Right of Way Guide
A primary responsibility of the ST LOUIS COUNTY PUBLIC WORKS DEPARTMENT is the administration, planning, construction, maintenance, and safety control of the County’s highway system. As a result, when a reconstruction project is to take place and the existing right of way does not accommodate these improvements, the Department is involved in the purchasing of additional land and property rights owned by individual citizens.
The primary purpose of this guide is to provide property owners with information regarding the procedures that St. Louis County follows for right of way acquisition.
How St. Louis County Acquires Right of Way
Minnesota law allows the county and certain other governmental agencies to acquire property for public purposes such as schools, parks, libraries, recreation facilities, airports, and highways.
The Constitutions of the United States and the State of Minnesota requires a payment of “Just Compensation” to the owner in order for the property to be acquired for public use.
Payment of “Just Compensation” means that the owner is entitled to the fair market value of their property, which is generally defined as the amount the buyer and seller agree upon based on an appraisal of the property.
Prior to Right of Way Acquisition
Prior to acquisition, Survey crews from the Land Survey and Engineering Divisions will obtain information pertaining to your land (ie section/property corners, topography, buildings, trees etc.). This information is vital for the development of the proposed reconstruction project. It may take several visits by survey crews to your property to accomplish this task.
Many times a public informational meeting is held which gives you a chance to review the proposed location and design of the highway. You will be notified by mail of the time and place of this meeting if one is held. After the project plan is substantially complete, the acquisition of required right of way will begin.
Acquisition of Right of Way by Direct Purchase
Direct purchase means you will be contacted by a representative from the County in an attempt to purchase the right of way for the estimate of market value.
First, the representative will explain the acquisition process and answer any questions that you may have. This may be done through the mail, e-mail, phone conversations or by a personal visit to your property. Information is gathered regarding property ownership (all individuals who have an ownership interest) and the location of property corners, wells, septic systems, footing drains etc.
The representative will explain how the project relates to your property and answer any questions that you may have.
Next, you or your representative will be invited to accompany an appraiser on an inspection of the proposed right of way. The appraiser will then complete a written report/appraisal to determine the estimate of market value. The report/appraisal is normally based on studies of recent similar sales of property in your area.
Lastly, when the appraisal is complete, a written “Offer Letter” will be furnished to you. The Offer will separate the amount of money to be paid and the amount (if any) for damages to the remainder of the property. By signing the Offer Letter you are not granting any rights to the County, you are simply acknowledging that the County has presented you with an offer for the right of way.
Acceptance of the County’s Offer
If you decide to accept the County’s offer, you will then sign an Easement and yellow payment voucher and provide a Social Security Number on an IRS form W-9. By signing the Easement, you are giving the County permission to buy a “Right” to use your property for highway purposes. These rights may include permanent highway easements and/or temporary construction easements. Temporary construction easements usually expire after 3 to 4 years.
Payment is normally sent directly to you within two weeks of the receipt of signed easement, yellow payment voucher, and IRS Form W-9.
By agreement, you may retain and remove any or all improvements located on your property, but removal of such improvements must be made at your own expense.
You may also be eligible for reimbursement of certain appraisal fees. If you or your representative have employed the services of a licensed appraiser, the County may reimburse you up to the statutory maximum of $1500 for this cost.
In addition to receiving the "Fair Market Value" for the right of way, you may be entitled to certain relocation benefits. A relocation or purchasing agent will provide you with the necessary information. A Minnesota Department of Transportation relocation brochure is available which explains the program.
You are not required to give up possession of your property until:
1. you have been paid the agreed purchase price, or
2. you have been paid an award through condemnation, or
3. an amount at least equal to the County’s approved appraisal of the value of your property is deposited with the court for your benefit, or
4. the award resulting from a condemnation proceeding is deposited with the court.
Land Acquisition By Eminent Domain
Eminent domain is a legal process for acquiring property that is needed for a public purpose. Eminent domain or condemnation, as it is also called, is used when agreement on the price of the needed property cannot be reached or when title to the property is un-marketable. This process is started early enough so that the County can be assured that the property will be acquired in time to meet construction contract requirements.
