1.1                                        A bill for an act&#10;1.2     relating to eminent domain; defining public use or purpose; prohibiting the use &#10;1.3     of eminent domain for economic development; requiring clear and convincing &#10;1.4     evidence for certain takings; providing for attorney fees and other additional &#10;1.5     elements of compensation; making other changes in the exercise of eminent &#10;1.6     domain;amending Minnesota Statutes 2004, sections 117.025; 117.075, &#10;1.7     subdivision 1; 117.52, by adding a subdivision; 394.36, by adding a subdivision; &#10;1.8     proposing coding for new law in Minnesota Statutes, chapters 117; 160.&#10;1.9     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:&#10;&#10;<a id="go.0.1.0"></a>1.10        Section 1. <ins><b>[117.012] PREEMPTION; NO IMPLIED AUTHORITY.</b></ins>&#10;1.11        <ins>Subdivision 1.</ins> <ins><b>Preemption.</b></ins> <ins>Notwithstanding any other provision of law, including </ins>&#10;1.12    <ins>any charter provision, ordinance, statute, or special law, all condemning authorities, </ins>&#10;1.13    <ins>including home rule charter cities and all other political subdivisions of the state, must </ins>&#10;1.14    <ins>exercise the power of eminent domain in accordance with the provisions of this chapter, </ins>&#10;1.15    <ins>including all procedures, definitions, remedies, and limitations. Additional procedures, </ins>&#10;1.16    <ins>remedies, or limitations that do not deny or diminish the substantive and procedural rights </ins>&#10;1.17    <ins>and protections of owners under this chapter may be provided by other law, ordinance, </ins>&#10;1.18    <ins>or charter.</ins>&#10;1.19        <ins>Subd. 2. </ins> <ins><b>Requirement of public use or public purpose. </b></ins> <ins>Eminent domain may </ins>&#10;1.20    <ins>only be used for a public use or public purpose.</ins>&#10;1.21        <ins>Subd. 3.</ins> <ins><b>Extraterritorial use prohibited. </b></ins> <ins>No condemning authority may exercise </ins>&#10;1.22    <ins>the power of eminent domain outside of its jurisdictional boundaries unless the governing </ins>&#10;1.23    <ins>body of the local unit of government where the property proposed to be condemned is </ins>&#10;1.24    <ins>located consents to the proposed use of eminent domain powers by the condemning </ins>&#10;1.25    <ins>authority.</ins>&#10;&#10;<a id="go.0.2.0"></a>2.1         Sec. 2. Minnesota Statutes 2004, section 117.025, is amended to read:&#10;2.2     <b>117.025 DEFINITIONS.</b>&#10;2.3         Subdivision 1. <b>Words, terms, and phrases.</b> <del>Unless the language or context clearly </del>&#10;2.4     <del>indicates that a different meaning is intended,</del> <ins>For the purposes of this chapter and any </ins>&#10;2.5     <ins>other general or special law authorizing the exercise of the power of eminent domain, </ins>the &#10;2.6     words, terms, and phrases defined in this section have the meanings given them.&#10;2.7         Subd. 2. <b>Taking.</b> <ins>"</ins>Taking<ins>"</ins> and all words and phrases of like import include every &#10;2.8     interference, under the right of eminent domain, with the possession, enjoyment, or value &#10;2.9     of private property.&#10;2.10        Subd. 3. <b>Owner.</b> "Owner" includes all persons <del>interested in such</del><ins> with any interest </ins>&#10;2.11    <ins>in the </ins> property <ins>subject to a taking, whether </ins>as proprietors, tenants, life estate holders, &#10;2.12    encumbrancers, <ins>beneficial interest holders, </ins>or otherwise.&#10;2.13        <ins>Subd. 4.</ins> <ins><b>Condemning authority.</b></ins> <ins>"Condemning authority" means any person or </ins>&#10;2.14    <ins>entity with the power of eminent domain.</ins>&#10;2.15        <ins>Subd. 5.</ins> <ins><b>Abandoned property.</b></ins> <ins>"Abandoned property" means property not </ins>&#10;2.16    <ins>occupied or used for any commercial or residential purpose by a person with a legal or </ins>&#10;2.17    <ins>equitable right to occupy it and for which the condemning authority is unable to identify </ins>&#10;2.18    <ins>and contact the owner despite making reasonable efforts.</ins>&#10;2.19        <ins>Subd. 6.</ins> <ins><b>Blighted area.</b></ins> <ins>(a) "Blighted area" means, exclusively, at the time of </ins>&#10;2.20    <ins>condemnation, an area: </ins>&#10;2.21    <ins>(1) that is in urban use; and</ins>&#10;2.22    <ins>(2) where more than 50 percent of the buildings located in the area are dilapidated.</ins>&#10;2.23        <ins>Subd. 7.</ins> <ins><b>Dilapidated building.