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HF 2895

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to eminent domain; providing for and regulating the use of eminent
domain; providing for notice, hearing, appeal, and other procedural requirements;
allowing attorney fees under certain conditions; providing for a right of first
refusal; providing definitions; making clarifying, conforming, and technical
changes; amending Minnesota Statutes 2004, sections 117.036; 117.055;
117.075, by adding subdivisions; 117.085; 117.51; 117.52, subdivision 1, by
adding a subdivision; 163.12, subdivisions 1a, 1b; 469.012, subdivision 1g;
proposing coding for new law in Minnesota Statutes, chapters 117; 469.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 117.036, is amended to read:


117.036 APPRAISAL AND NEGOTIATION REQUIREMENTS
deleted text begin APPLICABLE TO ACQUISITION OF PROPERTY FOR TRANSPORTATION
PURPOSES
deleted text end .

Subdivision 1.

Application.

This section applies to the acquisition of property
deleted text begin for public highways, streets, roads, alleys, airports, mass transit facilities, or for other
transportation facilities or purposes
deleted text end new text begin under this chapternew text end .

Subd. 2.

Appraisal.

(a) Before commencing an eminent domain proceeding under
this chapter, the acquiring authority must obtain at least one appraisal for the property
proposed to be acquired. In making the appraisal, the appraiser must confer with one or
more of the new text begin fee new text end owners new text begin or contract purchasers new text end of the property, if reasonably possible.
deleted text begin At leastdeleted text end new text begin Notwithstanding section 13.44 or any other law to the contrary, the acquiring
authority must provide the fee owner or contract purchaser with a copy of the appraisal
at the time an offer is made, but no later than
new text end 20 days before presenting a petition under
section 117.055, deleted text begin the acquiring authority must provide the owner with a copy of the
appraisal
deleted text end and inform the deleted text begin owner of the owner'sdeleted text end new text begin fee owner or contract purchaser of thenew text end right
to obtain an appraisal under this section.new text begin Upon request, the acquiring authority must make
available to the fee owner or contract purchaser all appraisals of the property.
new text end

(b) The new text begin fee new text end owner new text begin or contract purchaser new text end may obtain an appraisal by a qualified
appraiser of the property proposed to be acquired. The new text begin fee new text end owner new text begin or contract purchaser
new text end is entitled to reimbursement for the reasonable costs of the appraisal from the acquiring
authority up to a maximum of $1,500 deleted text begin within 30 days after thedeleted text end new text begin for single family and
two-family residential property, agricultural property, and minimum damage acquisitions
and $5,000 for other types of property, provided that the fee
new text end owner new text begin or contract purchaser
new text end submits to the acquiring authority the information necessary for reimbursement, deleted text begin provided
that the owner does so
deleted text end new text begin including a copy of the fee owner's or contract purchaser's
appraisal,
new text end within deleted text begin 60deleted text end new text begin 90new text end days after deleted text begin the owner receivesdeleted text end new text begin receivingnew text end the appraisal from the
authority under paragraph (a)new text begin and at least 30 days before a condemnation commissioners'
hearing. For purposes of this paragraph, a "minimum damage acquisition" means an
interest in property that a qualified person with appraisal knowledge indicates can be
acquired for a cost of $10,000 or less. For purposes of this paragraph, "agricultural
property" has the meaning given in section 583.22, subdivision 2.
new text end

new text begin (c) The acquiring authority must pay the reimbursement to the fee owner or contract
purchaser within 30 days after receiving a copy of the appraisal and the reimbursement
information. Upon agreement between the acquiring authority and either the fee owner
or contract purchaser, the acquiring authority may pay the reimbursement directly to
the appraiser
new text end .

Subd. 3.

Negotiation.

In addition to the appraisal requirements under subdivision 2,
before commencing an eminent domain proceeding, the acquiring authority must make a
good faith attempt to negotiate personally with the new text begin fee new text end owner new text begin or contract purchaser new text end of the
property in order to acquire the property by direct purchase instead of the use of eminent
domain proceedings. In making this negotiation, the acquiring authority must consider
the appraisals in its possessionnew text begin , including any appraisal obtained and furnished by the fee
owner or contract purchaser if available,
new text end and other information that may be relevant to a
determination of damages under this chapter.

new text begin Subd. 4. new text end

new text begin Condemnation commissioners' hearing. new text end

new text begin Notwithstanding section 13.44,
an appraisal must not be used or considered in a condemnation commissioners' hearing,
nor may the appraiser who prepared the appraisal testify, unless a copy of the appraiser's
written report is provided to the opposing party at least five days before the hearing.
new text end

Sec. 2.

