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PAG LIN 1 1 Section 1. NEW SECTION. 6A.21 CONDEMNATION OF 1 2 AGRICULTURAL LAND – DEFINITIONS. 1 3 1. Except as otherwise provided, for purposes of this 1 4 chapter and chapter 6B: 1 5 a. "Agricultural land" means real property that is used 1 6 for the production of agricultural commodities and from which 1 7 one thousand dollars or more of agricultural commodities were 1 8 sold or normally would be sold during the year. Such use of 1 9 property includes, but is not limited to, the raising, 1 10 harvesting, handling, drying, or storage of crops used for 1 11 feed, food, seed, or fiber; the care or feeding of livestock; 1 12 the handling or transportation of crops or livestock; the 1 13 storage, treatment, or disposal of livestock manure; and the 1 14 application of fertilizers, soil conditioners, pesticides, and 1 15 herbicides on crops. Agricultural land includes land on which 1 16 is located farm residences or outbuildings used for 1 17 agricultural purposes and land on which is located facilities, 1 18 structures, or equipment for agricultural purposes. 1 19 Agricultural land includes land taken out of agricultural 1 20 production for purposes of environmental protection or 1 21 preservation. 1 22 b. "Private development purposes" means the construction 1 23 of, or improvement related to, recreational trails, 1 24 recreational development paid for primarily with private 1 25 funds, housing and residential development, or commercial or 1 26 industrial enterprise development. 1 27 c. "Public use" or "public purpose" or "public 1 28 improvement" does not include the authority to condemn 1 29 agricultural land for private development purposes unless the 1 30 owner of the agricultural land consents to the condemnation. 1 31 2. The limitation on the definition of public use, public 1 32 purpose, or public improvement does not apply to a slum area 1 33 or blighted area as defined in section 403.17, or to an 1 34 industrial enterprise if the economic development board has 1 35 approved the use of eminent domain under section 15.104, 2 1 subsection 9, or to the establishment, relocation, or 2 2 improvement of a road pursuant to chapter 306, or to an 2 3 airport as defined in section 328.1, or to land acquired in 2 4 order to replace or mitigate land used in a road project when 2 5 federal law requires replacement or mitigation. This 2 6 limitation also does not apply to utilities or persons under 2 7 the jurisdiction of the Iowa utilities board in the department 2 8 of commerce or to any other utility conferred the right by 2 9 statute to condemn private property or to otherwise exercise 2 10 the power of eminent domain. 2 11 Sec. 2. NEW SECTION. 6B.2A NOTICE OF PROPOSED PUBLIC 2 12 IMPROVEMENT. 2 13 1. An acquiring agency shall provide written notification 2 14 to each owner of record of private property that may be the 2 15 subject of condemnation. The authority under this chapter is 2 16 not conferred and condemnation proceedings shall not begin 2 17 unless a good faith effort is made to serve the notice as 2 18 provided in this section on the owner of record of the 2 19 property subject to condemnation. The notice shall be mailed 2 20 by ordinary mail to the owner of record's last known address 2 21 no less than thirty days before adoption of the ordinance, 2 22 resolution, motion, or other declaration of intent to proceed 2 23 with the public improvement and the acquisition or 2 24 condemnation, if necessary, of the property. If the location 2 25 of the public improvement is changed or expanded after the 2 26 decision has been made to proceed with the public improvement, 2 27 a notice shall be mailed by ordinary mail no less that thirty 2 28 days before the adoption of the ordinance, resolution, motion, 2 29 or other declaration of intent to proceed with a change in the 2 30 location of the public improvement to the owner of record of 2 31 the land to be acquired or condemned, if necessary, in the new 2 32 location of the public improvement affected by the change. 2 33 The notice shall include the statement of individual rights 2 34 required under section 6B.2B. The notice shall, at a minimum, 2 35 include the following information: 3 1 a. The general nature of the public improvement. 3 2 b. The acquiring agency's intended use of the private 3 3 property for the public improvement. 3 4 c. The process to be followed by the acquiring agency in 3 5 making the decision to proceed with the public improvement and 3 6 the acquisition or condemnation, if necessary, of the 3 7 property. 3 8 d. The time, place, and manner at which an opportunity is 3 9 provided for public input into the decision to proceed with 3 10 the public improvement and the acquisition or condemnation, if 3 11 necessary, of the property. 3 12 e. The current status in the planning process for the 3 13 public improvement, including meetings held and decisions 3 14 made. 3 15 2. The authority to condemn is not conferred until the 3 16 appropriate authority approves the public improvement, 3 17 including the approval of any permits required by state or 3 18 federal law which permits are necessary for commencement of 3 19 the project. This subsection does not apply to land condemned 3 20 for public improvements undertaken pursuant to section 306.19. 3 21 3. If, after making a good faith effort, an acquiring 3 22 agency is unable to ascertain the owner of record's last known 3 23 address, or the identity of the owner of record is uncertain, 3 24 or the mail is returned as undeliverable or is refused, the 3 25 acquiring agency shall cause a notice to be published once in 3 26 a newspaper of general circulation in the county or city where 3 27 the private property is located. 3 28 Sec. 3. NEW SECTION. 6B.2B ACQUISITION NEGOTIATION 3 29 STATEMENT OF RIGHTS. 3 30 1. The acquiring agency shall make a good faith effort to 3 31 negotiate with the owner to purchase the private property 3 32 before filing an application for condemnation or otherwise 3 33 proceed with the condemnation process. 3 34 2. The acquiring agency shall provide the owner of record 3 35 of the private property with a statement of their individual 4 1 rights to be included with the notice required under section 4 2 6B.2A. The attorney general shall adopt rules pursuant to 4 3 chapter 17A prescribing a statement of rights which may be 4 4 used in substantial form by any person required to provide the 4 5 statement by this section. 4 6 Sec. 4. Section 6B.3, Code 1999, is amended to read as 4 7 follows: 4 8 6B.3 APPLICATION – RECORDING – NOTICE – TIME FOR 4 9 APPRAISEMENT – NEW PROCEEDINGS. 