</b></ins> <ins>"Dilapidated building" means, exclusively, a </ins>&#10;2.24    <ins>building:</ins>&#10;2.25    <ins>(1) that was inspected by the appropriate local government and cited for one or more </ins>&#10;2.26    <ins>building code violations at least 12 months before the condemnation is commenced;</ins>&#10;2.27    <ins>(2) in which the building code violations cited have not been remedied, as </ins>&#10;2.28    <ins>determined by at least one reinspection that finds noncompliance after the due date for </ins>&#10;2.29    <ins>compliance with an order to correct a building code violation; and</ins>&#10;2.30    <ins>(3) that, as of the date the condemnation is commenced, is structurally substandard. </ins>&#10;2.31    <ins>A local government is authorized to seek from a judge or magistrate a search warrant to </ins>&#10;2.32    <ins>gain access to inspect a specific building in a proposed development or redevelopment </ins>&#10;2.33    <ins>area upon showing of probable cause that a specific code violation has occurred and that </ins>&#10;2.34    <ins>the violation has not been cured, and that the owner has denied the local government </ins>&#10;2.35    <ins>access to the property. Items of evidence that may support a conclusion of probable cause </ins>&#10;2.36    <ins>may include recent fire or police inspections, housing inspection, exterior evidence of </ins>&#10;3.1     <ins>deterioration, or other similar reliable evidence of structural deterioration in the specific </ins>&#10;3.2     <ins>building.</ins>&#10;3.3         <ins>Subd. 8.</ins> <ins><b>Environmentally contaminated area.</b></ins> <ins>"Environmentally contaminated </ins>&#10;3.4     <ins>area" means an area:</ins>&#10;3.5     <ins>(1) where more than 50 percent of the parcels contain any substance or substances </ins>&#10;3.6     <ins>defined, regulated, or listed as a hazardous substance, hazardous material, hazardous </ins>&#10;3.7     <ins>waste, toxic waste, pollutant, contaminant, or toxic substance, or identified as hazardous to </ins>&#10;3.8     <ins>human health or the environment under state or federal law or regulation; and</ins>&#10;3.9     <ins>(2) for which the estimated costs of investigation, monitoring and testing, and </ins>&#10;3.10    <ins>remedial action or removal, as defined in section 115B.02, subdivisions 16 and 17, </ins>&#10;3.11    <ins>respectively, including any state costs of remedial actions, exceed 100 percent of the </ins>&#10;3.12    <ins>assessor's estimated market value for the contaminated parcel, as determined under section </ins>&#10;3.13    <ins>273.11, for property taxes payable in the year in which the condemnation commenced or </ins>&#10;3.14    <ins>for which a court of competent jurisdiction has issued an order under laws or regulations </ins>&#10;3.15    <ins>adopted by Minnesota or the United States that cleanup or remediation of a contaminated </ins>&#10;3.16    <ins>site occur and the property owner has failed to comply with the court's order within </ins>&#10;3.17    <ins>a reasonable time.</ins>&#10;3.18        <ins>Subd. 9.</ins> <ins><b>Public nuisance.</b></ins> <ins>"Public nuisance" means a public nuisance under </ins>&#10;3.19    <ins>section 609.74.</ins>&#10;3.20        <ins>Subd. 10.</ins> <ins><b>Public service corporation.</b></ins> <ins>"Public service corporation" means a </ins>&#10;3.21    <ins>public utility; gas, electric, telephone, or cable communications company; cooperative </ins>&#10;3.22    <ins>association; natural gas pipeline company; crude oil, or petroleum products pipeline </ins>&#10;3.23    <ins>company; municipal utility; municipality when operating its municipally owned utilities; </ins>&#10;3.24    <ins>or municipal power agency. "Public service corporation" also means a municipality or </ins>&#10;3.25    <ins>public corporation when operating an airport under chapter 360 or 473, a common carrier, </ins>&#10;3.26    <ins>a watershed district, or a drainage authority. </ins>&#10;3.27        <ins>Subd. 11.</ins> <ins><b>Public use; public purpose.</b></ins> <ins>(a) "Public use" or "public purpose" means, </ins>&#10;3.28    <ins>exclusively:</ins>&#10;3.29    <ins>(1) the possession, occupation, ownership, and enjoyment of the land by the general </ins>&#10;3.30    <ins>public, or by public agencies;</ins>&#10;3.31    <ins>(2) the creation or functioning of a public service corporation; or</ins>&#10;3.32    <ins>(3) mitigation of a blighted area, remediation of an environmentally contaminated </ins>&#10;3.33    <ins>area, reduction of abandoned property, or removal of a public nuisance.</ins>&#10;3.34    <ins>(b) The public benefits of economic development, except necessary and required </ins>&#10;3.35    <ins>public services, including an increase in tax base, tax revenues, employment, or general </ins>&#10;3.36    <ins>economic health, do not by themselves constitute a public use or public purpose.</ins>&#10;4.1         <ins>Subd. 12.</ins> <ins><b>Structurally substandard.