SF 2750

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to eminent domain; defining public use or purpose; prohibiting the use
of eminent domain for economic development; requiring clear and convincing
evidence for certain takings; providing for attorney fees and other additional
elements of compensation; making other changes in the exercise of eminent
domain; amending Minnesota Statutes 2004, sections 117.025; 117.036; 117.055;
117.075, subdivision 1, by adding a subdivision; 117.085; 117.51; 117.52,
subdivision 1, by adding a subdivision; 163.12, subdivisions 1a, 1b; 469.012,
subdivision 1g; proposing coding for new law in Minnesota Statutes, chapter 117.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [117.012] PREEMPTION; NO IMPLIED AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Preemption. new text end

new text begin Notwithstanding any other provision of law, including
any charter provision, ordinance, statute, or special law, all condemning authorities,
including home rule charter cities and all other political subdivisions of the state, must
exercise the power of eminent domain in accordance with the provisions of this chapter,
including all procedures, definitions, remedies, and limitations. Additional procedures,
remedies, or limitations that do not deny or diminish the substantive and procedural rights
and protections of owners under this chapter may be provided by other law, ordinance,
or charter.
new text end

new text begin Subd. 2. new text end

new text begin No implied authority. new text end

new text begin The power of eminent domain shall not be implied.
In order to exercise the power of eminent domain, the condemning authority must have an
express grant of eminent domain authority.
new text end

Sec. 2.

Minnesota Statutes 2004, section 117.025, is amended to read:

117.025 DEFINITIONS.

Subdivision 1.

Words, terms, and phrases.

deleted text begin Unless the language or context clearly
indicates that a different meaning is intended, deleted text end new text begin For the purposes of this chapter and any
other general or special law authorizing the exercise of the power of eminent domain, new text end the
words, terms, and phrases defined in this section have the meanings given them.

Subd. 2.

Taking.

new text begin " new text end Taking new text begin " new text end and all words and phrases of like import include every
interference, under the right of eminent domain, with the possession, enjoyment, or value
of private property.

Subd. 3.

Owner.

"Owner" includes all persons deleted text begin interested in such deleted text end new text begin with any interest
in the new text end property new text begin subject to a taking, whether new text end as proprietors, tenants, life estate holders,
encumbrancers, new text begin beneficial interest holders, new text end or otherwise.

new text begin Subd. 4. new text end

new text begin Condemning authority. new text end

new text begin "Condemning authority" means a person or
entity with the power of eminent domain.
new text end

new text begin Subd. 5. new text end

new text begin Abandoned property. new text end

new text begin "Abandoned property" means property not
occupied by a person with a legal or equitable right to occupy the property and for which
the condemning authority is unable to identify and contact the owner despite making
reasonable efforts.
new text end

new text begin Subd. 6. new text end

new text begin Blighted area. new text end

new text begin "Blighted area" means an area:
new text end

new text begin (1) that is zoned and used for urban use; and
new text end

new text begin (2) where more than 50 percent of the buildings are dilapidated.
new text end

new text begin Subd. 7. new text end

new text begin Dilapidated building. new text end

new text begin "Dilapidated building" means a building:
new text end

new text begin (1) that was inspected by the appropriate local government and cited for one or more
building code violations at least 12 months before the condemnation is commenced;
new text end

new text begin (2) in which the building code violations cited have not been remedied, as
determined by at least one reinspection that finds noncompliance after the due date for
compliance with an order to correct a building code violation; and
new text end

new text begin (3) that, as of the date the condemnation is commenced, is unfit for human use
because it is unsafe, structurally unsound, or lacking in basic equipment.
new text end

new text begin Subd. 8. new text end

new text begin Environmentally contaminated area. new text end

new text begin "Environmentally contaminated
area" means an area:
new text end

new text begin (1) that contains, on or below more than 50 percent of its surface area, any substance
defined, regulated, or listed as a hazardous substance, hazardous material, hazardous
waste, toxic waste, pollutant, contaminant, or toxic substance, or identified as hazardous to
human health or the environment under state or federal law or regulation; and
new text end

