Agenda Packets - 2005/02/07 - Laserfiche WebLink

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Exhibit C Page 2 beyond the power of government, (e) the governmental authority seeks to take property from another governmental authority with a superior governmental purpose. A court may also overturn a project if the land being taken is not necessary for the public purpose. But the term necessary implies a higher standard than actually exists, for a court will not overturn a public necessity finding unless the governmental authority's determination is wholly without merit. In a recent case, for example, the Minnesota appellate courts refused to allow the University of Minnesota to take land to stockpile it for a future project remote in the future not yet approved. Quick-Take Usually the condemning authority gets title to the property after the filing of a commissioner's award. But if the condemning authority needs the property immediately, it may certify the property for quick-take by giving 90 days notice. Prior to taking title, it must deposit in court (or pay to the owner) an amount equal to the certified appraisal obtained by the governmental authority. If the owner is dissatisfied with this amount, it follows the regular procedure to establish the market value. Commissioners' Hearing The first step in the valuation process is to obtain a market valuation determination by Commissioners appointed by the Judge. The judge appoints three disinterested commissioners, and at least two alternates, residents of the county, to ascertain and report the amount of damages that will be sustained by the several owners on account of such taking. Either party may nominate commissioners to serve in this capacity. The Commissioners then conduct a hearing, or hearings. They listen to evidence, including appraisal evidence, presented by the condemning authority and the property owners. They then issue an award based upon the fair market value of the property. They may also award the landowner up to $500 for appraisal fees. Commissioners usually issue their award quite promptly, but by statute they must ordinarily make an award within 90s of their appointment. Appeal of Commissioners' Award The Condemnation statute provides for appeal to the court for a jury trial appeal de novo of the Commissioner's award. If an appeal is filed, the statute provides for partial payment of the Commissioner's award at once, so that the landowner will have at least partial compensation for the taking at once, since the governmental authority may take title upon issuance of the Commissioner's award. By trial de novo, we mean that the jury gets to decide the valuation all over again afresh. It may raise the award or lower it. The jury's ultimate verdict is likewise appealable to the Minnesota Court of Appeals. What Must the Landowner be Paid? The landowner is entitled to "just compensation," the fair market value of the property taken. What does this mean? Suppose for example that the condemning authority decides to take 40 acres of unimproved land. The compensation would be determined by the land's fair market value: the price that a willing buyer (that is under no special compulsion to buy would pay a willing seller (that is under no special compulsion to sell). This value is determined through an appraisal process in which the appraiser compares the condemned property to comparable properties which have been sold. The appraiser adjusts these comparable sales to account for differences between the condemned property and the comparables.