Eminent Domain Legislation Passes

EDITOR’S CORNER ■ Continued From Cover

Bonding For A Better Minnesota candidates assured for all statewide positions. The But right now, the sun is shining, the grass is green, flowers Independence Party will hold its state convention on June are blooming and someplace in Minnesota a baseball game Marnie Moore 24, 2006. But just to keep it interesting, critical primaries is being played. Enjoy your summer!! apparently will be needed to determine the DFL candidate Published by the Government Relations Group END OF SESSION • 2006 After a promising start, a roller- with a vote of 111-21 in the House to the Perpich Center for Arts for governor and 5th District congressperson, respectively. If you would like to have your name added to the mailing coaster ride of contentious and 60-6 in the Senate. Although Education in Golden Valley. Attorney general Mike Hatch will be challenged by state list for future issues of CapitolWatch, please let us know. We conference committee meetings not everyone got what they wanted senator Becky Lourey for governor; state representative hope you enjoy this issue of CapitolWatch! Please contact us Eminent Domain Legislation Passes and final negotiations behind the this year, enough projects were If you love the outdoors, $100.7 Keith Ellison is being challenged by Paul Ostrow, Ember with any questions about topics discussed in this or future EDITOR’S CORNER Julie Perrus locked door of the governor’s funded to deem the bill an overall million was provided to preserve, Reichgott Junge and Mike Erlandson. These will be issues. We always welcome your feedback. ■ office, the 2006 session brought success. enhance and further the enjoyment seriously contested primaries, consuming campaign time Peter Coyle forward a bonding bill of noteworthy of Minnesota’s natural resources. and resources, while the Republican challenger (at least in The final passage of legislation to requires proof by a “preponderance proportions. In total, the bill the governor’s race), will be able to focus on November’s reform the eminent domain process of the evidence” versus the historical The 2006 session of the Minnesota allocated nearly one billion dollars In total, the bill If you love animals, Como Zoo election. in Minnesota surprised few at the “substantial evidence” standard. Legislature is a wrap, with no for bonding projects from agricul- in St. Paul will receive $9 million, Capitol. The ability of local govern- prospect for a special session in tural labs to zoological gardens. the Minnesota Zoo in Apple Valley allocated nearly ments to use this power to facilitate Local governments argue that the sight. It was a session marked $7.5 million, the Lake Superior economic development by taking new law goes too far and will limit by minimal partisan strife, though Pressure was on from the beginning one billion dollars Zoo $600,000 and the Little Falls private property to benefit private their ability to address nuisance notably a bonding bill, two stadiums to guarantee passage of this for bonding projects Zoo $400,000. Larkin Hoffman’s business interests has been strictly properties and contaminated areas. important bill, based in part on Government Relations Department limited under the new law, most One provision that was hotly debated and major reform of the process the failure to pass a bonding bill from agricultural labs If you hate traffic, $60 million of which took effect on May 21, is a much more limited definition of for condemning property were during the 2004 session (the bill is allocated for the Northstar 2006. Property rights advocates “blight,” which in urban use areas completed. While the state’s budget was eventually passed in 2005). to zoological gardens. commuter rail line running from GERALD L. SECK is a shareholder and JULIE L. PERRUS is an associate with herald the new law as a victory for requires that 50 percent of the picture is much improved compared Both Republicans and Democrats Big Lake to Minneapolis. member of the Government Relations Larkin Hoffman and is a member of the Minnesota property owners. buildings to be taken be structurally to recent years, there was limited were well aware that a failed practice group at Larkin Hoffman. Jerry has firm’s Government Relations and Land Use substandard. The law defines a available cash to fund splashy big bonding bill could be detrimental Bonding At A Glance If you support education, over been an active lobbyist at the Minnesota and Real Estate practice groups. Julie has Sponsored by Representative Jeff “structurally substandard” building initiatives. Consequently, initiatives to legislators during an election 30% of the total bonding bill is Legislature since 1971 and has lobbied for experience working with legislators and Johnson (R-Plymouth) and Senator as a building that: (1) has been a variety of clients and issues for govern- lobbyists to resolve statutory issues and relating to education, highways, PAGE year, as local projects are critical to If you love the arts, you can look allocated for higher education, PAGE Tom Bakk (DFL-Cook) as a response inspected and cited for enforceable health care and the environment PAGE constituent contentment. Through providing both the Minnesota mental units and private concerns. His manage legislation and policy issues. Prior forward to a refurbished Schubert to the controversial 2005 United housing, maintenance or building will have to await next year and a compromise, spirited debate, a State Colleges and Universities experience includes legal director of the Minnesota Public to joining Larkin Hoffman, she was the committee admin- 2 Theatre in Minneapolis, thanks to 6 Interest Research Group, Executive Director of the Leech istrator for the State and Local Government Operations States Supreme Court case Kelo code violations; (2) the building 1 little bit of stubbornness and sheer (MnSCU) system and the University new crop of legislators. $11 million provided in bonding Lake Indian Reservation Legal Services Project, Director of Committee at the Minnesota State Senate. She also served et al v. New London, CT, the law code violations involve structural determination, key House and of Minnesota with funds for new states that eminent domain may problems with the building; (3) the funds. In addition, the Ordway the Truk Office of Micronesian Legal Service and a clerkship as a legislative assistant to State Senator Linda Higgins and Put simply, this session was more Senate members worked with each Center in St. Paul received $7.5 buildings, renovations and asset for Justice James C. Otis on the Minnesota Supreme Court. as a staff assistant to U. S. Senator Paul Wellstone. Julie only be used for a “public concern property owner has not remedied about getting the bonding bill other and the governor’s office to million, $5 million was allocated preservation. ■ He has also been recognized by the U.S. Environmental received her J.D. from William Mitchell College of Law and or purpose,” the definition of which the cited violations after two hammer out an acceptable deal. to the MacPhail Center for Music Protection Agency (EPA) for his environmental work. ■ graduated with her B.S. from Winona State University. ■ is limited to what most believe notices to cure the noncompliance; passed and ending the session on In the end, the bonding bill passed in Minneapolis and $1.05 million are traditional public uses such as and (4) the cost to cure the viola- time; everything else was secondary. PETER J. COYLE is chair of Larkin Hoffman’s MARNIE S. MOORE is a paralegal with Larkin Hoffman the construction of parks, schools, tions is more than 50 percent of Every seat in the House and Senate, Government Relations practice group. He and a member of the firm’s Government publicly-owned buildings or utilities, the assessor’s taxable market value as well as the governor’s office, is EMINENT DOMAIN LEGISLATION PASSES ■ Continued From Cover is also a member of the firm’s Land Use Relations practice group. Before joining roads and bridges, as well as the for the building (this excludes any and Real Estate practice group and serves Larkin Hoffman, she was the manager of up for grabs in November. State mitigation of blight and the remedi- additional land value). on the firm’s Board of Directors. Peter’s government affairs at Cook Hill Girard elected officials are keenly aware of involves blight mitigation or environmental remedi- attorney’s fees to the property owner. If the final government relations regulatory practice Associates and prior to that spent several ation of environmentally contami- this fact and that razor-thin margins ation requires a public hearing. award is between 20 and 40 percent greater, the encompasses local, state and federal years with the Minnesota Wild Hockey Club nated areas. The legislative authors The definition of an “environmen- separate the party caucuses. Both court is allowed to award attorney’s fees; if the final administrative agencies and the Minnesota Legislature. He as a corporate account manager. Marnie included a provision to specifically tally contaminated area” changed major political parties sought to limit the use of eminent domain as to an area where more than 50 Another provision of the law that forces local award is more than 40 percent greater, the court represents private developers, landowners and businesses is currently serving as a Governor’s appointee on the avoid being painted as obstructive before state agencies, the Metropolitan Council, county Board of Dietetics and Nutrition Practice and the Council a tool for economic development, percent of the parcels contain government accountability is the section addressing must award attorney’s fees. or belligerent, though periodic attorney’s fees. Previously, property owners who boards and city councils. Peter has previously served as of Health Boards. Volunteer involvement includes the stating that “an increase in tax contamination and the estimated Staff Director and Chief Counsel to United States Senator International Girls’ Forum and the Epilepsy Foundation of outbursts of partisan sniping did sued a governmental agency for damages based This legislation