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Mr. Malinen and IVIr. Trudgeon J��ae 11, 2009 Page 2 Minneso�a law does not provide a condernning authority witi-► an� ongoing environrnental pratections once it has acquired praperty. Se� Minn. �tatutes Chapter � 17, Tn essence, ifa city �ants to talce fee title to private propert}�, �t must take thc property "as is.°' As a result, tlie City's acc�ptance of the Roseville Acq�isitions property on an "as is" basis is no different than if th� Ciry were to proceed thro�gl� em�nent domain �roce�dings ta acquire the property, which would also be on an "as is" basis. The legislature llas acknow�edged the risk oftaking propet�ty "as is" by praviding cities with authflrity to enter property that may need to be �cquirec� �y ei�ninenl: domain for the purposes of investigation, rnonitoring, te5�iiig, sur�eying, boring, or other similar activities necessary or appropriate to identify th� existence or threat af release of a hazardous substance,. pollutant, or eontaminant. Minn. Stat. § 117.041, subd. 2. Cities ar� gr•anted the a�thority to investig�te the condition of th� praperty befare cpmmitting t� the �rnit�ent doinain process to acquire the properly because once the pr�perty is taken, the city is st�ck with the pi•operty regardless af iis canc�itio��. Th�re �'e no refunds. It is i�nportant ta note thai the City is aware of the environmental cond'r�ion of the Roset�ille Acquisitioi�s p�•op�rty, but the conditian does not prevent the City's proposed use o£ the property. In fact, the environmental ca�ditio� of the �roperty was factored into the C�ty's �pprais�l to determine th� value of the prope�-ty. �N�rile we vvould generally recomrnend securing warranties and representatians regarding �he enr+iranmer�tal conditian of property to be acquirecl by tl�e City lhrough direct piuchase, those protectians are not available when acquiring propet-ty through eminent doroain. A,ccepting the praperty on an "as is" l�asis throt�gh a direct purchase in li�u of condetnnation results in no ciif�erence i�� the City's environ�nental protectians or authority ta address environmental remediation as �art ofthe infrastructure project. 2. Wha is responsible far demalition costs? A,s discussed above, a city acquiiing fee tit�e �o property through eminent domain acquires the propert� as it exists. That inciudes any btii�dings or other itnpra�ements locateci on the property. Minnesota law does not impose the obligation on pro�erly own�rs to demolish buildings ar re�nove all irnprovements from their pro�eriy if it is be�n� taken by erninent dornain. The condemning authority takes the property with all ir�provements. If it desires ta d�i�nalish any buildings, it rri�st do so at its ow�� cos1:. A city and private prope�ty owner car� ceriainly agree to apportion the value oi the prop�rty a��d ai�y necessary dei�olition costs as they see fit. However, if the pro�erty is aequii•ed 1.hrough emrnent damain, t�e property c��vner ��ill have no obligation ta pa�r for �1y demoiition costs. Again, by agreein� to �ay for €l�e cost of building demalition, �lle City is ��a worse c�ff than it would be if it acquirecl the propertJ� t.hroi�gh eminent doinain.