4 10 1.SuchThe proceedings shall be instituted by a written 4 11 application filed with the chief judge of the judicial 4 12 district of the county in which the land sought to be 4 13 condemned is located.SaidThe application shall set forth: 4 141a. A description of all the property in the county, 4 15 affected or sought to be condemned, by its congressional 4 16 numbers, in tracts not exceeding one-sixteenth of a section, 4 17 or, if the land consists of lots, by the numbers of the lot 4 18 and block, and plat designation. 4 192b. A plat showing the location of the right-of-way or 4 20 other property sought to be condemned with reference to such 4 21 description. 4 223c. The names of all record owners of the different 4 23 tracts of land sought to be condemned, or otherwise affected 4 24 by such proceedings, and of all record holders of liens and 4 25 encumbrances on such lands; also the place of residence of all 4 26 such persons so far as known to the applicant. 4 274d. The purpose for which condemnation is sought. 4 285e. A request for the appointment of a commission to 4 29 appraise the damages. 4 306f. If the damages are to be paid by the state and the 4 31 land to be condemned is within an agricultural area as 4 32 provided in chapter 352, a statement disclosing whether any of 4 33 that land is classified as class I or class II land under the 4 34 United States department of agriculture natural resources 4 35 conservation service land capability classification system 5 1 contained in the agriculture handbook number 210, 1961 edition 5 2 and, if so classified, stating that the class I or class II 5 3 land is reasonably necessary for the work of internal 5 4 improvement for which condemnation is sought. 5 5 g. A showing of the minimum amount of land necessary to 5 6 achieve the public purpose and the amount of land to be 5 7 acquired by condemnation for the public improvement. Any land 5 8 to be acquired by condemnation beyond the necessary minimum to 5 9 complete the project shall be presumed not to be necessary for 5 10 a public use or public purpose unless the applicant can show 5 11 that a substantial need exists for the additional property to 5 12 achieve the public use or public purpose, or that the land in 5 13 question is of little or no value or utility to the owner, or 5 14 that the owner consents to the condemnation. 5 15 h. A statement indicating the efforts made by the 5 16 applicant to negotiate in good faith with the owner to acquire 5 17 the private property sought to be condemned. 5 18 2. The applicant shall mail a copy of the application by 5 19 certified mail to the owner at the owner's last known address 5 20 and to any mortgagee of record at the mortgagee's last known 5 21 address and to any other record lienholder or encumbrancer of 5 22 the land at the lienholder's or encumbrancer's last known 5 23 address. If service of notice by certified mail cannot be 5 24 made in the manner prescribed in this section, the applicant 5 25 shall cause a notice to be published once in a newspaper of 5 26 general circulation in the county. If service of notice is 5 27 made by publication, an affidavit shall be filed with the 5 28 county recorder along with the application. The affidavit 5 29 shall state the reason why service of notice by certified mail 5 30 could not be made, the name of the publication, and the date 5 31 of the publication. Service of notice by publication shall be 5 32 deemed complete on the day of publication. 5 3373. The applicant shall promptly certify that its 5 34 application for condemnation has been approved by the chief 5 35 judge and shall file the original approved application with 6 1 the county recorder in the manner required under section 6 2 6B.37. The county recorder shall file and index the 6 3 application in the record of deeds and preserve the 6 4 application as required by sections 6B.38 and 558.55. The 6 5 filing and indexing constitute constructive notice to all 6 6 parties that a proceeding to condemn the property is pending 6 7 and that the applicant has the right to acquire the property 6 8 from all owners, lienholders, and encumbrancers whose 6 9 interests are of record at the time of the filing. When 6 10 indexed, the proceeding is considered pending so as to charge 6 11 all persons not having an interest in the property with notice 6 12 of its pendency, and while pending no interest can be acquired 6 13 by the third parties in the property against the rights of the 6 14 applicant. If the appraisement of damages is not made within 6 15 one hundred twenty days, the proceedings instituted under this 6 16 section are terminated and all rights and interests of the 6 17 applicant arising out of the application for condemnation 6 18 terminate. The applicant may reinstitute a new condemnation 6 19 proceeding at any time. The reinstituted proceedings are 6 20 entirely new proceedings and not a revival of the terminated 6 21 proceeding. 6 22 Sec. 5. Section 6B.4, unnumbered paragraph 2, Code 1999, 6 23 is amended to read as follows: 6 24 The chief judge of the judicial district shall select by 6 25 lot six persons from the list, two persons who are owner- 6 26 operators of agricultural property when the property to be 6 27 condemned is agricultural property; two persons who are owners 6 28 of city property when the property to be condemned is other 6 29 than agricultural property; and two persons from each of the 6 30 remaining two representative groups, who shall constitute a 6 31 compensation commission to assess the damages to all property 6 32 to be taken by the applicant and located in the county, and 6 33 shall name a chairperson from the persons selected.NoA 6 34 person shall not be selected as a member of the compensation 6 35 commissionselected shall possessif the person possesses any 7 1 interest in the proceeding which would causesuchthe person 7 2 to render a biased decision. The clerk of the district court 7 3 shall send, by regular mail, a list of those persons selected 7 4 to the applicant and to the owner of the property at the 7 5 owner's last known address. The list shall be provided prior 7 6 to the mailing, by any party, of a notice of assessment under 7 7 section 6B.8. If the clerk of the district court is unable to 7 8 locate an address for the owner of the property, the list 7 9 shall be published once in a newspaper of general circulation 7 10 in the county. The applicant shall reimburse the clerk of the 7 11 district court for the cost of mailing and publication. 7 12 Sec. 6. Section 6B.7, Code 1999, is amended to read as 7 13 follows: 7 14 6B.7 COMMISSIONERS TO QUALIFY. 