Eminent domain proceedings are commenced by the filing of a petition with the Court Administrator. A date for the hearing on the petition will be set. A notice of this hearing will be served on you by certified mail. If you do not return the Notice and Acknowledgment of Service by Mail, you can expect to be personally served with notice of the hearing. Service must be made in the same manner as any civil action to fulfill the requirements of state law.
This notice of the hearing on the petition will inform you of the type of the acquisition and of the date, place, and time that the hearing on the petition will be held. The notice will describe the property to be acquired and will contain a list of the names of all parties who are shown to have an interest in the property.
The hearing on the petition is usually held in the court house nearest to the property. A lawyer will represent the County and will present the petition to condemn to the court. Also present at the hearing on petition will be a representative of the Public Works Department who will be available to answer questions regarding engineering details, design aspects of the project and construction matters.
The court will appoint three qualified and impartial residents of the county to act as commissioners to view each piece of property, hold valuation hearings, and determine the damages that the property will, in their opinion, sustain as a result of the acquisition. The commissioners should not have any financial interest in any of the properties nor should they be related to any of the property owners or closely involved in any business dealings with a property owner.
After the three court-appointed commissioners have taken their oath of office, they will arrange for viewing and hearings with you and other affected property owners. You will be notified of the date and time when a viewing or valuation hearing will be held.
It is the general policy of the Public Works Department to have present at the viewing and hearings a lawyer from the St. Louis County Attorney’s Office, a Right of Way Agent, and a Professional Engineer. Their function is to assist the commissioners and land owners by answering technical questions of a legal or engineering nature.
The chairman of the commission, who presides over the hearings, will most likely invite you to express your opinion as to the amount of damages you feel your property has sustained, and to furnish such evidence as you may wish to present for purposes of assisting the commissioners in determining an award of damages. You may represent yourself at these hearings or you may choose to be represented by legal counsel. You should understand that you bear the cost of any attorney's fees. Whether or not you hire an attorney is your decision.
The Constitutions of the United States and the State of Minnesota provide that property cannot be acquired, damaged, or destroyed for public purposes without payment of "Just Compensation".
The State eminent domain law establishes procedures that guarantee full compliance with these requirements. The courts of our State have interpreted "Just Compensation" to mean that the owner is entitled to the fair market value of property that is acquired for public purposes.
Fair market value is generally defined to mean the amount that a willing buyer would pay and that a willing seller would accept when neither party is forced to sell or buy.
You may wish to retain a licensed real estate appraiser to provide you with an appraisal of the market value of your property. The County of St. Louis will reimburse you a reasonable amount for that appraisal fee, limited to the amount set by law.
Title and possession of the property shall pass to the County upon filing of the award by the court appointed commissioners. Whenever the County shall require title and possession of all or part of the owner's property prior to the filing of an award by the court appointed commissioners, the County shall, at least 90 days prior to the date on which possession is to be taken, notify the owner of the intent to possess the property. Prior to taking title and possession, the County shall pay to the owner or deposit with the court an amount equal to the County's approved appraisal of value. The language is found in Minnesota Statutes Section 117.042. This is commonly referred to as the "Quick Take" Law of the State of Minnesota.
When Can Construction Start
Minnesota law provides that once the court-appointed commissioners have filed their award, or notice has been served pursuant to Minnesota Statutes 117.042, or after an easement has been signed, and the legal date of continued occupancy has expired, the County has the right to enter upon your land and begin construction. In some cases when the project has a high priority, construction will proceed at an early date. In the majority of cases, you will have had an opportunity to thoroughly go into any problems concerning the acquisition of your land before any construction begins.
Appealing the Commissioners Award
It is important to note that if you are dissatisfied with the commissioner's award, you have the right to appeal to the District Court. The County also has the right to appeal the award.
Any appeal must be taken within 40 days from the date the commissioners file their award and must be filed with the Court Administrator. A notice of such appeal must be mailed to all parties of record having an interest in lands described in the appeal. Within 10 days of such mailing, any other party may appeal. (Note: The 40 days are counted from the date of the filing of the commissioner's award with the Court Administrator, not from the date you receive notice of the award from the County.)
If the County appeals the award, you will be notified by letter from the County Attorney’s Office. The law provides that unless proper appeal is taken by either party within 40 days, neither party can amend or adjust the amount, terms, or conditions of the award. If no appeal is taken, payment will be made following the expiration of the 40 day appeal period. If only one party appeals from the award of commissioners, the appealing party may later dismiss the appeal and the award plus interest will be paid.
