House File 2125 - Introduced
HOUSE FILE
BY STRUYK
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act making changes to the law relating to eminent domain
2 authority and condemnation procedures, urban renewal, and
3 including effective and applicability date provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 5462YH 81
6 sc/cf/24
PAG LIN
1 1 Section 1. Section 6A.21, subsection 2, Code 2005, is
1 2 amended to read as follows:
1 3 2. The limitation on the definition of public use, public
1 4 purpose, or public improvement does not apply to a slum area
1 5 or blighted area as defined in section 403.17, or to
1 6 agricultural land acquired for industry as that term is
1 7 defined in section 260E.2, provided in section 6A.22 or to the
1 8 establishment, relocation, or improvement of a road pursuant
1 9 to chapter 306, or to the establishment of a railway under the
1 10 supervision of the department of transportation as provided in
1 11 section 327C.2, or to an airport as defined in section 328.1,
1 12 or to land acquired in order to replace or mitigate land used
1 13 in a road project when federal law requires replacement or
1 14 mitigation. This limitation also does not apply to utilities
1 15 or persons under the jurisdiction of the Iowa utilities board
1 16 in the department of commerce or to any other utility
1 17 conferred the right by statute to condemn private property or
1 18 to otherwise exercise the power of eminent domain.
1 19 Sec. 2. NEW SECTION. 6A.22 ADDITIONAL LIMITATIONS ON
1 20 EXERCISE OF POWER == DEFINITIONS.
1 21 1. In addition to the limitations in section 6A.21, the
1 22 authority of an acquiring agency to condemn any private
1 23 property through eminent domain may only be exercised for a
1 24 public purpose, public use, or public improvement. However,
1 25 if the owner of the property consents to the condemnation, the
1 26 property may be condemned for any purpose.
1 27 2. a. "Public use", "public purpose", or "public
1 28 improvement" means one or more of the following:
1 29 (1) The possession, occupation, and enjoyment of property
1 30 by the general public or governmental entities.
1 31 (2) The acquisition of any interest in property necessary
1 32 to the function of a public or private utility or common
1 33 carrier.
1 34 (3) Private use that is incidental to the public use of
1 35 the property, provided that no property shall be condemned
2 1 solely for the purpose of facilitating such incidental private
2 2 use.
2 3 (4) The acquisition of property in that portion of an
2 4 urban renewal area designated as a slum area or blighted area
2 5 as those terms are defined in section 403.17.
2 6 b. Except as specifically included in the definition in
2 7 paragraph "a", "public use" or "public purpose" or "public
2 8 improvement" does not mean economic development activities
2 9 resulting in increased tax revenues and employment
2 10 opportunities, privately owned or privately funded housing and
2 11 residential development, privately owned or privately funded
2 12 commercial or industrial development, or recreational
2 13 development paid for primarily with private funds.
2 14 c. Notwithstanding paragraph "a":
2 15 (1) Private property shall not be condemned for
2 16 development or creation of a lake as a surface drinking water
2 17 source or for recreational use, for construction of a
2 18 landfill, or for construction of sewer treatment facilities,
2 19 unless the acquiring agency demonstrates that no other
2 20 feasible alternative exists to accomplish its purpose.
2 21 (2) Private property shall not be condemned to develop or
2 22 create a park or recreational facility unless the acquiring
2 23 agency demonstrates that a good faith effort has been made to
2 24 purchase a feasible location from a willing seller for the
2 25 park or facility.
2 26 3. In any action contesting whether eminent domain
2 27 authority is being exercised for a public use, public purpose,
2 28 or public improvement, the burden of proof is on the acquiring
2 29 agency to prove by clear and convincing evidence that the
2 30 proposed use of the property meets the definition of public
2 31 use, public purpose, or public improvement in subsection 2 and
2 32 that there is no feasible alternative to condemnation of the
2 33 property.
2 34 Sec. 3. Section 6B.1, Code 2005, is amended to read as
2 35 follows:
3 1 6B.1 DEFINITIONS.
3 2 1. As used in this chapter, unless the context otherwise
3 3 requires, "book", "list", "record", or "schedule" kept by a
3 4 county auditor, assessor, treasurer, recorder, sheriff, or
3 5 other county officer means the county system as defined in
3 6 section 445.1.
3 7 2. For purposes of this chapter, "acquiring agency" means
3 8 the state of Iowa or any person or entity conferred the right
3 9 by statute to condemn private property or to otherwise
3 10 exercise the power of eminent domain.
3 11 Sec. 4. Section 6B.2B, Code 2005, is amended to read as
3 12 follows:
3 13 6B.2B ACQUISITION NEGOTIATION STATEMENT OF RIGHTS.
3 14 The acquiring agency shall make a good faith effort to
3 15 negotiate with the owner to purchase the private property or
3 16 property interest before filing an application for
3 17 condemnation or otherwise proceeding with the condemnation
3 18 process. An acquiring agency shall not make an offer to
3 19 purchase the property or property interest that is less than
3 20 the fair market value the acquiring agency has established for
3 21 the property or property interest pursuant to the appraisal
3 22 required in section 6B.45 plus expenses listed in section
3 23 6B.54, subsection 10, or less than the value determined under
3 24 the acquiring agency's waiver procedure established pursuant
3 25 to section 6B.54, subsection 2, for acquisition of property
3 26 with a low fair market value plus expenses listed in section
3 27 6B.54, subsection 10. However, an acquiring agency need not
3 28 make an offer in excess of that amount in order to satisfy the
3 29 requirement to negotiate in good faith. An acquiring agency
3 30 is deemed to have met the requirements of this section if the
3 31 acquiring agency complies with section 6B.54.
3 32 Sec. 5. Section 6B.3, subsection 1, paragraph d, Code
3 33 2005, is amended to read as follows:
3 34 d. The purpose for which condemnation is sought. For
3 35 purposes of section 6B.4A, if condemnation of agricultural
4 1 land is sought by a city or county, or an agency of a city or
4 2 county, for location of an industry as that term is defined in
4 3 section 260E.2, the application shall so state. However, the
4 4 city or county shall not be required to disclose information
4 5 on an industrial prospect with which the city or county is
4 6 currently negotiating.
4 7 Sec. 6. Section 6B.3, subsection 2, Code 2005, is amended
4 8 to read as follows:
4 9 2. The applicant shall mail a copy of the application by
4 10 certified ordinary mail to the owner at the owner's last known
4 11 address and to any record lienholder or encumbrancer of the
4 12 property at the lienholder's or encumbrancer's last known
4 13 address. The applicant shall also cause the application to be
4 14 published once in a newspaper of general circulation in the
4 15 county, not less than four nor more than twenty days before
4 16 the meeting of the compensation commission to assess the
4 17 damages. Service of the application by publication shall be
4 18 deemed complete on the day of publication.
