3.9. SR 02-21-2006 - Laserfiche WebLink

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Item Description Consider a resolution in support of the League of Minnesota Cities' efforts to preserve the authority of Minnesota cities to use eminent domain. Item Number 3.9 Prepared by Heidi Steinmetz, Assistant Director of Economic Develo ment Reviewed by Catherine Mehelich, Director of Economic Development City of Elk River REQUEST FOR COUNCIL ACTION Agenda Section Meeting Date Consent February 21, 2006 Introduction A PowerPoint presentation was held for the City Council, EDA and HRA on February 13, 2006 regarding the proposed legislative changes to eminent domain in the upcoming session of the Minnesota State Legislature beginning on March 1, 2006. The City Council, EDA and HRA directed staff to draft a resolution stating the City's position on the proposed eminent domain legislation. The attached draft resolution includes input received on February 13th including a recommendation from City attorney, Peter Beck, that the City support the League of Minnesota Cities' efforts to preserve the authority of Minnesota cities to use eminent domain. Due to the nature of this issue, staff understands that the Council may wish to remove this item from the consent agenda. Other organizations that support the League's efforts are the Economic Development Association of Minnesota, the Association of Metropolitan Municipalities, the Association of Minnesota Counties and Metropolitan Inter-County Association. In addition, cities who have passed or are in the process of passing similar resolutions or policies are the Cities of Brooklyn Park, Coon Rapids, Hutchinson and Bloomington. Those resolutions and policies are attached for your reference. Discussion It is important that the City consider the attached resolution supporting the League of Minnesota Cities' efforts to preserve eminent domain as soon as possible since the Minnesota State Legislature could consider changes to eminent domain legislation early in the session due to the fact that this issue has received a considerable amount of attention within the media. Financial Impact The Minnesota Auto Dealers Association and Institute for Justice are proposing changes to eminent domain legislation that could eliminate eminent domain as a redevelopment tool for Minnesota Cities. For example, one of the fmancial impacts, if this legislation passes, could be a permanent loss of tax base due to the increased difficulties for the City to redevelop blighted areas. This legislation also proposes to amend the eminent domain process in a way that would increase the City's cost to acquire property.