House File 2120 - Introduced
HOUSE FILE
BY DIX, PAULSEN, STRUYK, TYMESON,
KURTENBACH, S. OLSON, RASMUSSEN,
RAYHONS, SANDS, HUSEMAN, KAUFMANN,
DRAKE, UPMEYER, GREINER, BOAL,
VAN ENGELENHOVEN, DE BOEF, DOLECHECK,
LUKAN, BAUDLER, WATTS, GRANZOW, MAY,
LALK, CHAMBERS, J.R. VAN FOSSEN,
HEATON, CARROLL, WILDERDYKE, HORBACH,
J.K. VAN FOSSEN, TJEPKES, FREEMAN, ALONS,
ELGIN, JONES, MADDOX, ROBERTS, HUTTER,
SODERBERG, EICHHORN, QUIRK, THOMAS,
FALLON, HUSER, MERTZ, FOEGE, WHITAKER,
D. TAYLOR, PETTENGILL, and T. TAYLOR
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to eminent domain authority and condemnation
2 procedures and including effective and applicability
3 provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 5097YH 81
6 sc/cf/24
PAG LIN
1 1 Section 1. Section 6A.4, subsection 2, unnumbered
1 2 paragraph 1, Code 2005, is amended to read as follows:
1 3 Upon the owner or lessee of lands, which have no public or
1 4 private way to the lands, for the purpose of providing a
1 5 public way, not exceeding forty feet in width, which will
1 6 connect with an existing public road. The condemned public
1 7 way shall not exceed forty feet in width when such lands are
1 8 agricultural or have a single residence located on them. For
1 9 all other uses, the condemned public way shall not exceed
1 10 sixty=six feet. The condemned public way shall be located on
1 11 a division, subdivision, or "forty" line or "sixty=six" line
1 12 whichever is applicable, or immediately adjacent thereto, and
1 13 along the line which is the nearest feasible route to an
1 14 existing public road, or along a route established for a
1 15 period of ten years or more by an easement of record or by use
1 16 and travel to and from the property by the owner and the
1 17 general public. The public way shall not interfere with
1 18 buildings, orchards, or cemeteries. When passing through
1 19 enclosed lands, the public way shall be fenced on both sides
1 20 by the condemner upon request of the owner of the condemned
1 21 land. The condemner or the condemner's assignee, shall
1 22 provide easement for access to the owner of property severed
1 23 by the condemnation. The public way shall be maintained by
1 24 the condemner or the condemner's assignee, and shall not be
1 25 considered any part of the primary or secondary road systems.
1 26 Sec. 2. Section 6A.21, subsection 2, Code 2005, is amended
1 27 to read as follows:
1 28 2. The limitation on the definition of public use, public
1 29 purpose, or public improvement does not apply to a slum area
1 30 or blighted area as defined in section 403.17, or to
1 31 agricultural land acquired for industry as that term is
1 32 defined in section 260E.2, provided in section 6A.22 or to the
1 33 establishment, relocation, or improvement of a road pursuant
1 34 to chapter 306, or to the establishment of a railway under the
1 35 supervision of the department of transportation as provided in
2 1 section 327C.2, or to an airport as defined in section 328.1,
2 2 or to land acquired in order to replace or mitigate land used
2 3 in a road project when federal law requires replacement or
2 4 mitigation. This limitation also does not apply to utilities
2 5 or persons under the jurisdiction of the Iowa utilities board
2 6 in the department of commerce or to any other utility
2 7 conferred the right by statute to condemn private property or
2 8 to otherwise exercise the power of eminent domain.
2 9 Sec. 3. NEW SECTION. 6A.22 ADDITIONAL LIMITATIONS ON
2 10 EXERCISE OF POWER == DEFINITIONS.
2 11 1. In addition to the limitations in section 6A.21, the
2 12 authority of an acquiring agency to condemn any private
2 13 property through eminent domain may only be exercised for a
2 14 public purpose, public use, or public improvement. However,
2 15 if the owner of the property consents to the condemnation, the
2 16 property may be condemned for any purpose.
2 17 2. a. "Public use", "public purpose", or "public
2 18 improvement" means one or more of the following:
2 19 (1) The possession, occupation, and enjoyment of property
2 20 by the general public or governmental entities.
2 21 (2) The acquisition of any interest in property necessary
2 22 to the function of a public or private utility or common
2 23 carrier.
2 24 (3) Private use that is incidental to the public use of
2 25 the property, provided that no property shall be condemned
2 26 solely for the purpose of facilitating such incidental private
2 27 use.
2 28 (4) The acquisition of property pursuant to chapter 455H.
2 29 (5) The acquisition of property in that portion of an
2 30 urban renewal area designated as a slum or blighted area if
2 31 each parcel, or any improvements thereon, for which
2 32 condemnation is sought is determined by the governing body of
2 33 the municipality to be presently suffering from or is one or
2 34 more of the following:
2 35 (a) Dilapidated or deteriorated structures located on the
3 1 parcel.
3 2 (b) Unsafe or unsanitary conditions or inadequate
3 3 provisions for sanitation.
3 4 (c) Existence of conditions which endanger life or
3 5 property by fire and other causes.
3 6 (d) Tax or special assessment delinquency exceeding the
3 7 fair value of the land.
3 8 (e) Abandoned property for which the owner cannot be
3 9 reasonably determined or located.
3 10 In any action contesting a determination made pursuant to
3 11 this subparagraph (5), the burden of proof is on the
3 12 municipality to prove by clear and convincing evidence that it
3 13 did not abuse its discretion in making such a determination.
3 14 b. Except as specifically included in the definition in
3 15 paragraph "a", "public use" or "public purpose" or "public
3 16 improvement" does not mean economic development activities
3 17 resulting in increased tax revenues, increased employment
3 18 opportunities, privately owned or privately funded housing and
3 19 residential development, privately owned or privately funded
3 20 commercial or industrial development, the lease of publicly
3 21 owned property to a private party, or recreational development
3 22 paid for primarily with private funds.
3 23 c. Notwithstanding paragraph "a":
3 24 (1) Private property shall not be condemned for
3 25 development or creation of a lake as a surface drinking water
3 26 source or for recreational use, for construction of a
3 27 landfill, or for construction of sewer treatment facilities,
3 28 unless the acquiring agency demonstrates that no other
3 29 feasible alternative exists to accomplish its purpose.
3 30 (2) Private property shall not be condemned to develop or
3 31 create a park or recreational facility unless the acquiring
3 32 agency demonstrates that a good faith effort has been made to
3 33 purchase a feasible location from a willing seller for the
3 34 park or facility.
3 35 3. In any action contesting whether eminent domain
4 1 authority is being exercised for a public use, public purpose,
4 2 or public improvement, the burden of proof is on the acquiring
4 3 agency to prove by clear and convincing evidence that the
4 4 proposed use of the property meets the definition of public
4 5 use, public purpose, or public improvement in subsection 2 and
4 6 that there is no feasible alternative to condemnation of the
4 7 property.