</b></ins> <ins>(a) "Structurally substandard" means building </ins>&#10;4.2     <ins>code violations related exclusively to the building's:</ins>&#10;4.3     <ins>(1) roof and roof framing elements;</ins>&#10;4.4     <ins>(2) support walls, beams, and headers;</ins>&#10;4.5     <ins>(3) foundation, footings, and subgrade conditions;</ins>&#10;4.6     <ins>(4) light and ventilation;</ins>&#10;4.7     <ins>(5) fire protection including egress;</ins>&#10;4.8     <ins>(6) internal utilities, including electricity, gas, and water;</ins>&#10;4.9     <ins>(7) flooring and flooring elements; and</ins>&#10;4.10    <ins>(8) walls, insulation, and exterior envelope.</ins>&#10;4.11    <ins>(b) A building is not structurally substandard if the estimated costs of satisfying </ins>&#10;4.12    <ins>the cited structural building code violations do not exceed 50 percent of the assessor's </ins>&#10;4.13    <ins>estimated market value for the building, as determined under section 273.11, for  property </ins>&#10;4.14    <ins>taxes payable in the year in which the condemnation commenced.</ins>&#10;&#10;<a id="go.0.3.0"></a>4.15        Sec. 3. <ins><b>[117.027] CONDEMNATION FOR BLIGHT MITIGATION, </b></ins>&#10;4.16    <ins><b>CONTAMINATION REMEDIATION.</b></ins>&#10;4.17        <ins>Subdivision 1.</ins> <ins><b>Nondilapidated buildings in areas of blight mitigation; absolute </b></ins>&#10;4.18    <ins><b>necessity.</b></ins> <ins>In taking property to mitigate blight, a condemning authority must not take </ins>&#10;4.19    <ins>nondilapidated buildings in the area unless there is no feasible alternative to the taking </ins>&#10;4.20    <ins>of the parcels on which the buildings are located in order to remediate the blight and all </ins>&#10;4.21    <ins>possible steps are taken to minimize the taking of nondilapidated buildings. </ins>&#10;4.22        <ins>Subd. 2.</ins> <ins><b>Uncontaminated property in environmental contamination </b></ins>&#10;4.23    <ins><b>remediation areas; absolute necessity.</b></ins> <ins>In taking property to remediate environmental </ins>&#10;4.24    <ins>contamination, a condemning authority must not take uncontaminated parcels in the area </ins>&#10;4.25    <ins>unless there is no feasible alternative to the taking of the uncontaminated parcel in order </ins>&#10;4.26    <ins>to complete remediation of the contaminated parcel and all possible steps are taken to </ins>&#10;4.27    <ins>minimize the taking of the uncontaminated parcels. </ins>&#10;4.28        <ins>Subd. 3.</ins> <ins><b>Contribution to condition by developer disallowed.</b></ins> <ins>If a developer </ins>&#10;4.29    <ins>involved in the redevelopment of the project area contributed to the blight or environmental </ins>&#10;4.30    <ins>contamination within the project area, the condition contributed to by the developer must </ins>&#10;4.31    <ins>not be used in the determination of blight or environmental contamination.</ins>&#10;&#10;<a id="go.0.4.0"></a>4.32        Sec. 4. <ins><b>[117.031] ATTORNEY FEES.</b></ins>&#10;4.33    <ins>(a) If the final judgment or award for damages, as determined at any level in the </ins>&#10;4.34    <ins>eminent domain process, is more than 20 percent greater than the last written offer of </ins>&#10;5.1     <ins>compensation made by the condemning authority prior to the filing of the petition, the </ins>&#10;5.2     <ins>court shall award the owner reasonable attorney fees, litigation expenses, appraisal fees, </ins>&#10;5.3     <ins>other experts fees, and other related costs in addition to other compensation and fees </ins>&#10;5.4     <ins>authorized by this section. The final judgment or award of damages shall be determined as </ins>&#10;5.5     <ins>of the date of taking. No attorney fees shall be awarded under this paragraph if the final </ins>&#10;5.6     <ins>judgment or award of damages does not exceed $5,000.</ins>&#10;5.7     <ins>(b) In any case where the court determines that a taking is not for a public use or </ins>&#10;5.8     <ins>is unlawful, the court shall award the owner reasonable attorney fees and other related </ins>&#10;5.9     <ins>expenses, fees, and costs in addition to other compensation and fees authorized by this </ins>&#10;5.10    <ins>section.</ins>&#10;&#10;<a id="go.0.5.0"></a>5.11        Sec. 5. Minnesota Statutes 2004, section 117.075, subdivision 1, is amended to read:&#10;5.12        Subdivision 1. <b>Hearing on taking</b><ins><b>; evidentiary standard</b></ins><b>.</b> <ins>(a) </ins>Upon proof being &#10;5.13    filed of the service of such notice, the court, at the time and place therein fixed or to which &#10;5.14    the hearing may be adjourned, shall hear all competent evidence offered for or against the &#10;5.15    granting of the petition, regulating the order of proof as it may deem best.