Senate File 449 - Introduced SENATE FILE 449 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO SF 152) A BILL FOR An Act relating to the procedures and requirements for 1 condemnation of property and for disposition of certain 2 condemned property and including applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1147SV (3) 86 md/sc

S.F. 449 Section 1. Section 6B.2C, Code 2015, is amended to read as 1 follows: 2 6B.2C Approval of the public improvement. 3 The authority to condemn is not conferred, and the 4 condemnation proceedings shall not commence, unless the 5 governing body for the acquiring agency approves a preliminary 6 or final route or site location of the proposed public 7 improvement, approves the use of condemnation , and finds that 8 there is a reasonable expectation the applicant will be able 9 to achieve its public purpose, comply with all applicable 10 standards, and obtain the necessary permits. 11 Sec. 2. Section 6B.56, subsection 1, Code 2015, is amended 12 to read as follows: 13 1. If all or a portion of real property condemned pursuant 14 to this chapter is not used for the purpose stated in the 15 application filed pursuant to section 6B.3 and the acquiring 16 agency seeks to dispose of the unused real property, the 17 acquiring agency shall first offer the unused real property for 18 sale to the prior owner of the condemned property as provided 19 in this section . If real property condemned pursuant to this 20 chapter is used for the purpose stated in the application filed 21 pursuant to section 6B.3 and the acquiring agency seeks to 22 dispose of the real property by sale to a private person or 23 entity within five years after acquisition of the property, the 24 acquiring agency shall first offer the property for sale to 25 the prior owner of the condemned property as provided in this 26 section . For purposes of this section , the prior owner of the 27 real property includes the successor in interest of the real 28 property. 29 Sec. 3. Section 6B.56, subsection 2, paragraph a, Code 2015, 30 is amended to read as follows: 31 a. Before the real property described in subsection 1 32 may be offered for sale to the general public, the acquiring 33 agency shall notify the prior owner of the such real property 34 condemned in writing of the acquiring agency’s intent to 35 -1- LSB 1147SV (3) 86 md/sc 1/ 3

S.F. 449 dispose of the real property, of the current appraised value 1 of the real property to be offered for sale , and of the prior 2 owner’s right to purchase the real property to be offered for 3 sale within sixty days from the date the notice is served 4 at a price equal to the current appraised value of the real 5 property to be offered for sale or the fair market value of the 6 property to be offered for sale at the time it was acquired by 7 the acquiring agency from the prior owner plus cleanup costs 8 incurred by the acquiring agency for the property to be offered 9 for sale , whichever is less. However, the current appraised 10 value of the real property to be offered for sale shall be the 11 purchase price to be paid by the previous owner if any other 12 amount would result in a loss of federal funding for projects 13 funded in whole or in part with federal funds. The notice sent 14 by the acquiring agency as provided in this subsection shall 15 be filed with the office of the recorder in the county in which 16 the real property is located. 17 Sec. 4. Section 6B.56A, subsection 1, Code 2015, is amended 18 to read as follows: 19 1. When five years have elapsed since property was condemned 20 and all or a portion of the property has not been used for the 21 purpose stated in the application filed pursuant to section 22 6B.3 , and the acquiring agency has not taken action to dispose 23 of the unused property pursuant to section 6B.56 , the acquiring 24 agency shall, within sixty days, adopt a resolution reaffirming 25 the purpose for which the property will be used or offering the 26 property for sale to the prior owner at a price as provided in 27 section 6B.56 . If the resolution adopted approves an offer of 28 sale to the prior owner, the offer shall be made in writing 29 and mailed by certified mail to the prior owner. The prior 30 owner has one hundred eighty days after the offer is mailed to 31 purchase the property from the acquiring agency. 32 Sec. 5. APPLICABILITY. The section of this Act amending 33 section 6B.2C applies to public improvement projects for which 34 an application under section 6B.3 is filed on or after July 1, 35 -2- LSB 1147SV (3) 86 md/sc 2/ 3

S.F. 449 2015. 1 Sec. 6. APPLICABILITY. The sections of this Act amending 2 sections 6B.56 and 6B.56A apply to public improvement projects 3 for which an application under section 6B.3 is filed before, 4 on, or after July 1, 2015. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 This bill relates to procedures and requirements for 9 condemning property and for disposing of certain condemned 10 property. 11 The bill amends Code section 6B.2C by specifying that the 12 authority to condemn property is not conferred on an acquiring 13 agency unless the governing body for the acquiring agency first 14 approves a preliminary or final route or site location of the 15 proposed public improvement. 16 The bill also amends Code sections 6B.56 and 6B.56A 17 relating to the disposition of condemned property by an 18 acquiring agency. The bill specifies that the requirements 19 and procedures for property that has not been used for the 20 purpose stated in the condemnation application, including the 21 requirement for first offering such property for sale to the 22 prior owner, also apply to any portion of the property that has 23 not been used for the purpose stated in the application. The 24 bill also modifies the provisions of Code section 6B.56 that 25 govern the price of the unused real property when offered for 26 sale to the prior owner to specify that such price is to be the 27 amount applicable to the portion of the unused property that is 28 being offered for sale. 29 The section of the bill amending Code section 6B.2C applies 30 to public improvement projects for which an application for 31 condemnation is filed on or after July 1, 2015. 32 The sections of the bill amending Code sections 6B.56 33 and 6B.56A apply to public improvement projects for which an 34 application is filed before, on, or after July 1, 2015. 35 -3- LSB 1147SV (3) 86 md/sc 3/ 3