In Minnesota, a business may be entitled to compensation when the government takes private property for public use. Depending on the circumstances, compensation may include the value of the property taken and damages affecting the remaining parcel. Separate relocation benefits may also be available in qualifying cases.
How partial takings can affect the remaining property
Minnesota law requires just compensation when a public authority takes private property for public use. In many cases, that starts with fair market value. Yet a commercial owner may also experience effects on the property that remains. A partial taking can also reduce the value of the property that remains, depending on the project’s effect on the remainder.
A project may also affect a property’s access, but whether an access change warrants additional compensation depends on the access rights at issue and the nature of the government’s action. In some cases, changes to entry points or site layout caused by the physical taking itself may affect the value of the remaining property. Whether those impacts support additional compensation depends on the nature of the taking and the specific effect on the owner’s access rights.
What types of compensation may be available?
A business may have recovery options in several areas, including:
- Reduced value of the remaining property after a partial taking
- Statutory relocation benefits, administered separately from the just compensation award
- Effects on legally protected access rights, when compensable
- Effects on improvements or the remaining property’s utility and value, when recognized under the applicable valuation rules
- Disputes over fixtures and other attached property
The applicable compensation depends on the property taken, the effect on the remainder and the evidence supporting the valuation. Appraisal reports, site plans and documentation of operational changes are among the types of evidence that can support a business’s damages claim.
Why timing matters in a Minnesota condemnation claim
Depending on the circumstances, a Minnesota business may be entitled to compensation beyond the value of the property interest directly taken. Documenting losses to the remaining parcel, reviewing how access or site function has been affected and understanding the distinction between just compensation and relocation assistance can make a material difference in the outcome. Before accepting an initial offer, a property owner may want to review the valuation, the effect on the remaining property and any applicable relocation benefits.