Eminent Domain Law
HB 1070 – Eminent domain. Establishes additional tax increment financing guidelines.
(1) Changes the definitions of “blighted area” and “conservation area”;
(2) Removes architectural, engineering, legal, and marketing costs from professional service costs included within the definition of “redevelopment project costs”;
(3) Adds a definition of “retail project”;
(4) Requires redevelopment plans adopted by municipal and county governments to be approved by voters if a referendum petition is submitted according to procedures established in the bill;
(5) Increases from 50% to 90% the amount of total additional revenue from taxes, penalties, and interest that are imposed by a municipality or other taxing district which must be allocated to a separate segregated fund within the special allocation fund for redevelopment plans and projects approved or adopted after August 31, 1991;
(6) Increases from 50% to 90% the amount of defined new state revenues which may be available for appropriation by the General Assembly to the Department of Economic Development Supplemental Tax Increment Financing Fund for distribution to municipalities;
(7) Prohibits TIF from being used to fund more than 22% of the total estimated costs of a project that is primarily retail or to develop retail sites where 25% or more of the area is vacant land, considered open space, or is currently being used for agricultural or horticultural purposes. The bill exempts these types of areas that are part of the redevelopment project and were included in the municipality’s comprehensive plan prior to January 1, 2004; and
(8) Requires municipalities to pay 25% of the payments in lieu of taxes they receive from TIF projects to taxing entities that would otherwise be entitled to receive revenue from property taxes. If a TIF project includes residential uses, real property tax revenues attributable to the residential portion of the development will pass through directly to the affected school districts unless commission members representing the affected districts say they will forgo this revenue.
HB 1193 – Eminent domain reimbursement. Requires businesses in areas taken by eminent domain to reimburse persons displaced from that area.
HB 1363 – Eminent domain. Changes the laws regarding eminent domain and condemnation proceedings.
(1) Requires the state or any political subdivision to develop a written description of the project that requires the use of eminent domain before proceeding with the condemnation of the property;
(2) Eliminates a political subdivision’s power to exercise eminent domain until the governing body approves the proposed condemnation by a two-thirds majority vote;
(3) Requires the courts to determine if the condemning entity has the authority to exercise the power of eminent domain, the property to be condemned is subject to the exercise of eminent
domain and is for a public use, and the condemning entity is properly exercising the power of eminent domain in the particular proceeding. The court must make this determination after the
petition has been filed and prior to appointing condemnation commissioners. If the court finds that all the requirements have been met, an interlocutory order to this effect will be entered.
If the court finds that the requirements have not been met, the petition will be dismissed;
(4) Instructs the Missouri Supreme Court to promulgate rules to establish uniform instructions for condemnation commissioners regarding their duties;
(5) Prohibits the state or any political subdivision from exercising the power of eminent domain for the purpose of economic development;
(6) Requires an entity with the power to condemn to provide the owner with a summary of his or her rights through certified mail;
(7) Requires a condemning entity before beginning the condemning process to give notice of intent to acquire property to anyone having an interest of record in the property involved, including a description of the property and a notice of the property owners’ right to a hearing and that a decision may be appealed. Upon receipt of the notice, the owners may hire an appraiser of
their choosing and submit an appraisal to the condemner. A condemning entity cannot make an offer to purchase property that is less than the fair market value established by the appraisal;
and
(8) Requires a condemner to initiate construction, improvement, or utilization of the condemned property for the stated public use within 48 months of its acquisition or the former owner will
have the right of first refusal to reacquire the property for the compensated amount or fair market value.
HB 1533 – Eminent domain. Prohibits commencement of condemnation proceedings and tax abatement grants prior to January 1, 2007.
HJR 30 – Restricts power of eminent domain. Proposes a constitutional amendment restricting the power of eminent domain. Specifies that no use will be considered public in which any entity other than the state, a political subdivision, public agency, public utility, or rural electric cooperative will use or own the property. Provides that no land classified as agricultural and horticultural will be deemed blighted.
HJR 37 – Eminent domain. Proposes a constitutional amendment restricting definition of public use for purposes of eminent domain. Specifies that no use will be considered public in which any entity other than the state, a political subdivision, public agency, public utility, or rural electric cooperative will use or own the property. Provides the property owner of record at the time of the taking with right of first refusal to purchase the property at the current fair market value if the public entity offers to sell or transfer property taken for public use within 20 years.
