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Arizona Real Estate Statutes:
Eminent Domain
§ 12-1111. Purposes for which eminent domain may be exercised
Subject to the provisions of this title, the right of eminent domain may be exercised by the state, a county, city, town, village, or political subdivision, or by a person, for the following uses:
1. All public uses authorized by the government of the United States.
2. Buildings and grounds for any public use of the state and all other public uses authorized by the legislature.
3. Buildings and grounds for the use of a county, city, town or school district.
4. Canals, aqueducts, flumes, ditches or pipes, for conducting water for the use of the inhabitants or for drainage of a county, city, town or village.
5. Raising the banks of streams, removing obstructions therefrom, or widening, deepening or straightening their channels.
6. Roads, streets and alleys, and all other public uses for the benefit of a county, city, town or village, or the inhabitants thereof, which is authorized by the legislature. The method of apportioning and collecting the costs of the improvements authorized by paragraphs 3, 4, 5 and 6 shall be as provided in the law by which they are authorized.
7. Wharves, docks, piers, chutes, booms, ferries, bridges, toll roads, byroads, plank and turnpike roads and highways.
8. Steam, horse, mule, electric and cable railroads or railways.
9. Telegraph and telephone lines and conduits for public communication.
10. Electric light and power transmission lines, pipe lines used for supplying gas, and all transportation, transmission and intercommunication facilities of public service agencies.
11. Aviation fields.
12. Reservoirs, canals, ditches, flumes, aqueducts and pipes, for the use of a county, city, town or village, or its inhabitants, or for public transportation for supplying mines and other industrial enterprises, farms and farm neighborhoods with water for irrigation, domestic and other needful purposes, and for generating electricity.
13. Draining and reclaiming lands, and for floating logs and lumber on nonnavigable streams.
14. Roads, tunnels, ditches, flumes, pipes and dumping places for working mines, and outlets, natural or otherwise, for the flow, deposit or conduct of tailings or refuse matter from mines, and an occupancy in common by the owners or possessors of different mines, or any place for the flow, deposit or conduct of tailings or refuse matter from their several mines.
15. Byroads leading from highways to residences and farms.
16. Private canals, ditches, flumes, aqueducts and pipes for conducting water from natural water courses or bodies or from public sources where the lands to be irrigated are not directly reached by such natural water course or public sources.
17. Pipe lines to carry petroleum, petroleum products or any other liquid.
18. Rights of way, station grounds, pits, yards, sidetracks and other necessary facilities for railways.
§ 12-1112. Prerequisites to taking property by condemnation
Except as provided by § 28-7102, before property may be taken, it shall appear that:
1. The use to which the property is to be applied is a use authorized by law.
2. The taking is necessary to such use.
3. If the property is already appropriated to some public use, the public use to which it is to be applied is a more necessary public use.
§ 12-1113. Estates in land subject to condemnation
The interests, estates and rights in lands subject to be taken for public use, are:
1. A fee simple, when taken for public buildings or grounds or for permanent buildings, for use in connection with a right-of-way or for an outlet for the flow or a place for the deposit of tailings or refuse from a mine or for irrigating ditches. A leasehold interest in a building may be taken only if the underlying property is taken in fee title or easement.
2. An easement when taken for any use other than those set forth in paragraph 1.
3. A right of entry on and occupation of lands, and the right to take from the lands earth, gravel, stone, trees and timber necessary for a public use.
4. A use in the water of a stream, river or spring.
§ 12-1114. Private property subject to condemnation
Private property which may be taken includes:
1. All real property belonging to any person, including any and all water and water rights for the irrigation of any land condemned, belonging to or used in connection with the land for the irrigation thereof, with right to way for the water or water rights condemned through irrigating canals and ditches leading to the land condemned.
2. Lands belonging to the state, or to any county, city, town or village, not appropriated to some public use.
3. Property appropriated to public use.
4. Franchises for toll roads, toll bridges, and ferries, and all other franchises, but such franchises shall not be taken unless for free highways, railroads or other more necessary public uses.
5. All rights of way through canyons, passes or defiles, and all rights of way for any and all purposes mentioned in paragraph 2 of § 12-1111, and any and all structures and improvements thereon, and the lands held or used in connection therewith, intersected by any other right of way or improvements or structures thereon, which shall also be subject to a limited use in common with the owner thereof when necessary, but such uses, crossings, intersections and connections shall be made in the manner most compatible with the greatest public benefit and least private injury.
6. All classes of private property not enumerated, including property for use in water or water rights, taken for public use when the taking is authorized by law.
§ 12-1115. Right of state to enter and survey property for public use
A. Where land is required for public use, the state, or its agents in charge of such use, may survey and locate the land, but it shall be located in the manner which will be most compatible with the greatest public good and the least private injury.
B. The land may be entered upon to make examinations, surveys and maps thereof, and the entry constitutes no cause of action in favor of the owners of the land, except for injuries resulting from negligence, wantonness or malice.
