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Office of the Revisor of Statutes

117.036 APPRAISAL AND NEGOTIATION REQUIREMENTS.
    Subdivision 1. Application. This section applies to the acquisition of property under this
chapter.
    Subd. 1a. Definition of owner. For the purposes of this section, "owner" means fee owner,
contract purchaser, or business lessee who is entitled to condemnation compensation under a lease.
    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 owners
of the property, if reasonably possible. Notwithstanding section 13.44, the acquiring authority
must provide the owner with a copy of each appraisal the acquiring authority has obtained for the
property at the time an offer is made, but no later than 60 days before presenting a petition under
section 117.055, and inform the owner of the right to obtain an appraisal under this section. Upon
request, the acquiring authority must make available to the owner all appraisals of the property. If
the acquiring authority is considering both a full and partial taking of the property, the acquiring
authority shall obtain and provide the owner with appraisals for both types of takings.
(b) The owner may obtain an appraisal by a qualified appraiser of the property proposed to
be acquired. The owner is entitled to reimbursement for the reasonable costs of the appraisal from
the acquiring authority up to a maximum of $1,500 for single family and two-family residential
property and minimum damage acquisitions and $5,000 for other types of property, provided
that the owner submits to the acquiring authority the information necessary for reimbursement,
including a copy of the owner's appraisal, 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.
(c) The acquiring authority must pay the reimbursement to the owner within 30 days after
receiving a copy of the appraisal and the reimbursement information. Upon agreement between
the acquiring authority and the owner, the acquiring authority may pay the reimbursement directly
to the appraiser.
    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 owner 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, including any appraisal
obtained and furnished by the owner if available, and other information that may be relevant to
a determination of damages under this chapter. If the acquiring authority is considering both a
full and partial taking of the property, the acquiring authority must make a good-faith attempt to
negotiate with respect to both types of takings.
    Subd. 4. Use of appraisal at commissioners' hearing. 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.
    Subd. 5. Documentation of business loss. Documentation related to a loss of going
concern claim made under section 117.186 must not be used or considered in a condemnation
commissioners' hearing unless the documentation is provided to the opposing party at least
14 days before the hearing.
History: 1Sp2003 c 19 art 2 s 3; 2006 c 214 s 5