07-26-2006 Council Agenda - Laserfiche WebLink

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Mr. Joel R. Hanson July 19, 2006 Page Four Chapter 214, Laws 2006, added several new requirements related to compensation and recovery of costs that will increase the costs of all eminent domain proceedings, including redevelopment projects and projects for traditional public uses, such as sewers and roads. Chapter 214, Laws 2006, §5 applies the appraisal and negotiation requirements of Minn. Stat. §117.036 to all acquisitions. The new law requires the exchange of appraisals and provides that an appraisal is admissible only if provided in a timely fashion. The new law retains the current $1,500.00 appraisal reimbursement cap for residential property, but increases the cap to $5,000.00 for other types of property. Documentation relating to a loss of going concern is admissible in a condemnation hearing only if documentation is provided to the opposing party at least 14 days before the hearing. Chapter 214, Laws 2006, §4 relates to attorney fees. If a court determines that a taking is not for a public use, the court must award the property owner reasonable attorney fees and other related expenses, fees and costs. If the final judgment or award for damages, as determined at any level in the eminent domain process, is more than 40% greater than the last written offer made by the authority prior to filing the petition, the Court must award reasonable attorney fees, litigation expenses, appraisal fees, other experts fees, and other related costs. If the final judgment or award for damages, as determined at any level in the eminent domain proceedings, is at least 20 %, but not more than 40 %, greater than the last written offer made by the authority prior to filing the petition, the court may award reasonable attorney fees, litigation expenses, appraisal fees, other experts fees, and other related costs. This section provides that, for the purposes of determining the entitlement to attomey fees, the final award does not include compensation for loss of going concern, unless it was included in the last written offer made by the condemning authority before filing the petition. Lastly, this section prohibits an award of attorney fees if the final judgment or award is less than $25,000.00. Chapter 214, Laws 2006, §11 provides for a new claim for loss of going concern under certain circumstances. If a business or trade is destroyed by the taking, the owners shall be compensated for loss of going concern, unless the condemning authority establishes any of the following by preponderance of the evidence: (a) the loss is not caused by the taking of the property or the injury to the remainder; -8