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` CITY OF LAKE All ELMO March 20, 1990 City of Lake Elmo Mr. Timothy K. Scherkenbach Director, Division of Water Quality Minnesota Pollution Control Agency 520 Lafayette Road Saint Paul, Minnesota 55155 Re: Treatment Works Grant C27-1411 02, Step 2+3 Lake Elmo, Minnesota Dear Mr. Scherkenbach: 777-5510 3800 Laverne Avenue North / Lake Elmo, Minnesota 55042 The purpose of this letter is to provide justification and documentation of those costs for land and related acquisition costs resulting from the appeal and judgment on Site D, Lake Elmo, Minnesota, for the above referenced project and grant. The specific issues to be addressed were outlined in your letter to the City dated February 9, 1990, and further clarified in a letter from the City to you dated February 16, 1990. A. Justification and verification of all costs relating to land acquisition including documentation of these costs for an eligibility determination: 1. Land Costs The overriding principle of law that governs the taking of land is that just compensation must be made to the owner. This is required in both the State and Federal constitutions. The Federal law is codified in the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. Section 4655 of the Act states that in acquiring real property, it (the governmental unit) will be guided to the greatest extend practicable under State law. In Minnesota, that guidance is Minnesota Statutes, Chapter 117, Eminent Domain, for it is State law which grants eminent domain authority to cities, not Federal law. Two procedures are established to determine just compensation: negotiation pursuant to 40 CFR Ch. 1, Sec. 4.101 et seq., or exercise of powers of eminent domain. In the case of Site D, the owner would not negotiate in good faith; therefore, condemnation was the only procedure available to establish just compensation for the land. In condemnation, either party has the right to appeal the award. In this case, because the owner appealed the condemnation conunission's award, the jury was given the authority and responsibility to determine just compensation. The City followed the procedure prescribed by law to the letter. Your attention is directed to the following Chapter 117 paragraphs, copies of which are included for your reference: