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232275v3 M E M O R A N D U M FROM: JARED SHEPHERD & JACK BROOKSBANK CAMPBELL KNUTSON, P.A. TO: ELK RIVER CITY COUNCIL DATE: AUGUST 28, 2024 RE: EMINENT DOMAIN - 19116 TROY STREET City Staff are requesting that the council pass the attached Resolution Authorizing the Use of Eminent Domain to acquire the property located at 19116 Troy St. NW, Elk River, MN 55330. This condemnation would be done by the city on behalf of the HRA, which would then purchase the property from the city. The previous owner and occupant of the property has passed away. The City has been unable to locate any spouse, family members, next of kin, or relatives of any kind. The prior owner also did not have a will. The prior occupant also owned the property outright, with no existing mortgage. Accordingly, there is currently no party that could claim ownership of the property. The property is currently sitting abandoned. Beyond simply sitting empty, the property contains hazardous conditions. The structure is decrepit and overgrown. The property has significant water damage and potential mold. The structure is not secure against entry by curious children or other parties. Prior to passing away, the prior occupant confirmed that the building was unsafe. No maintenance work has occurred on the property since that confirmation, in approximately July 2020. The City obtained an administrative search warrant and inspected the property in December 2023, confirming the pervasive presence of hazardous conditions in the property. The HRA has discussed this matter, and believes that exercising eminent domain is the best way to abate the hazardous conditions. There is no living owner of the property who could handle the necessary repairs privately. If the city does nothing, the property will eventually go through tax forfeiture. However, this process takes many years to complete. The city could also pursue an action under the Hazardous Building Act. That would allow the city to enter the property, fix the hazardous conditions, and then assess the cost of doing so against the property. But again, after doing so the property would simply continue to sit empty for several years until the completion of tax forfeiture. The only way for the city to permanently address the issues is to purchase the property. But since there is no living owner, the only way to do that is through the exercise of eminent domain. The HRA has obtained an appraisal of the property valuing it “as-is” at $75,000. The city would be required to pay this amount as a deposit into court. Anyone claiming a prior ownership interest in the property could then claim the money from the court; the city will not be able to retain it. Once eminent domain is completed by the City, the HRA will purchase the property. The HRA will then demolish the structure, remove and backfill the foundation, and make the property safe. The HRA would then sell it for private use. Page 41 of 197