new text begin (2) for which the costs of investigation, monitoring and testing, and remedial action
or removal, as defined in section 115B.02, subdivisions 16 and 17, respectively, including
any state costs of remedial actions, exceed 100 percent of the assessor's estimated market
value for the contaminated area, as determined under section 273.11, for property taxes
payable in the year in which the condemnation commenced.
new text end

new text begin Subd. 9. new text end

new text begin Public nuisance. new text end

new text begin "Public nuisance" means a public nuisance under
section 609.74.
new text end

new text begin Subd. 10. new text end

new text begin Public service corporation. new text end

new text begin "Public service corporation" means a
utility, as defined by section 116C.52, subdivision 10; gas, electric, telephone, or cable
communications company; cooperative association; natural gas pipeline company; crude
oil, or petroleum products pipeline company; municipal utility; municipality when
operating its municipally owned utilities; or municipal power agency. Public service
corporation also means a municipality or public corporation when operating an airport
under chapter 360 or 473, a common carrier, a watershed district, or a drainage authority.
new text end

new text begin Subd. 11. new text end

new text begin Public use; public purpose. new text end

new text begin (a) "Public use" or "public purpose" means,
exclusively:
new text end

new text begin (1) the possession, occupation, ownership, and enjoyment of the land by the general
public, or by public agencies;
new text end

new text begin (2) the creation or functioning of a public service corporation; or
new text end

new text begin (3) mitigation of a blighted area, remediation of an environmentally contaminated
area, reduction of abandoned property, or removal of a public nuisance.
new text end

new text begin (b) The public benefits of economic development, including an increase in tax base,
tax revenues, employment, or general economic health, do not by themselves constitute
a public use or public purpose.
new text end

Sec. 3.

new text begin [117.027] CONDEMNATION FOR BLIGHT MITIGATION AND
CONTAMINATION REMEDIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Nondilapidated buildings in areas of blight mitigation; absolute
necessity. new text end

new text begin In taking property to mitigate blight, a condemning authority must not take
nondilapidated buildings in the area unless it is absolutely necessary in order to remove
the dilapidated buildings.
new text end

new text begin Subd. 2. new text end

new text begin Uncontaminated property in environmental contamination
remediation areas; absolute necessity. new text end

new text begin In taking property to remediate environmental
contamination, a condemning authority must not take uncontaminated parcels in the area
unless it is absolutely necessary in order to complete remediation of the contaminated area.
new text end

new text begin Subd. 3. new text end

new text begin Contribution to condition by developer disallowed. new text end

new text begin If a developer
involved in the redevelopment of the project area contributed to the blight or environmental
contamination within the project area, the condition contributed to by the developer must
not be used in the determination of blight or environmental contamination.
new text end

Sec. 4.

Minnesota Statutes 2004, section 117.036, is amended to read:

117.036 APPRAISAL AND NEGOTIATION REQUIREMENTS
deleted text begin APPLICABLE TO ACQUISITION OF PROPERTY FOR TRANSPORTATION
PURPOSES deleted text end .

Subdivision 1.

Application.

This section applies to the acquisition of property
deleted text begin for public highways, streets, roads, alleys, airports, mass transit facilities, or for other
transportation facilities or purposes deleted text end new text begin under this chapter new text end .

Subd. 2.

Appraisal.

(a) Before commencing an eminent domain proceeding under
this chapter, the acquiring authority must obtain at least one appraisal for the property
proposed to be acquired. In making the appraisal, the appraiser must confer with one or
more of the new text begin fee new text end owners new text begin or contract purchasers new text end of the property, if reasonably possible. deleted text begin At
least 20 deleted text end new text begin The acquiring authority must provide the fee owner or contract purchaser with
a copy of the appraisal at the time an offer is made, but no later than 60 new text end days before
presenting a petition under section 117.055, deleted text begin the acquiring authority must provide the
owner with a copy of the appraisal deleted text end and inform the deleted text begin owner of the owner's deleted text end new text begin fee owner or
contract purchaser of the new text end right to obtain an appraisal under this section. new text begin Upon request,
the acquiring authority must make available to the fee owner or contract purchaser all
appraisals of the property. new text end