Minnesota Statutes 2004, section 117.055, is amended to read:


117.055 PETITION AND NOTICE.

new text begin Subdivision 1. new text end

new text begin Petition. new text end

In all cases a petition, describing the desired land, stating by
whom and for what purposes it is proposed to be taken, and giving the names of all persons
appearing of record or known to the petitioner to be the owners thereof shall be presented
to the district court of the county in which the land is situated praying for the appointment
of commissioners to appraise the damages which may be occasioned by such taking.

new text begin Subd. 2. new text end

new text begin Notice. new text end

new text begin (a) new text end Notice of the objects of the petition and of the time and place of
presenting the same shall be served at least 20 days before such time of presentation upon
all persons named in the petition as owners as defined in section 117.025, subdivision 3,
and upon all occupants of such land in the same manner as a summons in a civil action.

new text begin (b) The notice must state that: (1) a party wishing to challenge the public purpose,
necessity, or authority for a taking must appear at the court hearing and state the objection;
(2) failure to appear and object is deemed a waiver of any objection; and (3) a court order
approving the public purpose, necessity, and authority for the taking is final unless an
appeal is brought within 60 days after service of the order on the party.
new text end

new text begin (c) new text end If any such owner be not a resident of the state, or the owner's place of residence
be unknown to the petitioner, upon the filing of an affidavit of the petitioner or the
petitioner's agent or attorney, stating that the petitioner believes that such owner is not
a resident of the state, and that the petitioner has mailed a copy of the notice to the
owner at the owner's place of residence, or that after diligent inquiry the owner's place
of residence cannot be ascertained by the affiant, then service may be made upon such
owner by three weeks' published notice. If the state be an owner, the notice shall be
served upon the attorney general. Any owner not served as herein provided shall not be
bound by such proceeding except upon voluntarily appearing therein. Any owner shall
be furnished a right-of-way map or plat of all that part of land to be taken upon written
demand, provided that the petitioner shall have ten days from the receipt of the demand
within which to furnish the same. Any plans or profiles which the petitioner has shall be
made available to the owner for inspection.

Sec. 3.

Minnesota Statutes 2004, section 117.075, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Appeal of order. new text end

new text begin A party wishing to challenge the public purpose,
necessity, or authority for a taking must appear at the court hearing required by subdivision
1 and state the objection. Failure to appear and object is deemed a waiver of any objection.
A court order approving the public purpose, necessity, and authority for the taking is final
unless an appeal is brought within 60 days after service of the order on the party.
new text end

Sec. 4.

Minnesota Statutes 2004, section 117.075, is amended by adding a subdivision
to read:


new text begin Subd. 1b. new text end

new text begin Attorney fees. new text end

new text begin If the court determines that a taking is not for a public
purpose or is unlawful, the court may award the owner reasonable attorney fees.
new text end

Sec. 5.

Minnesota Statutes 2004, section 117.085, is amended to read:


117.085 COMMISSIONERS, POWERS, DUTIES.

The commissioners, having been duly sworn and qualified according to law, shall
meet as directed by the order of appointment and hear the allegations and proofs of all
persons interested touching the matters to them committed. They may adjourn from time
to time and from place to place within the county, giving oral notice to those present of
the time and place of their next meeting. All testimony taken by them shall be given
publicly, under oath, and in their presence. They shall view the premises, and any of
them may subpoena witnesses, which shall be served as subpoenas in civil actions are
served, and at the cost of the parties applying therefor. If deemed necessary, they may
require the petitioner or owner to furnish for their use maps, plats, and other information
which the petitioner or owner may have showing the nature, character, and extent of the
proposed undertaking and the situation of lands desired therefor. In proper cases they may
reserve to the owner a right-of-way or other privilege in or over the land taken, or attach
reasonable conditions to such taking in addition to the damages given or they may make
an alternative award, conditioned upon the granting or withholding of the right specified.
Without unreasonable delay they shall make a separate assessment and award of the
damages which in their judgment will result to each of the owners of the land by reason
of such taking and report the same to the court. The commissioners shall not reduce the
amount of the damages awarded because the land being taken is, at the time of the taking,
valued under section 273.111, designated as an agricultural preserve under chapter 473H.
The commissioners, in all such proceedings, may in their discretion allow and show
separately in addition to the award of damages, reasonable appraisal fees not to exceed a
total of deleted text begin $500deleted text end new text begin $1,500 for single family and two-family residential property, agricultural
property, and minimum damage acquisitions and $5,000 for other types of property
new text end . Upon
request of an owner the commissioners shall show in their report the amount of the award
of damages which is to reimburse the owner and tenant or lessee for the value of the land
taken, and the amount of the award of damages, if any, which is to reimburse the owner
and tenant or lessee for damages to the remainder involved, whether or not described in
the petition. The amounts awarded to each person shall also be shown separately. The
commissioners shall, if requested by any party, make an express finding of the estimated
cost of removal and remedial actions that will be necessary on the taken property because
of existing environmental contamination.

Sec. 6.

new text begin [117.226] RIGHT OF FIRST REFUSAL.
new text end

new text begin (a) If the governing body of the acquiring authority determines that publicly owned
property acquired under this chapter has not been used and is no longer needed for the
purpose for which it was originally acquired, the authority must offer to sell the property
to the owner from whom it was acquired. If the former owner can be located, the acquiring
authority must offer to sell the property at the current fair market value of the property. If
the current fair market value is less than what the acquiring authority paid for the property,
the acquiring authority must offer to sell the property for the amount that the acquiring
authority paid when it originally acquired the property.
new text end

new text begin (b) The acquiring authority must attempt to locate the former owner by:
new text end

new text begin (1) sending notice of the right of first refusal by first class mail to the last known
address of the former owner; and
new text end

new text begin (2) providing two weeks' published notice of the right of first refusal in a newspaper
of general circulation.
new text end

new text begin (c) If the former owner cannot be located or declines to repurchase the property
within 60 days of providing the notice described in paragraph (b), the acquiring authority
shall prepare a certificate attesting to the same and record the certificate in the office of the
county recorder or county registrar of titles, as appropriate, to evidence the termination of
the right of first refusal.
new text end

new text begin (d) This section shall not apply:
new text end

new text begin (1) if the acquiring authority has an alternative use for the property and the property
would remain in public ownership; or
new text end

new text begin (2) to acquisitions of property for transportation purposes made by the commissioner
of transportation.
new text end

Sec. 7.

Minnesota Statutes 2004, section 117.51, is amended to read:


117.51 COOPERATION WITH FEDERAL AUTHORITIES.

In all acquisitions undertaken by any acquiring authority and in all voluntary
rehabilitation carried out by a person pursuant to acquisition or as a consequence thereof,
the acquiring authority shall cooperate to the fullest extent with federal departments and
agencies, and it shall take all necessary action in order to insure, to the maximum extent
possible, federal financial participation in any and all phases of acquisition, including the
provision of relocation assistance, services, payments and benefits to displaced persons.
deleted text begin An acquiring authority may consider reimbursing up to $50,000 in reestablishment
expenses of a displaced business.
deleted text end

Sec. 8.

Minnesota Statutes 2004, section 117.52, subdivision 1, is amended to read:


Subdivision 1.

Lack of federal funding.

In all acquisitions undertaken by any
acquiring authority and in all voluntary rehabilitation carried out by a person pursuant
to acquisition or as a consequence thereof, in which, due to the lack of federal financial
participation, relocation assistance, services, payments and benefits under the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970, United States
Code, title 42, sections 4601 to 4655, as amended by the Surface Transportation and
Uniform Relocation Assistance Act of 1987, Statutes at Large, volume 101, pages 246
to 256 (1987), are not available, the acquiring authority, as a cost of acquisition, shall
provide all relocation assistance, services, payments and benefits required by the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended by
the Surface Transportation and Uniform Relocation Assistance Act of 1987, and those
regulations adopted pursuant thereto, and either (1) in effect as of deleted text begin July 1, 1988deleted text end new text begin January 1,
2006
new text end , or (2) becoming effective after deleted text begin July 1, 1988deleted text end new text begin January 1, 2006new text end , following a public
hearing and comment. Comments received by an acquiring authority within 30 days after
the public hearing must be reviewed and a written response provided to the individual or
organization who initiated the comment. The response and comments may be addressed in
another public hearing by the acquiring authority before approval.