represents a significant shift in base, tax revenues, employment, costs of investigation, monitoring Rudy Boschwitz and the U.S. Senate Committee on Small Minnesota. Marnie received her B.A. from the University of occur (this is politics, after all!). on appraisals that were well below fair market eminent domain law in Minnesota. It was clearly or general economic health” do not and testing and remediation are Business in Washington D.C. ■ Minnesota, Twin Cities and is currently completing her J.D. meet the standard of public use or more than the estimated market Now, however, legislators are safely value often paid a substantial portion of any money a hot political topic in 2006, and many legislators at Hamline University. ■ received in attorney’s fees. In the final version of wanted to utilize the issue on the campaign trail. purpose. The new law also contains value of the parcel, or one in which home in their districts planning their the legislation, attorney fees are specifically not Just how limiting this law will be to urban areas, a requirement that property owners the owner has not complied with upcoming re-election campaigns. available as a remedy to the property owner if the where redevelopment plays a large role, is yet to be whose businesses are destroyed by a court order requiring cleanup value of the taken property is less than $25,000. For seen. Most likely, local governments will be back at CapitolWatch is a publication of Larkin Hoffman. It is not intended, nor should it be used as a substitute for specific legal a taking be compensated for loss or remediation within a period of Both Democrats and Republicans properties valued above $25,000, if the final award the table in the next few years asking for changes to advice or opinion, since legal counsel may only be given in response to inquiries regarding particular factual situations. of going concern. Additionally, the time. In addition, any taking that have completed their endorsing If you would like further information on any of the subjects discussed in this publication, please feel free to contact us. is less than 20 percent above the government’s most the new law or special legislation to address specific evidentiary standard for eminent conventions, with credible recent appraisal, a court is prohibited from granting projects. ■ 1500 Wells Fargo Plaza • 7900 Xerxes Avenue South • Minneapolis, Minnesota 55431-1194 domain takings for blight or 952.835.3800 • E-mail: [email protected] • www.larkinhoffman.com environmental contamination now Continued on page 2 Continued on page 6

Marnie Moore Legislative drafting was prolific in 2006, The long awaited and much antici- The Days Of The Metrodome The Twins plan to open the 2010 Partially due to the overwhelming focus on stadiums to provide services to the area based on established with 3,139 new bills introduced by the House and Senate, the focus of the legis- pated end to years of stadium Are Numbered season at the new stadium, which and most likely due to lack of money, health care criteria. This selection is made following an intensive debates at the Capitol has seemingly remains to be named. was decidedly a back burner issue during the 2006 review and public hearing process. The Department’s As the 2006 session drew to For some, other chambers beckon. lators at the Capitol was more narrow. come to an end, at least for the session. In addition, the session lacked the passage of decision is then reported to the legislature for it to an end on Sunday, May 21, Rep. Ron Abrams (R-Minnetonka) Some bills became amendments to larger The Minnesota Twins finally University of Minnesota and the The Minnesota Vikings almost an omnibus health and human services bill that serves act upon. An earlier version of the bill made this both the House and the Senate received an appointment to serve bills and others were discarded immedi- succeeded in getting a stadium Minnesota Twins. succeeded in riding the Twins’ as the vehicle for many smaller, diverse health care selection binding; the final version leaves this open to continued their tradition of desig- as Hennepin County Judge in the ately, but in the end only 114 bills passed bill passed in the waning hours of coattails to a new stadium this year, bills during a budget year. Finally, the always divisive discretion. nating chamber floor time for 4th Judicial District. Rep. Scott both bodies to be sent to the Governor. session. After nearly two hours as well. The Vikings’ proposal, abortion issue played a role as session dwindled to a heartfelt retirement speeches Newman (R-Hutchinson) plans Here is a small sample of bills that made it of debate early Sunday morning, Gophers Come Home which includes a stadium estimated close with legislators in the Senate wary of bringing to In addition, the bill also requires the Commissioner from members not running for to take advantage of the U.S. and bills that didn’t: the Senate approved the conference at $675 million, is planned as a part the floor any bills that could be a vehicle for pro-life of Health to conduct a “Study of Medical Facility