(b) The new text begin fee new text end owner new text begin or contract purchaser new text end may obtain an appraisal by a qualified
appraiser of the property proposed to be acquired. The new text begin fee new text end owner new text begin or contract purchaser
new text end is entitled to reimbursement for the reasonable costs of the appraisal from the acquiring
authority up to a maximum of $1,500 deleted text begin within 30 days after the deleted text end new text begin for single family and
two-family residential property, agricultural property, and minimum damage acquisitions
and $5,000 for other types of property, provided that the fee new text end owner new text begin or contract purchaser
new text end submits to the acquiring authority the information necessary for reimbursement, deleted text begin provided
that the owner does so deleted text end new text begin including a copy of the fee owner's or contract purchaser's
appraisal, new text end within deleted text begin 60 deleted text end new text begin 90 new text end days after deleted text begin the owner receives deleted text end new text begin receiving new text end the appraisal from the
authority under paragraph (a) new text begin and at least five days before a condemnation commissioners'
hearing. For purposes of this paragraph, a "minimum damage acquisition" means an
interest in property that a qualified person with appraisal knowledge indicates can be
acquired for a cost of $10,000 or less. For purposes of this paragraph, "agricultural
property" has the meaning given in section 583.22, subdivision 2.
new text end

new text begin (c) The acquiring authority must pay the reimbursement to the fee owner or contract
purchaser within 30 days after receiving a copy of the appraisal and the reimbursement
information. Upon agreement between the acquiring authority and either the fee owner
or contract purchaser, the acquiring authority may pay the reimbursement directly to
the appraiser new text end .

Subd. 3.

Negotiation.

In addition to the appraisal requirements under subdivision 2,
before commencing an eminent domain proceeding, the acquiring authority must make a
good faith attempt to negotiate personally with the new text begin fee new text end owner new text begin or contract purchaser new text end of the
property in order to acquire the property by direct purchase instead of the use of eminent
domain proceedings. In making this negotiation, the acquiring authority must consider
the appraisals in its possession new text begin , including any appraisal obtained and furnished by the fee
owner or contract purchaser if available, new text end and other information that may be relevant to a
determination of damages under this chapter.

new text begin Subd. 4. new text end

new text begin Use of appraisal at commissioners' hearing. new text end

new text begin An appraisal must not be
used or considered in a condemnation commissioners' hearing, nor may the appraiser who
prepared the appraisal testify, unless a copy of the appraiser's written report is provided to
the opposing party at least five days before the hearing.
new text end

Sec. 5.

new text begin [117.0412] LOCAL GOVERNMENT PUBLIC HEARING
REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section:
new text end

new text begin (1) "local government" means the elected governing body of a statutory or home
rule charter city, county, or township; and
new text end

new text begin (2) "local government agency" means a subdivision, agency, authority, or other entity
of the local government, including a port authority, economic development authority,
housing and redevelopment authority, or other similar entity established under law.
new text end

new text begin Subd. 2. new text end

new text begin Public hearing; vote by local government governing body. new text end

new text begin (a) Before a
local government or local government agency commences an eminent domain proceeding
under section 117.055, a public hearing must be held as provided in this section. The local
government must notify each owner of property that may be acquired in writing of the
public hearing on the proposed taking, post the public hearing information on the local
government's Web site, if any, and publish notice of the public hearing in a newspaper
of general circulation in the local government's jurisdiction. Notice must be provided at
least 30 days but not more than 60 days before the hearing.
new text end

new text begin (b) Any interested person must be allowed reasonable time to present relevant
testimony at the public hearing. The proceedings of the hearing must be recorded and
available to the public for review and comment at reasonable times and a reasonable place.
At the next regular meeting of the local government that is at least 30 days after the public
hearing, the local government must vote on the question of whether to authorize the local
government or local government agency to use eminent domain to acquire the property.
new text end

new text begin Subd. 3. new text end

new text begin Resolution. new text end

new text begin If the taking is for the mitigation of a blighted area,
remediation of an environmentally contaminated area, reducing abandoned property, or
removing a public nuisance, then the resolution of a local government or local government
agency authorizing the use of eminent domain must:
new text end

new text begin (1) identify and describe the public costs and benefits that are known or expected
to result from the program or project for which the property interest is proposed to be
acquired; and
new text end

new text begin (2) address how the acquisition of the property interest serves one or more identified
public purposes and why the acquisition of the property is reasonably necessary to
accomplish those purposes.
new text end

Sec. 6.

