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to alI acq'uisitions.Adds a definition of"owner" which includes a fee owner, contract purchaser, <br />or business lessee. Requires the exchange of appraisals. Retains the current $1,500 appraisal <br />reimbursement cap for residential property and minimum damage acquisitions, but increases the <br />cap to $5,000 for other types of property. Provides that an appraisal must not be used or <br />considered in a condemnation commissioners' hearing unless a copy of the appraiser's written <br />report was provided to the opposing party at least five days before the hearing. Documentation <br />related to a loss of going concern claim must not be used or considered in a condemnation <br />commissioners' hearing unless the documentation is provided to the opposing party at least 14 <br />days before the hearing. <br />Public notice and hearing. Establishes new public hearing requirements for takings to mitigate a <br />blighted area, remediate an environmentally contaminated area, reduce abandoned property, or <br />remove a public nuisance. Specifies certain notice requirements. Rec�uires approval by the local <br />elected governing body at a subsequent meeting that is at least 30 days after the public hearing. <br />Requires the resolution authorizing eminent domain to identify the public costs and benefits <br />known or expected from the project and address how the acquisition serves a public use and why <br />the property is needed. <br />Right af f�rst refusal. If a condemning authority determines that property has not been used and <br />is no longer needed for a public use, the authority must offer to sell the propeny back to the <br />person from whom it was acquired at the original price or the current fair market value, <br />whichever is lower. Exempts MnDOT acquisitions from this provision. <br />Relocation assistance d�t�r�mznation by �i�.J, Requires relocation assistance to be determined by <br />an administrative law judge under a contested case proceeding if the displaced person does not <br />accept the condemning authority's offer. <br />New Compensation Provisions* <br />The law contains several new provisionsthat will increase the cost of all eminent domain <br />proceedings, including those for traditional public uses, such as roads and parks. The new <br />provisions include the following: <br />Payment of attorney fees. Allows the court to award reasonable attorney fees and costs if the <br />final award is between 20% and 40% greater than the last written offer made by the condemning <br />authority before filing a condemnation petition. If the award is more than 40% greater than the <br />last written offer, then the court must award a property owner his or her attorney fees. Also <br />provides payment of attorney fees if a property owner successfully challenges public purpose. <br />Prohibits an award of attorney fees if the final judgment or award is less than $25,000. Specifies <br />that, for the purposes of determining the entitlement to attorney fees, the final award does not <br />include compensation for loss of going concern unless it was included in the last written offer <br />made by the-condemning authority before filing the petition. <br />k Public service corporations are exempted from the new going concern con�pensatian requirement, the minimum <br />compensation provision, the payment of attorney fees, and the higher reestablishmentreimbu�-sernent cap for <br />displaced businesses. <br />Page 3 May 19,2006 <br />