BACKGROUND INFORMATION

A group of utility companies will soon be constructing an interstate power line project which will follow the I-94 corridor through central Minnesota. The high voltage lines are expected to be constructed and transmitting electricity by 2014.

The exact route for the project has not been finalized but preferred routes have been identified. Please see the link for the Project Maps for more information on the proposed route locations. Many landowners have been notified that the project may impact their property. CapX2020 has filed both a preferred and an alternative route, which can be found at the CapX2020 website.

The Minnesota Public Utilities Commission (“PUC”) is the state agency that oversees projects such as the CapX2020 Project. The transmission companies behind the project are currently seeking necessary permits and approval from the PUC. For information regarding the status of this project with the PUC, please visit the State of Minnesota’s website at www.puc.state.mn.us.
When the Minnesota PUC approves the project, CapX2020 will have the authority to condemn private property. This authority allows CapX2020 to acquire whatever property rights are necessary from private landowners for the project. While CapX2020 can forcibly acquire these property interests, the Minnesota Constitution, as well as the U.S. Constitution, requires just compensation to be paid to the property owners. While the utilities promise fair compensation to property owners, it is important to keep in mind that power companies run very profitable businesses. Certainly, if they can acquire the property rights cheaper than what should be paid, they will. If you are approached by a representative of CapX, it is important that you fully understand the property rights being acquired from you because it will impact the amount of compensation you are entitled to.

The CapX2020 Project will consist of 340 kV lines and substations. The poles will be large steel structures 120 to 170 feet in height, depending on the contours of the ground. The lines will be placed overhead because it is less expensive than burying the lines. The power lines will create electric magnetic fields (“EMF”). Questions remain about the effects of EMF on human health as well as the health of livestock and other animals. Stray voltage may also be a real concern and one that bears just compensation. Particularly, if you have a residence or livestock pastures near the lines.

The honest reality is that the CapX2020 Project is going to happen. Approval by the PUC is very likely and there is a lot of money behind the project. Therefore, if your property is within the route, you will, if you have not already, be contacted by a representative from CapX, who will attempt to negotiate an easement for the project. Often the land acquisition agents are hired from out of state groups. These land agents have been compared to used car salesmen. Their sole job is to get you to sign an easement or right-of-way grant, and they will most likely say whatever they think you want to hear. In our prior experience in representing landowners in similar type projects, it is not unusual for a land acquisition agent to be unfamiliar with the project, unfamiliar with the construction procedures, unfamiliar with post-construction remediation efforts, unfamiliar with the language in the easement, and unfamiliar with Minnesota condemnation law. While to some people, the price being offered for the easement rights may seem reasonable, we encourage everyone to meet with an attorney before signing any easement form to make sure that you are fully aware of the implications and legal effects. An easement or right-of-way grant is a permanent waiver of your legal rights. It will burden your land forever.

WHAT TO EXPECT IN CONDEMNATION

The word “condemnation” may sound threatening, but don’t let it scare you. A land acquisition agent may inform you that if you do not agree to sign the easement, that CapX2020 will just simply “take” your property. It is important that you understand that while condemnation law does allow a condemning authority to obtain your property or certain rights to it, the process is in place to protect you, the landowner, from abuse by the condemning authority. To begin the condemnation process, CapX2020 will need to file a petition in each county where CapX2020 requires easements. In large cases such as this, it is common for one judge to be appointed to oversee the entire condemnation process within the State of Minnesota. This is done for logistical and cost reasons. It allows all court documents to be filed and appearances to be made in one county opposed to multiple counties throughout the state. This also makes it easier for a firm such as ours to represent many people throughout the State in a cost effective manner.

After a condemnation petition is filed, the Judge will appoint three neutral people in each county to act as Condemnation Commissioners. These individuals have a good understanding of the value of real estate in the county. Often commissioners are real estate agents, attorneys, developers or appraisers. The individuals appointed as Commissioners are important and the appointment of Commissioners requires the close attention of an attorney working on your behalf. Ultimately, these Commissioners will decide what is fair compensation for the property rights being taken from you. As part of the process, the Commissioners will view your property. You and your attorney have the right to be present during any viewing. This is a useful opportunity to present the Commissioners with the unique concerns relative to your property. A hearing is then scheduled at which both CapX2020 and the landowner will have the opportunity to present evidence to the Commissioners concerning the value of the property rights being acquired. After the hearing is completed, the Commissioners will get together privately and make a decision as to the amount of compensation to be awarded to the landowner. If either CapX2020 or the landowner feel the decision is wrong, both have the right to appeal to the Court and have a jury hear the evidence and make an award.

CapX2020 will likely do a “quick take.” In short, the quick-take procedure allows the company to take possession of the property prior to the Commissioner’s hearing. Before acquiring property rights, under the quick take procedure, CapX2020 will be required to pay to the landowner an amount equal to CapX’s appraised value of the property rights. This amount is not binding on the property owner and a Commissioner’s hearing will still be held to determine the final amount.

OUR REPRESENTATION

Negotiating with a huge company can be very complicated and CapX2020 will have many land agents and attorneys working on their behalf. The attorney you choose can make a difference in the impact of the project to your property, and the amount of compensation you ultimately receive. Our representation presents no financial risk to you. If your property is impacted by the project, the condemning authority will make you an offer for the property rights it seeks to acquire. Our law firm would be compensated based upon a percentage of any amount we recover on your behalf above and beyond the amount you are offered by CapX2020 prior to hiring us. You, as the landowner, are free to negotiate with CapX2020 and receive the largest written offer you can. Our willingness to take this risk speaks to our confidence in our ability to maximize the amount of compensation we can get for you. Our law firm has been involved in many large scale condemnation projects. We have represented hundreds of landowners in seeking just compensation for their individual parcels. In addition, our office regularly represents local governments in the acquisition of property for public projects, so we understand both sides of the process. We understand that each individual parcel is unique and each landowner has unique concerns related to their property and the condemnation process. That is why we are committed to visiting with each and every client on their property to address specific concerns presented by the location of the easement and the utility lines. We invite you to look at our eminent domain page which describes in more detail the condemnation process, and your rights as landowners.

We plan on holding future informational meetings with individuals interested in discussing representation. We urge you not to sign any documents presented to you by any of the CapX2020 representatives. As a landowner, there is no down side in forcing the condemning authority to initiate the condemnation proceedings. It is important that you fully understand the implications of any easement or the property rights acquired by CapX2020 and the ways in which you can maximize the compensation you are entitled to. We will be sending correspondence to many affected landowners notifying them of the time and place of our informational meetings. You will also be able to find additional information regarding these meetings on our website, once they are scheduled. In the meantime, if you have any questions or concerns regarding the condemnation process or the CapX2020 Project specifically, please do not hesitate to contact attorneys Nicholas Delaney or Adam Ripple. If either are unavailable, you may also contact our experienced paralegal, Angie Bengtson.