4 19 In lieu of mailing and publishing the application, the
4 20 applicant may cause the application to be served upon the
4 21 owner, lienholders, and encumbrancers of the property in the
4 22 manner provided by the Iowa rules of civil procedure for the
4 23 personal service of original notice. The application shall be
4 24 mailed and published or served, as above provided, prior to or
4 25 contemporaneously with the mailing and publication or service
4 26 of the list of compensation commissioners as provided in
4 27 section 6B.4.
4 28 Sec. 7. Section 6B.3, subsection 3, unnumbered paragraph
4 29 2, Code 2005, is amended to read as follows:
4 30 When indexed, the proceeding is considered pending so as to
4 31 charge all persons not having an interest in the property with
4 32 notice of its pendency, and while pending no interest can be
4 33 acquired by the third parties in the property against the
4 34 rights of the applicant. If the appraisement of damages
4 35 pursuant to section 6B.14 is not made within one hundred
5 1 twenty days, the proceedings instituted under this section are
5 2 terminated and all rights and interests of the applicant
5 3 arising out of the application for condemnation terminate.
5 4 The applicant may reinstitute a new condemnation proceeding at
5 5 any time. The reinstituted proceedings are entirely new
5 6 proceedings and not a revival of the terminated proceeding.
5 7 Sec. 8. NEW SECTION. 6B.3A CHALLENGE BY OWNER.
5 8 An owner of property described in an application for
5 9 condemnation may bring an action to challenge the exercise of
5 10 eminent domain authority or the condemnation proceedings in
5 11 the district court of the county in which the private property
5 12 is situated at any time up until the deadline for filing a
5 13 notice of appeal of appraisement of damages under section
5 14 6B.18, subsection 1. Notice of the action shall be served, by
5 15 ordinary mail, on the adverse party, or the adverse party's
5 16 agent or attorney, and any lienholder and encumbrancer of the
5 17 property. The condemnation proceedings against such property
5 18 shall be stayed while court action is pending.
5 19 Sec. 9. Section 6B.4, unnumbered paragraph 2, Code 2005,
5 20 is amended to read as follows:
5 21 The chief judge of the judicial district or the chief
5 22 judge's designee shall select by lot six persons from the
5 23 list, two persons who are owner=operators of agricultural
5 24 property when the property to be condemned is agricultural
5 25 property; two persons who are owners of city property when the
5 26 property to be condemned is other than agricultural property;
5 27 and two persons from each of the remaining two representative
5 28 groups, who shall constitute a compensation commission to
5 29 assess the damages to all property to be taken by the
5 30 applicant and located in the county, and shall name a
5 31 chairperson from the persons selected. The chief judge or the
5 32 judge's designee may appoint such alternate members and
5 33 chairpersons to the commission as are deemed necessary and
5 34 appropriate under the circumstances. A person shall not be
5 35 selected as a member or alternate member of the compensation
6 1 commission if the person possesses any interest in the
6 2 proceeding which would cause the person to render a biased
6 3 decision. The applicant shall mail a copy of the list of
6 4 commissioners and alternates appointed by the chief judge by
6 5 certified ordinary mail to the property owner at the owner's
6 6 last known address. The applicant shall also cause the list
6 7 of commissioners and alternates to be published once in a
6 8 newspaper of general circulation in the county, not less than
6 9 four nor more than twenty days before the meeting of the
6 10 compensation commission to assess the damages. Service of the
6 11 list of commissioners and alternates by publication shall be
6 12 deemed complete on the day of publication. In lieu of mailing
6 13 and publishing the list of commissioners and alternates, the
6 14 applicant may cause the list to be served upon the owner of
6 15 the property in the manner provided by the Iowa rules of civil
6 16 procedure for the personal service of original notice. The
6 17 list of commissioners and alternates shall be mailed and
6 18 published or served, as above provided, prior to or
6 19 contemporaneously with service of the notice of assessment as
6 20 provided in section 6B.8.
6 21 Sec. 10. Section 6B.8, Code 2005, is amended to read as
6 22 follows:
6 23 6B.8 NOTICE OF ASSESSMENT.
6 24 The applicant, or the owner or any lienholder or
6 25 encumbrancer of any land described in the application, may, at
6 26 any time after the appointment of the commissioners, have the
6 27 damages to the lands of any such owner assessed by giving the
6 28 other party, if a resident of this state, thirty days' notice,
6 29 in writing. The notice shall specify the day and the hour
6 30 when the compensation commission will meet, view the premises,
6 31 and assess the damages. The notice shall be personally
6 32 served, by ordinary mail, upon all necessary parties in the
6 33 same manner provided by the Iowa rules of civil procedure for
6 34 the personal service of original notice. If a city or county,
6 35 or an agency of a city or county, is seeking to condemn
7 1 agricultural land for an industry as that term is defined in
7 2 section 260E.2, the notice shall inform the landowner that the
7 3 landowner may request that the compensation commission review
7 4 the application as provided in section 6B.4A.
7 5 Sec. 11. Section 6B.11, Code 2005, is amended to read as
7 6 follows:
7 7 6B.11 FILING OF NOTICES AND RETURN OF SERVICE.
7 8 Notices, immediately after the service mailing thereof,
7 9 shall, with proper return of service the date of mailing
7 10 endorsed thereon or attached thereto, be filed with the
7 11 sheriff. The sheriff shall at once cause the commissioners to
7 12 be notified of the day and hour when they will be required to
7 13 proceed with the appraisement. The notice to the
7 14 commissioners shall also be published by the sheriff pursuant
7 15 to section 331.305.
7 16 Sec. 12. Section 6B.14, unnumbered paragraph 2, Code 2005,
7 17 is amended to read as follows:
7 18 Prior to the meeting of the commission, the commission or a
7 19 commissioner shall not communicate with the applicant,
7 20 property owner, or tenant, or their agents, regarding the
7 21 condemnation proceedings. The commissioners shall meet in
7 22 open session to view the property and to receive evidence, but
7 23 may shall deliberate in closed session. When deliberating in
7 24 closed session, the meeting is closed to all persons who are
7 25 not commissioners. After deliberations commence, the
7 26 commission and each commissioner is prohibited from
7 27 communicating with any party to the proceeding, unless such
7 28 communication occurs in the presence of or with the consent of
7 29 the property owner and the other parties who appeared before
7 30 the commission. The commission shall keep minutes of all its
7 31 meetings showing the date, time, and place, the members
7 32 present, and the action taken at each meeting. The minutes
7 33 shall show the results of each vote taken and information
7 34 sufficient to indicate the vote of each member present. The
7 35 vote of each member present shall be made public at the open
8 1 session. The minutes shall be public records open to public
8 2 inspection.