4 8 Sec. 4. Section 6B.2A, subsection 1, unnumbered paragraph
4 9 1, Code 2005, is amended to read as follows:
4 10 An acquiring agency shall provide written notice of a
4 11 public hearing to each owner and any contract purchaser of
4 12 record of agricultural land private property that may be the
4 13 subject of condemnation. The authority under this chapter is
4 14 not conferred and condemnation proceedings shall not begin
4 15 unless a good faith effort is made to mail and publish the
4 16 notice as provided in this section on the owner and any
4 17 contract purchaser of record of the property subject to
4 18 condemnation. The notice shall be mailed by ordinary mail,
4 19 not less than thirty days before the date the hearing is held,
4 20 to the owner and any contract purchaser of record of each
4 21 property or property interest at the owner's and contract
4 22 purchaser's last known address as shown in the records of the
4 23 county auditor not less than seven days nor more than fourteen
4 24 days prior to the date of mailing. A change in ownership of
4 25 any such property which is not reflected in the records of the
4 26 county auditor during the period those records are searched as
4 27 above provided shall not affect the validity of the notice or
4 28 any condemnation proceeding commenced on the basis of such
4 29 notice. The notice shall be given and the public hearing held
4 30 before adoption of the ordinance, resolution, motion, or other
4 31 declaration of intent to fund the final site=specific design
4 32 for the public improvement, to make the final selection of the
4 33 route or site location for the public improvement, or to
4 34 acquire or condemn, if necessary, all or a portion of the
4 35 property or an interest in the property for the public
5 1 improvement. If the location of the public improvement is
5 2 changed or expanded after the decision has been made to
5 3 proceed with the public improvement, a notice shall be mailed
5 4 by ordinary mail no less than thirty days before the adoption
5 5 of the ordinance, resolution, motion, or other declaration of
5 6 intent to proceed with a change in the location of the public
5 7 improvement to the owner and any contract purchaser of record
5 8 of the land property to be acquired or condemned, if
5 9 necessary, in the new location of the public improvement
5 10 affected by the change. The mailed notice shall, at a
5 11 minimum, include the following information:
5 12 Sec. 5. Section 6B.2A, subsection 2, unnumbered paragraph
5 13 1, Code 2005, is amended to read as follows:
5 14 The acquiring agency shall cause a notice to be published
5 15 once in a newspaper of general circulation in the county or
5 16 city where the agricultural land property to be acquired or
5 17 condemned is located. The acquiring agency shall also post
5 18 the notice in a conspicuous place on the property. The notice
5 19 shall be published and posted at least four but no more than
5 20 twenty days before the public hearing is held as referred to
5 21 in subsection 1. The published notice shall, at a minimum,
5 22 include the following information:
5 23 Sec. 6. Section 6B.2B, Code 2005, is amended to read as
5 24 follows:
5 25 6B.2B ACQUISITION NEGOTIATION STATEMENT OF RIGHTS.
5 26 The acquiring agency shall make a good faith effort to
5 27 negotiate with the owner to purchase the private property or
5 28 property interest before filing an application for
5 29 condemnation or otherwise proceeding with the condemnation
5 30 process. An acquiring agency shall not make an offer to
5 31 purchase the property or property interest that is less than
5 32 the fair market value the acquiring agency has established for
5 33 the property or property interest pursuant to the appraisal
5 34 required in section 6B.45 plus expenses listed in section
5 35 6B.54, subsection 10, or less than the value determined under
6 1 the acquiring agency's waiver procedure established pursuant
6 2 to section 6B.54, subsection 2, for acquisition of property
6 3 with a low fair market value plus expenses listed in section
6 4 6B.54, subsection 10. However, an acquiring agency need not
6 5 make an offer in excess of that amount in order to satisfy the
6 6 requirement to negotiate in good faith. An acquiring agency
6 7 is deemed to have met the requirements of this section if the
6 8 acquiring agency complies with section 6B.54.
6 9 Sec. 7. Section 6B.3, subsection 1, paragraph d, Code
6 10 2005, is amended to read as follows:
6 11 d. The purpose for which condemnation is sought. For
6 12 purposes of section 6B.4A, if condemnation of agricultural
6 13 land is sought by a city or county, or an agency of a city or
6 14 county, for location of an industry as that term is defined in
6 15 section 260E.2, the application shall so state. However, the
6 16 city or county shall not be required to disclose information
6 17 on an industrial prospect with which the city or county is
6 18 currently negotiating.
6 19 Sec. 8. Section 6B.3, subsection 2, unnumbered paragraph
6 20 1, Code 2005, is amended to read as follows:
6 21 The applicant shall mail a copy of the application by
6 22 certified mail to the owner at the owner's last known address
6 23 and to any record lienholder or encumbrancer of the property
6 24 at the lienholder's or encumbrancer's last known address. The
6 25 applicant shall also cause the application to be published
6 26 once in a newspaper of general circulation in the county, not
6 27 less than four nor more than twenty days before the meeting of
6 28 the compensation commission to assess the damages. Service of
6 29 the application by publication shall be deemed complete on the
6 30 day of publication. The applicant shall also post a copy of
6 31 the application in a conspicuous place on the property not
6 32 less than four nor more than twenty days before the meeting of
6 33 the compensation commission to assess the damages.
6 34 Sec. 9. Section 6B.3, subsection 3, unnumbered paragraph
6 35 2, Code 2005, is amended to read as follows:
7 1 When indexed, the proceeding is considered pending so as to
7 2 charge all persons not having an interest in the property with
7 3 notice of its pendency, and while pending no interest can be
7 4 acquired by the third parties in the property against the
7 5 rights of the applicant. If the appraisement of damages
7 6 pursuant to section 6B.14 is not made within one hundred
7 7 twenty days, the proceedings instituted under this section are
7 8 terminated and all rights and interests of the applicant
7 9 arising out of the application for condemnation terminate.
7 10 The applicant may reinstitute a new condemnation proceeding at
7 11 any time. The reinstituted proceedings are entirely new
7 12 proceedings and not a revival of the terminated proceeding.
7 13 Sec. 10. NEW SECTION. 6B.3A CHALLENGE BY OWNER.
7 14 An owner of property described in an application for
7 15 condemnation may bring an action to challenge the exercise of
7 16 eminent domain authority or the condemnation proceedings in
7 17 the district court of the county in which the private property
7 18 is situated at any time up until the deadline for filing a
7 19 notice of appeal of appraisement of damages under section
7 20 6B.18, subsection 1. The condemnation proceedings against
7 21 such property shall be stayed while court action is pending.
7 22 Sec. 11. Section 6B.8, Code 2005, is amended to read as
7 23 follows:
7 24 6B.8 NOTICE OF ASSESSMENT.