Sec. 9.

Minnesota Statutes 2004, section 117.52, is amended by adding a subdivision to
read:


new text begin Subd. 1a. new text end

new text begin Reestablishment costs limit. new text end

new text begin For purposes of relocation benefits paid in
accordance with this section, the limitation in Code of Federal Regulations, title 49, section
24.304, with respect to reimbursement of reestablishment expenses for nonresidential
moves, an acquiring authority shall reimburse up to $50,000 for such expenses.
new text end

Sec. 10.

Minnesota Statutes 2004, section 163.12, subdivision 1a, is amended to read:


Subd. 1a.

Petition, notice, and access to information.

(a) Upon passage of the
resolution specified in section 163.11, subdivision 2, a petition must be presented to the
district court of the county in which the land is located. The petition must describe each
tract of land through which the highway passes, state the purposes for which the land is
proposed to be taken, and list the names of all persons appearing of record or known to
the county to be the landowners.

(b) Notice of the objects of the petition and of the time and place of presenting the
notice must be served, together with a copy of the resolution, upon each occupant of
each tract of land through which the highway passes at least 20 days before the hearing
under subdivision 1b. If an owner is not a resident of the state, or the owner's place of
residence is unknown to the county, service may be made by three weeks' published
notice following the filing of an affidavit on behalf of the county by the county's agent or
attorney stating that the county:

(1) believes that the owner is not a resident of the state; and

(2) has either mailed a copy of the notice to the owner at the owner's last known
residence address or, after diligent inquiry, the owner's place of residence cannot be
ascertained by the county.

If the state is an owner, the notice must be served upon the attorney general. An owner
not served as provided in this subdivision is not bound by the proceeding, except if the
owner voluntarily appears in the proceeding.

(c) Within ten days of an owner's demand, the owner must be furnished a
right-of-way map or plat of all that part of the owner's land to be taken. Any applicable
plans or profiles that the county possesses must be made available to the owner for
inspection.

new text begin (d) The notice must state that: (1) a party wishing to challenge the public purpose,
necessity, or authority for the taking must appear at the court hearing and state the
objection; (2) failure to appear and object is deemed a waiver of any objection; and (3) a
court order approving the public purpose, necessity, and authority for the taking is final
unless an appeal is brought within 60 days after service of the order on the party.
new text end

Sec. 11.

Minnesota Statutes 2004, section 163.12, subdivision 1b, is amended to read:


Subd. 1b.

Finding of necessity.

When proof of service of the notice required in
subdivision 1a is filed with the court, the court shall hear all competent evidence offered
for or against granting the petition at the time and place fixed in the notice or otherwise set
by the court. On finding that the proposed taking is necessary and authorized by law the
court shall order the proceedings to commence pursuant to the remaining provisions of
this section.new text begin The court order finding the taking necessary and authorized by law is a final
order and must be appealed within 60 days from its service on the party.
new text end

Sec. 12.

Minnesota Statutes 2004, section 469.012, subdivision 1g, is amended to read:


Subd. 1g.

Get property; eminent domain.

(a) An authority may, within its area of
operation, acquire real or personal property or any interest therein by gifts, grant, purchase,
exchange, lease, transfer, bequest, devise, or otherwise, and by the exercise of the power
of eminent domain, in the manner provided by chapter 117, acquire real property which it
may deem necessary for its purposes, after the adoption by it of a resolution declaring that
the acquisition of the real property is necessary:

(1) to eliminate one or more of the conditions found to exist in the resolution adopted
pursuant to section 469.003 or to provide decent, safe, and sanitary housing for persons
of low and moderate income; or

(2) to carry out a redevelopment project.

