07-26-2006 Council Agenda - Laserfiche WebLink

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Mr. Joel R. Hanson July 19, 2006 Page Six Chapter 214, Laws 2006, §15, entitled "Right of First Refusal," requires that when the condemning authority determines that the property acquired has not been used and is no longer needed for a public use, the authority must offer to resell the property to the original owner from whom it was acquired. The price must be at the lower of current market value or the original price in the condemnation process, except when a different value is required for property acquired with federal highway funds. The Commissioner of Administration or Natural Resources must offer surplus property to the former owner under this section, before the property can be offered to local governments or be offered for public sale. It appears that this may apply to any surplus property, whether it was acquired by eminent domain or not. If the former owner cannot be located, the attorney for the condemning authority can file a certificate in the land records to evidence the termination of the right of first refusal. This certificate is only prima facie evidence that the right of first refusal has terminated. This provision applies to the disposition of property that is acquired by an action commenced on or after May 20, 2006. Chapter 214, Laws 2006, §8 increases the maximum on business establishment costs from $10,000.00 to $50,000.00. Chapter 214, Laws 2006, §19 is a new provision that requires an acquiring authority to initiate contested case proceedings before an administrative law judge, if a person entitled to relocation benefits does not accept the authority's offer. The decision of the administrative law judge is a final decision. The acquiring authority must pay all costs of the proceeding, including charges billed by the office of administrative hearings. Chapter 214, Laws 2006, §10, entitled "Compensation for Removal of Legal Nonconforming Use," may restrict local zoning authorities in their exercise of normal zoning review. This section provides that an ordinance of a political subdivision that requires removal of a legal nonconforming use as a prerequisite for the issuance of a permit, license, or other approval for any use, structure, development or activity would constitute a taking, which is prohibited without payment of just compensation. This section does not apply if the approval that is requested is for construction of a building that cannot be built without physically moving the nonconforming use. This section applies to all actions occurring on of after May 20, 2006, if the action requires removal of a nonconforming legal use. Chapter 214, Laws 2006, §22 (a) provides that the new law is effective the day following final enactment, which is May 20, 2006, and applies to all actions commenced after that date. An "action" is a condemnation proceeding and "commence" means when service of the Notice of Petition is made. There are a number of exceptions to the effective date provision. If anyone has any specific questions in this regard, we will need to review the facts relating to the specific project and review the applicable statutory provision relating thereto. -10-