07-26-2006 Council Agenda - Laserfiche WebLink

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Mr. Joel R. Hanson July 19, 2006 Page Five (b) the loss can be reasonably prevented by relocating the business or trade in the same or a similar and reasonably suitable location as the property that was taken, or by taking steps and adopting procedures that a reasonably prudent person of a similar age and under similar conditions as the owner, would take and adopt in preserving the going concern of the business or trade; or (c) compensation for the loss of going concem will be duplicated in the compensation otherwise awarded to the owner. It appears that the owner bears the burden of proving that the business or trade is destroyed. Once that initial burden is met, the condemning authority must prove that one of the disqualifying conditions has been met. This section requires the property owner to give the condemning authority notice of intent to seek compensation for Loss of going concern within sixty days of the first court hearing. Chapter 214, Laws 2006, §11, Subd. 4., entitled "Driveway access ", provides a new claim for loss of driveway access under certain circumstances. A business owner must prove that the actions of a governmental entity permanently eliminated 51% or greater of the driveway access into and out of a business. As a result of the loss of driveway access, the revenue at the business was reduced by 51% or greater. This determination must be based on comparison of the average revenues minus the average costs of goods sold for the three years prior to the commencement of the project with the revenues minus the costs of goods sold for the year following completion of the project. This subdivision provides that the installation of a median "does not constitute elimination of driveway access." Chapter 214, Laws 2006, §12 is a new provision requiring payment of minimum compensation. This section requires that when an owner must relocate, the amount of damages payable, at a minimum, must be sufficient for an owner to purchase a comparable property in the community, and not less than the condemning authority's quick -take payment, to the extent that the damages will not be duplicated in the condemnation otherwise available awarded to the owner. This provision appears to apply to both residential and commercial property. Chapter 214, Laws 2006, §13 is a new statute which prohibits the condemning authority from requiring a property owner to accept as part of the compensation due any substitute or replacement property. This section also prevents condemning authorities from requiring an owner to accept the return of property acquired or any portion of the property. Since condemning authorities never had authority to do so, this provision does not change existing law. 9