity for a taking. Redevelopment will be more difficult and costly. Tight definitions of "blight" and "environmental contamination" and the limited ability to assemble parcels will obstruct local redevelopment efforts. Local governments will need to keep written records of code violations in order to document "blight" and prove that there is "no feasible alternative" to remediate blight or contamination in an area in order to take non-blighted or uncontaminated property. These changes to the law will likely encourage holdouts. Finally, the new public notice and heazing requirements will also add time and expense when a local government seeks to acquire property for redevelopment purposes. Share your story It is important for local officials to talk with their legislators about the impacts of this new law on local projects. Cities should also notify the League about problems they encounter with the process and the cost of complying with these new requirements. Please contact Laura Harris, LMC, at (651) 281-1260 or 1_harris a~lmnc.org; or Tom Grundhoefer, LMC, at (651) 281-1266 or t~rundho _ lmnc.oxg with any questions about this new law. LMC Board Editor: Desiener: Executive Director: o_f_Drectors Erica Norris Perlman Stephanie_Thoe Jim Miller Copyright ©2006 Lea¢ue of Minnesota Cities 145 University Ave. West, St. Paul, MN 55103 Phone: 651-281-1200 ~ Toll Free: 1-800-925-1122 Fax: 651-281-1299 ~ TDD: 651-281-1290 Return to Home http://www.lmnc.org/bulletin/story.cfm?id=1227&title id=1 8/16/2006