Minnesota Statutes 2004, section 117.055, is amended to read:

117.055 PETITION AND NOTICE.

new text begin Subdivision 1. new text end

new text begin Petition. new text end

In all cases a petition, describing the desired land, stating by
whom and for what purposes it is proposed to be taken, and giving the names of all persons
appearing of record or known to the petitioner to be the owners thereof shall be presented
to the district court of the county in which the land is situated praying for the appointment
of commissioners to appraise the damages which may be occasioned by such taking.

new text begin Subd. 2. new text end

new text begin Notice. new text end

new text begin (a) new text end Notice of the objects of the petition and of the time and place of
presenting the same shall be served at least 20 days before such time of presentation upon
all persons named in the petition as owners as defined in section 117.025, subdivision 3,
and upon all occupants of such land in the same manner as a summons in a civil action.

new text begin (b) The notice must state that:
new text end

new text begin (1) a party wishing to challenge the public purpose, necessity, or authority for a
taking must appear at the court hearing and state the objection; and
new text end

new text begin (2) a court order approving the public purpose, necessity, and authority for the taking
is final unless an appeal is brought within 60 days after service of the order on the party.
new text end

new text begin (c) new text end If any such owner be not a resident of the state, or the owner's place of residence
be unknown to the petitioner, upon the filing of an affidavit of the petitioner or the
petitioner's agent or attorney, stating that the petitioner believes that such owner is not
a resident of the state, and that the petitioner has mailed a copy of the notice to the
owner at the owner's place of residence, or that after diligent inquiry the owner's place
of residence cannot be ascertained by the affiant, then service may be made upon such
owner by three weeks' published notice. If the state be an owner, the notice shall be
served upon the attorney general. Any owner not served as herein provided shall not be
bound by such proceeding except upon voluntarily appearing therein. Any owner shall
be furnished a right-of-way map or plat of all that part of land to be taken upon written
demand, provided that the petitioner shall have ten days from the receipt of the demand
within which to furnish the same. Any plans or profiles which the petitioner has shall be
made available to the owner for inspection.

Sec. 7.

Minnesota Statutes 2004, section 117.075, subdivision 1, is amended to read:

Subdivision 1.

Hearing on taking new text begin ; evidentiary standard new text end .

new text begin (a) new text end Upon proof being
filed of the service of such notice, the court, at the time and place therein fixed or to which
the hearing may be adjourned, shall hear all competent evidence offered for or against the
granting of the petition, regulating the order of proof as it may deem best.

new text begin (b) If the taking is for the mitigation of a blighted area, remediation of an
environmentally contaminated area, reducing abandoned property, or removing a
public nuisance, then, notwithstanding any other provision of general or special law, a
condemning authority must show by preponderance of the evidence that the taking is
necessary and for the designated public use.
new text end

new text begin (c) A court order approving the public purpose, necessity, and authority for the taking
is final unless an appeal is brought within 60 days after service of the order on the party.
new text end

Sec. 8.

Minnesota Statutes 2004, section 117.075, is amended by adding a subdivision
to read:

new text begin Subd. 1b. new text end

new text begin Attorney fees. new text end

new text begin If the court determines that a taking is not for a public
purpose or is unlawful, the court shall award the owner reasonable attorney fees and other
related expenses, fees, and costs.
new text end

Sec. 9.

Minnesota Statutes 2004, section 117.085, is amended to read:

117.085 COMMISSIONERS, POWERS, DUTIES.

The commissioners, having been duly sworn and qualified according to law, shall
meet as directed by the order of appointment and hear the allegations and proofs of all
persons interested touching the matters to them committed. They may adjourn from time
to time and from place to place within the county, giving oral notice to those present of
the time and place of their next meeting. All testimony taken by them shall be given
publicly, under oath, and in their presence. They shall view the premises, and any of
them may subpoena witnesses, which shall be served as subpoenas in civil actions are
served, and at the cost of the parties applying therefor. If deemed necessary, they may
require the petitioner or owner to furnish for their use maps, plats, and other information
which the petitioner or owner may have showing the nature, character, and extent of the
proposed undertaking and the situation of lands desired therefor. In proper cases they may
reserve to the owner a right-of-way or other privilege in or over the land taken, or attach
reasonable conditions to such taking in addition to the damages given or they may make
an alternative award, conditioned upon the granting or withholding of the right specified.
Without unreasonable delay they shall make a separate assessment and award of the
damages which in their judgment will result to each of the owners of the land by reason
of such taking and report the same to the court. The commissioners shall not reduce the
amount of the damages awarded because the land being taken is, at the time of the taking,
valued under section 273.111, designated as an agricultural preserve under chapter 473H.
The commissioners, in all such proceedings, may in their discretion allow and show
separately in addition to the award of damages, reasonable appraisal fees not to exceed a
total of deleted text begin $500 deleted text end new text begin $1,500 for single family and two-family residential property, agricultural
property, and minimum damage acquisitions and $5,000 for other types of property new text end . Upon
request of an owner the commissioners shall show in their report the amount of the award
of damages which is to reimburse the owner and tenant or lessee for the value of the land
taken, and the amount of the award of damages, if any, which is to reimburse the owner
and tenant or lessee for damages to the remainder involved, whether or not described in
the petition. The amounts awarded to each person shall also be shown separately. The
commissioners shall, if requested by any party, make an express finding of the estimated
cost of removal and remedial actions that will be necessary on the taken property because
of existing environmental contamination.

Sec. 10.

new text begin [117.184] COMPENSATION FOR REMOVAL OF LEGAL
NONCONFORMING USE.
new text end

new text begin Notwithstanding any law to the contrary, an ordinance or regulation of a political
subdivision of the state or local zoning authority that requires the removal of a legal
nonconforming use as a condition or prerequisite for the issuance of a permit, license, or
other approval for any use, structure, development, or activity constitutes a taking and
is prohibited without the payment of just compensation. This section does not apply if
the permit, license, or other approval is requested for the construction of a building or
structure that cannot be built without physically moving the nonconforming use.
new text end

Sec. 11.

new text begin [117.186] COMPENSATION FOR LOSS OF GOING CONCERN.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section:
new text end

new text begin (1) "going concern" means the benefits that accrue to a business or trade as a result
of its location, reputation for dependability, skill or quality, customer base, good will, or
any other circumstances resulting in the probable retention of old or acquisition of new
patronage; and
new text end

new text begin (2) "owner" has the meaning given in section 117.025 and includes a lessee who
operates a business on real property that is the subject of an eminent domain proceeding.
new text end

new text begin Subd. 2. new text end

new text begin Compensation. new text end

new text begin In all eminent domain proceedings, the owner of a business
or trade must be compensated for the loss of a going concern if the owner establishes that:
new text end

new text begin (1) the business or trade has been destroyed as a result of the taking;
new text end

new text begin (2) the loss cannot be reasonably prevented by relocating the business or trade in the
same or a similar and reasonably suitable location as the property that was taken, or by
taking steps and adopting procedures that a reasonably prudent person of a similar age
and under similar conditions as the owner would take and adopt in preserving the going
concern of the business or trade; and
new text end

new text begin (3) compensation for the loss of going concern will not be duplicated in the
compensation otherwise awarded to the owner of the business or trade.
new text end

new text begin Subd. 3. new text end

new text begin Procedure. new text end

new text begin In all cases where an owner seeks compensation for loss
of a going concern, the court must determine, upon motion by the owner, whether the
going concern has been taken. If the court determines that there is a taking of the going
concern, any damages must be determined by the commissioners under section 117.105
and must be reported in the award of the commissioners separate from the award of just
compensation for the real property taken. An award for loss of going concern may be
appealed by any party in accordance with section 117.145.
new text end

Sec. 12.

new text begin [117.187] MINIMUM COMPENSATION.
new text end

new text begin When an owner must relocate, the amount of damages payable, at a minimum, must
be sufficient for an owner to purchase a similar house or building of equivalent size in
the community and not less than the condemning authority's payment or deposit under
section 117.042.
new text end

Sec. 13.

new text begin [117.188] LIMITATIONS.
new text end

new text begin The condemning authority must not require the owner to accept as part of the
compensation due any substitute or replacement property. The condemning authority must
not require the owner to accept the return of property acquired or any portion thereof.
new text end