7 25 The applicant, or the owner or any lienholder or
7 26 encumbrancer of any land described in the application, may, at
7 27 any time after the appointment of the commissioners, have the
7 28 damages to the lands of any such owner assessed by giving the
7 29 other party, if a resident of this state, thirty days' notice,
7 30 in writing. The notice shall specify the day and the hour
7 31 when the compensation commission will meet, view the premises,
7 32 and assess the damages. The notice shall be personally served
7 33 upon all necessary parties in the same manner provided by the
7 34 Iowa rules of civil procedure for the personal service of
7 35 original notice. If a city or county, or an agency of a city
8 1 or county, is seeking to condemn agricultural land for an
8 2 industry as that term is defined in section 260E.2, the notice
8 3 shall inform the landowner that the landowner may request that
8 4 the compensation commission review the application as provided
8 5 in section 6B.4A.
8 6 Sec. 12. Section 6B.14, unnumbered paragraph 2, Code 2005,
8 7 is amended to read as follows:
8 8 Prior to the meeting of the commission, the commission or a
8 9 commissioner shall not communicate with the applicant,
8 10 property owner, or tenant, or their agents, regarding the
8 11 condemnation proceedings. The commissioners shall meet in
8 12 open session to view the property and to receive evidence, but
8 13 may and shall deliberate in closed open session. After
8 14 deliberations commence, the commission and each commissioner
8 15 is prohibited from communicating with any party to the
8 16 proceeding, unless such communication occurs in the presence
8 17 of or with the consent of the property owner and the other
8 18 parties who appeared before the commission. The commission
8 19 shall keep minutes of all its meetings showing the date, time,
8 20 and place, the members present, and the action taken at each
8 21 meeting. The minutes shall show the results of each vote
8 22 taken and information sufficient to indicate the vote of each
8 23 member present. The vote of each member present shall be made
8 24 public at the open session. The minutes shall be public
8 25 records open to public inspection.
8 26 Sec. 13. Section 6B.14, Code 2005, is amended by adding
8 27 the following new unnumbered paragraph after unnumbered
8 28 paragraph 2:
8 29 NEW UNNUMBERED PARAGRAPH. In determining fair market value
8 30 of property, the commissioners shall not consider only the
8 31 assessed value assigned to such property for purposes of
8 32 property taxation.
8 33 Sec. 14. Section 6B.42, subsection 1, Code 2005, is
8 34 amended to read as follows:
8 35 1. a. The If condemnation of property will result in the
9 1 displacement of a person, the acquiring agency shall provide
9 2 to the person, in addition to any other sums of money in
9 3 payment of just compensation and upon proper application to
9 4 the acquiring agency, the payments and assistance required by
9 5 law, in accordance with chapter 316 payment for actual
9 6 reasonable and necessary expenses incurred in moving the
9 7 person, the person's family, business, farm operation, or
9 8 other personal property. The payment may also provide for
9 9 actual direct losses of tangible personal property, purchase
9 10 of substitute personal property, business reestablishment
9 11 expenses, storage expenses, and expenses incurred in searching
9 12 for a replacement business or farm operation. If relocation
9 13 of a business or farm operation is not economically feasible,
9 14 the displaced person may also apply for payment of the loss of
9 15 existing business relationships because of the inability to
9 16 relocate the business or farm operation to a location similar
9 17 in economic advantage to the location from which the business
9 18 or farm operation was moved.
9 19 b. A person aggrieved by a determination made as to
9 20 eligibility for relocation assistance, a payment, or the
9 21 amount of the payment, upon application, may apply to have the
9 22 matter reviewed by the appropriate acquiring agency.
9 23 c. An acquiring agency subject to this section that
9 24 proposes to displace a person shall inform the person of the
9 25 person's right to receive relocation assistance and payments,
9 26 and of an aggrieved person's right to appeal a determination
9 27 as to assistance and payments.
9 28 Sec. 15. Section 6B.45, Code 2005, is amended to read as
9 29 follows:
9 30 6B.45 MAILING COPY OF APPRAISAL.
9 31 When any real property or interest in real property is to
9 32 be purchased, or in lieu thereof to be condemned, the
9 33 acquiring agency or its agent shall submit to the person,
9 34 corporation, or entity whose property or interest in the
9 35 property is to be taken, by ordinary mail, at least ten days
10 1 prior to the date upon which the acquiring agency or its agent
10 2 contacts the property owner to commence negotiations, a copy
10 3 of the appraisal in its entirety upon such real property or
10 4 interest in such real property prepared for the acquiring
10 5 agency or its agent, which shall include, at a minimum, an
10 6 itemization of the appraised value of the real property or
10 7 interest in the property, any buildings on the property, all
10 8 other improvements including fences, severance damages, and
10 9 loss of access. In determining fair market value of property,
10 10 the commissioners shall not consider only the assessed value
10 11 assigned to such property for purposes of property taxation.
10 12 The appraisal sent to the condemnee shall be that appraisal
10 13 upon which the condemnor will rely to establish an amount
10 14 which the condemnor believes to be just compensation for the
10 15 real property. All other appraisals made on the property as a
10 16 result of the condemnation proceeding shall be made available
10 17 to the condemnee upon request. In lieu of an appraisal, a
10 18 utility or person under the jurisdiction of the utilities
10 19 board of the department of commerce, or any other utility
10 20 conferred the right by statute to condemn private property,
10 21 shall provide in writing by certified mail to the owner of
10 22 record thirty days prior to negotiations, the methods and
10 23 factors used in arriving at an offered price for voluntary
10 24 easements including the range of cash amount of each
10 25 component. An acquiring agency may obtain a signed written
10 26 waiver from the landowner to allow negotiations to commence
10 27 prior to the expiration of the applicable waiting period for
10 28 the commencement of negotiations.
10 29 Sec. 16. Section 6B.54, Code 2005, is amended to read as
10 30 follows:
10 31 6B.54 FEDERALLY ASSISTED PROJECT AND DISPLACING ACTIVITIES
10 32 == ACQUISITION POLICIES FOR ACQUIRING AGENCIES.
10 33 For any project or displacing activity that has received or
10 34 will receive federal financial assistance as defined in
10 35 section 316.1, for any state=funded projects, or for any other
11 1 public use, public purpose, or public improvement for which
11 2 condemnation is sought, an acquiring agency shall, at a
11 3 minimum, satisfy the following policies:
11 4 1. Every reasonable and good faith effort shall be made to
11 5 acquire expeditiously real property by negotiation as provided
11 6 in section 6B.2B.
