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Date: 07/17/06 Item: 6. Eminent Domain Date: 06112106 Item: X 1.b Eminent Domain State Legislation Minnesota's New Eminent Domain Law Session Laws 2006 - Chapter 214 Prepared by: Laura Harris, League of Minnesota Cities 651.281.1260, Eharris(c�lmnc.ora Sarah Erickson, Association of MetropolitanMunicipalities 651.215.4000, saraliikamni�5.nrq During the 2006 legislative session, the legislature passed SF 2750, a bill restricting the use of eminent domain and providing greater compensation to �raperty owners. The bill was signed into law (NII�T Session Laws 2006, Chapter 214) on May 19,2006. The provisions of the new law are summarized below. Eminent Domain Authority The new law provides that Minnesota Statutes, chapter 117, preempts all other laws that gove�� eminent domain proceedings, except far authorized takings for drainage ar town roads, ar actions taken by watershed districts under chapter 103D or drainage a��h4r�iie's under chapter �03E. Under this new law, eminent domain may only be used far an authorized public use ar public purpose, which are de�ned in statute. The following are some of the key concepts and restrictions contained in the new legislation: Public use. Limits the use of eminent domain far a public use ar public purpose, and de�nes "public use" ar "public purpose" as: "- The possession, occupation, ownership, and enjoyment of t�.e land by the general public, ar by public agencies; 3. The creation ar functio�ai��g ofa public service corparation*;ar 3. Mitigation ofa blight area, remediation ofan environmentally contaminated area, reduction of abandoned property, or removal of a public nuisance. Provides that the public benefits of economic development, including an increase in tax base, tax revenues, employment, ar general economic health are not by themselves a public use ar public purpose. Blighted area. Requires that the area be i r urban use ax�d that 50 percent of the buildings in the area are structurally substandard. De�nes "structurally substandard" as a building: 1. That has been inspected and cited far et�forceab�e housing, maintenance, ar building code violations; 2. In which the building code violations involve speci�c structural aspects of the building (i.e. roof, support walls and beams, foundation, internal utilities, etc.); For the purposes of chapter 117, i'I�e definition of "public service co��pnratian'° is expanded to include ait��os-ts, a watershed district or drainage authority, and an enfity operating a regional distribution center wit#�it� an ir�terilatiq�a� economic development zone. Page 1 N1ay 19,2006