CC_Minutes_2006_0717 - Laserfiche WebLink

Home

o Compensation for loss of going concern - The burden of proof is on a local governmental to show that a taking of a business will not destroy the business. The standard of proof is "preponderance of evidence" - the House bill had a "clear and convincing" standard. (Section 11) The following items were in the House bill but were removed in the final conference committee report: o The U ofM fraternity house provision from Rep. Erhart although this has been adopted as part of a jobs policy bill. o Prohibition on use of eminent domain outside the condemning authority's jurisdiction unless the jurisdiction in which the property is located consents. (Koenen) o Compensation for loss of going concern for garbage haulers. (Thissen) o Information on owners' rights and procedures regarding eminent domain from the AG's office (Marquart). BILL SUMMARY: Overview: This bill requires that a taking (through the use of eminent domain) may only be used for a public use or public purpose. Section 2: Definitions: The crux of the bill centers on the definition of "public use and public purpose," which is defmed to mean: (1) The possession, occupation, ownership, and enjoyment of the land by the general public, or by public agencies; (2) The creation or functioning of a public service corporation; or (3) Mitigation of a blighted area, remediation of an environmentally contaminated area, reduction of abandoned property, or removal of a public nuisance. 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. Section 3 :Condemnation for removal of blight and contamination remediation: This allows some uncontaminated or nonblighted land to be taken if there is no feasible alternative and all possible steps are taken to minimize the taking of buildings that are not structurally substandard or uncontaminated parcels are not taken. Section 4: Attornev fees: This section is described above under the section entitled "some changes in the bill." Also, under if a court determines that a taking is not for a public use, the court shall award attorney fees. Sections 5 and 6 outline the appraisal and negotiation process - Upon request, the acquiring authority must make available to the owner all appraisals of the property. Also, the owner of a non-residential property is entitled to receive up to $5,000 to pay appraisal costs. Finally, documentation regarding a business loss of going concern must be shared with the opposing party at least 14 days before the hearing. Section 7: Petition and notice regarding a proposed taking - The notice must state that a party wishing to challenge the public use or public purpose of a taking must appear at the court hearing or must appeal within 60 days of a court order. Additionally, a court order approving the public use or public purpose of a taking is final, unless an appeal is brought within 60 days. Section 8: Evidentiary Standard: -- The Senate position of "preponderance of evidence" was adopted. See above section under" some changes in the bill." Section 9: Appraisal fees - Maximum allowable appraisal fees for residential property are increased from $500 to $1 ,500- for other types of property, the limit is $5,000. 2