&#10;5.16    <ins>(b) If the taking is for the mitigation of a blighted area, remediation of an </ins>&#10;5.17    <ins>environmentally contaminated area, reducing abandoned property, or removing a </ins>&#10;5.18    <ins>public nuisance, then, notwithstanding any other provision of general or special law, a </ins>&#10;5.19    <ins>condemning authority must show by clear and convincing evidence to the district court </ins>&#10;5.20    <ins>that the taking is necessary and for the designated public use.</ins>&#10;&#10;<a id="go.0.6.0"></a>5.21        Sec. 6. <ins><b>[117.184] COMPENSATION FOR REMOVAL OF LEGAL </b></ins>&#10;5.22    <ins><b>NONCONFORMING USE.</b></ins>&#10;5.23    <ins>Notwithstanding any law to the contrary, an ordinance or regulation of a political </ins>&#10;5.24    <ins>subdivision of the state or local zoning authority that requires the removal of a legal </ins>&#10;5.25    <ins>nonconforming use as a condition or prerequisite for the issuance of a permit, license, or </ins>&#10;5.26    <ins>other approval for any use, structure, development, or activity constitutes a taking and </ins>&#10;5.27    <ins>is prohibited without the payment of just compensation. This section does not apply if </ins>&#10;5.28    <ins>the permit, license, or other approval is requested for the construction of a building or </ins>&#10;5.29    <ins>structure that cannot be built without physically moving the nonconforming use. This </ins>&#10;5.30    <ins>section does not apply to regulations or ordinances relating to adult uses.</ins>&#10;&#10;<a id="go.0.7.0"></a>5.31        Sec. 7. <ins><b>[117.1845] OTHER REGULATORY TAKINGS.</b></ins>&#10;5.32    <ins>A state or local government preservation designation adopted on or after August 1, </ins>&#10;5.33    <ins>2002, that reduced the fair market value of real property or interferes with the owner's use </ins>&#10;6.1     <ins>and quiet enjoyment of the property, constitutes a regulatory taking for which the owner </ins>&#10;6.2     <ins>must be paid just compensation. The state or local government may repeal or amend the </ins>&#10;6.3     <ins>official control or historic preservation designation to eliminate the adverse impact on </ins>&#10;6.4     <ins>the property instead of paying damages.</ins>&#10;&#10;<a id="go.0.8.0"></a>6.5         Sec. 8. <ins><b>[117.186] COMPENSATION FOR LOSS OF GOING CONCERN.</b></ins>&#10;6.6         <ins>Subdivision 1.</ins> <ins><b>Going concern defined.</b></ins> <ins>For purposes of this section, "going </ins>&#10;6.7     <ins>concern" means the benefits that accrue to a business or trade as a result of its location, </ins>&#10;6.8     <ins>reputation for dependability, skill or quality, customer base, good will, or any other </ins>&#10;6.9     <ins>circumstances resulting in probable retention of old or acquisition of new patronage.</ins>&#10;6.10        <ins>Subd. 2.</ins> <ins><b>Compensation for loss of going concern.</b></ins> <ins>If a business or trade is </ins>&#10;6.11    <ins>destroyed by a taking, the owner shall be compensated for loss of going concern, unless the </ins>&#10;6.12    <ins>condemning authority establishes any of the following by clear and convincing evidence:</ins>&#10;6.13    <ins>(1) the loss is not caused by the taking of the property or the injury to the remainder;</ins>&#10;6.14    <ins>(2) the loss can be reasonably prevented by relocating the business or trade in the </ins>&#10;6.15    <ins>same or a similar and reasonably suitable location as the property that was taken, or by </ins>&#10;6.16    <ins>taking steps and adopting procedures that a reasonably prudent person of a similar age </ins>&#10;6.17    <ins>and under similar conditions as the owner, would take and adopt in preserving the going </ins>&#10;6.18    <ins>concern of the business or trade; or</ins>&#10;6.19    <ins>(3) compensation for the loss of going concern will be duplicated in the </ins>&#10;6.20    <ins>compensation otherwise awarded to the owner.</ins>&#10;6.21        <ins>Subd. 3.</ins> <ins><b>Procedure.</b></ins> <ins>In all cases where an owner will seek compensation for loss </ins>&#10;6.22    <ins>of a going concern, the damages, if any, shall in the first instance be determined by the </ins>&#10;6.23    <ins>commissioners under section 117.105 as part of the compensation due to the owner. The </ins>&#10;6.24    <ins>owner shall notify the condemning authority of the owner's intent to claim compensation </ins>&#10;6.25    <ins>for loss of going concern within 60 days of the first hearing before the court, as provided </ins>&#10;6.26    <ins>in section 117.075. The commissioner's decision regarding any award for loss of going </ins>&#10;6.27    <ins>concern may be appealed by any party, in accordance with section 117.145.</ins>&#10;6.28        <ins>Subd. 4.</ins> <ins><b>Use of appraisal at commissioners' hearing.