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Policy #3: Using Eminent Domain Eminent domain or condemnation is a tool which can be used to obtain site control over a redevelopment area, and establish fair marlcet value for the taxpayer and the developer. It typically is used as a last resort, when a mutual agreement between the buyer and seller cannot be reached. In essence, the City can exercise its authority to acquire private property (even from unwilling property owners) at marlcet or slightly above marlcet rates, to further some 'public purpose' normally outlined in a redevelopment or infrastructureplan. In all lilcelihood, site control will play an important role with any development in Twin Lalces. However, lilce tax increment financing or TIF, the use of eminent domain or condemnation has received heightened scrutiny in the past few years. The Council is advised to proceed cautiously in determining the "public purpose" and assess the rislcs of becoming a landowner, however temporary that may be. The Council should consider; 1) is it prepared to use eminent domain, and 2) Under what circumstances? Even if a clear public purpose is met, the general public may challenge the City on moral or ideological grounds of the `taking' of private property. The Council should adopt a set of criteria under which eminent domain will be used. For purposes of discussion, potential criteria might include: a) Using eminent domain to assemble the 'final' property (properties) needed for redevelopment as shown in an adopted redevelopment plan or policy document. b) Using eminent domain only after a certain percentage of applicable properties are assembled or encompassed within purchase agreements. c) Using'friendly' condemnation. If the City acquires property through the use of eminent domain (which puts it into the chain of title), the City (or port authority) will not be held as a res�onsible �ttw� for the contamination or cleanup under the Minnesota Environmental Response and Liability Act. The specific language is found in MN Statutes 115B.03 Subdivision 5. A person who acquires property from the City after the use of eminent domain is also not a responsible party nor is a lender to such a person, but the site cannot be redeveloped without cleaning up the contamination. When a city redevelopment contract is used, the City inserts in the redevelopment contract that the City has no responsibility for the property that is the subject of the redevelopment contract. The City is conveying the property "as is". The City is obligated to provide a full disclosure and the City will normally be aslced to malce representations that it has not contaminated the property and that it is not aware of any contaminationthat may be connected with the property. Policy #4: Fiscal Disparities Under the State's Fiscal Disparity Law, 40% of all new commercial/industrial property valuation within the 7-county Metropolitan Area is dedicated to a metro-wide pool for redistribution bacic to cities within that pool. The redistribution is made under a'need-based' formula including those cities with aged buildings and infrastructure as well as suburbs that have little or no commercial industrial tax base. Roseville contributes the equivalent of $5 million of tax base to