2006.03.20 EDA Packet - Laserfiche WebLink

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• Prohibits use of eminent domain for economic development, except when the project is funded by the State. The proposed bill would prohibit the use of eminent domain solely for economic development purposes, such as increasing tax base or employment,unless State financial assistance is involved. • Specifies the purposes for which a city or other acquiring authority may exercise eminent domain under State redevelopment and economic development laws. The proposal lists several purposes that would justify the use of eminent domain, including: public ownership or use;removing a public nuisance;remedying or improving an environmentally contaminated area;remedying or improving a blighted area;or building affordable housing. • Provides clearer, more objective, and reasonable criteria for determining "blight." This proposal would improve on current law by providing a more rigorous test for determining the existence of a "blighted area" for the purposes of eminent domain. If the legislature adopted this more objective standard, there would be no rationale for the heightened standard of court review in redevelopment cases included in the IRMADA bill. Strengthens accountability by improving the land acquisition process The local government proposal also makes changes to general eminent domain law(Chapter 117)to provide a more transparent and predictable process for property owners. Specifically,the bill: • Requires uniform appraisal and negotiation requirements for all acquisitions.Under current law, the appraisal and negotiation requirements in 117.036 apply only to acquisitions for transportation purposes. This proposal would extend these requirements to all acquisitions.For example,the bill would require that the acquiring authority obtain an appraisal of the property; allow property owners to obtain an independent appraisal and be reimbursed by the acquiring authority;and require the acquiring authority to share its appraisal with the property owner before initiating condemnation proceedings. • Establishes a definitive timeframe for individuals to appeal the public purpose of any eminent domain acquisition, and allows a court to award attorney fees to a property owner if the court finds that the acquisition is not for a public purpose.The proposal provides that a court order approving the public purpose,necessity,and authority for an eminent domain acquisition is final unless an appeal is brought within 60 days. Establishing a definitive timeframe for appeal of an order creates a more predictable process for all concerned parties. If the court finds that the acquisition is not for a public purpose, then the court may award attorney fees to the property owner. • Requires an acquiring authority to offer to sell the property to the previous owner, if a determination is made that property acquired by eminent domain has not been used and is no longer needed for a public purpose.In rare cases where the acquiring authority determines that publicly owned property acquired by eminent domain is no longer needed for the purpose for which it was originally acquired,the acquiring authority must offer to sell the property to the prior owner. This requirement would not apply if the acquiring authority has an alternative use for the property and it would remain in public ownership. • Enhances public notice and hearing requirements for acquisitions for redevelopment and economic development purposes. The bill would provide greater opportunities for public input on a proposed acquisition through a uniform public notice and hearing process.It would also require adoption of a resolution that responds to comments made at the public hearing and articulates how the acquisition serves one or more identified public purposes. • Better recognizes property owners' costs.The bill would provide additional reimbursement for certain appraisals. It would also require reimbursement for up to$50,000 in re-establishinent expenses for displaced business owners who qualify under the Federal Uniform Relocation Act. This additional reimbursement would provide further help to business owners to successfully re-establish their businesses.