2006.03.20 EDA Packet - Laserfiche WebLink

Home

t Background Information on the Johnson/Bakk Bill (Not necessarily intended as talking points) • Municipal eminent domain activity in Minnesota does not warrant the restrictions listed in the Johnson/Bakk bill. • The principal anti-eminent domain bill (Rep Jeff Johnson/Sen Tom Bakk) includes the following: • A condemning authority must "show by clear and convincing evidence to the district court" that an eminent domain action is necessary for blight removal, contamination remediation, abandoned property removal or removal of a public nuisance. This unnecessarily high standard of review will be costly and will put our revitalization decisions in the hands of judges instead city councils and businesses. • Abandoned property is not occupied and the owner can't be identified and contacted • Blighted areas include dilapidated buildings that are "unfit for human use" — basically, buildings that are falling down or about to fall down • Environmentally contaminated area is a parcel where 50% of its surface or subsurface area contains contaminants — a standard that is impossible to determine at the early stages of a project and is not necessarily related to the cost of remediation • For blighted areas and contaminated areas, a condemning authority can only take the blighted or contaminated parcels. No unblighted or uncontaminated parcels may be condemned unless the taking is necessary to remove the blight or contamination • Public purpose for eminent domain do not include tax base increase, job creation or general community economic health • Seller's attorney's fees must be paid by the condemning authority if the final judgement exceeds a city's last written offer by 20% • In addition to value of the real estate, a condemning authority must also pay for a business "loss of going concern" if the business can't reestablish elsewhere. The burden of proof is with the city, not the business • The condemning authority is responsible to provide compensation that "at a minimum must be sufficient for an owner to purchase a similar house or building or equivalent size in the community" The bottom line is that this bill dramatically reduces when and where an eminent domain action may occur and also dramatically increases the cost of eminent domain actions. This bill will make redevelopment projects significantly harder to do, and will certainly contribute to an increase in blighted, deteriorated and contaminated properties in the Metro Area. Association of Metropolitan Municipalities and the League of Minnesota Cities 145 University Avenue West, St.Paul,MN 55103-2044 AMM: 651-215-4000 LMC: 651-281-1200