(b) Real property needed or convenient for a project may be acquired by the
authority for the project by condemnation pursuant to this sectionnew text begin and section 469.401new text end .

deleted text begin (c) Prior to adoption of a resolution authorizing acquisition of property by
condemnation, the governing body of the authority must hold a public hearing on the
proposed acquisition after published notice in a newspaper of general circulation in the
municipality, which must be made at least one time not less than ten days nor more than
30 days prior to the date of the hearing. The notice must reasonably describe the property
to be acquired and state that the purpose of the hearing is to consider acquisition by
exercise of the authority's powers of eminent domain. Not less than ten days before the
hearing, notice of the hearing must also be mailed to the owner of each parcel proposed
to be acquired, but failure to give mailed notice or any defects in the notice does not
invalidate the acquisition. For the purpose of giving mailed notice, owners are determined
in accordance with section deleted text begin 429.031, subdivision 1deleted text end , paragraph (a).
deleted text end

deleted text begin (d)deleted text end new text begin (c)new text end Property acquired by condemnation under this section may include any
property devoted to a public use, whether or not held in trust, notwithstanding that the
property may have been previously acquired by condemnation or is owned by a public
utility corporation, because the public use in conformity with the provisions of sections
469.001 to 469.047 shall be deemed a superior public use. Property devoted to a public
use may be so acquired only if the governing body of the municipality has approved
its acquisition by the authority.

deleted text begin (e)deleted text end new text begin (d)new text end An award of compensation shall not be increased by reason of any increase
in the value of the real property caused by the assembly, clearance or reconstruction, or
proposed assembly, clearance or reconstruction for the purposes of sections 469.001
to 469.047 of the real property in an area.

Sec. 13.

new text begin [469.401] ACQUISITION BY EMINENT DOMAIN UNDER THIS
CHAPTER.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin Sections 469.401 to 469.403 apply to the exercise of
eminent domain powers by a condemning authority under this chapter if the property
interest to be acquired by eminent domain is intended to be sold, transferred, or otherwise
conveyed to a person or nongovernmental entity without the power of eminent domain.
new text end

new text begin Subd. 2. new text end

new text begin Public hearing and notice required. new text end

new text begin Prior to adoption of a resolution
authorizing the use of eminent domain, the governing body of the condemning authority
must hold a public hearing on the proposed acquisition after published notice in a
newspaper of general circulation in the governing body's jurisdiction and on the governing
body's Web site, if applicable, which must be made at least one time not less than two
weeks nor more than 60 days prior to the date of the hearing. The notice must reasonably
describe the property interest to be acquired, state that the purpose of the hearing is to
consider acquisition by eminent domain, state that comments may be submitted orally
at the hearing or in writing prior to or at the hearing, and specify an address to which
written comments may be mailed. Not less than two weeks before the hearing, notice of
the hearing must also be mailed to the owner of each parcel proposed to be acquired, but
defects in the notice do not invalidate the acquisition. For the purpose of giving mailed
notice, owners are determined as provided by section 429.031, subdivision 1, paragraph
(a). The resolution authorizing the use of eminent domain must not be adopted at the same
meeting or on the same day as the public hearing.
new text end

new text begin Subd. 3. new text end

new text begin Resolution. new text end

new text begin The resolution authorizing the use of eminent domain must:
new text end

new text begin (1) identify and describe the public benefits that are known or expected to result
from the program or project for which the property interest is proposed to be acquired;
new text end

new text begin (2) identify and describe the private benefits that are known or expected to result
from the anticipated conveyance of the property interest proposed to be acquired;
new text end

new text begin (3) summarize and respond to any oral comments made at the public hearing or
written comments received at or prior to the public hearing; and
new text end

new text begin (4) address how the acquisition of the property interest serves one or more identified
public purposes and why the acquisition of the property is reasonably necessary to
accomplish those purposes.
new text end

new text begin Subd. 4. new text end

new text begin Summary of findings. new text end

new text begin The governing body of a condemning authority
must summarize the findings adopted in the resolution authorizing the use of eminent
domain in the notice of petition required under section 117.055.
new text end

Sec. 14.

