01-08-2025 Workshop Packet - Laserfiche WebLink

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HED-15 EMINENT DOMAIN The Legislature has not granted TIF rulemaking authority to the State Auditor and the audit powers granted by statute are not an appropriate vehicle for making administrative or legislative changes to TIF statutes. If the State Auditor is to exercise rulemaking authority, the administrative power to do so must be granted explicitly by the Legislature. The audit enforcement process does not create a level playing field for cities to challenge the Auditor’s interpretation of statutes. The Legislature should provide a process through which to resolve disputes over TIF policy that is fair to all parties; •Clarify the use of TIF when a sale occurs after the closing of a district; •Revise the substandard building test to simplify, resolve ambiguities and reduce continued threat of litigation; and •Amend TIF statutes to address, through extending districts or other mechanisms, shortfalls related to declining market values. Significant statutory restrictions on the use of eminent domain have resulted in higher public costs for traditional public use projects like streets, parks, and sewers, and have all but restricted the use of eminent domain for redevelopment to cases of extreme blight or contamination. The proper operation and long-term economic vitality of our cities is dependent on the ability of a city, its citizens, and its businesses to continually reinvest and reinvent. Reinvestment and reinvention strategies can occasionally conflict with the priorities of individual residents or business owners. Eminent domain is a critical tool in the reinvestment and reinvention process and without it our cities may deteriorate to unprecedented levels before the public reacts. Metro Cities strongly encourages the Governor and Legislature to revisit eminent domain laws to allow local governments to address redevelopment problems before those conditions become financially impossible to address. Specifically, Metro Cities supports: •Clarifying contamination standards; •Developing different standards for redevelopment to include obsolete structures or to reflect the deterioration conditions that currently exist in the metropolitan area; •Allowing for the assembly of multiple parcels for redevelopment projects; 55