|
4
<br /> Easement and purchase agreements are legal documents negotiations, he or she may wish to consult an attorney
<br /> and should, to the extent possible, include detailed and or "take a timeout" from negotiating until they get a
<br /> precise language. In general, it is a good idea to include better understanding of the process. Generally, time
<br /> in the easement agreement details about the ROW, its spent negotiating is time well spent — eminent domain
<br /> uses, and parties' rights and responsibilities. Blanket proceedings can be time consuming and expensive.
<br /> easements, i.e., easements that do not identify the exact
<br /> location of the ROW, were common at one time in Ultimately, each ROW agreement is unique —reflecting
<br /> Minnesota. More contemporary easements identify and the values and interests of the landowner and the utility.
<br /> define the land area of the ROW. These interests typically are not mutually exclusive and
<br /> a satisfactory ROW agreement can most often be
<br /> If a landowner feels confused or overwhelmed during reached through negotiation.
<br /> Determining Value
<br /> A common point of negotiation in ROW agreements is determine if a ROW and associated energy facility will
<br /> the amount of money that a landowner should receive affect the value of adjoining property, and if so, to what
<br /> for the ROW, be it an easement or fee simple purchase. extent. Numerous studies have been conducted on this
<br /> By law, landowners are due just compensation for their issue with varying results. Some general trends have
<br /> property. Landowners often have questions regarding been revealed by these studies. First, when negative
<br /> what values should be included in this compensation and impacts on property values occur due to establishment of
<br /> how these values are calculated. a ROW, they tend to be in the range of a 1 to 10 percent
<br /> reduction in value. Conversely, in some cases, the
<br /> To begin with,the value of the land itself—the physical impacts can be positive. Second, negative impacts are
<br /> length and width of the ROW—should be included. It is most often attributed to the unattractiveness of the
<br /> possible to estimate the fair market value of this land energy facility, fear of potential health effects, noise
<br /> with established appraisal methods. Fair market value is (during operation and maintenance, depending on the
<br /> the amount a willing buyer would pay a willing seller, type of facility), and safety concerns. Third, the
<br /> taking into consideration the highest and best use to presence of the ROW and energy facility is not the
<br /> which the property can be put. Fair market value is primary determinant of property value. Neighborhood
<br /> typically estimated in one of four ways: (1) comparing characteristics, lot size, schools, land characteristics, and
<br /> the property to similar properties that have been sold improvements are all better predictors of property value.
<br /> recently, (2) estimating the future income producing Fourth, the impact on property value from a ROW
<br /> capability of the property, (3) estimating the cost to decreases the further away the property is from the
<br /> replace an existing structure on the property, and (4) ROW. Thus, impacts are usually greater for smaller
<br /> estimating the value of planned development on the properties than for larger properties.
<br /> property. These methods are not conclusive but can be
<br /> used to support or defend a particular value. Studies notwithstanding, every landowner has a unique
<br /> relationship with his or her property and thus valuing
<br /> If the utility is purchasing an easement, it is not impacts to property adjacent to a ROW can be
<br /> purchasing all of the land rights associated with the challenging. If a landowner determines that he or she
<br /> ROW. Thus, the utility may propose paying a cannot continue living on property with an energy
<br /> percentage of the fair market value of the property. This facility ROW easement, the landowner can, with some
<br /> percentage is a point of negotiation between the limitations, require that the utility purchase the
<br /> landowner and utility. landowner's entire property in fee simple (Minn. Stat.
<br /> §216E.12).
<br /> Landowners can include damages as part of their
<br /> compensation — e.g., crop damage or drain tile damage A value that generally is not included in ROW
<br /> due to construction or maintenance of the energy facility. agreements is the value of the energy moving through
<br /> Landowners can negotiate how this value is calculated. the energy facility(e.g.,transmission line,pipeline). In
<br /> Landowners can also be compensated for loss of a going contrast,landowners with agreements to allow wind
<br /> concern(Minn. Stat. §117.186). turbines to be placed on their property can receive
<br /> payments that reflect the wind energy generated on their
<br /> Another value that landowners may desire to include is property. In these cases,the wind farm developer is
<br /> any change in the value of their property that is not in purchasing a property right that includes a known energy
<br /> the ROW, but is adjacent to it. It may be difficult to source,the wind. ROW agreements for transmission
<br /> 12.13.10 3
<br />
|