Met Council approves policy to protect property rights

Policy restricts use of Council grants

ST. PAUL (Jan. 25, 2006) – The Metropolitan Council today approved a policy barring the use of Council grants for economic development projects in which local governments use the power of eminent domain to transfer property from one private party to another.

Council Chair Peter Bell said the policy will “help prevent the abuse of eminent domain and safeguard the property rights of individuals and business owners.”

Work on the policy began several months ago at the suggestion of Bell and Chris Georgacas, chair of the Council’s Community Development Committee. They were among many officials around the country who were disturbed by a U.S. Supreme Court ruling handed down last year.

In a 5-4 ruling, the court held that a municipality’s eminent domain powers permit it to seize privately owned real estate for transfer to private developers if the municipality discerns a “public” benefit in doing so.

“The court’s decision poses a threat to every homeowner and business in the nation,” said Georgacas. “It hands local governments a blank check to determine what constitutes a ‘public’ purpose.”

The Council’s policy will prevent the use of Council grants for economic development projects that involve the taking of private property “without the consent of the owner.”

Bell said the policy was “carefully crafted to balance the rights of property owners and legitimate needs of local government.” It exempts projects in which eminent domain is used:

To acquire private property for “public ownership and public use,” such as for a roadway, park, sewer, hospital or school.
To remove harmful uses of land that constitute an immediate threat to public health or the region’s natural resources.
To acquire abandoned or deteriorated property, or remove a public nuisance.

It also exempts projects in which “an incidental part” of a public facility is leased to a private person or entity.

The Council’s major grants programs provide about $14 million a year under the Livable Communities Act to help municipalities (1) clean up contaminated lands for redevelopment, (2) promote efficient, connected development and (3) expand the supply of affordable housing.

The Metropolitan Council is the regional planning organization for the seven-county metropolitan area. It runs the regional bus and light-rail system, collects and treats wastewater and coordinates water resources preservation, plans regional parks and administers funds that provide housing opportunities for low- and moderate-income individuals and families. The 17-member Council is appointed by the governor.

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