HJR 38 – Restricts judicial jurisdiction in eminent domain. (See Judicial Administration)
SB 560 – Eminent domain. Modifies the laws relating to eminent domain and “blighted areas.” (1) Modifies the definition of blight and specifically states that economic underutilization shall not be a valid factor in determining blight. Requires that the property in question satisfy the following criteria:
a. The property is in an area of high unemployment; and
b. The property is one with low fiscal capacity; and
c. The area containing the redevelopment area is characterized by low income.
(2) Makes the determinations of blight or conservation area a quasi-judicial function, attaching the rights of procedural due process to affected landowners and requiring the governing body to issue findings of fact and conclusions of law displaying clear and convincing evidence for the sufficiency of such finding of blight or conservation area. Allows for the findings of fact to be reviewed, de novo, at the request of any owner of property deemed blighted.
(3) Removes economic development area from Chapter 99 as an option for tax increment financing projects.
(4) Removes reference to legal fees, demolition of buildings, and costs of rehabilitation, reconstruction, or repair or remodeling of existing buildings or fixtures as redevelopment project costs. Legal fees are specifically exempted from the definition of redevelopment project costs.
(5) States that tax increment financing projects within a blighted area or a conservation area shall apply to and fund only certain specific infrastructure projects, but in no case shall it include buildings.
(6) Prohibits an ordinance providing for a tax increment finance project for residential development or redevelopment from being approved unless unanimous consent for such project is granted by the members of the tax increment finance commission representing the interest of the school boards whose districts are included within the redevelopment plan or area.
(7) Requires the condemning entity to complete formal condemnation proceedings and pay the ordered amount of compensation before the extension of any extension of a temporary easement.
(8) Prohibits any political subdivision with an elected governing body from exercising the power of eminent domain or condemnation until the elected governing body approves of the proposed condemnation by a 2/3 majority vote.
(9) After the petition has been filed to begin condemnation proceedings, the court shall, prior to appointing commissioners, determine whether or not:
a. The condemning entity has the authority to exercise the power of eminent domain;
b. The property sought to be condemned is subject to eminent domain;
c. The property sought to be condemned is for a public use; and
d. The condemning entity is properly exercising the power of eminent domain in the proceeding.
(10) Allows the court to determine other issues raised by the owner which attacks the validity of the condemning entity’s right to exercise eminent domain.
(11) Prohibits the state or any political subdivision thereof from exercising the power of eminent domain to acquire property for economic development, unless the acquisition of such property is expressly authorized by law or the following provisions are fulfilled. No private property that the state or a political subdivision takes in the exercise of its eminent domain power shall be used for economic development unless: (1) 7 years have passed since the time of the original authorized taking; and (2) the original owner is offered the right of first refusal to buy the property at the original condemnation price.
(12) Redefines the term “economic development” to include any activity performed to increase tax revenue, tax base, employment rates, or general economic health, when the activity does not result in:
a. The transfer of land to public ownership;
b. The transfer of land to a private entity that is a common carrier;
c. The transfer of property to a private entity that will remove a blighted area; or
d. The lease of the property to private entities that occupy an incidental area within a public project.
(13) Requires a condemning entity to provide a property owner with a summary of his or her rights through certified mail.
(14) Requires a condemning entity to give notice of the intent to acquire property before beginning the process of condemnation. Such general notice must include a description of the property, notice of the property owners’ rights to a hearing, notice that a decision may be appealed to be heard before a jury, and notice that the condemnor will pay reasonable appraisal costs.
(15) Outlines procedure for appraisals. Appraisals may be used to negotiate, but only the condemnor is bound by such appraisals. The condemnor must pay for the costs of the owner’s appraisal, unless several owners exist and they cannot agree on what appraisal to submit.
(16) Under this section, a condemning entity shall not make an offer to purchase property that is less than the market value established by its appraisal, but is not required to make a higher offer in order to be negotiating in “good faith”. Requires any condemning party to make a written offer at least 10 days before the formal filing of a petition with the court to condemn the property.
