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RELEVANT LINKS: 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. Minn.Stat.§315.42.City or State law limits the ability of cities to condemn land owned by religious Jordan v.Church of St John the Baptist,764 NW 2d 71 corporations without their consent. (Minn.Ct.App.2009). U.S.Const.Amend.V. A city can also be compelled to condemn land by a court order in an inverse Minn.Const.art.1§ 13. Lucas v.South Carolina condemnation action. A property owner can bring this claim when a city's Coastal Council,505 U.S. action has had the effect of depriving the property owner of some or all of 1003,112 S.Ct.2886(1992). Penn Cent. Transp.Co,v. their interest in the property. City of New York,438 U.S. 104,98 S.Ct.2646(1978). Wensmann Realty,Inc.v.City of Eagan,734 N.W.2d 623 (Minn.2007). See Handbook,Chapter 14. The eminent domain procedure is rather complex and will not be discussed in detail in this document. A city council that is considering using eminent domain to acquire land or an easement should consult with its city attorney for guidance. 1. Relocation assistance Both state and federal law protect property owners and tenants who are required to move because of eminent domain. Relocated persons must be paid relocation costs. 42 U.S.C.§§4601-4655. Federal law provides that the condemning authority must pay certain benefits to people who are displaced from their homes, farms, or businesses as a result of a federally funded project. Minn.Stat.§ 117.52. Minnesota law also requires the payment of relocation benefits when Minn.Stat.§ 117.52,subd. la. eminent domain is used, even if no federal funding is involved. The nature 49 C.F.R.§24.304. and amount of these benefits is the same as if federal funds were involved. For purposes of relocation benefits paid by a city under state law, federal law is applicable to the reimbursement of reestablishment expenses for nonresidential moves, except that a city must reimburse the displaced business for expenses actually incurred up to a maximum of$50,000. Minn.Stat.§ 117.52. Even if the sale of real estate to a city is negotiated, a city may have a responsibility to pay relocation costs. In such situations, most contracts include a specific waiver of additional relocation costs,because these costs are usually already included in the contract price, or specify the amount of the relocation benefits to be paid. League of Minnesota Cities Information Memo: 1/2 212 01 5 Purchase and Sale of Real Property Page 5