2009-08-26 Handouts @ Mtg. - Laserfiche WebLink

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Use of Eminent Domain The petitioners were concerned that the City of Centerville purchased houses through the use of eminent domain procedures, but the land purchased was not being used by the City. We met with City personnel; reviewed City Council meeting minutes; reviewed a development agreement between the City of Centerville and Centerville Mainstreet, LLC; and reviewed Minnesota statutes. The following items were noted. I. One property has been taken under eminent domain from Sheehy Construction for the "Backage Road Project," but no homes were taken under the eminent domain laws. 2. The development agreement between the City of Centerville and Centerville Mainstreet, LLC, (Developer) for the Downtown Redevelopment Project indicates that the Developer is to attempt to obtain the acquisition properties on a voluntary basis; otherwise, the City of Centerville has the authority, under eminent domain laws, to obtain the properties on an involuntary basis. The agreement also states that Phase I was to begin on or before September 30, 2007. 3. The City Administrator told us that no phases of the Downtown Redevelopment Project have been started yet due to the current housing market. In the development agreement, there is an attachment (Schedule A-I) listing the properties to be acquired. We asked the City Administrator if the listing was still current. He said that they were in the early stages of this project, and the property acquisition stage was not yet underway and would not be for a while. Based on our review, we are not aware of any houses that have been taken by eminent domain during the period January 2005 through December 2008. Furthermore, the development agreement for the City of Centerville' s Downtown Redevelopment Project states that the City is acting under a valid public purpose, which is required for use of eminent domain. The City intends to attempt to negotiate with property owners prior to commencing eminent domain proceedings. This is in accordance with the development agreement and Minn. Stat. S 117.036, subd. 3, which requires a good faith attempt to negotiate with the owner of the property. Minn. Stat. S 117.036 also states that, "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." The property owner may also obtain an appraisal. The procedures required in eminent domain proceedings are set forth in Minnesota law. Ultimately, property owners may appeal to the district court. Backae:e Road The petitioners were concerned that property was condemned and that costs were incurred by the City of Centerville to construct a "backage road" for a company whose building was located in Centerville. Page 8