7. EDSR 09-11-2006 - Laserfiche WebLink

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(2) the creation or functioning of a public service corporation; or (3) mitigation of a blighted area, remediation of an environmentally contaminated area, reduction of abandoned property, or removal of a public nuisance. In case there were any doubt, the definition adds this statement in response to the Kelo v. City of New London decision: "The public benefits of economic development, including an increase in tax base, tax revenues, employment, or general economic health, do not by themselves constitute a public use or public purpose." Clause (3) describes the only circumstances when eminent domain may be used for acquisitions other than traditional public takings (under clause 1) or for public service corporations (under clause 2). Because eminent domain for development or redevelopment always results in the ultimate possession or ownership of acquired property by a private party, this power will now be available only if the conditions described in clause (3) may be found. The four conditions for redevelopment takings are summarized as follows: 1. Mitigation of a blighted area: This is the most significant change in the entire bill. For a frame of reference, consider the prior definition of a blighted area under Minnesota Statues, Section 469.002, subd. 1 I "Blighted area" means any area with buildings or improvements which, by reason of dilapidation, obsolescence, overcrowding, faulty arrangement or design, lack of ventilation, light and sanitary facilities, excessive land coverage, deleterious land use, or obsolete layout, or any combination of these or other factors, are detrimental to the safety, health, morals, or welfare of the community. Section 117.025, subd. 6 now defines "blighted area" as an area that is in "urban use," and where "more than 50 percent of the buildings are structurally substandard." Section 117.025, subd. 7 defines a "structurally substandard" building as one: (1) that was inspected by the appropriate local government and cited for one or more enforceable housing, maintenance, or building code violations; Comment: The inclusion of housing and maintenance codes is broader than in the House version of the bill, which limited this definition to building codes only. This addition provides some leeway for cities to determine their own standards of upkeep, which in turn could result in more buildings being III-2 Kennedy & Graven 200 South Sixth Street, Suite 470 Minneapolis, MN 55402