Section 16.35 Condemnation Laws Affecting Urban Development

• Library: Local Government Deskbook (2017 Ed.)

IV. (§16.35) Condemnation Laws Affecting Urban Development

In 2006, Missouri’s eminent domain laws underwent fairly extensive re-writing, primarily as a response to the United States Supreme Court’s decision in Kelo v. City of New London, Connecticut, 545 U.S. 469 (2005), and the political firestorm that ensued. See Chapter 523, RSMo. A few of the provisions of Chapter 523 relevant to urban development are summarized here. Because use of eminent domain can be a powerful tool in urban redevelopment, however, counsel is cautioned to carefully review the revisions to Chapter 523 in their entirety.

Under Chapter 523, eminent domain power vests only in:

· governmental entities or agencies whose governing bodies are elected or appointed by elected officials;

· private utility companies;

· public utilities;

· rural electric cooperatives;

· municipally owned utilities;

· pipeline companies;

· railroads; and

· common carriers.

Section 523.262.1 and .2, RSMo 2016. As noted in §16.4 above, 353 corporations may no longer exercise eminent domain authority in the name of the 353 corporation, although 353 corporations empowered to exercise condemnation authority under a redevelopment agreement executed before December 31, 2006, are not so affected. See § 353.130, RSMo 2016.

Additionally, condemnation authority under the Land Clearance for Redevelopment Authority Law, §§ 99.300–99.600, RSMo 2016, and PIE Law (Planned Industrial Expansion Law), §§ 100.300–100.620, RSMo 2016, may now be exercised only by a body “whose board members are appointed by one or more elected officials.” See, e.g., §§ 100.420.1, 99.120, and 99.460.1, RSMo 2016. Transportation development districts may condemn lands in the name of the State, with prior approval, or in the name of the local transportation authority “and by ordinance of the local governing body.” Section 238.247.1, RSMo 2016. Farmland...