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Date: 06/ 12/06 <br />Item: 11,b <br />Eminent Domain <br />State Legislation <br />Minnesota's New Eminent Domain Law <br />Session Laws 2006 — Chapter 214 <br />Prepared by: Laura Harris, League of Minnesota Cities <br />651.281.1260, Iharris a(Zlmnc.ora <br />Sarah Erickson, Association of Metropolitan Municipalities <br />651.215.4000, saralti,�amrrFl �S.�r� <br />During the 20061egislative session, the legislature passed SF 2750, a bill restricting the use of <br />eminent domain and providing greater compensation to property owners. The bill was signed <br />into law (MN Session Laws 2006, Chapter 214) on May 19,2006. The provisions of the new law <br />are summarized below. <br />Eminent Domain Authority <br />The new law provides that Minnesota Statutes, chapter 117, preempts all other laws that govern <br />eminent domain proceedings, except for authorized takings for drainage or town roads, or actions <br />taken by watershed districts under chapter 103D or drainage authorities under chapter 103E. <br />Under this new law, entinent domain may only be used for an authorized public use or public <br />purpose, which are defined in statute. The following are some of the key concepts and <br />restrictions contained in the new legislation: <br />Public use. Lisnits the use of eminent domain for a public use or public purpose, and defines <br />"public use" or "public purpose" as: <br />L The possession, occupation, ownership, and enjoymentof the land by the general public, or <br />by public agencies; <br />2. The creation or functioning of a public service corporation*; or <br />3. Mitigation of a blight area, remediation of an environmentallycontaminated area, reduction <br />of abandoned property, or removal of a public nuisance. <br />Provides that the public benefits of economic development, including an increase in tax base, tax <br />revenues, employment, or general economic health are not by themselves a public use or public <br />purpose. <br />Blighted area. Requires that the area be in urban use and that 50 percent of t�� buildings in the <br />area are structurally substandard. Defines "structurally substandard" as a building: <br />L That has been inspected and cited for enforceable housing, maintenance, or building code <br />violations; <br />2. In which the building code violations involve specific structural aspects of the building (i.e. <br />roof, support walls and beams, foundation, internal utilities, etc.); <br />For the purposes of chapter 117, the definition of "public service corporation" is expanded to include airports, a <br />watershed district or drainage authority, and an entity operating a regional distribution center within an international <br />economic deveiopRnent zone. <br />Page 1 May 19,2006 <br />