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Minnesota Voids
<br />Amortization
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<br />A pivotal court case and heavy lobbying by affected industries
<br />this spring prompted the Minnesota legislature to restrict
<br />governments' amortization of nonconforming uses. Local
<br />governments have used amortization as a planning tool to phase
<br />out nonconforming land uses over some reasonable period of
<br />time, allowing owners to recoup their investments.
<br /> But Senate File 854 (House File 896) strips that tool from
<br />local governments, except in cases that deal with adult
<br />entertainment uses. The law was backed by a broad coalition of
<br />groups led by the billboard industry, and including a range of
<br />other interests from gasoline stations and asphalt plants to local
<br />restaurants and even a day care center. State Rep. Peg Larsen,
<br />the bill's co-author, says amortization is an "inappropriate and
<br />dangerous power for local government units."
<br /> Opponents claim, however, that the legislature has gone too
<br />far~ The League of Minnesota Cities and similar groups contend
<br />that critics of amortization led a campaign of "scare tactics,"
<br />convincing homeowners that cities would use the regulatory
<br />tool to drive people out of their homes. The league countered
<br />such claims by offering an amendment that would have banned
<br />amortization of residential uses, but supporters of the nco law
<br />rejected the offer.
<br /> The movement to ban amortization was sparked by a
<br />decision of the Minnesota State Court of Appeals, which upheld
<br />the right of St. Louis Park, a suburb of Minneapolis, ro amortize
<br />the Apple Valley Redi-Mix (AVR) concrete plant. AVR
<br />challenged the city's right to amortize, arguing that the plant
<br />was producing more than $1 million worth of concrete yearly
<br />and thus had remaining vaJue that the city would be taking.
<br />AV~ also balked over the two-year period the city had provided
<br />for amortizing the plant.
<br /> Nonetheless, the court sided with the ciD,, holding'that:
<br />
<br /> the city used a combination of recoupmcnt of investment'
<br /> and tax depreciation status as factors in determining the
<br /> useful life for AVR's plant. The record shows that over the
<br /> past 23 )'ears the plant provided AVR a return of
<br /> approximately 560 percent on its investment and that the
<br /> plant has been fully depreciated for income tax purposes.
<br /> These two factors provided the city with a reasonable basis to
<br /> determine the plant's useful life for the purpose of
<br /> establishing an amortization period.
<br />
<br />Z~ning IVews is a monthly newsletter published by the American Plan~fing A~soclation.
<br />Subscriptions arc a~'ail~blc for 555 (U.S.) and 575 (foreign). Frank 5. So, Executive Director;
<br />~illiam ~ ~ein, Director of Rcteaech.
<br />
<br />~nlnX News 15 produced ag APA. Jim Schwab and Mike Da+'Jd~o~, Edi*ors; Shannon
<br />Armstrong, Baro- B=in, Joseph Bornstcln, Jerome Cleland, Fay Doinick. 5a~j=y Jeer,
<br />~'is. MaO, a Morris, Reporters; Cynthia Che~ki, ~i~tant Editor; l.lsa Barmon, Design and
<br />Production.
<br />
<br />Copyright 01999 byAmcri~n PJanning~sociatlon, 122 S. Michigan Ave., Suite 1600,
<br />Chimgo, IL 60603. The ~cri~n Planning Associ~lion also h0s ofBces ~ i 776
<br />Ave., N.W., Washington, DC 20036.
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<br />~l rights rescued. No part or,his publication may he rcprod,ccd ut utilized in any Form or by
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<br /> Clay Helmet, a spokesperson from Larsen's office, says
<br />the issue "came back to greater freedom for property rights."
<br />Larsen's legislative web site says the impacts on planning will
<br />be minimal because planners still maintain the powers of
<br />eminent domain and outright purchase at regular market
<br />value. But many municipal officials and others disagree,
<br />claiming the new law deprives them of a powerful planning
<br />tool and may begin a trend of opposition to land-use
<br />con trois. Jerome Cia/and
<br />
<br />Preservation through
<br />and Ordinances: Tools c~.d Techniques
<br />for Preservatio. Used by Communities
<br />in HSczssczchusetts
<br />
<br />Commission, 220 Morrissey Blwf., Boston, MA 02125. ?e~ruary
<br />22, 1999. I2~{ p?. Free.
<br /> Rarely has there been such a thorough review of local
<br />land-use techniques and tools used within a particular state
<br />for historic preservation purposes as appears in this report.
<br />With each section covering a different approach, such as
<br />open space zoning or village center zoning, the text describes
<br />the use of the tool, highlights communities that have used it
<br />successfully (with occasional photographs), and provides a
<br />boxed list of communities with that zoning or other
<br />regulatory provision in their local development codes. Three
<br />appendices provide summary versions of the same
<br />information plus specific new preservation initiatives in a
<br />matrix format.
<br />
<br />When City and Country Collide:
<br />IV~anaglng Growth in the
<br />~etropolltan Frlng~
<br />Tom Danieh. lshtnd Press, 1718 Connectlct~t Ava., N. W., St~ite .
<br />300, Washington, DC20009. 199~. 3 7( pp. $32. 50 A~ailable in
<br />t/)e fa// j~om ~/anners Book Service.
<br /> Tom Daniels, the author of several books on farmland
<br />preservation and small town planning, is by now a veteran
<br />observer of the rural development scene. In this new book, he
<br />tackles the problems of the urban fringe where most
<br />development is happening in increasingly land-consumptive
<br />fashion. He reviews the now familiar development history of
<br />U.S. suburbs in this century and the issues that have resulted,
<br />but the real value of his analysis lies in his thorough grasp of the
<br />nuts-and-bolts planning and zoning questions that must be
<br />addressed in order to preserve quality of life and the
<br />environment while managing this growth. Daniels provides
<br />working planners with solid information on the use of such
<br />tools as exclusive farm use zones, timber conservation zones, and
<br />clustered development.
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