8 3 Sec. 13. Section 6B.18, subsections 2 and 3, Code 2005,
8 4 are amended to read as follows:
8 5 2. An appeal of appraisement of damages is deemed to be
8 6 perfected upon filing of a notice of appeal with the district
8 7 court within thirty days from the date of mailing the notice
8 8 of appraisement of damages. The notice of appeal shall be
8 9 served, by ordinary mail, on the adverse party, or the adverse
8 10 party's agent or attorney, and any lienholder and encumbrancer
8 11 of the property in the same manner as an original notice
8 12 within thirty days from the date of filing the notice of
8 13 appeal unless, for good cause shown, the court grants more
8 14 than thirty days. If after reasonable diligence, the notice
8 15 cannot be personally served, the court may prescribe an
8 16 alternative method of service consistent with due process of
8 17 law.
8 18 3. In case of condemnation proceedings instituted by the
8 19 state department of transportation, when the owner appeals
8 20 from the assessment made, such notice of appeal shall be
8 21 served, by ordinary mail, upon the attorney general, or the
8 22 department general counsel to the state department of
8 23 transportation, or the chief highway engineer for the
8 24 department.
8 25 Sec. 14. Section 6B.26, Code 2005, is amended to read as
8 26 follows:
8 27 6B.26 DISPOSSESSION OF OWNER.
8 28 A landowner shall not be dispossessed under condemnation
8 29 proceedings of the landowner's residence, dwelling house,
8 30 outbuildings if the residence or dwelling house is also
8 31 acquired, orchard, or garden, until the damages thereto have
8 32 been finally determined and paid, and rent for such premises
8 33 shall not be charged and shall not accrue against the
8 34 landowner until such damages have been finally determined and
8 35 paid and all court challenges related to the condemnation have
9 1 been finally adjudicated. However, if the property described
9 2 in this section is condemned for highway purposes by the state
9 3 department of transportation, the condemning authority may
9 4 take possession of the property either after the damages have
9 5 been finally determined and paid or one hundred eighty days
9 6 after the compensation commission has determined and filed its
9 7 award, in which event all of the appraisement of damages shall
9 8 be paid to the property owner before the dispossession can
9 9 take place. This section shall not apply to condemnation
9 10 proceedings for drainage or levee improvements, or for public
9 11 school purposes. For the purposes of this section,
9 12 "outbuildings" means structures and improvements located in
9 13 proximity to the landowner's residence.
9 14 Sec. 15. Section 6B.42, subsection 1, Code 2005, is
9 15 amended to read as follows:
9 16 1. a. The If condemnation of property will result in the
9 17 displacement of a person, the acquiring agency shall provide
9 18 to the person, in addition to any other sums of money in
9 19 payment of just compensation and upon proper application to
9 20 the acquiring agency, the payments and assistance required by
9 21 law, in accordance with chapter 316 payment for actual
9 22 reasonable and necessary expenses incurred in moving the
9 23 person, the person's family, business, farm operation, or
9 24 other personal property. The payment may also provide for
9 25 actual direct losses of tangible personal property, purchase
9 26 of substitute personal property, business reestablishment
9 27 expenses, storage expenses, and expenses incurred in searching
9 28 for a replacement business or farm operation. If relocation
9 29 of a business or farm operation is not economically feasible,
9 30 the displaced person may also apply for payment of the loss of
9 31 existing business relationships because of the inability to
9 32 relocate the business or farm operation to a location similar
9 33 in economic advantage to the location from which the business
9 34 or farm operation was moved.
9 35 b. A person aggrieved by a determination made as to
10 1 eligibility for relocation assistance, a payment, or the
10 2 amount of the payment, upon application, may apply to have the
10 3 matter reviewed by the appropriate acquiring agency.
10 4 c. An acquiring agency subject to this section that
10 5 proposes to displace a person shall inform the person of the
10 6 person's right to receive relocation assistance and payments,
10 7 and of an aggrieved person's right to appeal a determination
10 8 as to assistance and payments.
10 9 Sec. 16. Section 6B.45, Code 2005, is amended to read as
10 10 follows:
10 11 6B.45 MAILING COPY OF APPRAISAL.
10 12 When any real property or interest in real property is to
10 13 be purchased, or in lieu thereof to be condemned, the
10 14 acquiring agency or its agent shall submit to the person,
10 15 corporation, or entity whose property or interest in the
10 16 property is to be taken, by ordinary mail, at least ten days
10 17 prior to the date upon which the acquiring agency or its agent
10 18 contacts the property owner to commence negotiations, a copy
10 19 of the appraisal in its entirety upon such real property or
10 20 interest in such real property prepared for the acquiring
10 21 agency or its agent, which shall include, at a minimum, an
10 22 itemization of the appraised value of the real property or
10 23 interest in the property, any buildings on the property, all
10 24 other improvements including fences, severance damages, and
10 25 loss of access. The appraisal sent to the condemnee shall be
10 26 that appraisal upon which the condemnor will rely to establish
10 27 an amount which the condemnor believes to be just compensation
10 28 for the real property. All other appraisals made on the
10 29 property as a result of the condemnation proceeding shall be
10 30 made available to the condemnee upon request. In lieu of an
10 31 appraisal, a utility or person under the jurisdiction of the
10 32 utilities board of the department of commerce, or any other
10 33 utility conferred the right by statute to condemn private
10 34 property, shall provide in writing by certified ordinary mail
10 35 to the owner of record thirty days prior to negotiations, the
11 1 methods and factors used in arriving at an offered price for
11 2 voluntary easements including the range of cash amount of each
11 3 component. An acquiring agency may obtain a signed written
11 4 waiver from the landowner to allow negotiations to commence
11 5 prior to the expiration of the applicable waiting period for
11 6 the commencement of negotiations.
11 7 Sec. 17. Section 6B.49, Code 2005, is amended to read as
11 8 follows:
11 9 6B.49 NOTICE == SERVICE.
11 10 Persons not voluntarily appearing, but having any right,
11 11 title, or interest in or to the property which is the subject
11 12 of condemnation, or any part thereof, including all
11 13 leaseholders, mortgagees and trustees of bondholders, who are
11 14 to be made parties to the proceedings shall be served, by
11 15 ordinary mail, with notice of the proceedings and the time and
11 16 place of meeting of the court in the same manner and for the
11 17 same length of time as for the service of original notice,
11 18 either by personal service, or by service by publication, the.
11 19 The time so set being in the notice shall be the time at which
11 20 the parties so served are required to appear, and actual
11 21 personal service of the notice within or without the state
11 22 shall supersede the necessity for publication.
11 23 Sec. 18. Section 6B.54, Code 2005, is amended to read as
11 24 follows:
11 25 6B.54 FEDERALLY ASSISTED PROJECT AND DISPLACING ACTIVITIES
11 26 == ACQUISITION POLICIES FOR ACQUIRING AGENCIES.
