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ITEM 7.1 SF 122 HF 6984 w 06eTFo MINNESOTA . g February 23, 2015 Senator Mary Kiffmeyer Capitol Office 100 Rev. Dr. Martin Luther King Jr. Blvd. State Office Building, Room 123 St. Paul, MN 55155-1206 RE: Opposition to SF 122 and HF 698 as currently drafted Dear Senator Kiffmeyer: The Otsego City Council is concerned that the proposed language change regarding the use of Legacy Funds included in SF 122 and HF 698 may end up negatively affecting Otsego and other local government units. The proposed language reads as follows: (h) Money appropriated from the parks and trails fund shall not be spent to acquire property by eminent domain or to acquire property that has previously been acquired by eminent domain. It is unclear how this language would affect the City's ability to acquire land for projects. If property is needed for a public road project, the land owners willing to sell their property to the City often request that the City at least threaten eminent domain because of the tax benefit it may award the affected land owner. The proposed language appears to prohibit the City's ability to offer these advantages to a property owner if the affected land (or any portion of the land) is to be used for trail purposes. The road right of way, property used for storm water ponds, or other remnant property required to be taken through City eminent domain proceedings could later be used to construct trails or may be within the boundaries of a park. In some cases the land must be acquired prior to a determination by the City as to the full extent of its use. The proposed language appears to limit the City's ability to even threaten to acquire property with eminent domain, even in situations where it is warranted or necessary such as a generic city road 13400 90TH STREET NE, OTSEGO, MINNESOTA 553301763.441 .44141 WWW.CI.OTSEGO.MN.US project. Often a standard City road project will include acquisition of right of way and necessary trail easements at the same time, or the trail easement may be included in the overall right of way. In some cases (such as federally funded projects) the City may ultimately be required to proceed with eminent domain. A limitation on what can be acquired by eminent domain and what cannot may hinder the City's ability to acquire the easements or add additional unneeded cost to the Project. In the event that the City were later determined by audit to have violated this statute by use of some portion of the property for grant approved trails, the City may have to return the grant money to the State. The City respectfully requests that local representatives take into consideration the City's concerns and seek clarification of the intent of these provisions prior to taking action on these bills. Sincerely yours, CITY OF OTSEGO Jessica Stockamp, Mayor Council Members: Tom Darkenwald Vern Heidner Doug Schroeder Jason Warehime CC: Representative Eric Lucero Representative Nick Zerwas 13400 90'" STREET NE, OTSEGO, MINNESOTA 553301763.441.44141 www.CI.OTSEGO,MN.uS c� I 06eTF 0 MINNESOTA February 23, 2015 Representative Eric Lucero 515 State Office Building 100 Rev. Dr. Martin Luther King Jr. Blvd. Saint Paul, Minnesota 55155 RE: Opposition to SF 122 and HF 698 as currently drafted Dear Representative Lucero: The Otsego City Council is concerned that the proposed language change regarding the use of Legacy Funds included in SF 122 and HF 698 may end up negatively affecting Otsego and other local government units. The proposed language reads as follows: (h) Money appropriated from the parks and trails fund shall not be spent to acquire property by eminent domain or to acquire property that has previously been acquired by eminent domain. It is unclear how this language would affect the City's ability to acquire land for projects. If property is needed for a public road project, the land owners willing to sell their property to the City often request that the City at least threaten eminent domain because of the tax benefit it may award the affected land owner. The proposed language appears to prohibit the City's ability to offer these advantages to a property owner if the affected land (or any portion of the land) is to be used for trail purposes. The road right of way, property used for storm water ponds, or other remnant property required to be taken through City eminent domain proceedings could later be used to construct trails or may be within the boundaries of a park. In some cases the land must be acquired prior to a determination by the City as to the full extent of its use. The proposed language appears to limit the City's ability to even threaten to acquire property with eminent domain, even in situations where it is warranted or necessary such as a generic city road project. Often a standard City road project will include acquisition of right of way and necessary trail easements at the same time, or the trail easement may be included in the overall right of way. 13400 90T" STREET NE, OTSEGO, MINNESOTA 553301763.441.44141 WWW.CI.OTSEGO.MN.US In some cases (such as federally funded projects) the City may ultimately be required to proceed with eminent domain. A limitation on what can be acquired by eminent domain and what cannot may hinder the City's ability to acquire the easements or add additional unneeded cost to the Project. In the event that the City were later determined by audit to have violated this statute by use of some portion of the property for grant approved trails, the City may have to return the grant money to the State. The City respectfully requests that local representatives take into consideration the City's concerns and seek clarification of the intent of these provisions prior to taking action on these bills. Sincerely yours, CITY OF OTSEGO Jessica Stockamp, Mayor Council Members: Tom Darkenwald Vern Heidner Doug Schroeder Jason Warehime CC: Senator Mary Kiffmeyer Representative Nick Zerwas 13400 90TH STREET NE, OTSEGO, MINNESOTA 55330 763,441.4414 WWW.CI.OTSEGO.MN.US F tSe F MINNESOTA February 23, 2015 Representative Nick Zerwas 433 State Office Building 100 Rev. Dr. Martin Luther King Jr. Blvd. Saint Paul, Minnesota 55155 RE: Opposition to SF 122 and HF 698 as currently drafted Dear Representative Zerwas: The Otsego City Council is concerned that the proposed language change regarding the use of Legacy Funds included in SF 122 and HF 698 may end up negatively affecting Otsego and other local government units. The proposed language reads as follows: (h) Money appropriated from the parks and trails fund shall not be spent to acquire property by eminent domain or to acquire property that has previously been acquired by eminent domain. It is unclear how this language would affect the City's ability to acquire land for projects. If property is needed for a public road project, the land owners willing to sell their property to the City often request that the City at least threaten eminent domain because of the tax benefit it may award the affected land owner. The proposed language appears to prohibit the City's ability to offer these advantages to a property owner if the affected land (or any portion of the land) is to be used for trail purposes. The road right of way, property used for storm water ponds, or other remnant property required to be taken through City eminent domain proceedings could later be used to construct trails or may be within the boundaries of a park. In some cases the land must be acquired prior to a determination by the City as to the full extent of its use. The proposed language appears to limit the City's ability to even threaten to acquire property with eminent domain, even in situations where it is warranted or necessary such as a generic city road project. Often a standard City road project will include acquisition of right of way and necessary trail easements at the same time, or the trail easement may be included in the overall right of way. 13400 90T" STREET NE, OTSEGO, MINNESOTA 553301763.441.44141 www.cl.OTSEGO.MN.US In some cases (such as federally funded projects) the City may ultimately be required to proceed with eminent domain. A limitation on what can be acquired by eminent domain and what cannot may hinder the City's ability to acquire the easements or add additional unneeded cost to the Project. In the event that the City were later determined by audit to have violated this statute by use of some portion of the property for grant approved trails, the City may have to return the grant money to the State. The City respectfully requests that local representatives take into consideration the City's concerns and seek clarification of the intent of these provisions prior to taking action on these bills. Sincerely yours, CITY OF OTSEGO Jessica Stockamp, Mayor Council Members: Tom Darkenwald Vern Heidner Doug Schroeder Jason Warehime CC: Senator Mary Kiffmeyer Representative Eric Lucero 13400 90"' STREET NE, OTSEGO, MINNESOTA 553301763.441.44141 www.CI.OTSEGO.MN.US