Sec. 14.

new text begin [117.189] PUBLIC SERVICE CORPORATION EXCEPTIONS.
new text end

new text begin Sections 117.036; 117.055, subdivision 2, paragraph (b); 117.075, subdivision 1b;
117.186; 117.187; 117.188; and 117.52, subdivision 1a, do not apply to public service
corporations. For purposes of an award of appraisal fees under section 117.085, the fees
awarded may not exceed $500 for all types of property.
new text end

Sec. 15.

new text begin [117.196] ATTORNEY FEES.
new text end

new text begin If the final judgment or award of damages is at least 20 percent greater than the last
written offer of compensation made by the condemning authority before the filing of the
petition, the court may award the owner reasonable attorney fees and costs in addition to
other compensation and fees authorized by this chapter.
new text end

Sec. 16.

Minnesota Statutes 2004, section 117.51, is amended to read:

117.51 COOPERATION WITH FEDERAL AUTHORITIES.

In all acquisitions undertaken by any acquiring authority and in all voluntary
rehabilitation carried out by a person pursuant to acquisition or as a consequence thereof,
the acquiring authority shall cooperate to the fullest extent with federal departments and
agencies, and it shall take all necessary action in order to insure, to the maximum extent
possible, federal financial participation in any and all phases of acquisition, including the
provision of relocation assistance, services, payments and benefits to displaced persons.
deleted text begin An acquiring authority may consider reimbursing up to $50,000 in reestablishment
expenses of a displaced business.
deleted text end

Sec. 17.

Minnesota Statutes 2004, section 117.52, subdivision 1, is amended to read:

Subdivision 1.

Lack of federal funding.

In all acquisitions undertaken by any
acquiring authority and in all voluntary rehabilitation carried out by a person pursuant
to acquisition or as a consequence thereof, in which, due to the lack of federal financial
participation, relocation assistance, services, payments and benefits under the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970, United States
Code, title 42, sections 4601 to 4655, as amended by the Surface Transportation and
Uniform Relocation Assistance Act of 1987, Statutes at Large, volume 101, pages 246
to 256 (1987), are not available, the acquiring authority, as a cost of acquisition, shall
provide all relocation assistance, services, payments and benefits required by the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended by
the Surface Transportation and Uniform Relocation Assistance Act of 1987, and those
regulations adopted pursuant thereto, and either (1) in effect as of deleted text begin July 1, 1988 deleted text end new text begin January 1,
2006 new text end , or (2) becoming effective after deleted text begin July 1, 1988 deleted text end new text begin January 1, 2006 new text end , following a public
hearing and comment. Comments received by an acquiring authority within 30 days after
the public hearing must be reviewed and a written response provided to the individual or
organization who initiated the comment. The response and comments may be addressed in
another public hearing by the acquiring authority before approval.

Sec. 18.

Minnesota Statutes 2004, section 117.52, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Reestablishment costs limit. new text end

new text begin For purposes of relocation benefits paid by
the acquiring authority in accordance with this section, the provisions of Code of Federal
Regulations, title 49, section 24.304, with respect to reimbursement of reestablishment
expenses for nonresidential moves are applicable, except that the acquiring authority shall
reimburse the displaced business for expenses actually incurred up to a maximum of
$50,000.
new text end

Sec. 19.

Minnesota Statutes 2004, section 163.12, subdivision 1a, is amended to read:

Subd. 1a.

Petition, notice, and access to information.

(a) Upon passage of the
resolution specified in section 163.11, subdivision 2, a petition must be presented to the
district court of the county in which the land is located. The petition must describe each
tract of land through which the highway passes, state the purposes for which the land is
proposed to be taken, and list the names of all persons appearing of record or known to
the county to be the landowners.

(b) Notice of the objects of the petition and of the time and place of presenting the
notice must be served, together with a copy of the resolution, upon each occupant of
each tract of land through which the highway passes at least 20 days before the hearing
under subdivision 1b. If an owner is not a resident of the state, or the owner's place of
residence is unknown to the county, service may be made by three weeks' published
notice following the filing of an affidavit on behalf of the county by the county's agent or
attorney stating that the county:

(1) believes that the owner is not a resident of the state; and

(2) has either mailed a copy of the notice to the owner at the owner's last known
residence address or, after diligent inquiry, the owner's place of residence cannot be
ascertained by the county.