11 7 2. Real property shall be appraised as required by section
11 8 6B.45 before the initiation of negotiations, and the owner or
11 9 the owner's designated representative shall be given an
11 10 opportunity to accompany at least one appraiser of the
11 11 acquiring agency during an inspection of the property, except
11 12 that an acquiring agency may prescribe a procedure to waive
11 13 the appraisal in cases involving the acquisition of property
11 14 with a low fair market value. In lieu of an appraisal, a
11 15 utility or person under the jurisdiction of the utilities
11 16 board of the department of commerce, or any other utility
11 17 conferred the right by statute to condemn private property,
11 18 shall provide in writing by certified mail to the owner of
11 19 record thirty days before negotiations, the methods and
11 20 factors used in arriving at an offered price for voluntary
11 21 easements including the range of cash amount of each
11 22 component.
11 23 3. Before the initiation of negotiations for real
11 24 property, the acquiring agency shall establish an amount which
11 25 it believes to be just compensation for the real property, and
11 26 shall make a prompt offer to acquire the property for the full
11 27 amount established by the agency. In no event shall the
11 28 amount be less than the lowest appraisal of the fair market
11 29 value of the acquiring agency has established for the property
11 30 or property interest pursuant to the appraisal required in
11 31 section 6B.45 plus expenses listed in subsection 10, or less
11 32 than the value determined under the acquiring agency's waiver
11 33 procedure established pursuant to subsection 2, plus expenses
11 34 listed in subsection 10. In the case of a utility or person
11 35 under the jurisdiction of the utilities board of the
12 1 department of commerce, or any other utility conferred the
12 2 right by statute to condemn private property, the amount shall
12 3 not be less than the amount indicated by the methods and
12 4 factors used in arriving at an offered price for a voluntary
12 5 easement.
12 6 4. The construction or development of a public improvement
12 7 shall be so scheduled that, to the greatest extent
12 8 practicable, no person lawfully occupying real property shall
12 9 be required to move from a dwelling or to move the person's
12 10 business or farm operation without at least ninety days'
12 11 written notice of the date by which the move is required.
12 12 5. If after damages have been finally determined and paid,
12 13 an owner or tenant is permitted to occupy the real property
12 14 acquired on a rental basis for a short term or for a period
12 15 subject to termination on short notice, the amount of rent
12 16 required shall not exceed the fair rental value of the
12 17 property to a short=term occupier.
12 18 6. In no event shall the time of condemnation be advanced,
12 19 or negotiations or condemnation and the deposit of funds in
12 20 court for the use of the owner be deferred, or any other
12 21 coercive action be taken to compel an agreement on the price
12 22 to be paid for the property.
12 23 7. If an interest in real property is to be acquired by
12 24 exercise of the power of eminent domain, formal condemnation
12 25 proceedings shall be instituted. The acquiring agency shall
12 26 not intentionally make it necessary for an owner to institute
12 27 legal proceedings to prove the fact of the taking of the
12 28 owner's real property.
12 29 8. If the acquisition of only a portion of property would
12 30 leave the owner with an uneconomical remnant, the acquiring
12 31 agency shall offer to acquire that remnant. For the purposes
12 32 of this chapter, an "uneconomical remnant" is a parcel of real
12 33 property in which the owner is left with an interest after the
12 34 partial acquisition of the owner's property, where the
12 35 acquiring agency determines that the parcel has little or no
13 1 value or utility to the owner.
13 2 9. A person whose real property is being acquired in
13 3 accordance with this chapter, after the person has been fully
13 4 informed of the person's right to receive just compensation
13 5 for the property, may donate the property, any part of the
13 6 property, any interest in the property, or any compensation
13 7 paid for it as the person may determine.
13 8 10. As soon as practicable after the date of payment of
13 9 the purchase price or the date of deposit in court of funds to
13 10 satisfy the award of compensation in a condemnation proceeding
13 11 to acquire real property, whichever is earlier, the acquiring
13 12 agency shall reimburse the owner, to the extent the acquiring
13 13 agency deems fair and reasonable, for expenses the owner
13 14 necessarily incurred for all of the following:
13 15 a. Recording fees, transfer taxes, and similar expenses
13 16 incidental to conveying the real property to the acquiring
13 17 agency.
13 18 b. Penalty costs for full or partial prepayment of any
13 19 preexisting recorded mortgage entered into in good faith
13 20 encumbering the real property.
13 21 c. Attorney fees and costs, including expert witness fees
13 22 and fees relating to appraisal of the property.
13 23 Payments and expenditures under this subsection are
13 24 incident to and arise out of the program or project for which
13 25 the acquisition activity takes place. Such payments and
13 26 expenditures may be made from the funds made available for the
13 27 program or project.
13 28 A person aggrieved by a determination as to the eligibility
13 29 for or amount of a reimbursement may apply to have the matter
13 30 reviewed by the acquiring agency or in accordance with section
13 31 316.9 if applicable.
13 32 11. An owner shall not be required to surrender possession
13 33 of real property before the acquiring agency concerned pays
13 34 the agreed purchase price.
13 35 Sec. 17. Section 6B.55, unnumbered paragraph 1, Code 2005,
14 1 is amended to read as follows:
14 2 For any program or project that has received or will
14 3 receive federal financial assistance as defined in section
14 4 316.1, for any state=funded projects, or for any other public
14 5 use, public purpose, or public improvement for which
14 6 condemnation is sought, an acquiring agency shall at a minimum
14 7 satisfy the following policies:
14 8 Sec. 18. Section 6B.56, subsection 2, Code 2005, is
14 9 amended to read as follows:
14 10 2. Before the real property may be offered for sale to the
14 11 general public, the condemner shall notify the prior owner of
14 12 the real property condemned in writing of the condemner's
14 13 intent to dispose of the real property, of the current
14 14 appraised value of the real property, and of the prior owner's
14 15 right to purchase the real property within sixty days from the
14 16 date the notice is served at a price equal to the current
14 17 appraised value of the real property or the fair market value
14 18 of the property at the time it was acquired by the prior
14 19 owner, whichever is less. The notice sent by the condemner as
14 20 provided in this subsection shall be filed with the office of
14 21 the recorder in the county in which the real property is
14 22 located.
14 23 Sec. 19. NEW SECTION. 6B.56A DISPOSITION OF CONDEMNED
14 24 PROPERTY == ACTION TO RECLAIM.
14 25 When five years have elapsed since property was condemned
14 26 and the property has not been used for the purpose stated in
14 27 the application filed pursuant to section 6B.3 and the
14 28 acquiring agency has not taken action to dispose of the
14 29 property pursuant to section 6B.56, the previous owner may
14 30 bring an action in the district court where the property is
14 31 located to reclaim title to the property. The action shall be
14 32 brought within sixty days after the five=year time period has
14 33 elapsed. Upon the filing of the action with the court, the
14 34 previous owner shall pay to the county sheriff that portion of
14 35 the damages which reflected the fair market value of the
15 1 property at the time of acquisition. After notice of the
15 2 action has been served on the acquiring agency, the previous
15 3 owner shall also file a copy of the notice with the county
15 4 recorder for recording. Thirty days after service of the
15 5 notice, and upon proof of payment to the sheriff being filed
15 6 with the court, the court shall order that title to the
15 7 property be transferred to the previous owner.