If the parties fail to reach agreement and the amount of damages awarded the condemnee by the commissioners or by the court or jury, exclusive of interest and costs, is within 20% of the original offer, the condemnee shall pay the condemning entity’s litigation expenses, including court costs and attorney’s fees, in an amount that does not exceed $2,500. If the amount of damages awarded to the condemnee, exclusive of interest and costs, exceeds the amount of the original offer by 20% or more, the condemning entity shall pay the condemnee’s litigation expenses, including court costs and attorney’s fees, in an amount not to exceed $2,500. If the amount of damages awarded to the condemnee, exclusive of interest and costs, exceeds the amount of the original offer by 50% or more, the condemning entity shall pay the condemnee’s litigation expenses, including court costs and attorney’s fees, in an amount not to exceed $2,500 and double damages on that portion of the damages that exceeds the amount of the original offer by 20%.
(17) Ensures that any political subdivision must establish by ordinance or rule with a relocation policy that is equal or greater to the requirements of federal law.
SB 611 – Eminent domain. Modifies the laws relating to eminent domain and condemnation proceedings.
(1) Requires the state or any political subdivision to develop a written description of the project it intends to complete that requires the use of eminent domain before proceeding with the condemnation of property. The description must include the intended benefit to the public, an explanation of if or how the public will use the condemned property, the estimated costs, the anticipated sources of funds, and the anticipated date of the retirement of obligations incurred to finance the project, and the plan for providing relocation assistance.
(2) Prohibits any political subdivision from exercising the power of eminent domain or condemnation until the governing body approves of the proposed condemnation by a 2/3 majority vote.
(3) Requires interlocutory appeals. Under this section, after the petition has been filed to begin condemnation proceedings, the court shall, prior to appointing commissioners, determine whether or not:
a. The condemning entity has the authority to exercise the power of eminent domain;
b. The property sought to be condemned is subject to eminent domain;
c. The property sought to be condemned is for a public use; and
d. The condemning entity is properly exercising the power of eminent domain in the proceeding.
The court may also determine other issues raised by the owner which attack the validity of the condemning entity’s right to exercise eminent domain. If the court finds that all the requirements have been met, it shall enter an interlocutory order to such effect. An interlocutory appeal shall lie from such decision as a matter of right. However, if the court finds the requirements have not been met and the condemning entity does not have the authority to exercise the power of eminent domain, the court shall dismiss the petition with prejudice and direct the condemning entity to pay the owner’s court costs and attorneys’ fees.
(4) Requires the Missouri Supreme Court to promulgate rules to establish uniform instructions to be given to condemnation commissioners regarding their duties when determining the amount of compensation that an owner is to receive for his or her condemned property.
(5) Prohibits the use of eminent domain for economic development.
(6) When an entity with the power to condemn negotiates with an owner to acquire property, which may eventually be acquired through formal condemnation proceedings, the entity must provide the owner with a summary of his or her rights through certified mail. If the condemning entity does not supply the owner with the summary of rights, a presumption shall exist that any sale or contract between the two parties was not voluntary and the condemning entity may be held responsible for any relief the court may determine to be appropriate.
(7) Protects landowner rights.
a. Requires a condemning entity to give notice of the intent to acquire property before beginning the process. Requirements for such notice are specified in the act.
b. Outlines procedures for appraisal.
c. Under this act, a condemning entity shall not make an offer to purchase property that is less than the fair market value established by it’s appraisal, but is not required to make a higher offer in order to be negotiating in “good faith”. Any condemning party must make a written offer at least 10 days before the formal filing of a petition with the court to condemn the property. The offer must be filed with the County Recorder of Deeds.
d. If the parties fail to reach agreement and the action proceeds to trial and the amount of damages awarded the condemnee by the judgment is 25% greater than the amount specified in the offer, the court shall order the condemning entity to pay the condemnee’s court costs and attorney’s fees.
(8) Requires a condemnor to initiate construction, improvement, or utilization of the condemned property for the stated public use within 48 months of its acquisition or the former owner shall have the right of first refusal to reacquire the property for the compensated amount or fair market value, whichever is less. This provision will not apply to the State Highways and Transportation Commission.
(9) Any political subdivision which proposes the displacement of persons through the use of eminent domain must establish by ordinance or rule with a relocation policy that is equal or greater to the requirements of the federal law.
SB 794 - Eminent domain and TIF projects. Relates to eminent domain and tax increment financing (TIF) projects.
(1) This section provides any owner of property, acquired by a municipality through use of eminent domain, the option to repurchase the property at the condemnation price if actual construction has not been undertaken within five years from the date of adoption of an ordinance approving a redevelopment project.
(2) This section allows the use of referendum or petition with regard to ordinances relating to tax increment finance projects in any municipality within the state.