11 27 For any project or displacing activity that has received or
11 28 will receive federal financial assistance as defined in
11 29 section 316.1, for any state=funded projects, or for any other
11 30 public use, public purpose, or public improvement for which
11 31 condemnation is sought, an acquiring agency shall, at a
11 32 minimum, satisfy the following policies:
11 33 1. Every reasonable and good faith effort shall be made to
11 34 acquire expeditiously real property by negotiation as provided
11 35 in section 6B.2B.
12 1 2. Real property shall be appraised as required by section
12 2 6B.45 before the initiation of negotiations, and the owner or
12 3 the owner's designated representative shall be given an
12 4 opportunity to accompany at least one appraiser of the
12 5 acquiring agency during an inspection of the property, except
12 6 that an acquiring agency may prescribe a procedure to waive
12 7 the appraisal in cases involving the acquisition of property
12 8 with a low fair market value. In lieu of an appraisal, a
12 9 utility or person under the jurisdiction of the utilities
12 10 board of the department of commerce, or any other utility
12 11 conferred the right by statute to condemn private property,
12 12 shall provide in writing by certified ordinary mail to the
12 13 owner of record thirty days before negotiations, the methods
12 14 and factors used in arriving at an offered price for voluntary
12 15 easements including the range of cash amount of each
12 16 component.
12 17 3. Before the initiation of negotiations for real
12 18 property, the acquiring agency shall establish an amount which
12 19 it believes to be just compensation for the real property, and
12 20 shall make a prompt offer to acquire the property for the full
12 21 amount established by the agency. In no event shall the
12 22 amount be less than the lowest appraisal of the fair market
12 23 value of the acquiring agency has established for the property
12 24 or property interest pursuant to the appraisal required in
12 25 section 6B.45 plus expenses listed in subsection 10, or less
12 26 than the value determined under the acquiring agency's waiver
12 27 procedure established pursuant to subsection 2, plus expenses
12 28 listed in subsection 10. In the case of a utility or person
12 29 under the jurisdiction of the utilities board of the
12 30 department of commerce, or any other utility conferred the
12 31 right by statute to condemn private property, the amount shall
12 32 not be less than the amount indicated by the methods and
12 33 factors used in arriving at an offered price for a voluntary
12 34 easement.
12 35 4. The construction or development of a public improvement
13 1 shall be so scheduled that, to the greatest extent
13 2 practicable, no person lawfully occupying real property shall
13 3 be required to move from a dwelling or to move the person's
13 4 business or farm operation without at least ninety days'
13 5 written notice of the date by which the move is required.
13 6 5. If after damages have been finally determined and paid,
13 7 an owner or tenant is permitted to occupy the real property
13 8 acquired on a rental basis for a short term or for a period
13 9 subject to termination on short notice, the amount of rent
13 10 required shall not exceed the fair rental value of the
13 11 property to a short=term occupier.
13 12 6. In no event shall the time of condemnation be advanced,
13 13 or negotiations or condemnation and the deposit of funds in
13 14 court for the use of the owner be deferred, or any other
13 15 coercive action be taken to compel an agreement on the price
13 16 to be paid for the property.
13 17 7. If an interest in real property is to be acquired by
13 18 exercise of the power of eminent domain, formal condemnation
13 19 proceedings shall be instituted. The acquiring agency shall
13 20 not intentionally make it necessary for an owner to institute
13 21 legal proceedings to prove the fact of the taking of the
13 22 owner's real property.
13 23 8. If the acquisition of only a portion of property would
13 24 leave the owner with an uneconomical remnant, the acquiring
13 25 agency shall offer to acquire that remnant. For the purposes
13 26 of this chapter, an "uneconomical remnant" is a parcel of real
13 27 property in which the owner is left with an interest after the
13 28 partial acquisition of the owner's property, where the
13 29 acquiring agency determines that the parcel has little or no
13 30 value or utility to the owner.
13 31 9. A person whose real property is being acquired in
13 32 accordance with this chapter, after the person has been fully
13 33 informed of the person's right to receive just compensation
13 34 for the property, may donate the property, any part of the
13 35 property, any interest in the property, or any compensation
14 1 paid for it as the person may determine.
14 2 10. As soon as practicable after the date of payment of
14 3 the purchase price or the date of deposit in court of funds to
14 4 satisfy the award of compensation in a condemnation proceeding
14 5 to acquire real property, whichever is earlier, the acquiring
14 6 agency shall reimburse the owner, to the extent the acquiring
14 7 agency deems fair and reasonable, for expenses the owner
14 8 necessarily incurred for all of the following:
14 9 a. Recording fees, transfer taxes, and similar expenses
14 10 incidental to conveying the real property to the acquiring
14 11 agency.
14 12 b. Penalty costs for full or partial prepayment of any
14 13 preexisting recorded mortgage entered into in good faith
14 14 encumbering the real property.
14 15 Payments and expenditures under this subsection are
14 16 incident to and arise out of the program or project for which
14 17 the acquisition activity takes place. Such payments and
14 18 expenditures may be made from the funds made available for the
14 19 program or project.
14 20 A person aggrieved by a determination as to the eligibility
14 21 for or amount of a reimbursement may apply to have the matter
14 22 reviewed by the acquiring agency or in accordance with section
14 23 316.9 if applicable.
14 24 11. An owner shall not be required to surrender possession
14 25 of real property before the acquiring agency concerned pays
14 26 the agreed purchase price.
14 27 Sec. 19. Section 6B.55, unnumbered paragraph 1, Code 2005,
14 28 is amended to read as follows:
14 29 For any program or project that has received or will
14 30 receive federal financial assistance as defined in section
14 31 316.1, for any state=funded projects, or for any other public
14 32 use, public purpose, or public improvement for which
14 33 condemnation is sought, an acquiring agency shall at a minimum
14 34 satisfy the following policies:
14 35 Sec. 20. Section 6B.56, subsection 2, Code 2005, is
15 1 amended to read as follows:
15 2 2. Before the real property may be offered for sale to the
15 3 general public, the condemner shall notify the prior owner of
15 4 the real property condemned in writing of the condemner's
15 5 intent to dispose of the real property, of the current
15 6 appraised value of the real property, and of the prior owner's
15 7 right to purchase the real property within sixty days from the
15 8 date the notice is served at a price equal to the current
15 9 appraised value of the real property or the fair market value
15 10 of the property at the time it was acquired by the prior owner
15 11 plus interest calculated on that portion of the damages
15 12 awarded to the prior owner that reflected such fair market
15 13 value, whichever is less. The notice sent by the condemner as
15 14 provided in this subsection shall be filed with the office of
15 15 the recorder in the county in which the real property is
15 16 located.
15 17 Sec. 21. Section 6B.59, Code 2005, is amended to read as
15 18 follows:
15 19 6B.59 SALE OF ACQUIRED PROPERTY == REIMBURSEMENT TO
15 20 LANDOWNER.
15 21 If an acquiring agency acquires property by condemnation,
15 22 or by otherwise exercising the power of eminent domain, and
15 23 that property is later sold by the acquiring agency for more
15 24 than the acquisition price paid to the landowner, the
15 25 acquiring agency shall pay to the landowner from whom the
15 26 property was acquired the difference between the price at
15 27 which it was acquired and the price at which it was sold by
15 28 the acquiring agency less the cost of any improvements made to
15 29 or benefiting the land by the acquiring agency. This section
15 30 does not apply to property acquired by the state department of
15 31 transportation.
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 1. An authority shall have the power to acquire by
17 18 purchase, within or without the geographical boundaries of the
17 19 member municipalities, by purchase or eminent domain
17 20 proceedings, either the fees or such rights, title, interest,
17 21 or easement in such lands and property, including but not
17 22 limited to air rights and avigation navigation easements, as
17 23 the authority may deem necessary for any of the purposes of
17 24 this chapter. The right of eminent domain herein conferred
17 25 shall be exercised by the authority in the manner provided by
17 26 law, as though the authority were a municipal corporation.
17 27 2. An authority shall have the power to acquire by eminent
17 28 domain, and only within the geographical boundaries of the
17 29 member municipalities, either the fees or such rights, title,
17 30 interest, or easement in such property, including but not
17 31 limited to air rights and navigation easements, as the
17 32 authority may deem necessary for any of the purposes of this
17 33 chapter. However, the right of eminent domain may only be
17 34 exercised by the authority if the governing body of each
17 35 member municipality approves, by resolution, the proposal to
18 1 acquire property by eminent domain. The right of eminent
18 2 domain conferred by this subsection shall be exercised by the
18 3 authority in the manner provided by law, as though the
18 4 authority were a municipality located in this state.
18 5 3. In lieu of subsection 2, any member municipality may
18 6 exercise its power of eminent domain to acquire on behalf of
18 7 the authority either the fees or such rights, title, interest,
18 8 or easement in such property located within the boundaries of
18 9 the member municipality, including but not limited to air
18 10 rights and navigation easements, as the authority may deem
18 11 necessary for any of the purposes of this chapter. The
18 12 condemnation procedure shall be in accordance with the eminent
18 13 domain statutes of the state in which the affected property is
18 14 located. The payment of the costs of the acquisition shall be
18 15 made by the authority or by any or all of the member
18 16 municipalities.
18 17 Sec. 27. Section 346.27, subsection 9, paragraph b, Code
18 18 2005, is amended to read as follows:
18 19 b. (1) To acquire in the corporate name of the authority
18 20 the fee simple title to the real property located within the
18 21 area by purchase, gift, devise, or by the exercise of the
18 22 power of eminent domain, or to take possession of real estate
18 23 by lease.
18 24 (2) The right of eminent domain may only be exercised by
18 25 the authority if the governing body of each incorporating unit
18 26 approves, by resolution, the proposal to acquire property by
18 27 eminent domain. The right of eminent domain shall be
18 28 exercised by the authority in the manner provided by chapters
18 29 6A and 6B.
18 30 (3) In lieu of subparagraph (2), an incorporating unit may
18 31 exercise its power of eminent domain to acquire property on
18 32 behalf of the authority in order to aid the authority to
18 33 effectuate its purposes. The condemnation procedure shall be
18 34 in accordance with chapters 6A and 6B. The payment of the
18 35 costs of the acquisition shall be made by the authority or by
19 1 any or all of the incorporating units.
19 2 Sec. 28. Section 364.4, subsection 1, Code 2005, is
19 3 amended to read as follows:
19 4 1. Acquire, hold, and dispose of property outside the city
19 5 in the same manner as within. However, a city shall not
19 6 acquire property outside the city by eminent domain, except
19 7 for the purposes of obtaining a surface drinking water source,
19 8 constructing a landfill, or constructing sewer treatment
19 9 facilities and only if the city demonstrates that no other
19 10 feasible alternative exists to accomplish these purposes.
19 11 Sec. 29. Section 389.3, unnumbered paragraph 2, Code 2005,
19 12 is amended to read as follows:
19 13 A joint water utility is a political subdivision and an
19 14 instrumentality of municipal government. The statutory
19 15 powers, duties, and limitations conferred upon a city utility
19 16 apply to a joint water utility, except that title to property
19 17 of a joint water utility may be held in the name of the joint
19 18 water utility. The joint water utility board shall have all
19 19 powers and authority of a city with respect to property which
19 20 is held by the joint water utility. A joint water utility
19 21 shall have the power of eminent domain, including the powers
19 22 conferred upon a city in chapters 6A and 6B, for the purposes
19 23 of constructing and operating a joint water utility. A joint
19 24 water utility may acquire property by eminent domain if, for
19 25 each instance for which the right of eminent domain is sought
19 26 to be exercised by the joint water utility board, the city
19 27 council of each member city approves, by resolution, exercise
19 28 of that right. If approval is granted, the right of eminent
19 29 domain shall be exercised by the joint water utility board as
19 30 if the joint water utility was a city. However, a member city
19 31 may exercise its power of eminent domain to acquire property
19 32 on behalf of the joint water utility board, and the payment of
19 33 the costs of the acquisition shall be made by the joint water
19 34 utility board or by any or all of the member cities.
19 35 Sec. 30. Section 403.2, subsection 4, Code 2005, is
20 1 amended to read as follows:
20 2 4. It is further found and declared that the powers
20 3 conferred by this chapter are for public uses and purposes for
20 4 which public money may be expended and for which the power of
20 5 eminent domain, to the extent authorized, and police power
20 6 exercised; and that the necessity in the public interest for
20 7 the provisions herein enacted is hereby declared as a matter
20 8 of legislative determination.
20 9 Sec. 31. Section 403.5, subsection 4, paragraph b,
20 10 subparagraph (2), Code 2005, is amended to read as follows:
20 11 (2) If it is to be developed for nonresidential uses, the
20 12 local governing body shall determine that such nonresidential
20 13 uses are necessary and appropriate to facilitate the proper
20 14 growth and development of the community in accordance with
20 15 sound planning standards and local community objectives.
20 16 PARAGRAPH DIVIDED. The acquisition of open land authorized
20 17 in subparagraphs (1) and (2) may require the exercise of
20 18 governmental action, as provided in this chapter, because of
20 19 defective or unusual conditions of title, diversity of
20 20 ownership, tax delinquency, improper subdivisions, outmoded
20 21 street patterns, deterioration of site, economic disuse,
20 22 unsuitable topography or faulty lot layouts, or because of the
20 23 need for the correlation of the area with other areas of a
20 24 municipality by streets and modern traffic requirements, or
20 25 any combination of such factors or other conditions which
20 26 retard development of the area. If such governmental action
20 27 involves the exercise of eminent domain authority, the
20 28 municipality is subject to the limitations of this chapter and
20 29 chapters 6A and 6B.
20 30 Sec. 32. Section 403.5, subsection 4, paragraph b,
20 31 unnumbered paragraph 2, Code 2005, is amended by striking the
20 32 unnumbered paragraph.
20 33 Sec. 33. Section 403.6, subsection 3, Code 2005, is
20 34 amended to read as follows:
20 35 3. Within its area of operation, to enter into any
21 1 building or property in any urban renewal area in order to
21 2 make inspections, surveys, appraisals, soundings or test
21 3 borings, and to obtain an order for this purpose from a court
21 4 of competent jurisdiction in the event entry is denied or
21 5 resisted; to acquire by purchase, lease, option, gift, grant,
21 6 bequest, devise, eminent domain or otherwise, any real
21 7 property, or personal property for administrative purposes,
21 8 together with any improvements thereon; to hold, improve,
21 9 clear or prepare for redevelopment any such property; to
21 10 mortgage, pledge, hypothecate or otherwise encumber or dispose
21 11 of any real property; to insure or provide for the insurance
21 12 of any real or personal property or operations of the
21 13 municipality against any risks or hazards, including the power
21 14 to pay premiums on any such insurance; and to enter into any
21 15 contracts necessary to effectuate the purposes of this
21 16 chapter: Provided, however, that no statutory provision with
21 17 respect to the acquisition, clearance or disposition of
21 18 property by public bodies shall restrict a municipality or
21 19 other public body exercising powers hereunder in the exercise
21 20 of such functions with respect to an urban renewal project,
21 21 unless the legislature shall specifically so state. A
21 22 municipality or other public body exercising powers under this
21 23 chapter with respect to the acquisition, clearance, or
21 24 disposition of property shall not be restricted by any other
21 25 statutory provision in the exercise of such powers unless such
21 26 statutory provision specifically states its application to
21 27 this chapter or unless this chapter specifically applies
21 28 restrictions contained in another statutory provision to the
21 29 powers that may be exercised under this chapter.
21 30 Sec. 34. Section 403.7, Code 2005, is amended to read as
21 31 follows:
21 32 403.7 CONDEMNATION OF PROPERTY.
21 33 1. A municipality shall have the right to acquire by
21 34 condemnation any interest in real property, including a fee
21 35 simple title thereto, which it may deem necessary for or in
22 1 connection with an urban renewal project under this chapter,
22 2 subject to the limitations on eminent domain authority in
22 3 chapter 6A. However, a municipality shall not condemn
22 4 agricultural land included within an economic development area
22 5 for any use unless the owner of the agricultural land consents
22 6 to condemnation or unless the agricultural land is to be
22 7 acquired for industry as that term is defined in section
22 8 260E.2 the municipality determines that the land is necessary
22 9 or useful for any of the following:
22 10 a. The operation of a city utility as defined in section
22 11 362.2.
22 12 b. The operation of a city franchise conferred the
22 13 authority to condemn private property under section 364.2.
22 14 c. The operation of a combined utility system as defined
22 15 in section 384.80.
22 16 2. A municipality may shall exercise the power of eminent
22 17 domain in the manner provided in chapter 6B, and Acts
22 18 amendatory to that chapter or supplementary to that chapter,
22 19 or it may exercise the power of eminent domain in the manner
22 20 now or which may be hereafter provided by any other statutory
22 21 provisions for the exercise of the power of eminent domain.
22 22 Property already devoted to a public use may be acquired in
22 23 like manner. However, real property belonging to the state,
22 24 or any political subdivision of this state, shall not be
22 25 acquired without its consent, and real property or any right
22 26 or interest in the property owned by any public utility
22 27 company, pipeline company, railway or transportation company
22 28 vested with the right of eminent domain under the laws of this
22 29 state, shall not be acquired without the consent of the
22 30 company, or without first securing, after due notice to the
22 31 company and after hearing, a certificate authorizing
22 32 condemnation of the property from the board, commission, or
22 33 body having the authority to grant a certificate authorizing
22 34 condemnation.
22 35 3. In a condemnation proceeding, if a municipality
23 1 proposes to take a part of a lot or parcel of real property,
23 2 the municipality shall also take the remaining part of the lot
23 3 or parcel if requested by the owner.
23 4 Sec. 35. Section 403.17, subsection 5, Code 2005, is
23 5 amended to read as follows:
23 6 5. "Blighted area" means an area of a municipality within
23 7 which the local governing body of the municipality determines
23 8 that the presence of a substantial number of slum,
23 9 deteriorated, or deteriorating structures; defective or
23 10 inadequate street layout; faulty lot layout in relation to
23 11 size, adequacy, or accessibility, or usefulness; insanitary or
23 12 unsafe conditions; excessive and uncorrected deterioration of
23 13 site or other improvements; diversity of ownership, tax or
23 14 special assessment delinquency exceeding the fair value of the
23 15 land; defective or unusual conditions of title; or the
23 16 existence of conditions which endanger life or property by
23 17 fire and other causes; or any combination of these factors;
23 18 substantially impairs or arrests the sound growth of a
23 19 municipality, retards the existence of conditions which retard
23 20 the provision of housing accommodations for low or moderate
23 21 income families, or constitutes an economic or social
23 22 liability and is a menace to the public health, and safety, or
23 23 welfare in its present condition and use. A disaster area
23 24 referred to in section 403.5, subsection 7, constitutes a
23 25 "blighted area". "Blighted area" does not include real
23 26 property assessed as agricultural property for purposes of
23 27 property taxation.
23 28 Sec. 36. Section 403.17, subsection 22, Code 2005, is
23 29 amended to read as follows:
23 30 22. "Slum area" shall mean an area in which there is a
23 31 predominance of buildings or improvements, whether residential
23 32 or nonresidential, which: by reason of dilapidation,
23 33 deterioration that is excessive and uncorrected, age or
23 34 obsolescence; by reason of inadequate provision for
23 35 ventilation, light, air, sanitation, or open spaces; by reason
24 1 of high density of population and overcrowding; by reason of
24 2 the existence of conditions which endanger life or property by
24 3 fire and other causes; or which by any combination of such
24 4 factors, is conducive to ill health, transmission of disease,
24 5 infant mortality, juvenile delinquency, or crime, and which is
24 6 detrimental to the public health, and safety, morals, or
24 7 welfare. "Slum area" does not include real property assessed
24 8 as agricultural property for purposes of property taxation.
24 9 Sec. 37. Section 403A.3, subsection 4, Code 2005, is
24 10 amended to read as follows:
24 11 4. To lease or rent any dwellings, accommodations, lands,
24 12 buildings, structures or facilities embraced in any project
24 13 and (subject to the limitations contained in this chapter with
24 14 respect to the rental of dwellings in housing projects) to
24 15 establish and revise the rents or charges therefor; to own,
24 16 hold and improve real or personal property; to purchase,
24 17 lease, obtain options upon, acquire by gift, grant, bequest,
24 18 devise or otherwise any real or personal property or any
24 19 interest therein; to acquire by the exercise of the power of
24 20 eminent domain any real property subject to section 403A.20;
24 21 to sell, lease, exchange, transfer, assign, pledge or dispose
24 22 of any real or personal property or any interest therein; to
24 23 insure or provide for the insurance, in any stock or mutual
24 24 company of any real or personal property or operations of the
24 25 municipality against any risks or hazards; to procure or agree
24 26 to the procurement of federal or state government insurance or
24 27 guarantees of the payment of any bonds or parts thereof issued
24 28 by a municipality, including the power to pay premiums on any
24 29 such insurance.
24 30 Sec. 38. Section 403A.20, Code 2005, is amended to read as
24 31 follows:
24 32 403A.20 CONDEMNATION OF PROPERTY.
24 33 A municipality shall have the right to acquire by
24 34 condemnation any interest in real property, including a fee
24 35 simple title thereto, which it may deem necessary for or in
25 1 connection with a municipal housing project under this
25 2 chapter, subject to the limitations on eminent domain
25 3 authority in chapter 6A. A municipality may shall exercise
25 4 the power of eminent domain in the manner provided in chapter
25 5 6B, and acts amendatory thereof or supplementary thereto, or
25 6 it may exercise the power of eminent domain in the manner now
25 7 or which may be hereafter provided by any other statutory
25 8 provisions for the exercise of the power of eminent domain.
25 9 Property already devoted to a public use may be acquired in
25 10 like manner: Provided, that no. However, real property
25 11 belonging to the state, or any political subdivision thereof,
25 12 may shall not be acquired without its consent, provided
25 13 further that no and real property or any right or interest
25 14 therein in the property owned by any public utility company,
25 15 pipeline company, railway or transportation company vested
25 16 with the right of eminent domain under the laws of this state,
25 17 shall not be acquired without the consent of such the company,
25 18 or without first securing, after due notice to such the
25 19 company and after hearing, a certificate authorizing
25 20 condemnation of such property from the board, commission, or
25 21 body having the authority to grant a certificate authorizing
25 22 condemnation.
25 23 In a condemnation proceeding, if a municipality proposes to
25 24 take a part of a lot or parcel of real property, the
25 25 municipality shall also take the remaining part of the lot or
25 26 parcel if requested by the owner.
25 27 Sec. 39. Section 468.128, Code 2005, is amended to read as
25 28 follows:
25 29 468.128 IMPOUNDING AREAS AND EROSION CONTROL DEVICES.
25 30 Levee and drainage districts are empowered to construct
25 31 impounding areas and other flood and erosion control devices
25 32 to protect lands of the district and drainage structures and
25 33 may provide ways for access to improvements for the operation
25 34 or protection thereof, where the cost is not excessive in
25 35 consideration of the value to the district. Necessary lands
26 1 or easements may be acquired within or without the district by
26 2 purchase, lease or agreement, or by exercise of the right of
26 3 eminent domain as provided for in chapter 6B and may be
26 4 procured and construction undertaken either independently or
26 5 in co=operation with other districts, individuals, or any
26 6 federal or state agency or political subdivision.
26 7 Sec. 40. Section 468.146, subsection 1, Code 2005, is
26 8 amended to read as follows:
26 9 1. When a drainage district is established and a
26 10 satisfactory outlet cannot be obtained except through lands in
26 11 an adjoining county, or when an improved outlet cannot be
26 12 obtained except through lands downstream from the district
26 13 boundary, the board shall have the power to purchase a right
26 14 of way, to construct and maintain such outlets, and to pay all
26 15 necessary costs and expenses out of the district funds. The
26 16 board shall have similar authority relative to the
26 17 construction and maintenance of silt basins upstream from the
26 18 district boundary. In case the board and the owners of the
26 19 land required for such outlet or silt basin cannot agree upon
26 20 the price to be paid as compensation for the land taken or
26 21 used, the board is hereby empowered to exercise the right of
26 22 eminent domain as provided for in chapter 6B in order to
26 23 procure such necessary right of way.
26 24 Sec. 41. Section 468.366, Code 2005, is amended to read as
26 25 follows:
26 26 468.366 SETTLING BASIN == CONDEMNATION.
26 27 If, before a district operating a pumping plant is
26 28 completed and accepted, it appears that portions of the lands
26 29 within said district are wet or nonproductive by reason of the
26 30 floods or overflow waters from one or more streams running
26 31 into, through, or along said district and that said district
26 32 or some other district of which such district shall have
26 33 formed a part, shall have provided a settling basin to care
26 34 for the said floods and overflow waters of said stream or
26 35 watercourse, but no channel to said settling basin has been
27 1 provided, said board or boards are hereby empowered to lease,
27 2 buy, or condemn the necessary lands within or without the
27 3 district for such channel. Proceedings to condemn shall be as
27 4 provided in chapter 6B for the exercise of the right of
27 5 eminent domain.
27 6 Sec. 42. Sections 6B.4A and 6B.58, Code 2005, are
27 7 repealed.
27 8 Sec. 43. EFFECTIVE AND APPLICABILITY DATES. This Act,
27 9 being deemed of immediate importance, takes effect upon
27 10 enactment and applies to condemnation actions initiated on or
27 11 after the effective date of this Act.
27 12 EXPLANATION
27 13 This bill makes changes to the law relating to eminent
27 14 domain authority and the procedure by which eminent domain
27 15 authority is exercised (condemnation). Related urban renewal
27 16 law changes are also made.
27 17 The bill provides limitations on the exercise of eminent
27 18 domain authority for all private property by defining "public
27 19 use", "public purpose", and "public improvement" to mean use
27 20 of property by the general public, governmental entities,
27 21 public or private utilities, or common carriers. "Public
27 22 use", "public purpose", and "public improvement" are also
27 23 defined in the bill to include private use of property that is
27 24 incidental to its public use, and the acquisition of property
27 25 in urban renewal areas designated as a slum area or as a
27 26 blighted area. The bill further provides that "public use",
27 27 "public purpose", and "public improvement" do not mean
27 28 economic development activities or privately funded activities
27 29 unless such activities are specifically included in the
27 30 definition of these terms. The bill also provides that
27 31 private property shall not be condemned for creation of a
27 32 lake, construction of a landfill, or construction of sewer
27 33 treatment facilities unless the acquiring agency demonstrates
27 34 that no other feasible alternative exists to accomplish its
27 35 purpose. The bill further provides that private property
28 1 shall not be condemned for a park or recreational facility
28 2 unless a good faith effort has been made to purchase a
28 3 feasible location from a willing seller.
28 4 The bill provides that, in an action contesting
28 5 condemnation of property, the burden of proof is on the
28 6 acquiring agency to demonstrate by clear and convincing
28 7 evidence that the proposed use of the property meets the
28 8 definition of "public use", "public purpose", and "public
28 9 improvement" and that there is no feasible alternative to
28 10 condemnation of the property.
28 11 The bill strikes the exception for condemnation of
28 12 agricultural land for industry and, correspondingly, repeals
28 13 Code section 6B.4A that gave a compensation commission the
28 14 authority to review an application by a city or county for
28 15 condemnation of agricultural land for industry.
28 16 The bill provides that when engaging in negotiations with a
28 17 landowner, the acquiring agency shall offer a price for the
28 18 property that is not less than the acquiring agency's
28 19 appraisal plus certain specified expenses that may be incurred
28 20 by the property owner or less than the value determined under
28 21 the acquiring agency's waiver procedure for property with a
28 22 low fair market value plus such expenses. Code section 6B.54
28 23 currently allows an acquiring agency to establish a waiver
28 24 procedure for property with a low fair market value.
28 25 The bill provides that a challenge to the exercise of
28 26 eminent domain authority or to the condemnation proceedings
28 27 may be brought by the owner of the property at any time up
28 28 until the deadline for filing the notice of appeal of
28 29 appraisement of the damages determined by the compensation
28 30 commission. The condemnation proceedings against such
28 31 property shall be stayed while court action is pending. The
28 32 bill requires that notice of the challenge be served by
28 33 ordinary mail on the adverse party and other parties in
28 34 interest.
28 35 The bill provides that a compensation commission shall
29 1 deliberate in closed session and such session is closed to all
29 2 persons who are not commissioners.
29 3 The bill provides that the following be served by ordinary
29 4 mail:
29 5 1. The application for condemnation, served by the
29 6 acquiring agency (Code section 6B.3).
29 7 2. The list of compensation commissioners and alternates,
29 8 served by the acquiring agency on the landowner (Code section
29 9 6B.4.
29 10 3. The notice of assessment, served by the party seeking
29 11 an assessment of damages to be performed by the compensation
29 12 commission (Code section 6B.8).
29 13 4. The notice of appeal of appraisement of damages, served
29 14 by the party appealing the appraisement (Code section 6B.18).
29 15 5. The methods and factors used by a utility in valuing
29 16 voluntary easements (Code sections 6B.45 and 6B.54).
29 17 6. The notice of special proceeding to condemn an existing
29 18 utility, served by a city (Code section 6B.49).
29 19 The bill provides that a property owner being dispossessed
29 20 of the owner's residence shall not be charged rent nor shall
29 21 rent accrue until the damages for the property have been
29 22 finally determined and paid and all court challenges related
29 23 to the condemnation have been finally adjudicated.
29 24 The bill specifies that payments for relocating persons
29 25 displaced by condemnation, including expenses incurred in
29 26 moving the person's family, business, or farm operation, shall
29 27 be paid for any condemnation that displaces a person, not just
29 28 those that are for projects or programs receiving federal
29 29 financial assistance. For all condemnations, including those
29 30 receiving federal financial assistance, the bill provides that
29 31 if relocation of a business or farm operation is not
29 32 economically feasible, the displaced person may also apply for
29 33 payment of the loss of existing business relationships because
29 34 of the inability to relocate the business or farm operation to
29 35 a location similar in economic advantage to the location from
30 1 which the business or farm operation was moved.
30 2 The bill specifies that Code sections 6B.54 and 6B.55,
30 3 relating to requirements imposed on acquiring agencies, apply
30 4 to condemnations for a public use, public purpose, or public
30 5 improvement.
30 6 Current law provides that property obtained by condemnation
30 7 that is later sold by the acquiring agency must be offered for
30 8 sale first to the previous owner at a price equal to the
30 9 current appraised value. The bill provides that it must be
30 10 offered for sale to the previous owner at the current
30 11 appraised value or the fair market value at the time it was
30 12 acquired by condemnation plus interest calculated on that
30 13 portion of the damages that reflected the fair market value,
30 14 whichever is less.
30 15 Current law provides that the Iowa department of
30 16 transportation is exempt from the requirement, if condemned
30 17 property is later sold by the acquiring agency, to pay the
30 18 difference between the price at which it was acquired from the
30 19 previous owner and the price at which it was sold. The bill
30 20 removes this exemption.
30 21 The bill makes changes to various provisions of the Code
30 22 where eminent domain authority is extended to an entity other
30 23 than those listed in Code chapter 6A to specify that those
30 24 entities, when condemning property, are subject to the
30 25 provisions of Code chapters 6A and 6B. The bill further
30 26 provides that an aviation authority (Code chapter 330A), a
30 27 joint public building authority (Code section 346.27), and a
30 28 joint water utility board (Code chapter 389) shall not
30 29 exercise the right of eminent domain until such exercise is
30 30 approved by the governing bodies of the cities or counties
30 31 which created the authority or board. In lieu of seeking such
30 32 approval, a member city or county, as applicable, may exercise
30 33 its power of eminent domain on behalf of the authority or
30 34 board.
30 35 The bill provides that the power of a city to acquire
31 1 property outside the city does not include the power to
31 2 acquire such property by eminent domain unless acquisition of
31 3 such property is for the purposes of obtaining a surface
31 4 drinking water source, constructing a landfill, or
31 5 constructing sewer treatment facilities and no feasible
31 6 alternative exists to accomplish these purposes.
31 7 The bill provides that the authority to exercise the power
31 8 of eminent domain under the urban renewal Code chapter and the
31 9 Code chapter authorizing municipal housing projects is subject
31 10 to the limitations on eminent domain authority in Code chapter
31 11 6A, "Eminent Domain Law (condemnation)", and the general
31 12 procedure for condemnation of property set out in Code chapter
31 13 6B, "Procedure Under Eminent Domain". Also, relating to
31 14 municipal housing projects, the bill provides that if a
31 15 municipality proposes to take a part of a lot or parcel of
31 16 real property, the municipality shall also take the remaining
31 17 part of the lot or parcel if requested by the owner. The same
31 18 requirement currently applies to condemnation of property for
31 19 urban renewal purposes.
31 20 The bill also makes changes to the definitions of "slum
31 21 area" and "blighted area" in the urban renewal chapter.
31 22 The bill takes effect upon enactment and applies to
31 23 condemnation actions initiated on or after the effective date
31 24 of the bill.
31 25 LSB 5462YH 81
31 26 sc:rj/cf/24