15 8 An acquiring agency shall give written notice to the owner
15 9 of the right to reclaim title under this section at the time
15 10 damages are paid to the owner.
15 11 Sec. 20. Section 6B.59, Code 2005, is amended to read as
15 12 follows:
15 13 6B.59 SALE OF ACQUIRED PROPERTY == REIMBURSEMENT TO
15 14 LANDOWNER.
15 15 If an acquiring agency acquires property by condemnation,
15 16 or by otherwise exercising the power of eminent domain, and
15 17 that property is later sold by the acquiring agency for more
15 18 than the acquisition price paid to the landowner, the
15 19 acquiring agency shall pay to the landowner from whom the
15 20 property was acquired the difference between the price at
15 21 which it was acquired and the price at which it was sold by
15 22 the acquiring agency less the cost of any improvements made to
15 23 or benefiting the land by the acquiring agency. This section
15 24 does not apply to property acquired by the state department of
15 25 transportation.
15 26 Sec. 21. NEW SECTION. 6B.60 RENTAL CHARGES PROHIBITED.
15 27 Rent for property for which damages have been determined
15 28 shall not be charged and shall not accrue against the property
15 29 owner until such damages have been finally determined and paid
15 30 and all court challenges related to the condemnation have been
15 31 finally adjudicated.
15 32 Sec. 22. Section 28F.11, Code 2005, is amended to read as
15 33 follows:
15 34 28F.11 EMINENT DOMAIN.
15 35 Any public agency participating in an agreement authorizing
16 1 the joint exercise of governmental powers pursuant to this
16 2 chapter may exercise its power of eminent domain to acquire
16 3 interests in property, under provisions of law then in effect
16 4 and applicable to the public agency, for the use of the entity
16 5 created to carry out the agreement, provided that the power of
16 6 eminent domain is not used to acquire interests in property
16 7 which is part of a system of facilities in existence, under
16 8 construction, or planned, for the generation, transmission or
16 9 sale of electric power. In the exercise of the power of
16 10 eminent domain, the public agency shall proceed in the manner
16 11 provided by chapter 6B. Any interests in property acquired
16 12 are acquired for a public purpose, as defined in chapter 6A,
16 13 of the condemning public agency, and the payment of the costs
16 14 of the acquisition may be made pursuant to the agreement or to
16 15 any separate agreement between the public agency and the
16 16 entity or the other public agencies participating in the
16 17 entity or any of them. Upon payment of costs, any property
16 18 acquired is the property of the entity.
16 19 Sec. 23. Section 316.4, subsection 1, Code 2005, is
16 20 amended to read as follows:
16 21 1. If a program or project undertaken by a displacing
16 22 agency will result in the displacement of a person, the
16 23 displacing agency shall make a payment to the displaced
16 24 person, upon proper application as approved by the displacing
16 25 agency, for actual reasonable and necessary expenses incurred
16 26 in moving the person, the person's family, business, farm
16 27 operation, or other personal property subject to rules and
16 28 limits established by the department. The payment may also
16 29 provide for actual direct losses of tangible personal
16 30 property, purchase of substitute personal property, business
16 31 reestablishment expenses, storage expenses, and expenses
16 32 incurred in searching for a replacement business or farm. If
16 33 relocation of a business or farm operation is not economically
16 34 feasible, the displaced person may also apply for payment of
16 35 the loss of existing business relationships because of the
17 1 inability to relocate the business or farm operation to a
17 2 location similar in economic advantage to the location from
17 3 which the business or farm operation was moved.
17 4 Sec. 24. Section 327I.7, subsection 4, Code 2005, is
17 5 amended to read as follows:
17 6 4. Exercise the power of eminent domain consistent with
17 7 the provisions of chapters 6A and 6B.
17 8 Sec. 25. Section 330A.8, subsection 11, Code 2005, is
17 9 amended to read as follows:
17 10 11. To have the power of eminent domain, such power to be
17 11 exercised in the manner provided by law for municipal
17 12 corporations of this state but only as provided in section
17 13 330A.13.
17 14 Sec. 26. Section 330A.13, Code 2005, is amended to read as
17 15 follows:
17 16 330A.13 ACQUISITION OF LANDS AND PROPERTY.
17 17 An authority shall have the power to acquire, within or
17 18 without the geographical boundaries of the member
17 19 municipalities, by purchase or eminent domain proceedings,
17 20 either the fees or such rights, title, interest, or easement
17 21 in such lands and property, including but not limited to air
17 22 rights and avigation navigation easements, as the authority
17 23 may deem necessary for any of the purposes of this chapter.
17 24 The authority may acquire property by eminent domain only if
17 25 the property to be condemned is immediately adjacent to an
17 26 existing airport. The right of eminent domain herein
17 27 conferred shall be exercised by the authority in the manner
17 28 provided by law, as though the authority were a municipal
17 29 corporation.
17 30 Sec. 27. Section 346.27, subsection 9, paragraph b, Code
17 31 2005, is amended to read as follows:
17 32 b. To acquire in the corporate name of the authority the
17 33 fee simple title to the real property located within the area
17 34 by purchase, gift, devise, or by the exercise of the power of
17 35 eminent domain consistent with the provisions of chapters 6A
18 1 and 6B, or to take possession of real estate by lease.
18 2 Sec. 28. Section 364.4, subsection 1, Code 2005, is
18 3 amended to read as follows:
18 4 1. Acquire, hold, and dispose of property outside the city
18 5 in the same manner as within. However, the power of a city to
18 6 acquire property outside the city does not include the power
18 7 to acquire property outside the city by eminent domain.
18 8 Sec. 29. Section 389.3, unnumbered paragraph 2, Code 2005,
18 9 is amended to read as follows:
18 10 A joint water utility is a political subdivision and an
18 11 instrumentality of municipal government. The statutory
18 12 powers, duties, and limitations conferred upon a city utility
18 13 apply to a joint water utility, except that title to property
18 14 of a joint water utility may be held in the name of the joint
18 15 water utility. The joint water utility board shall have all
18 16 powers and authority of a city with respect to property which
18 17 is held by the joint water utility. A joint water utility
18 18 shall have the power of eminent domain, including the powers,
18 19 duties, and limitations conferred upon a city in chapters 6A
18 20 and 6B, for the purposes of constructing and operating a joint
18 21 water utility.
18 22 Sec. 30. Section 403.2, subsection 4, Code 2005, is
18 23 amended to read as follows:
18 24 4. It is further found and declared that the powers
18 25 conferred by this chapter are for public uses and purposes for
18 26 which public money may be expended and for which the power of
18 27 eminent domain, to the extent authorized, and police power
18 28 exercised; and that the necessity in the public interest for
18 29 the provisions herein enacted is hereby declared as a matter
18 30 of legislative determination.