About three weeks after the filing of an appeal by either party, partial payment may be made. Maximum partial payment under any circumstances cannot exceed 75 percent of the award of the court-appointed commissioners. If you so request, the County will pay 75 percent of the award; the County may, however, request the court to reduce the amount of partial payment. A partial payment, when no request has been made, will be in the amount of the County's appeal figure or an amount that is 75 percent of the award, whichever is the smaller amount. In no event will the partial payment be less than the County's estimate of fair market value.
'Just Compensation' by a Jury
If you or the County, or both, appeal to the District Court, the compensation to which you are entitled becomes a question to be decided in a trial by jury. Simply because an appeal is taken by either party does not necessarily mean the matter will go to court; the County will make a diligent effort to settle the case prior to trial.
However, as noted earlier, the law provides the County cannot amend or adjust the amount of the commissioner's award unless proper appeal is taken by either party within the time allowed.
If the appeal is settled out of court, you can expect final payment within 45 days of receipt by the County of a properly signed stipulation and settlement. If the appeal goes to trial in District Court, final payment will be made within 45 days after a final judgement. When the jury verdict is appealed to a higher court, final payment will await the disposition of that appeal.
Relocation Payments
If you have to move from your home, a decent, safe, and sanitary replacement dwelling must be available to you, on a nondiscriminatory basis, prior to your displacement.
In accordance with the Federal Uniform Relocation Act of 1970, and subsequent legislation, you may be entitled to certain payments for such things as a housing supplement, moving costs, reestablishment costs, incidental expenses and closing costs. The representative of the County will review your eligibility for these relocation claims.
An explanation of relocation payments and services can be found in a separate booklet entitled, "Relocation Assistance Information." This booklet will address many of your questions and concerns. Please request a copy from the County if you have not received one.
SUMMARY AND CONCLUSION
The information in this Guide for Property Owners is brief and general. If you desire additional information please request assistance from the County.
All representatives of the Saint Louis County Public Works Department are committed to the responsibility of providing better and safer highways for the public use. We realize we owe an obligation to all owners of property to be respectful of your rights while carrying out the duties of highway construction. We are ready to assist you in any way we can and we hope our contacts with you can be carried out in a spirit of cooperation.
If at anytime you have questions, you are invited to seek the services of the Saint Louis County Public Works Department.
Saint Louis County Public Works Phone Numbers:
- James T. Foldesi, Public Works Director/Highway Engineer (218) 625-3840
- Matt Hemmila, Assistant County Highway Engineer (218) 625-3836
- Eric Fallstrom, Resident Engineer, Virginia (218) 742-9821
- Steve Krasaway, Resident Engineer, Duluth (218) 625-3841
- Rachel Gregg, Bridge Engineer, entire County (218)-312-8174
- Steve Kniefel, Right of Way Agent (218) 742-9828
- Andy Butler, Right of Way Agent (218) 742-9879
- Andy Plesha, Right of Way Agent (218) 625-3866
- St. Louis County Attorney’s Office (218) 726-2323
Minnesota Statutes
M.S. Chapter 117 deals with Eminent Domain but it is too long to list the entire chapter here. All Minnesota Statutes can be found online at the following address:
117.041 Entry for surveys
Subdivision 1. Surveys. For the purpose of making surveys and examinations relative to any proceedings under this chapter, it shall be lawful to enter upon any land, doing no unnecessary damage.
163.02 General powers of county board.
Subd. 2. Acquisition. They may acquire by purchase, gift, or eminent domain proceedings as provided by law, all necessary right-of-way for such highways, purchase all necessary road material, machinery, tools, and supplies needed therefor; and may construct buildings or rent, or acquire by purchase, gift, or eminent domain proceedings, grounds and buildings necessary for the storing and housing of such material, machinery, tools, and supplies.
163.11 Powers relating to highways.
Subd. 3. Acquiring necessary property. All lands or properties needed for the establishment, location, relocation, construction, reconstruction, improvement, and maintenance of a county highway may be acquired by purchase, gift, or eminent domain proceedings as provided in chapter 117 and acts supplemental thereto, or as in section 163.12, subdivisions 1 to 10.