7 15 Before proceeding with the assessment all commissioners 7 16 shall qualify by filing with the sheriff a written oath that 7 17 they will to the best of their ability faithfully and 7 18 impartially assesssaiddamages and make a written report to 7 19 the sheriff. The applicant or the owner may challenge one 7 20 commissioner without stating cause. A challenge to the 7 21 appointment of a commissioner must be made to the chief judge 7 22 of the judicial district no less than seventy-two hours before 7 23 the condemnation jury is set to meet. A commissioner shall be 7 24 appointed to fill a vacancy resulting from a challenge no less 7 25 than twenty-four hours before the jury is set to meet. 7 26 Sec. 7. Section 6B.8, Code 1999, is amended to read as 7 27 follows: 7 28 6B.8 NOTICE OF ASSESSMENT. 7 29 The applicant, or the owner or any lienholder or 7 30 encumbrancer of any land described in the application, may, at 7 31 any time after the appointment of the commissioners, have the 7 32 damages to the lands of any such owner assessed by giving the 7 33 other party, if a resident of this state,tenthirty days' 7 34 notice, in writing.SuchThe notice shall specify the day and 7 35 the hour when the commissioners will view the premises, and 8 1 shall be personally served in the same manner as original 8 2 notices. 8 3 Service of the notice to a person not a resident of this 8 4 state shall be by certified mail to the person's last known 8 5 address. At the same time, the applicant shall cause a notice 8 6 to be published once in a newspaper of general circulation in 8 7 the county prior to the day fixed for the appraisement, which 8 8 day shall be at least thirty days after publication. Service 8 9 of notice in this manner shall be deemed complete on the day 8 10 of publication. 8 11 Sec. 8. Section 6B.12, Code 1999, is amended to read as 8 12 follows: 8 13 6B.12 NOTICETO NONRESIDENTSWHEN RESIDENCE UNKNOWN. 8 14If the owner of such lands or any person interested therein8 15is a nonresident of this state, or ifIf the person's 8 16 residence is unknown after a good faith effort is made to find 8 17 the person's last known address,no demand for the land for8 18the purposes sought shall be necessary, butthe notice 8 19aforesaidrequired in section 6B.8 shall be published insome8 20 a newspaper of general circulation in the countyand of8 21general circulation therein, once each week for at least four 8 22 successive weeks prior to the day fixed for the appraisement, 8 23 which day shall be at least thirty days after the first 8 24 publication of the notice. 8 25 Sec. 9. Section 6B.14, unnumbered paragraph 3, Code 1999, 8 26 is amended to read as follows: 8 27In addition to all other damages provided by law, except8 28moving expenses paid or required to be paid under relocation8 29assistance programs, anAn owner or tenant occupying land 8 30 which is proposed to be acquired by condemnation shall be 8 31 awarded a sum sufficient to remove such owner's or tenant's 8 32 personal property from the land to be acquired, which sum 8 33 shall represent reasonable costs of movingsaidthe personal 8 34 property from thesaidland to be acquired to a point no 8 35 greater thantwenty-fivefifty milestherefrom; but in any 9 1 event,saiddamages awarded under this section for moving 9 2 shall not exceed fivehundredthousand dollars for each owner 9 3 or tenant occupying landsoproposed to be condemned. An 9 4 owner or tenant may apply for an award pursuant to this 9 5 section only if all other damages provided by law have been 9 6 awarded and such amount awarded is insufficient to pay the 9 7 owner's reasonable costs of moving. 9 8 Sec. 10. Section 6B.26, Code 1999, is amended to read as 9 9 follows: 9 10 6B.26 DISPOSSESSION OF OWNER. 9 11 A landowner shall not be dispossessed, under condemnation 9 12 proceedings, of the landowner's residence, dwelling house, 9 13outhouseoutbuildings if the residence or dwelling house is 9 14 also acquired, orchard, or garden, until the damages thereto 9 15 have been finally determined and paid. However, if the 9 16 property described in this section is condemned for highway 9 17 purposes by the state department of transportation, the 9 18 condemning authority may take possession of the property 9 19 either after the damages have been finally determined and paid 9 20 or one hundred eighty days after the compensation commission 9 21 has determined and filed its award, in which event all of the 9 22 appraisement of damages shall be paid to the property owner 9 23 before the dispossession can take place. This section shall 9 24 not apply to condemnation proceedings for drainage or levee 9 25 improvements, or for public school purposes. For the purposes 9 26 of this section, "outbuildings" means structures and 9 27 improvements located in proximity to the landowner's 9 28 residence. 9 29 Sec. 11. Section 6B.33, Code 1999, is amended to read as 9 30 follows: 9 31 6B.33 COSTS AND ATTORNEY FEES. 9 32 The applicant shall pay all costs of the assessment made by 9 33 the commissioners and reasonable attorney fees and costs 9 34 incurred by the condemnee as determined by the commissioners 9 35 if the award of the commissioners exceeds one hundred ten 10 1 percent of the final offer of the applicant prior to 10 2 condemnation. The applicant shall file with the sheriff an 10 3 affidavit setting forth the most recent offer made to the 10 4 person whose property is sought to be condemned. Members of 10 5 such commissions shall receive a per diem of fifty dollars and 10 6 actual and necessary expenses incurred in the performance of 10 7 their official duties. The applicant shall reimburse the 10 8 county sheriff for the per diem and expense amounts paid by 10 9 the sheriff to the members. The applicant shall reimburse the 10 10 owner for the expenses the owner incurred for recording fees, 10 11 penalty costs for full or partial prepayment of any 10 12 preexisting recorded mortgage entered into in good faith 10 13 encumbering the property, and for similar expenses incidental 10 14 to conveying the property to the applicant. The applicant 10 15 shall also pay all costs occasioned by the appeal, including 10 16 reasonable attorney fees to be taxed by the court, unless on 10 17 the trial thereof the same or a less amount of damages is 10 18 awarded than was allowed by the tribunal from which the appeal 10 19 was taken. 10 20 Sec. 12. Section 6B.42, Code 1999, is amended to read as 10 21 follows: 10 22 6B.42 EMINENT DOMAIN – PAYMENT TO DISPLACED PERSONS. 10 23 1. a. The acquiring agency shall provide to the person, 10 24 in addition to any other sums of money in payment of just 10 25 compensation, the payments and assistance required by law, in 10 26 accordance with chapter 316. 10 27 b. A person aggrieved by a determination made as to 10 28 eligibility for relocation assistance, a payment, or the 10 29 amount of the payment, upon application, may have the matter 10 30 reviewed by the appropriate acquiring agency. 10 31 c. An acquiring agency subject to this section that 10 32 proposes to displace a person shall inform the person of the 10 33 person's right to receive relocation assistance and payments, 10 34 and of an aggrieved person's right to appeal a determination 10 35 as to assistance and payments. 11 11.2. a. A utility or railroad subject to section 327C.2, 11 2 or chapters 476, 478, 479,and479A, and 479B, authorized by 11 3 law to acquire property by condemnation, which acquires the 11 4 property of a person or displaces a person for a program or 11 5 project which has received or will receive federal financial 11 6 assistance as defined in section 316.1, shall provide to the 11 7 person, in addition to any other sums of money in payment of 11 8 just compensation, the payments and assistance required by 11 9 law, in accordance with chapter 316. 11 102.b. A person aggrieved by a determination made by a 11 11 utility as to eligibility for relocation assistance, a 11 12 payment, or the amount of the payment, upon application, may 11 13 have the matter reviewed by the utilities division of the 11 14 department of commerce. 11 153.c. A person aggrieved by a determination made by a 11 16 railroad as to eligibility for relocation assistance, a 11 17 payment, or the amount of the payment, upon application, may 11 18 have the matter reviewed by the state department of 11 19 transportation. 11 204.d. A utility or railroad subject to this section that 11 21 proposes to displace a person shall inform the person of the 11 22 person's right to receive relocation assistance and payments, 11 23 and of an aggrieved person's right to appeal to the utilities 11 24 division of the department of commerce or the state department 11 25 of transportation. 11 26 Sec. 13. Section 6B.45, Code 1999, is amended to read as 11 27 follows: 11 28 6B.45CONDEMNATION FOR ROAD OR STREET –MAILING COPY OF 11 29 APPRAISAL. 11 30 When any real property or interestthereinin real property 11 31 is to be purchased, or in lieu thereof to be condemnedfor11 32highway, street or road purposes, thepurchasing state11 33 acquiring agency, county or cityortheirits agent shall 11 34 submit to the person, corporation, or entity whose property or 11 35 interestthereinin the property is to be taken, by ordinary 12 1 mail, at least ten days prior to the date of contact, a copy 12 2 of the appraisal in its entirety upon such real property or 12 3 interestthereinin such real property prepared for the 12 4 acquiring agency or its agent, which shall include, atleasta 12 5 minimum, an itemization of the appraised value of the real 12 6 property or interestthereinin the property, any buildings 12 7thereonon the property, all other improvements including 12 8 fences, severance damages, and loss of access. The appraisal 12 9 sent to the condemnee shall be that appraisal upon which the 12 10 condemnor will rely to establish an amount which the condemnor 12 11 believes to be just compensation for the real property. All 12 12 other appraisals made on the property as a result of the 12 13 condemnation proceeding shall be made available to the 12 14 condemnee upon request. In lieu of an appraisal, a utility or 12 15 person under the jurisdiction of the utilities board of the 12 16 department of commerce, or any other utility conferred the 12 17 right by statute to condemn private property, shall provide in 12 18 writing by certified mail to the owner of record thirty days 12 19 prior to negotiations, the methods and factors used in 12 20 arriving at an offered price for voluntary easements including 12 21 the range of cash amount of each component. 12 22 Sec. 14. Section 6B.54, unnumbered paragraph 1, Code 1999, 12 23 is amended to read as follows: 12 24If aFor any project or displacing activity that has 12 25 received or will receive federal financial assistance as 12 26 defined in section 316.1, for any state-funded projects, or 12 27 for any other public improvement for which condemnation is 12 28 sought, an acquiring agency shallbe guided by, at a minimum, 12 29 satisfy the following policies: 12 30 Sec. 15. Section 6B.54, subsections 2, 3, 8, and 9, Code 12 31 1999, are amended to read as follows: 12 32 2. Real property shall be appraised as required by section 12 33 6B.45 before the initiation of negotiations, and the owner or 12 34 the owner's designated representative shall be given an 12 35 opportunity to accompany at least one appraiser of the 13 1 acquiring agency during an inspection of the property, except 13 2 thatthe state department of transportationan acquiring 13 3 agency may prescribe a procedure to waive the appraisal in 13 4 cases involving the acquisition of property with a low fair 13 5 market value. In lieu of an appraisal, a utility or person 13 6 under the jurisdiction of the utilities board of the 13 7 department of commerce, or any other utility conferred the 13 8 right by statute to condemn private property, shall provide in 13 9 writing by certified mail to the owner of record thirty days 13 10 before negotiations, the methods and factors used in arriving 13 11 at an offered price for voluntary easements including the 13 12 range of cash amount of each component. 13 13 3. Before the initiation of negotiations for real 13 14 property, the acquiring agency shall establish an amount which 13 15 it believes to be just compensation for the real property, and 13 16 shall make a prompt offer to acquire the property for the full 13 17 amount established by the agency. In no event shall the 13 18 amount be less than theagency's approvedlowest appraisal of 13 19 the fair market value of the property. In the case of a 13 20 utility or person under the jurisdiction of the utilities 13 21 board of the department of commerce, or any other utility 13 22 conferred the right by statute to condemn private property, 13 23 the amount shall not be less than the amount indicated by the 13 24 methods and factors used in arriving at an offered price for a 13 25 voluntary easement. 13 26 8. If the acquisition of only a portion of property would 13 27 leave the owner with an uneconomical remnant, thehead of the13 28 acquiring agencyconcernedshall offer to acquire that 13 29 remnant. For the purposes of this chapter, an "uneconomical 13 30 remnant" is a parcel of real property in which the owner is 13 31 left with an interest after the partial acquisition of the 13 32 owner's property, where thehead of theacquiring agency 13 33concerneddetermines that the parcel has little or no value or 13 34 utility to the owner. 13 35 9. A person whose real property is being acquired in 14 1 accordance with this chapter, after the person has been fully 14 2 informed of the person's right to receive just compensation 14 3 for the property, may donate the property, any part of the 14 4 property, any interest in the property, or any compensation 14 5 paid for itto any agencyas the person may determine. 14 6 Sec. 16. Section 6B.55, unnumbered paragraph 1, Code 1999, 14 7 is amended to read as follows: 14 8If aFor any program or project that has received or will 14 9 receive federal financial assistance as defined in section 14 10 316.1, for any state-funded projects, or for any other public 14 11 improvement for which condemnation is sought, an acquiring 14 12 agency shallbe guided byat a minimum satisfy the following 14 13 policies: 14 14 Sec. 17. NEW SECTION. 6B.57 PROCEDURAL COMPLIANCE. 14 15 If a city makes a good faith effort to serve, send, or 14 16 provide the notices or documents required under this chapter 14 17 to the owner of private property that is or may be the subject 14 18 of condemnation, but fails to provide the notice or documents 14 19 to the owner, such failure shall not constitute grounds for 14 20 invalidation of the condemnation proceeding if the chief judge 14 21 of the judicial district determines that such failure can be 14 22 corrected by delaying the condemnation proceedings to allow 14 23 compliance with the requirement and such failure does not 14 24 unreasonably prejudice the owner. 14 25 Sec. 18. NEW SECTION. 6B.58 ACQUIRING AGENCY – 14 26 DEFINITION. 14 27 For purposes of this chapter, an "acquiring agency" means 14 28 the state of Iowa or any person or entity conferred the right 14 29 by statute to condemn private property or to otherwise 14 30 exercise the power of eminent domain. 14 31 Sec. 19. Section 15.104, Code 1999, is amended by adding 14 32 the following new subsection: 14 33 NEW SUBSECTION. 9. Review all applications submitted by 14 34 cities requesting approval for the city to exercise eminent 14 35 domain authority over agricultural land and determine whether 15 1 the use of such authority is necessary for the placement of an 15 2 industrial enterprise in the community. The application may 15 3 only include land located for at least three years within the 15 4 incorporated boundaries of the city. 15 5 Approval of an application by a city to exercise the right 15 6 of eminent domain to acquire agricultural land for an 15 7 industrial enterprise may be granted for a specific land area 15 8 upon a finding of public necessity. When making a 15 9 determination of public necessity, the board shall consider 15 10 all of the following: 15 11 a. The feasibility of acquiring the agricultural land by 15 12 methods other than condemnation. 15 13 b. The public cost and public benefit from locating the 15 14 industrial enterprise on the agricultural land. 15 15 c. The existence of willing sellers at other feasible 15 16 locations in the state. 15 17 d. The ability to adapt the industrial development plans 15 18 to avoid the use of condemnation. 15 19 e. The existence of a specific industrial enterprise to be 15 20 located on the agricultural land. 15 21 f. The amount of land requested to be condemned compared 15 22 to the total amount of land needed for the project. 15 23 If a city acquires property by condemnation, or by 15 24 otherwise exercising the power of eminent domain, and that 15 25 property is later sold by the city for more than the 15 26 acquisition price paid to the landowner, the city shall pay to 15 27 the landowner the difference between the price at which it was 15 28 acquired and the price at which it was sold by the city less 15 29 the cost of any improvements made to the land by the city. 15 30 Sec. 19. Section 306.19, subsection 3, Code 1999, is 15 31 amended to read as follows: 15 32 3. None of the foregoing requirements shall prohibit the 15 33 property owner and the agency from entering into a mutually 15 34 acceptable agreement for the replacement, relocation, 15 35 construction, or maintenance of any alternate driveway on the 16 1 owner's property. Compensation for any property rights taken 16 2 in the establishment of any alternative temporary or permanent 16 3 access shall be paid as in any other purchase or condemnation 16 4 of property. 16 5 Sec. 20. Section 306.19, subsection 4, Code 1999, is 16 6 amended to read as follows: 16 7 4.Compensation for any property rights taken in the16 8establishment of any alternative temporary or permanent access16 9shall be paid as in any other purchase or condemnation of16 10property.Proceedings for the condemnation of land for any 16 11 highway shall be under the provisions of chapter 6A and 16 12 chapter 6B. Provided that, in the condemnation of right-of- 16 13 way for secondary roads that is contiguous to existing road 16 14 right-of-way for the maintenance, safety improvement, or 16 15 upgrade of the existing secondary road, the board of 16 16 supervisors may proceed as provided in sections 306.28 to 16 17 306.37. 16 18 Sec. 21. Section 306.27, Code 1999, is amended to read as 16 19 follows: 16 20 306.27 CHANGES FOR SAFETY, ECONOMY, AND UTILITY. 16 21 The state department of transportation as to primary roads 16 22 and the boards of supervisors as to secondary roads on their 16 23 own motion may change the course of any part of any road or 16 24 stream, watercourse, or dry run and may pond water in order to 16 25 avoid the construction and maintenance of bridges, or to avoid 16 26 grades, or railroad crossings, or to straighten a road, or to 16 27 cut off dangerous corners, turns or intersections on the 16 28 highway, or to widen a road above statutory width, or for the 16 29 purpose of preventing the encroachment of a stream, 16 30 watercourse, or dry run upon the highway. The department and 16 31 the board of supervisors shall conductitstheir proceedings 16 32 in the manner and form prescribed in chapter 6B,andexcept 16 33 that the board of supervisorsshallmay use the form 16 34 prescribed in sections 306.28 to 306.37or as provided in16 35chapter 6Bfor the condemnation of right-of-way that is 17 1 contiguous to existing road right-of-way and necessary for the 17 2 maintenance, safety improvement, or upgrade of the existing 17 3 secondary road. Changes are subject to chapter 455B. 17 4 Sec. 22. Section 306.28, Code 1999, is amended by striking 17 5 the section and inserting in lieu thereof the following: 17 6 306.28 APPRAISERS. 17 7 If the board is unable, by agreement with the owner, to 17 8 acquire the necessary right of way to effect such change, a 17 9 compensation commission shall be selected pursuant to section 17 10 6B.4, to appraise the damages consequent on the taking of the 17 11 right of way. 17 12 Sec. 23. Section 306.29, unnumbered paragraph 2, Code 17 13 1999, is amended to read as follows: 17 14 To whom it may concern: Notice is given that the board of 17 15 supervisors of ........ county, Iowa, propose to condemn for 17 16 road purposes the following described real estate in said 17 17 county: (Here describe the right of way, and the tract or 17 18 tracts from which such right of way will be taken.) The 17 19 damages caused by said condemnation will be assessed bythree17 20appraisersa compensation commission appointed as provided by 17 21 law for the purpose of appraising the damages.Notice is17 22hereby given that the owner or owners of said real estate may,17 23on or before the .. day of ...., appoint one of said17 24appraisers and that in case such right be not exercised, or if17 25exercised and the said appointee fails to appear and qualify,17 26the said three appraisers will be otherwise appointed as17 27provided by law.All parties interested are further notified 17 28 thatsaid three appraisersthe compensation commission will, 17 29 when duly appointed, proceed to appraisesaidthe damages, 17 30 will reportsaidthe appraisement to thesaidboard of 17 31 supervisors and thatsaid latterthe board will pass thereon 17 32 as provided by law, and that at all such times and places you 17 33 may be presentif you be so minded. You are further notified 17 34 that atsaidthe hearing before thesaidsupervisors you may 17 35 file objections to the use ofsaidthe land for road purposes 18 1 and that all such objections not so made will be deemed 18 2 waived. 18 3 .................... 18 4 County Auditor. 18 5 Sec. 24. Section 306.31, Code 1999, is amended to read as 18 6 follows: 18 7 306.31QUALIFICATION ANDASSESSMENT. 18 8Upon the appointment of three appraisers, the county18 9auditor shall cause them to appear before the auditor and to18 10take oath that they will faithfully and impartially assess the18 11damages claimed. SaidThe appraisers shall forthwith proceed 18 12 to the assessment ofsaiddamages and shall make written 18 13 reportthereofof the damages to the board of supervisors. 18 14 Sec. 25. Section 316.1, subsection 5, paragraphs a and b, 18 15 Code 1999, are amended to read as follows: 18 16 a. A person who moves from real property or moves the 18 17 person's personal property from real property ineitherany of 18 18 the following circumstances: 18 19 (1) As a direct result of a written notice of intent to 18 20 acquire, the initiation of negotiations for, or the 18 21 acquisition of, the real property in whole or in part for a 18 22 program or project undertaken with federal financial 18 23 assistance. 18 24 (2) The person moved or moved the person's personal 18 25 property from real property on which the person is either a 18 26 residential tenant or conducts a small business, a farm 18 27 operation, or a business as defined in subsection 2, paragraph 18 28 "d", as a direct result of rehabilitation or demolition for a 18 29 program or project undertaken with federal financial 18 30 assistance in a case in which the head of the displacing 18 31 agency determines that the displacement is permanent. 18 32 (3) As a direct result of a written notice of intent to 18 33 acquire by condemnation, the initiation of negotiations for, 18 34 or the acquisition of, the real property in whole or in part 18 35 by the state of Iowa or by an entity or person conferred the 19 1 right to condemn private property. 19 2 b. For purposes of section 316.4, subsections 1 and 2, and 19 3 section 316.7, a person who moves from real property, or moves 19 4 the person's personal property from real property ineither19 5 any of the following circumstances: 19 6 (1) As a direct result of a written notice of intent to 19 7 acquire, the initiation of negotiations for, or the 19 8 acquisition of, other real property in whole or in part if the 19 9 person conducts a business or farm operation on the other real 19 10 property for a program or project undertaken with federal 19 11 financial assistance. 19 12 (2) As a direct result of rehabilitation or demolition of 19 13 other real property on which the person conducts a business or 19 14 a farm operation for a program or project undertaken with 19 15 federal financial assistance in a case in which the head of 19 16 the displacing agency determines that the displacement is 19 17 permanent. 19 18 (3) As a direct result of a written notice of intent to 19 19 acquire by condemnation, the initiation of negotiations for, 19 20 or the acquisition of, other real property in whole or in part 19 21 by the state of Iowa or by an entity or person conferred the 19 22 right to condemn private property if the person conducts a 19 23 business or farm operation on the other real property. 19 24 Sec. 26. Section 331.304, subsection 8, Code 1999, is 19 25 amended to read as follows: 19 26 8. The power to take private property for public use shall 19 27 only be exercised by counties for public purposes which are 19 28 reasonable and necessary as an incident to the powers and 19 29 duties conferred upon counties, and in accordance with 19 30 chapters 6A and 6B.SectionsSection 306.19and 306.28 to19 31306.37 areis also applicable to condemnation of right of way 19 32 for secondary roads. Sections 306.27 through 306.37 are 19 33 applicable to the condemnation of right of way that is 19 34 contiguous to existing road right of way and necessary for the 19 35 maintenance, safety improvement, or upgrade of the existing 20 1 secondary road. 20 2 Sec. 27. Section 403.5, subsection 4, Code 1999, is 20 3 amended by adding the following new unnumbered paragraph: 20 4 NEW UNNUMBERED PARAGRAPH. A municipality shall not condemn 20 5 agricultural land included within an economic development area 20 6 unless the owner of the agricultural land consents to 20 7 condemnation or unless the economic development board approves 20 8 the use of condemnation under section 15.104, subsection 9, 20 9 for the purposes of locating an industrial enterprise. This 20 10 paragraph shall not apply to land necessary or useful for the 20 11 operation of a city utility as defined in section 362.2, for 20 12 the operation of a city franchise conferred the authority to 20 13 condemn private property under section 364.2, or a combined 20 14 utility system as defined in section 384.80. 20 15 Sec. 28. Section 403.7, unnumbered paragraph 1, Code 1999, 20 16 is amended to read as follows: 20 17 A municipality shall have the right to acquire by 20 18 condemnation any interest in real property, including a fee 20 19 simple title thereto, which it may deem necessary for or in 20 20 connection with an urban renewal project under this chapter. 20 21 However, a municipality shall not condemn agricultural land 20 22 included within an economic development area unless the owner 20 23 of the agricultural land consents to condemnation or unless 20 24 the economic development board approves the use of 20 25 condemnation under section 15.104, subsection 9, for the 20 26 purposes of locating an industrial enterprise. A municipality 20 27 may exercise the power of eminent domain in the manner 20 28 provided in chapter 6B, and Acts amendatory to that chapter or 20 29 supplementary to that chapter, or it may exercise the power of 20 30 eminent domain in the manner now or which may be hereafter 20 31 provided by any other statutory provisions for the exercise of 20 32 the power of eminent domain. Property already devoted to a 20 33 public use may be acquired in like manner. However, real 20 34 property belonging to the state, or any political subdivision 20 35 of this state, shall not be acquired without its consent, and 21 1 real property or any right or interest in the property owned 21 2 by any public utility company, pipeline company, railway or 21 3 transportation company vested with the right of eminent domain 21 4 under the laws of this state, shall not be acquired without 21 5 the consent of the company, or without first securing, after 21 6 due notice to the company and after hearing, a certificate 21 7 authorizing condemnation of the property from the board, 21 8 commission or body having the authority to grant a certificate 21 9 authorizing condemnation. In a condemnation proceeding, if a 21 10 municipality proposes to take a part of a lot or parcel of 21 11 real property, the municipality shall also take the remaining 21 12 part of the lot or parcel if requested by the owner. 21 13 Sec. 29. Section 403.17, Code 1999, is amended by adding 21 14 the following new subsection: 21 15 NEW SUBSECTION. 2A. "Agricultural land" means real 21 16 property that is used for the production of agricultural 21 17 commodities and from which one thousand dollars or more of 21 18 agricultural commodities were sold or normally would be sold 21 19 during the year. Such use of property includes, but is not 21 20 limited to, the raising, harvesting, handling, drying, or 21 21 storage of crops used for feed, food, seed, or fiber; the care 21 22 or feeding of livestock; the handling or transportation of 21 23 crops or livestock; the storage, treatment, or disposal of 21 24 livestock manure; and the application of fertilizers, soil 21 25 conditioners, pesticides, and herbicides on crops. 21 26 Agricultural land includes land on which is located farm 21 27 residences or outbuildings used for agricultural purposes and 21 28 land on which is located facilities, structures, or equipment 21 29 for agricultural purposes. Agricultural land includes land 21 30 taken out of agricultural production for purposes of 21 31 environmental protection or preservation. 21 32 Sec. 30. Section 403.17, subsection 9, Code 1999, is 21 33 amended to read as follows: 21 34 9. "Economic development area" means an area of a 21 35 municipality designated by the local governing body as 22 1 appropriate for commercial and industrial enterprises, public 22 2 improvements related to housing and residential development, 22 3 or construction of housing and residential development for low 22 4 and moderate income families, including single or multifamily 22 5 housing. If an urban renewal plan for an urban renewal area 22 6 is based upon a finding that the area is an economic 22 7 development area and that no part contains slum or blighted 22 8 conditions, then the division of revenue provided in section 22 9 403.19 and stated in the plan shall be limited to twenty years 22 10 from the calendar year following the calendar year in which 22 11 the city first certifies to the county auditor the amount of 22 12 any loans, advances, indebtedness, or bonds which qualify for 22 13 payment from the division of revenue provided in section 22 14 403.19. Such designated area shall not include agricultural 22 15 land, including land which is part of a century farm, unless 22 16 the owner of the agricultural land or century farm agrees to 22 17 include the agricultural land or century farm in the urban 22 18 renewal area. For the purposes of this subsection, "century 22 19 farm" means a farm in which at least forty acres of such farm 22 20 have been held in continuous ownership by the same family for 22 21 one hundred years or more. 22 22 Sec. 31. APPLICABILITY. Sections 1, 27, 28, and 29 of 22 23 this Act, enacting section 6A.21, amending sections 403.5 and 22 24 403.7, and enacting section 403.17, subsection 2A, apply to 22 25 urban renewal areas established before, on, or after the 22 26 effective date of this Act and to amendments to such urban 22 27 renewal areas. 22 28 Section 30 of this Act, amending section 403.17, subsection 22 29 9, applies to urban renewal areas established on or after the 22 30 effective date of this Act. Section 30 of this Act also 22 31 applies to agricultural land included in an urban renewal area 22 32 established before the effective date of this Act if the 22 33 agricultural land is included in the urban renewal area by 22 34 virtue of an amendment to the urban renewal plan, which 22 35 amendment is adopted on or after the effective date of this 23 1 Act. 23 2 Sec. 32. EFFECTIVE DATE. This Act applies to state 23 3 highway construction projects approved for commencement by the 23 4 transportation commission on or after July 1, 1999. This Act 23 5 applies to all other condemnation proceedings in which the 23 6 application for condemnation is filed on or after July 1, 23 7 1999. 23 8 EXPLANATION 23 9 This bill makes several changes to the law relating to the 23 10 power of eminent domain and the procedures by which the state 23 11 of Iowa and other entities and persons are allowed to condemn 23 12 private property. The bill defines "acquiring agency" to mean 23 13 entities or persons conferred the right by law to condemn 23 14 private property. "Acquiring agency" under the bill includes 23 15 counties, cities, owners of land without a way to the land, 23 16 owners of mineral lands, cemetery associations, subdistricts 23 17 of soil and water conservation districts, and utilities. 23 18 The bill defines "public use", "public purpose", or "public 23 19 improvement" to exclude the condemnation of agricultural land 23 20 without the consent of the owner. The bill defines 23 21 "agricultural land" as real property used for production of 23 22 certain agricultural commodities and from which $1,000 or more 23 23 of commodities were sold in a year. The bill defines "private 23 24 development purposes" as the construction of, or improvement 23 25 related to, recreational trails, recreational development paid 23 26 for primarily with private funds, housing and residential 23 27 development, or commercial or industrial enterprise 23 28 development. 23 29 The bill requires a condemning authority to send a notice 23 30 of a proposed public improvement to the owner of property for 23 31 which condemnation is being considered for the public 23 32 improvement. The notice must be mailed by ordinary mail no 23 33 less than 30 days before adoption of the declaration of intent 23 34 relating to the public improvement and the acquisition or 23 35 condemnation of the property. The notice, at a minimum, 24 1 should include information on the general nature of the public 24 2 improvement, the intended use of the property, the process 24 3 relating to the public improvement, and opportunity for public 24 4 input relating to the public improvement if the law requires 24 5 public input. 24 6 The bill requires a condemning authority to make a good 24 7 faith effort to negotiate with the owner to purchase the 24 8 private property before filing an application for 24 9 condemnation. The condemning authority is required to provide 24 10 the owner of the property with a statement of rights. The 24 11 statement is to be included with the notice of proposed public 24 12 improvement. The bill provides that condemnation may not 24 13 proceed until the notice of proposed public improvement 24 14 containing the statement of individual rights is provided to 24 15 the owner. 24 16 The bill requires a condemning authority to mail a copy of 24 17 the condemnation application filed with the district court to 24 18 the owner of the property. The bill also requires that the 24 19 condemnation application provide information on the minimum 24 20 amount of land necessary for the public improvement and the 24 21 amount of land to be acquired by condemnation. Current law 24 22 requires the applicant to pay the expenses of the compensation 24 23 commission and of the landowner if the award of the commission 24 24 is 110 percent or more of the final offer of the applicant 24 25 prior to condemnation. The condemnation application must also 24 26 include a statement of the efforts made by the condemning 24 27 authority to negotiate with the owner for the sale of the 24 28 property prior to filing the application. 24 29 The bill requires that a list of the persons selected to 24 30 serve on the compensation commission for condemnation 24 31 proceedings be provided to the condemnation applicant and to 24 32 the owner of the property. The bill allows the applicant and 24 33 the owner to each dismiss one commissioner without stating 24 34 cause. 24 35 The bill increases from 10 days to 30 days the amount of 25 1 notice given of an assessment of the property. The bill 25 2 provides that service of notice of assessment shall be mailed 25 3 by certified mail to applicants or owners or persons in 25 4 interest, any of whom are not residents of the state. The 25 5 bill also requires that the notice to nonresidents be 25 6 published once 30 days before the assessment. 25 7 The bill increases the amount to be paid in moving expenses 25 8 from $500 to $5,000 for an owner or tenant occupying land that 25 9 has been condemned. The bill also increases that distance 25 10 that personal property is moved for which moving expenses are 25 11 paid from 25 miles to 50 miles. 25 12 The bill adds outbuildings to the list of property from 25 13 which a landowner may not be dispossessed by condemnation 25 14 without determination and payment of damages. Outbuildings 25 15 are defined as structures and improvements located in 25 16 proximity to the owner's residence. 25 17 The bill provides that the condemnation applicant shall 25 18 reimburse the county sheriff for the per diem and actual 25 19 expenses paid to members of the compensation commission. The 25 20 bill specifies that the applicant shall reimburse the owner of 25 21 the property for expenses incurred for recording fees, 25 22 mortgage penalty costs, and similar expenses incidental to the 25 23 transfer of the property to the applicant. 25 24 The bill provides that relocation expenses for 25 25 condemnations by the state of Iowa or other entity or person 25 26 having the right to condemn property shall be determined and 25 27 paid in the same manner as relocation expenses for 25 28 condemnations involving federally funded projects. 25 29 The bill requires that a copy of the appraisal, on which 25 30 the purchasing state agency, county, or city will base its 25 31 offer of compensation, be mailed to the owner of the property. 25 32 The bill makes current acquisition policy guidelines for 25 33 projects receiving federal financial assistance applicable to 25 34 any state funded projects and to any other public improvement 25 35 for which condemnation is sought. 26 1 The bill provides that if a city makes a good faith effort 26 2 to comply with notice provisions, that failure to comply may 26 3 only result in a delay of the condemnation proceeding. 26 4 The bill allows a city to condemn agricultural land for an 26 5 industrial enterprise if the land has been located within city 26 6 boundaries for at least three years and the city has applied 26 7 to, and received approval from, the state economic development 26 8 board. 26 9 The bill amends Code sections providing an alternative 26 10 condemnation procedure for counties and secondary roads. The 26 11 county may use the alternative procedure if the right of way 26 12 to be condemned is contiguous to existing road right of way 26 13 and is necessary for maintenance, safety improvement, or 26 14 upgrade of the existing road. The county is also required to 26 15 use the compensation commission to assess damages. 26 16 The bill provides that a municipality (city or county) 26 17 shall not condemn agricultural land included within an urban 26 18 renewal area designated as an economic development area 26 19 without the consent of the owner of the agricultural land. 26 20 This does not apply to city utilities or city franchises. 26 21 The section of the bill amending the definition of 26 22 "economic development area" for purposes of urban renewal, 26 23 applies to urban renewal areas established on or after the 26 24 effective date of the bill. However, the amendment applies to 26 25 urban renewal areas established before the effective date if 26 26 they were amended to add agricultural land to the economic 26 27 development urban renewal area on or after the effective date 26 28 of the bill. The remaining sections of the bill which amend 26 29 or reference Code chapter 403 apply to urban renewal areas 26 30 established before, on, or after the effective date of the 26 31 bill. 26 32 The bill applies to state highway construction projects 26 33 approved on or after July 1, 1999. The bill applies to all 26 34 other condemnation proceedings in which the application for 26 35 condemnation is filed on or after July 1, 1999. 27 1 LSB 2441SC 78 27 2 sc/gg/8.2
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