It took three years and four court decisions, but the city of Eagan has won its battle with property owners in the Cedar Grove redevelopment area.

   The Minnesota Court of Appeals sided with the city in its ruling Dec. 28, which involved three property owners who objected to the use of eminent domain to acquire their properties.

   In its decision, the court agreed the redevelopment district is blighted and that redevelopment will lead to “increased employment and improve the general state of the economy.”

   The city said it is pleased with the ruling, and remains committed to appropriately compensating the owners for their properties.

  “After nearly three years of litigation, we are confident that this ruling removes the legal uncertainty so that the redevelopment in Cedar Grove can now move forward as the economy recovers,” said Eagan Mayor Mike Maguire.

   The ruling comes after the Minnesota Supreme Court sided with the city in August, then gave the case back to the appeals court because it failed to weigh in on a couple of key issues.

   The legal battle with the three businesses began in 2007 when Eagan initiated a quick-take condemnation of several properties for a planned urban village.

   Larson Automotive Repair Services, Competition Engines and U-Haul sued the city to prevent the move.

   An initial court ruling sided with the city.

   An appeals court reversed that decision, claiming the city council limited its Economic Development Authority’s power of eminent domain by requiring a binding development agreement before any property could be acquired.

   No such agreement was in place at the time of condemnation.

   The city appealed that decision to the Supreme Court, which said the city’s Economic Development Authority “did not exceed the scope of its authority when it acquired the property owner’s property.”

   The Appeals Court was told to weigh in on the issue of the public purpose of using eminent domain, and the issue of the city’s quick-taking of the properties. It sided with the city on those issues.

   While the Cedar Grove area hasn’t seen much progress recently, officials said the project was not stalled due to the court battle; the first phase of the redevelopment project does not include the three properties in question.

   The Village at Cedar Grove, located east of Cedar Avenue along Highway 13, has long been planned as a mix of commercial retail space, life-cycle housing, office buildings, and open space.

   Current plans for phase one of the development include 150 units of senior housing, 250 apartment units, two four-story hotels, a retail building with three or four tenants, and a building for child care/commercial use.

   The city purchased about 80 percent of the properties in the redevelopment area between 2002 and 2007. When negotiations over the remaining properties stalled, the city’s Economic Development Authority used eminent domain.

   Of the 31 properties the city condemned, six owners objected. Three later dropped their objections and reached deals with the city.

                                                                                                   Source:Thisweek Newspapers