If the state is an owner, the notice must be served upon the attorney general. An owner
not served as provided in this subdivision is not bound by the proceeding, except if the
owner voluntarily appears in the proceeding.

(c) Within ten days of an owner's demand, the owner must be furnished a
right-of-way map or plat of all that part of the owner's land to be taken. Any applicable
plans or profiles that the county possesses must be made available to the owner for
inspection.

new text begin (d) The notice must state that:
new text end

new text begin (1) a party wishing to challenge the public purpose, necessity, or authority for the
taking must appear at the court hearing and state the objection; and
new text end

new text begin (2) a court order approving the public purpose, necessity, and authority for the taking
is final unless an appeal is brought within 60 days after service of the order on the party.
new text end

Sec. 20.

Minnesota Statutes 2004, section 163.12, subdivision 1b, is amended to read:

Subd. 1b.

Finding of necessity.

When proof of service of the notice required in
subdivision 1a is filed with the court, the court shall hear all competent evidence offered
for or against granting the petition at the time and place fixed in the notice or otherwise set
by the court. On finding that the proposed taking is necessary and authorized by law the
court shall order the proceedings to commence pursuant to the remaining provisions of
this section. new text begin The court order finding the taking necessary and authorized by law is a final
order and must be appealed within 60 days from its service on the party.
new text end

Sec. 21.

Minnesota Statutes 2004, section 469.012, subdivision 1g, is amended to read:

Subd. 1g.

Get property; eminent domain.

(a) An authority may, within its area of
operation, acquire real or personal property or any interest therein by gifts, grant, purchase,
exchange, lease, transfer, bequest, devise, or otherwise, and by the exercise of the power
of eminent domain, in the manner provided by chapter 117, acquire real property which it
may deem necessary for its purposes, after the adoption by it of a resolution declaring that
the acquisition of the real property is necessary:

(1) to eliminate one or more of the conditions found to exist in the resolution adopted
pursuant to section 469.003 or to provide decent, safe, and sanitary housing for persons
of low and moderate income; or

(2) to carry out a redevelopment project.

(b) Real property needed or convenient for a project may be acquired by the
authority for the project by condemnation pursuant to this section new text begin and chapter 117 new text end .

deleted text begin (c) Prior to adoption of a resolution authorizing acquisition of property by
condemnation, the governing body of the authority must hold a public hearing on the
proposed acquisition after published notice in a newspaper of general circulation in the
municipality, which must be made at least one time not less than ten days nor more than
30 days prior to the date of the hearing. The notice must reasonably describe the property
to be acquired and state that the purpose of the hearing is to consider acquisition by
exercise of the authority's powers of eminent domain. Not less than ten days before the
hearing, notice of the hearing must also be mailed to the owner of each parcel proposed
to be acquired, but failure to give mailed notice or any defects in the notice does not
invalidate the acquisition. For the purpose of giving mailed notice, owners are determined
in accordance with section deleted text begin 429.031, subdivision 1 deleted text end , paragraph (a).
deleted text end

deleted text begin (d) deleted text end new text begin (c) new text end Property acquired by condemnation under this section may include any
property devoted to a public use, whether or not held in trust, notwithstanding that the
property may have been previously acquired by condemnation or is owned by a public
utility corporation, because the public use in conformity with the provisions of sections
469.001 to 469.047 shall be deemed a superior public use. Property devoted to a public
use may be so acquired only if the governing body of the municipality has approved
its acquisition by the authority.

deleted text begin (e) deleted text end new text begin (d) new text end An award of compensation shall not be increased by reason of any increase
in the value of the real property caused by the assembly, clearance or reconstruction, or
proposed assembly, clearance or reconstruction for the purposes of sections 469.001
to 469.047 of the real property in an area.

Sec. 22. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor shall change the phrase "right of eminent domain" where found in
Minnesota Statutes and Minnesota Rules to "power of eminent domain."
new text end

Sec. 23. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective the day following final enactment and applies to condemnation
proceedings for which service of notice of the petition under Minnesota Statutes, section
117.055, is made on or after March 1, 2006.
new text end