(3) This section requires the state or any political subdivision to develop a written description of the project it intends to complete that requires the use of eminent domain before proceeding with the condemnation of property. The description must include the intended benefit to the public, an explanation of if or how the public will use the condemned property, the estimated costs, the anticipated sources of funds, and the anticipated date of the retirement of obligations incurred to finance the project, and the plan for providing relocation assistance.
(4) This section requires the condemning entity to engage in mandatory mediation with the property owner to resolve the amount of compensation the owner shall receive for his or her property. The mediation will occur after the petition for condemnation has been filed, but before the commissioners are appointed by the court. The mediation will be nonbinding and independently administered. The parties must mutually agree on a qualified and neutral mediator and the condemning entity must pay the cost. If the parties cannot agree on a mediator, the court shall appoint one and the condemning entity will pay the cost of the mediator.
The mediation shall take place within 30 days of the mediator being chosen. If the parties cannot reach an agreement, the court shall appoint the commissioners and continue the formal condemnation proceedings.
The condemning entity or property owner may include any person or entity in the mediation that is reasonably necessary to determine the appropriate amount of compensation for the property. No person who serves as a mediator shall be compelled to disclose any matter disclosed in the mediation process. The mediation shall be regarded as settlement negotiations and the confidentiality of such proceeding shall be as set forth in Supreme Court Rule 17.
(5) Under this section, after the petition has been filed to begin condemnation proceedings, the court shall, prior to appointing commissioners, determine whether or not:
a. The condemning entity has the authority to exercise the power of eminent domain;
b. The property sought to be condemned is subject to eminent domain;
c. The property sought to be condemned is for a public use; and
d. The condemning entity is properly exercising the power of eminent domain in the proceeding.
The court may also determine other issues raised by the owner which attacks the validity of the condemning entity’s right to exercise eminent domain. If the court finds that all the requirements have been met, it shall enter an interlocutory order to such effect. An interlocutory appeal shall lie from such decision as a matter of right. However, if the court finds the requirements have not been met and the condemning entity does not have the authority to exercise the power of eminent domain, the court shall dismiss the petition with prejudice and direct the condemning entity to pay the owner’s court costs and attorneys’ fees.
(6) This section requires that one of the three disinterested condemnation commissioners be a licensed attorney, another one hold a real estate license, and another one be a member of the general public. Under this section, the Missouri Supreme Court shall promulgate rules to establish uniform instructions to be given to condemnation commissioners regarding their duties when determining the amount of compensation that an owner is to receive for his or her condemned property.
(7) This section states that before an entity with the power to condemn conducts mandatory mediation with an owner to acquire property, which may eventually be acquired through formal condemnation proceedings, the entity must provide the owner with a summary of his or her rights through certified mail. If the condemning entity does not supply the owner of the real property with this summary of rights, a presumption shall exist that any sale or contract was entered into voluntarily be the property owner. The condemning entity may be held responsible for any relief as determined appropriate by the court. The summary does not have to be given to any person who cannot, with due diligence, be found by the condemning entity.
(8) This section ensures that any political subdivision, not just those receiving federal funding for a project or those proposing a redevelopment plan, which proposes the displacement of persons through the use of eminent domain must establish by ordinance or rule with a relocation policy that is equal or greater to the requirements of the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. sections 4601 to 4655, as amended).
SB 832 – Modifies Missouri’s tax increment financing law. Prohibits the use of tax increment financing for projects located in flood plains except for river front development projects. Defines the term “Greenfield” and prohibits use of tax increment financing for greenfield development. Residential TIF projects are prohibited for the development of vacant land. Establishes procedures for approval of TIF proposals.
SJR 28 – Eminent domain. Proposes a constitutional amendment to prohibit the use of eminent domain for the purpose of economic development. Provides that private property may only be taken when necessary for the possession, occupation, or enjoyment of land by the public, or by public agencies, public utilities, rural electric cooperatives, municipally owned utilities, or common carrier, as provided by law. Prohibits the taking of private property for use by private commercial enterprise, the of economic development, or for any other private use, except with consent of the owner. Takings by public utilities, rural electric cooperatives, municipally owned utilities, or common carriers are not takings for private use. Property shall not be taken from one owner and transferred to another on the grounds that the public will benefit from a more profitable private use.
SJR 29 – Eminent domain. Proposes a constitutional amendment to eliminate the provisions allowing for the use of eminent domain to end blight.