</b></ins> <ins>An appraisal of the going </ins>&#10;6.29    <ins>concern must not be used or considered in a condemnation commissioner's hearing, nor </ins>&#10;6.30    <ins>may the appraiser who prepared the appraisal testify, unless a copy of the appraiser's </ins>&#10;6.31    <ins>written report is provided to the opposing party at least five days before the hearing.</ins>&#10;&#10;<a id="go.0.9.0"></a>6.32        Sec. 9. <ins><b> [117.1863] GOVERNMENT ENTRY INTO MIXED MUNICIPAL SOLID </b></ins>&#10;6.33    <ins><b>WASTE SERVICES BUSINESS; INVERSE CONDEMNATION.</b></ins>&#10;7.1         <ins>Subdivision 1.</ins> <ins><b>Definition.</b></ins> <ins>As used in this section, "political subdivision" means a </ins>&#10;7.2     <ins>statutory or home rule charter city or a town.</ins>&#10;7.3         <ins>Subd. 2.</ins> <ins><b>Person to bring action.</b></ins> <ins>A person may bring an action in district court to </ins>&#10;7.4     <ins>compel a political subdivision of the state to commence condemnation proceedings if:</ins>&#10;7.5     <ins>(1) the political subdivision of the state determines to provide, directly or indirectly, </ins>&#10;7.6     <ins>mixed municipal solid waste collection services previously provided by private persons </ins>&#10;7.7     <ins>within the jurisdiction of the political subdivision or limits the number of private persons </ins>&#10;7.8     <ins>who are permitted to provide the mixed municipal solid waste collection services within </ins>&#10;7.9     <ins>the jurisdiction so as to exclude a private person then providing such services from </ins>&#10;7.10    <ins>continuing to do so;</ins>&#10;7.11    <ins>(2) as a result of the political subdivision's actions, the person is not able to continue </ins>&#10;7.12    <ins>in business to provide substantially the same mixed municipal solid waste collection </ins>&#10;7.13    <ins>services as before; and</ins>&#10;7.14    <ins>(3) but for the political subdivision's actions, the person would be able to continue </ins>&#10;7.15    <ins>to provide substantially the same mixed municipal solid waste collection services in </ins>&#10;7.16    <ins>substantially the same market as before the government's actions.</ins>&#10;7.17        <ins>Subd. 3.</ins> <ins><b>Limitation.</b></ins> <ins>(a) A person may not maintain an action against a political </ins>&#10;7.18    <ins>subdivision under subdivision 2 if the person provides mixed municipal solid waste </ins>&#10;7.19    <ins>collection services to that political subdivision under a contract between the person and </ins>&#10;7.20    <ins>the political subdivision which sets forth the terms and conditions under which the person </ins>&#10;7.21    <ins>can provide the services in the political subdivision. A person may not maintain an action </ins>&#10;7.22    <ins>under subdivision 2, if, pursuant to the terms of the contract, the political subdivision does </ins>&#10;7.23    <ins>not renew the contract for collection services.</ins>&#10;7.24    <ins>(b) A person may not maintain an action against a political subdivision under </ins>&#10;7.25    <ins>subdivision 2 if the political subdivision prohibits a person providing mixed municipal </ins>&#10;7.26    <ins>solid waste collection services from providing the services because the person engaged in </ins>&#10;7.27    <ins>criminal or fraudulent conduct.</ins>&#10;7.28        <ins>Subd. 4.</ins> <ins><b>Statute of limitations.</b></ins> <ins>An action brought under subdivision 2 must be </ins>&#10;7.29    <ins>commenced within six months of the day the political subdivision begins providing mixed </ins>&#10;7.30    <ins>municipal solid waste collection services that are alleged to be a taking.</ins>&#10;&#10;<a id="go.0.10.0"></a>7.31        Sec. 10. <ins><b>[117.1865] COMPENSATION FOR LOSS OF ACCESS.</b></ins>&#10;7.32    <ins>An owner, as defined in section 117.025, may bring an action for damages and must </ins>&#10;7.33    <ins>be compensated by the governmental entity if the owner establishes that the governmental </ins>&#10;7.34    <ins>entity's action permanently eliminated 51 percent or more  of the driveway access into and </ins>&#10;7.35    <ins>out of the place of business, and that as a result the owner has a loss of revenues of 51 </ins>&#10;8.1     <ins>percent or more. Determination of the loss must be based on a comparison of revenues in </ins>&#10;8.2     <ins>the year immediately prior to the project resulting in the loss of access. </ins>&#10;8.3     <ins>A claim for compensation under this section must be made no later than one year </ins>&#10;8.4     <ins>after the completion of the project that eliminated the driveway access. Compensation </ins>&#10;8.5     <ins>must not exceed (1) the addition of revenue from the two previous years, minus (2) the </ins>&#10;8.6     <ins>addition of cost of goods sold from the two previous years.</ins>&#10;&#10;<a id="go.0.11.0"></a>8.7         Sec. 11. <ins><b>[117.187] MINIMUM COMPENSATION.