new text begin [469.402] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For purposes of sections 469.401 to 469.403, the following
terms have the meanings given to them.
new text end

new text begin Subd. 2. new text end

new text begin Abandoned. new text end

new text begin "Abandoned" means that at least 75 percent of a building's
area has been substantially unoccupied for at least one year prior to the date of inclusion
in a blighted area.
new text end

new text begin Subd. 3. new text end

new text begin Blighted area. new text end

new text begin "Blighted area" is an area where the condemning authority
finds that the conditions provided in clauses (a), (b), and (c) exist:
new text end

new text begin (a) the land is or has been in urban use;
new text end

new text begin (b) at least one of the following conditions exist:
new text end

new text begin (1) 50 percent or more of the buildings in the area are structurally substandard
or abandoned or a combination thereof;
new text end

new text begin (2) 30 percent or more of the parcels in the area constitute an environmentally
contaminated area; or
new text end

new text begin (3) (i) 20 percent or more of the buildings in the area are structurally substandard
or abandoned or a combination thereof, and (ii) an additional 30 percent or more of the
buildings in the area are obsolete as evidenced by lack of investment based on limited
building permits for repair or improvements in the previous five years; and
new text end

new text begin (c) at least one of the following conditions is present:
new text end

new text begin (1) diversity of ownership or defective or unusual conditions of title prevent the
free alienability of land within the area;
new text end

new text begin (2) there is inadequate infrastructure in the area;
new text end

new text begin (3) the crime rate in the area is higher than in the remainder of the county or
municipality;
new text end

new text begin (4) 30 percent of the tax parcels have had delinquent taxes or special assessments for
a period of two years or more prior to inclusion in the area; or
new text end

new text begin (5) negative market conditions exist in the area.
new text end

new text begin Subd. 4. new text end

new text begin Environmentally contaminated area. new text end

new text begin "Environmentally contaminated
area" means:
new text end

new text begin (1) any parcel that would be eligible for contamination cleanup grants from: (i) the
Department of Employment and Economic Development's contamination cleanup grant
account under section 116J.552, subdivision 3, or 116J.554, subdivision 2, clause (2); or
(ii) the Metropolitan Council's tax base revitalization account under section 473.252; or
new text end

new text begin (2) an area that qualifies as a soils condition district under section 469.174,
subdivision 19.
new text end

new text begin Subd. 5. new text end

new text begin Inadequate infrastructure. new text end

new text begin "Inadequate infrastructure" means any
publicly owned physical infrastructure including sanitary sewer systems, water systems,
streets, wastewater treatment and pretreatment systems, storm water management systems,
natural gas systems, and electric utility systems which are inadequate to serve either
existing or projected users in the blighted area because the system is undersized, does not
meet current design standards, or is significantly deteriorated.
new text end

new text begin Subd. 6. new text end

new text begin Market area. new text end

new text begin "Market area" means the geographic or locational
delineation of the market for a specific category of real estate.
new text end

new text begin Subd. 7. new text end

new text begin Negative market conditions. new text end

new text begin "Negative market conditions" are evidenced
by one or more of the following factors for similarly classified property: (1) market values
are lower than in the remainder of the market area, are increasing at rates materially lower
than in the remainder of the market area, or are decreasing compared to the remainder of
the market area; (2) vacancy rates are higher than in the remainder of the market area;
or (3) other comparable evidence of negative market conditions in the blighted area
compared to the market area as a whole.
new text end

new text begin Subd. 8. new text end

new text begin Public nuisance. new text end

new text begin "Public nuisance" has the meaning given in section
609.74.
new text end