18 31 Sec. 31. Section 403.5, subsection 4, paragraph b,
18 32 subparagraph (2), Code 2005, is amended to read as follows:
18 33 (2) If it is to be developed for nonresidential uses, the
18 34 local governing body shall determine that such nonresidential
18 35 uses are necessary and appropriate to facilitate the proper
19 1 growth and development of the community in accordance with
19 2 sound planning standards and local community objectives.
19 3 PARAGRAPH DIVIDED. The acquisition of open land authorized
19 4 in subparagraphs (1) and (2) may require the exercise of
19 5 governmental action, as provided in this chapter, because of
19 6 defective or unusual conditions of title, diversity of
19 7 ownership, tax delinquency, improper subdivisions, outmoded
19 8 street patterns, deterioration of site, economic disuse,
19 9 unsuitable topography or faulty lot layouts, or because of the
19 10 need for the correlation of the area with other areas of a
19 11 municipality by streets and modern traffic requirements, or
19 12 any combination of such factors or other conditions which
19 13 retard development of the area. If such governmental action
19 14 involves the exercise of eminent domain authority, the
19 15 municipality is subject to the limitations of this chapter and
19 16 chapters 6A and 6B.
19 17 Sec. 32. Section 403.5, subsection 4, unnumbered paragraph
19 18 2, Code 2005, is amended by striking the unnumbered paragraph.
19 19 Sec. 33. Section 403.6, subsection 3, Code 2005, is
19 20 amended to read as follows:
19 21 3. Within its area of operation, to enter into any
19 22 building or property in any urban renewal area in order to
19 23 make inspections, surveys, appraisals, soundings or test
19 24 borings, and to obtain an order for this purpose from a court
19 25 of competent jurisdiction in the event entry is denied or
19 26 resisted; to acquire by purchase, lease, option, gift, grant,
19 27 bequest, devise, eminent domain or otherwise, any real
19 28 property, or personal property for administrative purposes,
19 29 together with any improvements thereon; to hold, improve,
19 30 clear or prepare for redevelopment any such property; to
19 31 mortgage, pledge, hypothecate or otherwise encumber or dispose
19 32 of any real property; to insure or provide for the insurance
19 33 of any real or personal property or operations of the
19 34 municipality against any risks or hazards, including the power
19 35 to pay premiums on any such insurance; and to enter into any
20 1 contracts necessary to effectuate the purposes of this
20 2 chapter: Provided, however, that no statutory provision with
20 3 respect to the acquisition, clearance or disposition of
20 4 property by public bodies shall restrict a municipality or
20 5 other public body exercising powers hereunder in the exercise
20 6 of such functions with respect to an urban renewal project,
20 7 unless the legislature shall specifically so state. A
20 8 municipality or other public body exercising powers under this
20 9 chapter with respect to the acquisition, clearance, or
20 10 disposition of property shall not be restricted by any other
20 11 statutory provision in the exercise of such powers unless such
20 12 statutory provision specifically states its application to
20 13 this chapter or unless this chapter specifically applies
20 14 restrictions contained in another statutory provision to the
20 15 powers that may be exercised under this chapter.
20 16 Sec. 34. Section 403.7, Code 2005, is amended to read as
20 17 follows:
20 18 403.7 CONDEMNATION OF PROPERTY.
20 19 1. A municipality shall have the right to acquire by
20 20 condemnation any interest in real property, including a fee
20 21 simple title thereto, which it may deem necessary for or in
20 22 connection with an urban renewal project under this chapter,
20 23 subject to the limitations on eminent domain authority in
20 24 chapter 6A. However, a municipality shall not condemn
20 25 agricultural land included within an economic development area
20 26 for any use unless the owner of the agricultural land consents
20 27 to condemnation or unless the agricultural land is to be
20 28 acquired for industry as that term is defined in section
20 29 260E.2 the municipality determines that the land is necessary
20 30 or useful for any of the following:
20 31 a. The operation of a city utility as defined in section
20 32 362.2.
20 33 b. The operation of a city franchise conferred the
20 34 authority to condemn private property under section 364.2.
20 35 c. The operation of a combined utility system as defined
21 1 in section 384.80.
21 2 2. A municipality may shall exercise the power of eminent
21 3 domain in the manner provided in chapter 6B, and Acts
21 4 amendatory to that chapter or supplementary to that chapter,
21 5 or it may exercise the power of eminent domain in the manner
21 6 now or which may be hereafter provided by any other statutory
21 7 provisions for the exercise of the power of eminent domain.
21 8 Property already devoted to a public use may be acquired in
21 9 like manner. However, real property belonging to the state,
21 10 or any political subdivision of this state, shall not be
21 11 acquired without its consent, and real property or any right
21 12 or interest in the property owned by any public utility
21 13 company, pipeline company, railway or transportation company
21 14 vested with the right of eminent domain under the laws of this
21 15 state, shall not be acquired without the consent of the
21 16 company, or without first securing, after due notice to the
21 17 company and after hearing, a certificate authorizing
21 18 condemnation of the property from the board, commission, or
21 19 body having the authority to grant a certificate authorizing
21 20 condemnation.
21 21 3. In a condemnation proceeding, if a municipality
21 22 proposes to take a part of a lot or parcel of real property,
21 23 the municipality shall also take the remaining part of the lot
21 24 or parcel if requested by the owner.
21 25 Sec. 35. Section 403A.3, subsection 4, Code 2005, is
21 26 amended to read as follows:
21 27 4. To lease or rent any dwellings, accommodations, lands,
21 28 buildings, structures or facilities embraced in any project
21 29 and (subject to the limitations contained in this chapter with
21 30 respect to the rental of dwellings in housing projects) to
21 31 establish and revise the rents or charges therefor; to own,
21 32 hold and improve real or personal property; to purchase,
21 33 lease, obtain options upon, acquire by gift, grant, bequest,
21 34 devise or otherwise any real or personal property or any
21 35 interest therein; to acquire by the exercise of the power of
22 1 eminent domain any real property subject to section 403A.20;
22 2 to sell, lease, exchange, transfer, assign, pledge or dispose
22 3 of any real or personal property or any interest therein; to
22 4 insure or provide for the insurance, in any stock or mutual
22 5 company of any real or personal property or operations of the
22 6 municipality against any risks or hazards; to procure or agree
22 7 to the procurement of federal or state government insurance or
22 8 guarantees of the payment of any bonds or parts thereof issued
22 9 by a municipality, including the power to pay premiums on any
22 10 such insurance.
22 11 Sec. 36. Section 403A.20, Code 2005, is amended to read as
22 12 follows:
22 13 403A.20 CONDEMNATION OF PROPERTY.