</b></ins>&#10;8.8     <ins>When an owner must relocate, the amount of damages payable, at a minimum, must </ins>&#10;8.9     <ins>be sufficient for an owner to purchase a comparable property in the community and not </ins>&#10;8.10    <ins>less than the condemning authority's payment or deposit under section 117.042, to the </ins>&#10;8.11    <ins>extent the damages will not be duplicated in the compensation otherwise awarded to </ins>&#10;8.12    <ins>the owner of the property.</ins>&#10;&#10;<a id="go.0.12.0"></a>8.13        Sec. 12. <ins><b>[117.188] LIMITATIONS.</b></ins>&#10;8.14    <ins>The condemning authority may not require the owner to accept as part of the </ins>&#10;8.15    <ins>compensation due any substitute or replacement property.  Nor shall the condemning </ins>&#10;8.16    <ins>authority require the owner to accept the return of property acquired or any portion thereof.</ins>&#10;&#10;<a id="go.0.13.0"></a>8.17        Sec. 13. <ins><b>[117.189] PUBLIC SERVICE CORPORATION EXCEPTION.</b></ins>&#10;8.18    <ins>Sections 117.012, subdivision 3, 117.031, 117.186, 117.187, and 117.188 do not </ins>&#10;8.19    <ins>apply to public service corporations.</ins>&#10;&#10;<a id="go.0.14.0"></a>8.20        Sec. 14. <ins><b>[117.1905] PUBLIC HEARING.</b></ins>&#10;8.21        <ins>Subdivision 1.</ins> <ins><b>Definitions.</b></ins> <ins>(a) For the purposes of this section, "local government" </ins>&#10;8.22    <ins>means the elected governing body of a statutory or home rule charter city, county, or </ins>&#10;8.23    <ins>township.</ins>&#10;8.24    <ins>(b) For the purposes of this section, "agency" means any subdivision, agency, </ins>&#10;8.25    <ins>authority, or other entity of the local government, including a port authority, economic </ins>&#10;8.26    <ins>development authority, housing and redevelopment authority, or other similar entity </ins>&#10;8.27    <ins>established under general or special law.</ins>&#10;8.28        <ins>Subd. 2.</ins> <ins><b>Public hearing; vote by local government governing body.</b></ins> <ins>(a) Before a </ins>&#10;8.29    <ins>local government or local government agency commences an eminent domain proceeding </ins>&#10;8.30    <ins>under section 117.055, a public hearing must be held as provided in this section. The </ins>&#10;8.31    <ins>local government must notify each owner of property that may be acquired in writing </ins>&#10;8.32    <ins>by certified mail of the public hearing on the proposed taking, post the public hearing </ins>&#10;9.1     <ins>information on the local government's Web site, if any, and publish notice of the public </ins>&#10;9.2     <ins>hearing in a newspaper of general circulation in the local government's jurisdiction. </ins>&#10;9.3     <ins>Notice must be provided at least 30 days but not more than 60 days before the hearing.  </ins>&#10;9.4     <ins>(b) Any interested person must be allowed reasonable time to present relevant </ins>&#10;9.5     <ins>testimony at the public hearing.  The proceedings of the hearing must be recorded and </ins>&#10;9.6     <ins>available to the public for review and comment at reasonable times and a reasonable place. </ins>&#10;9.7     <ins>At the next regular meeting of the local government that is at least 30 days after the public </ins>&#10;9.8     <ins>hearing, the local government must vote on the question of whether to authorize the local </ins>&#10;9.9     <ins>government or local government agency to use eminent domain to acquire the property.</ins>&#10;9.10        <ins>Subd. 3.</ins> <ins><b>Resolution.</b></ins> <ins>If the taking is for the mitigation of a blighted area, </ins>&#10;9.11    <ins>remediation of an environmentally contaminated area, reducing abandoned property, </ins>&#10;9.12    <ins>or removing a public nuisance, then the resolution of a local government or agency </ins>&#10;9.13    <ins>authorizing the use of eminent domain must:</ins>&#10;9.14    <ins>(1) identify and describe the public costs and benefits that are known or expected </ins>&#10;9.15    <ins>to result from the program or project for which the property interest is proposed to be </ins>&#10;9.16    <ins>acquired; and</ins>&#10;9.17    <ins>(2) address how the acquisition of the property interest serves one or more identified </ins>&#10;9.18    <ins>public uses or public purposes and why the acquisition of the property is needed to </ins>&#10;9.19    <ins>accomplish those purposes.</ins>&#10;&#10;<a id="go.0.15.0"></a>9.20        Sec. 15. <ins><b>[117.226] FIRST RIGHT OF REFUSAL.</b></ins>&#10;9.21    <ins>(a) Notwithstanding section 161.23, 161.43, or 161.44, if the governing body of </ins>&#10;9.22    <ins>the condemning authority determines that publicly owned property acquired under this </ins>&#10;9.23    <ins>chapter has not been used and is no longer needed for a public use, the authority must </ins>&#10;9.24    <ins>offer to sell the property to the owner from whom it was acquired, if the former owner can </ins>&#10;9.25    <ins>be located, at the original price determined by the condemnation process or the current fair </ins>&#10;9.26    <ins>market value of the property, whichever is lower.