03/13/2006
CONTACT: Mike Hickey, (651) 293-1283 or Mandy Minick, (614) 221-4107
ST. PAUL, Minn. -- Placing significant restrictions on Minnesota's eminent domain laws is the top priority for the National Federation of Independent Business, the state's largest small-business advocacy group with 17,000 members statewide. NFIB is actively supporting the reform legislation authored by Rep. Jeff Johnson (Plymouth) and Sen. Tom Bakk (Cook).
"The eminent domain law has strayed far from its original purpose, and significant restrictions must be enacted to rein in this strong and -- and at times destructive -- power of government," said Mike Hickey, state director for NFIB/Minnesota.
As an active member of the Eminent Domain Reform Coalition, NFIB/Minnesota has testified on behalf of the bill and is actively lobbying legislators for its passage.
The bill would make the following changes:
- Put significant restrictions on takings that are done purely for economic development reasons and to grow the tax base. Under the bill, a condemning authority would have to prove the property was blighted, dilapidated or contaminated before it could be taken for this purpose.
- Help property owners with expensive attorney and appraisal fees, if a settlement exceeds the condemning authority's offer by 20 percent or more. Currently, many property owners cannot afford to hire an attorney or an appraiser and, consequently, do not get a fair settlement.
- Provide relief for businesses that are displaced by compensating them for "loss of going concern." This compensation goes beyond the building and the land that is taken from the property owner.
"If this bill is enacted, it will be a significant victory for small businesses, farmers and other property owners," said Hickey. "The fact that this strong power can be used purely for economic development purposes and to grow the tax base is very disturbing and significant restrictions need to be enacted this year."