22 14 A municipality shall have the right to acquire by
22 15 condemnation any interest in real property, including a fee
22 16 simple title thereto, which it may deem necessary for or in
22 17 connection with a municipal housing project under this
22 18 chapter, subject to the limitations on eminent domain
22 19 authority in chapter 6A. A municipality may shall exercise
22 20 the power of eminent domain in the manner provided in chapter
22 21 6B, and acts amendatory thereof or supplementary thereto, or
22 22 it may exercise the power of eminent domain in the manner now
22 23 or which may be hereafter provided by any other statutory
22 24 provisions for the exercise of the power of eminent domain.
22 25 Property already devoted to a public use may be acquired in
22 26 like manner: Provided, that no. However, real property
22 27 belonging to the state, or any political subdivision thereof,
22 28 may shall not be acquired without its consent, provided
22 29 further that no and real property or any right or interest
22 30 therein in the property owned by any public utility company,
22 31 pipeline company, railway or transportation company vested
22 32 with the right of eminent domain under the laws of this state,
22 33 shall not be acquired without the consent of such the company,
22 34 or without first securing, after due notice to such the
22 35 company and after hearing, a certificate authorizing
23 1 condemnation of such property from the board, commission, or
23 2 body having the authority to grant a certificate authorizing
23 3 condemnation.
23 4 In a condemnation proceeding, if a municipality proposes to
23 5 take a part of a lot or parcel of real property, the
23 6 municipality shall also take the remaining part of the lot or
23 7 parcel if requested by the owner.
23 8 Sec. 37. Section 468.128, Code 2005, is amended to read as
23 9 follows:
23 10 468.128 IMPOUNDING AREAS AND EROSION CONTROL DEVICES.
23 11 Levee and drainage districts are empowered to construct
23 12 impounding areas and other flood and erosion control devices
23 13 to protect lands of the district and drainage structures and
23 14 may provide ways for access to improvements for the operation
23 15 or protection thereof, where the cost is not excessive in
23 16 consideration of the value to the district. Necessary lands
23 17 or easements may be acquired within or without the district by
23 18 purchase, lease or agreement, or by exercise of the right of
23 19 eminent domain as provided for in chapter 6B and may be
23 20 procured and construction undertaken either independently or
23 21 in co=operation with other districts, individuals, or any
23 22 federal or state agency or political subdivision.
23 23 Sec. 38. Section 468.146, subsection 1, Code 2005, is
23 24 amended to read as follows:
23 25 1. When a drainage district is established and a
23 26 satisfactory outlet cannot be obtained except through lands in
23 27 an adjoining county, or when an improved outlet cannot be
23 28 obtained except through lands downstream from the district
23 29 boundary, the board shall have the power to purchase a right
23 30 of way, to construct and maintain such outlets, and to pay all
23 31 necessary costs and expenses out of the district funds. The
23 32 board shall have similar authority relative to the
23 33 construction and maintenance of silt basins upstream from the
23 34 district boundary. In case the board and the owners of the
23 35 land required for such outlet or silt basin cannot agree upon
24 1 the price to be paid as compensation for the land taken or
24 2 used, the board is hereby empowered to exercise the right of
24 3 eminent domain as provided for in chapter 6B in order to
24 4 procure such necessary right of way.
24 5 Sec. 39. Section 468.366, Code 2005, is amended to read as
24 6 follows:
24 7 468.366 SETTLING BASIN == CONDEMNATION.
24 8 If, before a district operating a pumping plant is
24 9 completed and accepted, it appears that portions of the lands
24 10 within said district are wet or nonproductive by reason of the
24 11 floods or overflow waters from one or more streams running
24 12 into, through, or along said district and that said district
24 13 or some other district of which such district shall have
24 14 formed a part, shall have provided a settling basin to care
24 15 for the said floods and overflow waters of said stream or
24 16 watercourse, but no channel to said settling basin has been
24 17 provided, said board or boards are hereby empowered to lease,
24 18 buy, or condemn the necessary lands within or without the
24 19 district for such channel. Proceedings to condemn shall be as
24 20 provided in chapter 6B for the exercise of the right of
24 21 eminent domain.
24 22 Sec. 40. CODE EDITOR DIRECTIVE.
24 23 1. The Code editor is directed to make the following
24 24 transfers:
24 25 a. Section 6B.10 to become subsection 2 of section 6B.9.
24 26 b. Section 6B.20 to become subsection 4 of section 6B.18.
24 27 c. Section 6B.27 to become subsection 2 of section 6B.26.
24 28 d. Sections 6B.39 and 6B.41 to become subsections 3 and 4,
24 29 respectively, of section 6B.38.
24 30 e. Section 6B.43 to become unnumbered paragraph 3 of
24 31 section 6B.4.
24 32 f. Sections 6B.47 through 6B.51 to become subsections 2
24 33 through 6, respectively, of section 6B.46.
24 34 g. Section 6B.58 to become subsection 2 of section 6B.1.
24 35 2. The Code editor is directed to correct internal
25 1 references in the Code as necessary due to enactment of this
25 2 section.
25 3 Sec. 41. Section 6B.4A, Code 2005, is repealed.
25 4 Sec. 42. EFFECTIVE AND APPLICABILITY DATES. This Act,
25 5 being deemed of immediate importance, takes effect upon
25 6 enactment and applies to condemnation actions initiated on or
25 7 after the effective date of this Act.
25 8 EXPLANATION
25 9 This bill makes changes to the law relating to eminent
25 10 domain authority and the procedure by which eminent domain
25 11 authority is exercised (condemnation).
25 12 The bill changes from 40 feet to 66 feet the width of a
25 13 public way that may be acquired by eminent domain by an owner
25 14 of land without a way to the land.
25 15 The bill provides limitations on the exercise of eminent
25 16 domain authority for all private property by defining "public
25 17 use", "public purpose", and "public improvement" to mean use
25 18 of property by the general public, governmental entities,
25 19 public or private utilities, or common carriers. "Public
25 20 use", "public purpose", and "public improvement" are also
25 21 defined in the bill to include the acquisition of property to
25 22 remedy certain conditions in those portions of urban renewal
25 23 areas designated as slum or blighted, acquisition of
25 24 brownfield sites, and private use of property that is
25 25 incidental to its public use. The bill further provides that
25 26 "public use", "public purpose", and "public improvement" do
25 27 not mean economic development activities or privately funded
25 28 activities unless such activities are specifically included in
25 29 the definition of these terms. The bill also provides that
25 30 private property shall not be condemned for creation of a
25 31 lake, construction of a landfill, or construction of sewer
25 32 treatment facilities unless the acquiring agency demonstrates
25 33 that no other feasible alternative exists to accomplish its
25 34 purpose. The bill also provides that private property shall
25 35 not be condemned for a park or recreational facility unless a
26 1 good faith effort has been made to purchase a feasible
26 2 location from a willing seller.