</ins>&#10;9.27    <ins>(b) If the former owner cannot be located after a due and diligent search or declines </ins>&#10;9.28    <ins>to repurchase the property, the attorney for the condemning authority shall prepare a </ins>&#10;9.29    <ins>certificate attesting to the same and record the certificate in the office of the county </ins>&#10;9.30    <ins>recorder or county registrar of titles, as appropriate, to evidence the termination of the </ins>&#10;9.31    <ins>right of first refusal. A recorded certificate to that effect is prima facie evidence that the </ins>&#10;9.32    <ins>right of first refusal has terminated.</ins>&#10;&#10;<a id="go.0.16.0"></a>9.33        Sec. 16. Minnesota Statutes 2004, section 117.52, is amended by adding a subdivision &#10;9.34    to read:&#10;10.1        <ins>Subd. 4.</ins> <ins><b>Relocation assistance amount determined by administrative law </b></ins>&#10;10.2    <ins><b>judge.</b></ins> <ins>Notwithstanding any law or rule to the contrary, if a person entitled to relocation </ins>&#10;10.3    <ins>assistance under this section does not accept the acquiring authority's offer, the acquiring </ins>&#10;10.4    <ins>authority must initiate contested case proceedings under sections 14.57 to 14.66 for a </ins>&#10;10.5    <ins>determination of the relocation assistance that must be provided by the acquiring authority. </ins>&#10;10.6    <ins>The administrative law judge's determination of relocation assistance that the acquiring </ins>&#10;10.7    <ins>authority must provide constitutes a final decision in the case, as provided in section 14.62, </ins>&#10;10.8    <ins>subdivision 4. The acquiring authority must pay all costs of the proceedings.</ins>&#10;&#10;<a id="go.0.17.0"></a>10.9        Sec. 17. <ins><b>[117.58] INFORMATION ON OWNERS RIGHTS AND PROCEDURES.</b></ins>&#10;10.10   <ins>The attorney general shall prepare and make available to the public a statement that </ins>&#10;10.11   <ins>summarizes the significant legal rights and obligations of condemning authorities, owners, </ins>&#10;10.12   <ins>and tenants. The statement shall describe the significant provisions of this chapter and </ins>&#10;10.13   <ins>any applicable federal law and provide an overview of the procedures and time frames </ins>&#10;10.14   <ins>involved in an eminent domain action. The statement shall include information for owners </ins>&#10;10.15   <ins>and tenants on where else they may get information on how to protect their interests in </ins>&#10;10.16   <ins>eminent domain. The attorney general shall revise the statement annually to ensure that </ins>&#10;10.17   <ins>it continues to describe accurately the statutory and case law governing the rights and </ins>&#10;10.18   <ins>obligations of condemning authorities, owners, and tenants.</ins>&#10;&#10;<a id="go.0.18.0"></a>10.19       Sec. 18. <ins><b>[160.042] CONDEMNATION FOR ACCESS TO PRIVATE PROPERTY </b></ins>&#10;10.20   <ins><b>LIMITED.</b></ins>&#10;10.21   <ins>A road authority must not acquire property by eminent domain to establish a </ins>&#10;10.22   <ins>local road or street, as defined by the Federal Highway Administration's Functional </ins>&#10;10.23   <ins>Classification Guidelines, for access to property of less than five acres that will serve </ins>&#10;10.24   <ins>projected traffic of less than 100 average daily trips, unless the property is landlocked or </ins>&#10;10.25   <ins>the road authority can show that the local road or street is necessary to cost-effectively </ins>&#10;10.26   <ins>mitigate ongoing safety concerns. A property that has no other access than over a </ins>&#10;10.27   <ins>navigable waterway is landlocked.</ins>&#10;&#10;<a id="go.0.19.0"></a>10.28       Sec. 19. Minnesota Statutes 2004, section 394.36, is amended by adding a subdivision &#10;10.29   to read:&#10;10.30       <ins>Subd. 4.</ins> <ins><b>Ownership of lot or parcel not relevant.</b></ins> <ins>(a) A county shall not refuse </ins>&#10;10.31   <ins>to issue a permit for construction of a single-family residence based upon the common </ins>&#10;10.32   <ins>ownership of a contiguous nonconforming lot or parcel, provided that contiguous </ins>&#10;10.33   <ins>nonconforming lots or parcels under the same ownership contain no more than three </ins>&#10;11.1    <ins>residential structures. A conforming lot or parcel of land shall retain its conforming </ins>&#10;11.2    <ins>status regardless of the ownership of title to an adjoining nonconforming lot or parcel </ins>&#10;11.3    <ins>of land. Nothing in this subdivision shall be construed to prohibit the application of </ins>&#10;11.4    <ins>other applicable statutes, ordinances, or regulations in furtherance of health, safety, or </ins>&#10;11.5    <ins>welfare, nor allow an increase in the nonconformity of a lot or parcel. A county shall not </ins>&#10;11.6    <ins>prohibit the sale of a residential lot based upon the common ownership of a contiguous </ins>&#10;11.7    <ins>nonconforming lot or parcel. This subdivision applies to lots and parcels defined as </ins>&#10;11.8    <ins>shoreland within the meaning of section 103F.205.