new text begin Subd. 9. new text end

new text begin Structurally substandard. new text end

new text begin "Structurally substandard" means a building
that contains defects in structural elements or a combination of deficiencies in essential
utilities and facilities, light and ventilation and fire protection including adequate egress,
which significant defects or deficiencies justify substantial renovation or clearance. A
building is not structurally substandard if it is in compliance with the building code
applicable to new buildings or could be modified to satisfy the building code at a cost of
less than 20 percent of the cost of constructing a new structure of the same square footage
and type on the site. The municipality or condemning authority may find that a building is
not disqualified as structurally substandard under the previous sentence on the basis of
reasonably available evidence, such as the size, type, and age of the building, the average
cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The
municipality or the condemning authority may not make such a determination without an
interior inspection of the property, but need not have any independent, expert appraisal
prepared of the cost of repair and rehabilitation of the building. An interior inspection
of the property is not required, if the municipality finds that: (1) the municipality or
condemning authority is unable to gain access to the property after using its best efforts to
obtain permission from the party that owns or controls the property; and (2) the evidence
otherwise supports a reasonable conclusion that the building is structurally substandard.
Items of evidence that support such a conclusion include recent fire or police inspections,
on-site property tax appraisals or housing inspections, exterior evidence of deterioration,
or other similar reliable evidence. Written documentation of the findings and reasons why
an interior inspection was not conducted must be made and retained. Failure of a building
to be disqualified under the provisions of this subdivision is a necessary, but not sufficient
condition by itself, to determine that the building is substandard.
new text end

Sec. 15.

new text begin [469.403] LIMITATION ON USE OF EMINENT DOMAIN.
new text end

new text begin Subdivision 1. new text end

new text begin Limitation. new text end

new text begin Notwithstanding any other provision of law, no
condemning authority under this chapter may exercise the power of eminent domain if the
property interest to be acquired is intended to be sold, transferred, or otherwise conveyed
to a person or nongovernmental entity without the power of eminent domain, unless the
condemning authority finds that the use of eminent domain is necessary to accomplish one
or more of the purposes in subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Purposes. new text end

new text begin For purposes of carrying out the powers and authority provided
under this chapter, a condemning authority with the power of eminent domain under
this chapter may exercise that power to acquire land to accomplish one or more of the
following purposes:
new text end

new text begin (a) the possession, occupation, or enjoyment of the land by the general public or
by public agencies;
new text end

new text begin (b) to remedy a public nuisance;
new text end

new text begin (c) to carry out a program to remedy or improve an environmentally contaminated
area;
new text end

new text begin (d) to carry out a program to remedy or improve a blighted area; or
new text end

new text begin (e) to facilitate development of housing for low or moderate income persons as
defined under any federal, state, or local program.
new text end

new text begin Subd. 3. new text end

new text begin Economic development. new text end

new text begin The public benefits of economic development,
including an increase in tax base, tax revenues, employment, or general economic health,
shall not by themselves constitute a public purpose except as provided in subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Exceptions. new text end

new text begin Notwithstanding any other provision of law, a condemning
authority under this chapter may condemn property if one or more of the following forms
of financial assistance are present:
new text end

new text begin (1) a grant awarded by a state agency for economic development related purposes, if
a single business receives $200,000 or more of the grant proceeds;
new text end

new text begin (2) a grant award to local units of government or development authorities under
sections 116J.551, 116J.559, 116J.571, and 116J.8731;
new text end

new text begin (3) a loan or the guaranty or purchase of a loan made by a state agency for economic
development related purposes if a single business receives $500,000 or more of the loan
proceeds;
new text end

new text begin (4) a reduction, credit, or abatement of a tax assessed under chapter 297A or 290
where the tax reduction, credit, or abatement applies to a geographic area smaller than the
entire state and was granted for economic development related purposes; or
new text end

new text begin (5) an appropriation by the legislature to acquire or better property, in whole or in
part, with the proceeds of state general obligation bonds authorized to be issued under
article XI, section 5, clause (a) of the Minnesota Constitution.
new text end

new text begin Financial assistance does not include payments by the state of aids and credits under
chapter 273 or 477A to a political subdivision.
new text end

new text begin Subd. 5. new text end

new text begin Disclosure. new text end

new text begin All applicants must indicate on applications for financial
assistance under subdivision 4 whether the use of eminent domain may be necessary to
acquire property for the project.
new text end

Sec. 16. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 6 and 10 and 11 are effective for condemnation proceedings that
are commenced on or after August 1, 2006. Sections 7, 8, and 9 are effective for all
acquisitions in which the initial notice of eligibility is given on or after August 1,
2006. Sections 12 to 15 apply to any property that is included in a redevelopment plan
established on or after August 1, 2006.
new text end

Sec. 17. new text begin SUNSET.
new text end

new text begin Sections 14 and 15 expire January 1, 2009.
new text end