The purpose of this chapter is to provide a brief, easy to use summary on acquiring right of way in the State of Minnesota. Minnesota Statutes Sections 117.51 and 117.52 require “acquiring authorities” to meet the provisions of federal law titled The Uniform Relocation and Real Property Acquisition Policies Act of 1970, as amended (also known as The Uniform Act or simply The Act), together with those regulations which implement The Act. Conformance with applicable federal policies and regulations are therefore required on all city and county acquisitions, regardless of funding sources.

All local agencies acquiring right of way should have available, as a reference, the Project Development Guide, prepared and made available by the U.S. Department of Transportation, Federal Highway Administration (FHWA). It contains The Uniform Act and 49CFR Part 24 (the Federal regulations which implement The Act), together with other guidance on how to acquire right of way.

This and other regulatory and guidance materials are available on FHWA’s website. This site also contains links to The Uniform Act and to 49CFR Part 24, which is the federal regulation issued to implement The Act.

FHWA’s Real Estate Acquisition Guide for Local Public Agencies (referred to hereafter as the U.S. DOT Guide) is another helpful reference manual. It has been revised and distributed by FHWA, and is also available on the FHWA’s website for viewing and download.

Relocation assistance and benefits are not specifically presented in this manual. Due to the extensive requirements and special knowledge necessary to perform relocation services, it is recommended that agencies without a well-qualified relocation staff contact Mn/DOT regarding the handling of relocation and/or referral to a qualified consultant. The acquiring agency can contact its appropriate Mn/DOT District Land Management/Right of Way office, or it may choose to contact Mn/DOT’s Office of Land Management directly, through the Relocation Supervisor at (651) 366-3481.

For all projects involving federal funds, following the approval of the project development deport (environmental action), but prior to initiation of the right of way phase, the local agency should consult with the appropriate Mn/DOT District Right of Way/Land Management engineer concerning qualifications of appraisers and reviewers, appraisal format, relocation assistance, etc. See timing guidance below.

On all projects, regardless of funding, the owner shall be notified as soon as feasible of the local agency's interest in acquiring the real property and the basic protections provided to the owner by the Uniform Act and 49CFR Part 24. A sample guide which indicates the basic owners’ protections is titled Acquisition Information for Property Owners (PDF). If the local agency wishes, it may provide its own documents for this purpose.

This notice can be served either personally or by mail. This notice must indicate the name and phone number of a person who may be contacted to answer questions. (See 49CFR Part 24 Section 24.102(b))

The local agency shall maintain adequate records of its acquisition and displacement activities in sufficient detail to demonstrate compliance with the regulations. These records shall be retained for at least 3 years after each owner of a property and each person displaced from a property receives the final payment to which he or she is entitled under these regulations. (See 49CFR Part 24 Section 24.9)

Right of way activities other than those necessary to complete environmental action should normally not be initiated until after environmental action has been completed. Exceptions to this policy are for “hardship” and “protective buying.” Hardship and protective buying can be undertaken at any time, unless federal funds are to be used in the right of way acquisition. If there are federal funds in the right of way acquisition, hardships and protective buying cannot be undertaken until:

1. The project is included in the currently approved STIP;
2. The acquiring agency has complied with applicable public involvement requirements in 23CFR parts 450 and 771; and
3. FHWA concurrence and authorization to incur an eligible federal expense have been obtained from the Federal Aid Section of Mn/DOT’s Division of State Aid for Local Transportation.

Guidelines for evaluating applications for hardship acquisition and protective buying are found in the Minnesota Department of Transportation Right of Way Manual, Section 5-491.121. If these types of acquisitions occur, the acquiring agency must be able to substantiate that those parcels acquired were legitimate hardship or protective buying cases.

For any federal aid project, the acquisition of hardship and protective buying parcels shall not influence the eventual decisions regarding:

1. The need to construct the project;
2. The selection of a specific alternative; or
3. The required assessment of environmental impacts.

Section 4(f) properties are named from Section 4(f) of the Department of Transportation Act that defines these properties as a publicly owned park, recreation area or wildlife and waterfowl refuge or any significant historic site. Section 4(f) properties and properties on or eligible for inclusion on historical registers cannot be acquired as hardship or protective buying parcels.

Acquisition requirements under State Law and federal regulations apply to any agency acquisition of real property. This includes permanent and temporary easements, life estates, and leases over 50 years.

If a private group is acquiring right of way for an enhancement project or for a wetlands bank, the Uniform Act and 49CFR Part 24 apply as follows:

1. If the group is acting (acquiring) on behalf of the Governmental Agency:
• Uniform Act and 49CFR Part 24 applies.
2. If the group is not acting (acquiring) on behalf of the Governmental Agency:
• Binding offer occurs before Federal approval of environmental document:
• (1) Uniform Act and 49CFR Part 24 do not apply
• Binding offer occurs after Federal approval of environmental document:
• (1) Private Group has power of eminent domain:
• (a) Uniform Act and 49CFR Part 24 apply.
• (2) Private Group does not have power of eminent domain:
• (a) only 49CFR Part 24 Section 24.101(a)(2) applies, requiring the acquiring group to:
  • inform the owner that the group cannot acquire by condemnation, and;
  • inform the owner of the group’s estimate of fair market value.