26 3 The bill provides that, in an action contesting
26 4 condemnation of property, the burden of proof is on the
26 5 acquiring agency to demonstrate by clear and convincing
26 6 evidence that the proposed use of the property meets the
26 7 definition of "public use", "public purpose", and "public
26 8 improvement" and that there is no reasonable alternative to
26 9 condemnation of the property.
26 10 The bill extends the current notice requirements for
26 11 condemnation of agricultural land to condemnation of all
26 12 private property and requires the acquiring agency to post the
26 13 notice in a conspicuous place on the property.
26 14 The bill strikes the exception for condemnation of
26 15 agricultural land for industry and, correspondingly, repeals
26 16 Code section 6B.4A that gave a compensation commission the
26 17 authority to review an application by a city or county for
26 18 condemnation of agricultural land for industry.
26 19 The bill provides that when engaging in negotiations with a
26 20 landowner, the acquiring agency shall offer a price for the
26 21 property that is not less than the acquiring agency's
26 22 appraisal plus certain specified expenses that may be incurred
26 23 by the property owner or that is not less than the value
26 24 determined under the acquiring agency's appraisal waiver
26 25 procedure for property with a low fair market value plus such
26 26 expenses. Code section 6B.54 currently allows an acquiring
26 27 agency to establish an appraisal waiver procedure for property
26 28 with a low fair market value.
26 29 The bill requires the acquiring agency to post a copy of
26 30 the application for condemnation in a conspicuous place on the
26 31 property during the same time period in which the application
26 32 is to be published.
26 33 The bill provides that a challenge to the exercise of
26 34 eminent domain authority or to the condemnation proceedings
26 35 may be brought by the owner of the property at any time up
27 1 until the deadline for filing the notice of appeal of
27 2 appraisement of the damages determined by the compensation
27 3 commission. The condemnation proceedings against such
27 4 property shall be stayed while court action is pending.
27 5 The bill provides that a compensation commission shall
27 6 deliberate in open session.
27 7 The bill amends Code sections 6B.14 and 6B.45 to provide
27 8 that when the compensation commission or the acquiring agency,
27 9 respectively, are determining the fair market value of the
27 10 property, neither may consider the assessed value of property
27 11 that has been platted and is being developed but, by statute,
27 12 retains its assessment as undeveloped property.
27 13 The bill specifies that payments for relocating persons
27 14 displaced by condemnation, including expenses incurred in
27 15 moving the person's family, business, or farm operation, shall
27 16 be paid for any condemnation that displaces a person, not just
27 17 those that are for projects or programs receiving federal
27 18 financial assistance. For all condemnations, including those
27 19 receiving federal financial assistance, the bill provides that
27 20 if relocation of a business or farm operation is not
27 21 economically feasible, the displaced person may also apply for
27 22 payment of the loss of existing business relationships because
27 23 of the inability to relocate the business or farm operation to
27 24 a location similar in economic advantage to the location from
27 25 which the business or farm operation was moved.
27 26 The bill specifies that Code sections 6B.54 and 6B.55,
27 27 relating to requirements imposed on acquiring agencies, apply
27 28 to condemnations for a public use, public purpose, or public
27 29 improvement. The section is also amended to add attorney fees
27 30 and costs, including expert witness fees and fees related to
27 31 appraisals, to the list of expenses reimbursable by an
27 32 acquiring agency to a property owner.
27 33 Current law provides that property obtained by condemnation
27 34 that is later sold by the acquiring agency must be offered for
27 35 sale first to the previous owner at a price equal to the
28 1 current appraised value. The bill provides that it must be
28 2 offered for sale to the previous owner at the current
28 3 appraised value or the fair market value at the time it was
28 4 acquired by the prior owner, whichever is less.
28 5 The bill allows a previous owner to reclaim title to
28 6 property acquired by condemnation if, after five years from
28 7 the date of acquisition, the property has not been used for
28 8 the purpose stated in the condemnation application and the
28 9 acquiring agency has not taken action to dispose of the
28 10 property.
28 11 Current law provides that the Iowa department of
28 12 transportation is exempt from the requirement, if condemned
28 13 property is later sold by the acquiring agency, to pay the
28 14 difference between the price at which it was acquired from the
28 15 previous owner and the price at which it was sold. The bill
28 16 removes this exemption.
28 17 The bill provides that rent shall not be charged and shall
28 18 not accrue until the damages for the property have been
28 19 finally determined and paid and all court challenges related
28 20 to the condemnation have been finally adjudicated.
28 21 The bill makes changes to various provisions of the Code
28 22 where eminent domain authority is extended to an entity other
28 23 than those listed in Code chapter 6A to specify that those
28 24 entities, when condemning property, are subject to the
28 25 provisions of Code chapters 6A and 6B.
28 26 The bill provides that an aviation authority may acquire
28 27 property by eminent domain only if the property to be acquired
28 28 is immediately adjacent to an existing airport.
28 29 The bill also provides that the power of a city to acquire
28 30 property outside the city does not include the power to
28 31 acquire property outside the city by eminent domain.
28 32 The bill provides that the authority to exercise the power
28 33 of eminent domain under the urban renewal Code chapter and the
28 34 Code chapter authorizing municipal housing projects is subject
28 35 to the limitations on eminent domain authority in Code chapter
29 1 6A, "Eminent Domain Law (Condemnation)", and the general
29 2 procedure for condemnation of property set out in Code chapter
29 3 6B, "Procedure Under Eminent Domain". Also, relating to
29 4 municipal housing projects, the bill provides that if a
29 5 municipality proposes to take a part of a lot or parcel of
29 6 real property, the municipality shall also take the remaining
29 7 part of the lot or parcel if requested by the owner. The same
29 8 requirement currently applies to condemnation of property for
29 9 urban renewal purposes.
29 10 Finally, the bill directs the Code editor to make the
29 11 following changes for organizational reasons and ease of
29 12 reading:
29 13 1. The language of Code section 6B.10 is moved to Code
29 14 section 6B.9.
29 15 2. The language of Code section 6B.20 is moved to Code
29 16 section 6B.18.
29 17 3. The language of Code section 6B.27 is moved to Code
29 18 section 6B.26.
29 19 4. The language of Code sections 6B.39 and 6B.41 are moved
29 20 to Code section 6B.38.
29 21 5. The language of Code section 6B.43 is moved to Code
29 22 section 6B.4.
29 23 6. The language of Code sections 6B.47 through 6B.51 is
29 24 moved to Code section 6B.46.
29 25 7. The language of Code section 6B.58 is moved to Code
29 26 section 6B.1.
29 27 The bill takes effect upon enactment and applies to
29 28 condemnation actions initiated on or after the effective date
29 29 of the bill.
29 30 LSB 5097YH 81
29 31 sc:rj/cf/24.2