re-election. Although there were Supreme Court’s ruling allowing committee report that allows the • PASSED The Clean Water Legacy Act, After over two decades of Gopher of a larger commercial complex in amendments. Construction” to examine the need for a new process no real surprises this year, there partisan endorsements in judicial Twins to build a new baseball which provides a process for cleaning football at the Metrodome, the Blaine, Minnesota, called Northern for approving the construction of medical facilities or were a fairly large number of elections by seeking Republican stadium in Hennepin County without waters that are found to be in violation University plans to return the team Lights. The Vikings proposed a Early on, the legislature acted swiftly to pass a the addition of services at existing medical facilities. speeches with seventeen House party endorsement in connection a referendum on a proposed sales of the federal Clean Water Act, as well as to campus in the fall of 2009. The 0.75 local option sales tax for the bill granting an exception to Minnesota’s hospital The study must be reported to the legislature by and eight Senate members saying with his campaign for judge in tax. Opponents were vocal in their clarifying the procedural requirements football stadium will also be home citizens of Anoka County to help moratorium allowing the partnership of North Memorial February 15, 2007. their good-byes. the 1st Judicial District. for permitting discharges into the waters criticism of the bill, stating that to the marching band, intramural fund the deal. Even with the tax, a Health Care and Fairview Heath Services to construct a of the state. SF 762 sports, graduations and other funding gap of $115 million existed 300-bed facility in Maple Grove. The hospital will be Several House members bid For others, all political aspira- • FAILED No Omnibus Transportation special events. in the proposal, caused in part by the located near the intersection of the new Highway 610 Other Successful Health Policy Initiatives: farewell to the House chambers tions have run their course and bill passed in 2006. A conference need for additional road improve- extension and Interstate 94. Construction is anticipated ...the University with the hopes of making a retirement simply means a return committee met several times, but House The open-air stadium will seat ments to access the stadium. In to be completed by December 2009. ■ Legislation requiring health plan companies, reappearance next year on the to “business as usual” or perhaps 50,000 and will cost the state $10.25 hospitals and outpatient surgical centers to provide and Senate members could not reconcile must ensure that order to ensure passage of the Senate side, including: Rep. Katie more quality time spent with the the contentious items such as a half-cent million per year for a maximum of “price transparency” information to consumers. Twins bill, legislators removed the Several legislators took this opportunity to question the Sieben (DFL-Newport) running grandkids. We wish them all good sales tax increase in the seven-county 25 years. In return, the University $110.75 million in Vikings proposal in the final days of established hospital moratorium selection and approval for the seat presently held by luck in their future pursuits. PAGE PAGE metro area, policy changes regarding PAGE will transfer to the state 2,840 acres ■ A health care “cost-containment” bill containing non-state revenues session. process used to determine if a new hospital should be the retiring Senator Sharon seatbelts and child booster seats and measures encouraging and promoting initiatives of university-owned land at UMore constructed or if additional beds should be granted to Marko (DFL-Cottage Grove); Rep. $2.5 billion in bonding proposals to 3 4 such as electronic billing, the posting of health 5 Park near Rosemount, Minnesota. is raised for stadium The Vikings are provided with an existing facility. Under the system in place at the Ray Vandeveer (R-Forest Lake) Announced House fund transportation projects that would Before the state money is granted, construction. some comfort language in the time the Maple Grove hospital debate occurred, the care information on state websites and the use hoping to obtain the seat that Retirees: depend on the passage of a constitutional the University must ensure that final ballpark bill. The Vikings are Minnesota Department of Health reviewed proposals of alternative health care. The bill also calls for Senator Michele Bachmann (R- amendment. SF 3764/ HF 3761 $110.75 million in non-state revenues several health-related studies to be conducted by tasked with negotiating a workable solely to determine if they were in the public’s interest, Stillwater) is abdicating in her Doug Meslow, Scott Newman, Dan is raised for stadium construction. proposal with Anoka County and with the actual decision-making left to the legislature. the Departments of Health and Human Services, bid for Congress; and Rep. • PASSED The final bill passed this session Hennepin County residents deserve Larson, Katie Sieben, Fran Bradley, $35 million of that total has already asked to report to the legislature Some argued that the Department should play a more respectively, and includes provisions related to Dan Larson (DFL-Bloomington) was the Supplemental Appropriations bill. a right to vote on the 0.15 percent Barb Goodwin, Jeff Johnson, Ruth been committed by TCF Financial in 2007. Additionally, the Vikings active role. licensing of health care professions. running for the seat left open by Provisions in the bill include funding for local option sales tax Hennepin Johnson, Char Samuelson, Keith Corp., in exchange for stadium will be given $40 million dollars the retirement of Senator Jane sex offender treatment and tracking, County plans to impose to pay for Ellison, Ray Vandeveer, Jerry naming rights. from the sale of the Metrodome, This debate came to a temporary standstill only to be Ranum (DFL-Minneapolis). programs for veterans, funding for its share of the stadium financing. Dempsey, Andy Westerberg, Barb which is expected to bring a sale resurrected during the final hours. An amendment Some Failed Health Policy Initiatives: biomedical research at the University of Sykora, Jim Knoblach, Ron Abrams, Critics point to the lack of dedicated price of $45 million. Some legis- added to an ambulance-purchasing bill established a In addition, many of their peers Minnesota, funding for flu pandemic The total cost of the 42,000-seat Matt Entenza, Dan Dorman, John funding for the stadium. The state lators are angered by the place- new two-pronged approach. If an established hospital ■ A “school pool” proposal that would have created are leaving the legislature to preparedness and gang strike force funding. ballpark that will be constructed Dorn and Irv Anderson. The bill did not include any supplemental contribution will be taken from the holder language, which leaves the seeks to increase its number of licensed beds, or an a mandatory health insurance pool for Minnesota seek higher office, among them on the western edge of downtown aid for education. HF 4162. general fund, which means it will door open for a continued stadium organization seeks to obtain a hospital license and no school district employees. Senator Michele Bachmann, the Minneapolis is $522 million. This cost compete with other programs for debate next year. ■ other organizations are competing with the entity for Republican-endorsed candidate • PASSED A limited Omnibus Tax bill includes new infrastructure needed Announced Senate limited resources. In addition, the a hospital license in the same or similar service area, ■ The “Wal-Mart bill” that would have required running for Congress in the 6th passed this year. While the bill provided to support the stadium. The Twins land transfer at UMore Park includes the system remains status quo with the addition of a employers with more than 10,000 employees to District, and Rep. Keith Ellison (DFL- Retirees: a fix to the alternative minimum tax, will contribute $130 million and will a prohibition on development, mandatory public hearing. If, however, two or more spend at least 8% of total wages paid annually on Minneapolis), the endorsed DFL incentives for alternative energy and an receive a sales tax exemption for which reduces its value and gives entities seek to obtain a hospital license in competition health care. Employers spending less would have candidate in the 5th Congressional Michele Bachmann, John Hottinger, active duty military tax credit, it failed construction materials, which will the University a perpetual right to with each other, they must go through an alternative been required to pay the difference between their District. Representatives Jeff Sheila Kiscaden, Becky Lourey, to provide any permanent property tax contribute an additional $14 million. continue using the land. The bill approval process. contribution and the 8% standard to the state’s Johnson (R-Plymouth) and Matt Sharon Marko, Jane Ranum, Wes relief. HF 785 The Hennepin County sales tax will passed in spite of these concerns, Health Care Access Fund. Entenza (DFL- St. Paul) will spend Skoglund and Bob Kierlin. ■ provide for nearly 80 percent of • PASSED A minor under the age of 17 and Gopher football will be back Under this new process, the Commissioner of Health the summer and fall battling for the cost of the new ballpark, with may now face a $25 civil penalty if he or home soon. must first conduct a comprehensive-needs assessment ■ A proposed constitutional amendment that would the title of Minnesota Attorney revenues of approximately $475 she knowingly rents or purchases a video to determine if a new hospital is justified in the have allowed voters to adopt a provision stating General. Senator Becky Lourey million over 30 years. game rated “Mature.” SF 785 proposed service area. If need is demonstrated, the that every Minnesota resident has the right to (DFL- Kerrick) resigned to pursue Commissioner then selects the applicant best able affordable health care. ■ the Governor’s office. • PASSED The Honeycrisp Apple is now the state fruit. SF 2302