</ins>&#10;11.9    <ins>(b) A municipality shall not refuse to issue a permit for construction of </ins>&#10;11.10   <ins>a single-family residence based upon the common ownership of a contiguous </ins>&#10;11.11   <ins>nonconforming lot or parcel, provided that contiguous nonconforming lots or parcels </ins>&#10;11.12   <ins>under the same ownership contain no more than three residential structures. A conforming </ins>&#10;11.13   <ins>lot or parcel of land shall retain its conforming status regardless of the ownership of title </ins>&#10;11.14   <ins>to an adjoining nonconforming lot or parcel of land. Nothing in this subdivision shall be </ins>&#10;11.15   <ins>construed to prohibit the application of other applicable statutes, ordinances, or regulations </ins>&#10;11.16   <ins>in furtherance of health, safety, or welfare, nor allow an increase in the nonconformity </ins>&#10;11.17   <ins>of a lot or parcel. A municipality shall not prohibit the sale of a residential lot or parcel. </ins>&#10;11.18   <ins>This subdivision applies to lots and parcels defined as shoreland within the meaning </ins>&#10;11.19   <ins>of section 103F.205.</ins>&#10;&#10;<a id="go.0.20.0"></a>11.20       Sec. 20. <ins><b>REVISOR'S INSTRUCTION.</b></ins>&#10;11.21   <ins>The revisor shall change the phrase "right of eminent domain" where found in </ins>&#10;11.22   <ins>Minnesota Statutes and Minnesota Rules to "power of eminent domain."</ins>&#10;&#10;<a id="go.0.21.0"></a>11.23       Sec. 21. <ins><b>EFFECTIVE DATE.</b></ins>&#10;11.24   <ins>This act is effective the day following final enactment and applies to condemnation </ins>&#10;11.25   <ins>proceedings commenced on or after March 1, 2006, except the act does not apply to an </ins>&#10;11.26   <ins>action brought in connection with a project that satisfies one of the following conditions:</ins>&#10;11.27   <ins>(1) with respect to property identified as intended to be acquired in a tax increment </ins>&#10;11.28   <ins>financing plan, as approved by the municipality, as that term is used in Minnesota Statutes, </ins>&#10;11.29   <ins>section 469.174, subdivision 6, by the day following final enactment under Minnesota </ins>&#10;11.30   <ins>Statutes, section 469.175, if the condemning authority has satisfied one or more of the </ins>&#10;11.31   <ins>following conditions in connection with the tax increment financing plan:</ins>&#10;11.32   <ins>(i) the developer has acquired property by May 1, 2006, in reliance on the </ins>&#10;11.33   <ins>condemning authority's contractual obligation to condemn property; or</ins>&#10;12.1    <ins>(ii) by May 1, 2006, the condemning authority has issued, sold, or entered a binding </ins>&#10;12.2    <ins>agreement to issue or sell bonds or other obligations to finance the costs of the tax </ins>&#10;12.3    <ins>increment financing plan and has commenced the condemnation action within 2 years </ins>&#10;12.4    <ins>after the bonds were issued; or</ins>&#10;12.5    <ins>(2) the tax increment financing district was certified before April 1, 2006; a tax </ins>&#10;12.6    <ins>increment financing plan, adopted before April 1, 2006, identified the property as intended </ins>&#10;12.7    <ins>to be acquired; and the condemning authority has commenced the condemnation action </ins>&#10;12.8    <ins>within five years after certification of the district; or</ins>&#10;12.9    <ins>(3) creation of the tax increment financing district was authorized under a special </ins>&#10;12.10   <ins>law that received local approval or became effective without local approval before April </ins>&#10;12.11   <ins>1, 2006, and the condemning authority commences the action within the time period </ins>&#10;12.12   <ins>permitted under the applicable general or special law for making expenditures to comply </ins>&#10;12.13   <ins>with Minnesota Statutes, section 469.1763, subdivision 3, but not to exceed a ten-year </ins>&#10;12.14   <ins>period; or</ins>&#10;12.15   <ins>(4) the condemning authority commences the action before April 1, 2011, to </ins>&#10;12.16   <ins>complete land assembly for a project, financed in whole or part with abatement under </ins>&#10;12.17   <ins>Minnesota Statutes, sections 469.1813 through 469.1815, and the abatement resolution </ins>&#10;12.18   <ins>was adopted by one of the participating political subdivisions before April 1, 2006</ins>&#10;