Condemnation

If an agreement cannot be reached, the agency can acquire the property by exercising its power of eminent domain. It will do this by instituting formal condemnation proceedings with the appropriate State court.

The condemnation action will take place in State Court and the procedures will follow Minnesota State law. An authority commences an eminent domain proceeding by serving a Summons and Petition upon all of the property owners. The authority should serve all persons with a property interest in the land. "Owner" under the Statute includes all persons interested in such property as proprietors, tenants, life estate holders, encumbrancers, or otherwise. The petition gives the owner 20 days notice of the initial court appearance. At this initial court appearance, the Court makes a public purpose and necessity determination and appoints three commissioners, private parties who make an initial determination of the amount of compensation that property owners are due for their property.

COMMISSIONERS' HEARING

The first step in the valuation process is to obtain a market valuation determination by Commissioners appointed by the Judge. The judge appoints three disinterested commissioners, and at least two alternates to ascertain and report the amount of damages that will be sustained by the property owner because of the taking. Either party may nominate commissioners to serve in this capacity. The Commissioners then conduct a hearing, or hearings. They listen to evidence, including appraisal evidence, presented by the agency and the property owner. The Commissioners then issue an award based upon the fair market value of the property. They may also award the landowner a reimbursement for appraisal fees. Commissioners usually issue their award quite promptly, but by statute they must ordinarily make an award within 90 days of their appointment.

APPEALS

If either party is dissatisfied with the court appointed commissioners’ determination of compensation, a trial by a judge or a jury may be scheduled. The final amount of just compensation will be set by the court after it has heard all arguments. If an appeal is filed, state law provides for partial payment of the Commissioner's award at once, because the governmental authority may take title upon issuance of the Commissioner's award. On the appeal the judge or jury gets to decide the valuation all over again without consideration of the prior award by the Commissioners. It may raise the award or lower it. The judge’s or jury's ultimate verdict may be further appealed to the Minnesota Court of Appeals.