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Department Approval l REQUEST FOR COUNCIL ACTION Date.- June 30,, 2008 Item No..- 12. c City Manager Approval Item Description.- Consider Adopting a Resolution Approving Request by Dorso Building Company LLP for City Consideration on the Use of Eminent Domain 1 1.0 BACKGROUND 2 1.1 At the January 14, 2008 City Council Meeting, Dorso Building Company LLC the property 3 owner) and Opus Northwest LLC the developer) requested that the City Council approve a 4 resolution that notify the owner of 2814 Cleveland Avenue, the Dorso Property, of City's intent to use eminent domain to acquire the property. The property owner has entered into a purchase 6 agreement with Opus Northwest LLC, and has placed a condition in the agreement that may "7 cause the delay of the sale and redevelopment of this property. The property owner desires to sell the property to the developer under the threat of eminent domain in order to extend the 9 reinvestment period of the sale proceeds under the Federal Internal Revenue Code. (See I Attachment A.- Memorandum from Finance Director Chris Miller and Attachment B. Meeting "I'll Minutes from the January 14�, 2008 City Council Meeting) 12 1.2 The Council tabled this item pending further information being provided. Information requested 13 by the Council included understanding if this property met the definition of blight under the 14 amended state eminent domain law; a clear understanding of the eminent domain law; and I clarification of the "will" statement the draft ordinance. 16 1.3 To gain clarity on issues identified above, staff worked with Attorney Marc Manderscheid of I ��7 Briggs and Morgan. Mr. Manderscheid reviewed the facts associated with the Twin Lakes I Redevelopment Area as they pertained to blight as well as the City's ability to use eminent 19 domain in this area under the revised state law. Attachment C is a letter to the City Council from 20 Mr. Manderscheid reviews these issues and provides a legal opinion as to the City's ability to 2 1 use eminent domain within this area. He states.- "Based upon the statutory language, it is our 22 opinion that The (., Y ity of Roseville may, until September 30, 2'010, acquire properties within the 23 boundaries of Tax Increment Financing District No. 17 by use of its power of eminent domain, 24 such action to be undertaken in conformance with all of the provisions Minn. Slat. (7hapter 117 25 (2,008 ), except, not being subject to the definition of tir p ublic use �1 an p d tir ub li purpose c "1 as set 26 forth in §117.02'5, Subd. I], therein. Y1 27 1.4 In addition to the legal opinion, Mr. Manderscheid worked with Mr. John Martin, legal counsel 28 to the property owner, to revise the draft resolution. The most significant modification made 29 was in the language describing the City's intention to use eminent domain, which is point three Page I of 2