C. A person seeking to acquire property for any of the public uses authorized by this title is an agent of the state.
§ 12-1116. Actions for condemnation; immediate possession; money deposit
A. All actions for condemnation shall be brought as other civil actions in the superior court in the county in which the property is located except that, at least twenty days before filing an action for condemnation of property or any interest in property, the plaintiff shall deliver to the property owner of record and as a courtesy to the sole lessee of record, if applicable, according to the records of the county recorder in the county in which the property is located:
1. A written offer to purchase the property or interest in the property and to pay just compensation for the property or interest in the property and for any compensable damages to any remaining property. The offer must constitute the plaintiff's estimate of just compensation. The offer may be made subject to any lessees of record or any lessees who may claim a compensable interest. The offer does not impose an obligation on the plaintiff to provide a written offer to purchase the lessee's interest.
2. One or more appraisals that support the amount of the proposed compensation.
B. Except for special taxing districts formed pursuant to title 48, chapter 17, if no lease is recorded or if more than one lease is recorded for the property with the county recorder of the county in which the property is located, at least twenty days before filing an action for condemnation of property or any interest in property, the plaintiff shall provide notice of the offer and appraisal to the party having a plain and obvious commercial ownership or operational interest in substantial improvements on the property by posting the notice in plain sight at the property that may be subject to condemnation.
C. For special taxing districts formed pursuant to title 48, chapter 17, if more than one lease is recorded for the property with the county recorder of the county in which the property is located, at least twenty days before filing an action for condemnation of property or any interest in property, the plaintiff shall provide notice of the offer and appraisal by delivering to all property interest holders of record the notice that an offer has been made and an appraisal has been conducted. The notice does not apply to lessees of record if the lease or other written agreement governing the interest holder's rights in the property provides that the property interest holder would not be entitled to condemnation proceeds.
D. If a lessee that is not noted in the record of the county recorder and has a commercial ownership or operational interest in substantial improvements on the property requests a copy of the offer and appraisal the plaintiff shall promptly comply with the request on presentation of documentation by the lessee of the lessee's interest in the property.
E. At the time of filing the complaint, or at any time after filing the complaint, the plaintiff may apply to the court for an order permitting the plaintiff to take possession of and use the property sought to be condemned for the purpose prayed for.
F. The superior court may waive the requirements of subsection A, B, C or D of this section if the court determines that the plaintiff will suffer immediate and irreparable harm that outweighs the property owner's or lessee's interest.
G. On filing the application, the court shall set a time for a hearing. Notice shall be served on the parties in interest by personal service within the state, or by publication if without the state, in any manner as the court directs.
H. On the day of the hearing, if it appears that the use for which the property is sought to be condemned is a necessary use, the court shall receive evidence as to the probable damages to each owner, possessor or person having an interest in each parcel of land sought to be condemned and of any unpaid property taxes that have been levied, including penalties and interest, on the property sought to be condemned and may direct that on a deposit of money, on direct payment to each owner, possessor or person having an interest in each parcel, or if the condemnor is the state or a county, city, town or political subdivision of this state, on posting a bond in a form to be approved by the court, the plaintiff shall be let into the possession and full use of the parcels of land, as described in the order, for the purposes specified in the order.
I. The plaintiff may deposit the money or bond with the clerk of the court or the state treasurer. The money or bond may be held for the use and benefit of each person having an interest in each parcel of land sought to be condemned, subject to final judgment after trial of the action, and may be held also as a fund to pay any further damages and costs recovered in the proceedings and any unpaid property taxes that were levied as of the date of the order for immediate possession, including penalties and interest, on the property sought to be condemned, as well as all damages sustained by the defendant if for any cause the property is not finally taken for public use. The deposit of the money or bond shall not discharge the plaintiff from liability to maintain the fund in full, but it shall remain deposited for all accidents, defalcations or other contingencies, as between the parties to the proceedings, at the risk of the plaintiff, until the compensation or damage is finally settled by judicial determination, and the court awards such part of the money or bond as shall be determined to the defendant, or until the clerk or the state treasurer is ordered by the court to disburse it. The clerk of the court or the state treasurer is liable to the plaintiff for the deposit or bond if it is lost or abstracted.
J. If the plaintiff elects to deposit the money or bond in the state treasury, the state treasurer shall receive the money or bond and return a receipt for the money or bond to the court, and the state treasurer shall safely keep the deposit in a special fund to be entered on the state treasurer's books as the condemnation fund. The state treasurer shall invest and divest monies in the condemnation fund as provided by § 35-313, and monies earned from investment shall be credited to the fund. The state treasurer shall disburse the money deposited and, if necessary, convert the investments to cash for the purpose of making the disbursements or forfeit the bond as the court may direct pursuant to its judgment. After satisfaction of the judgment in a condemnation action and payment of any unpaid property taxes that were levied as of the date of the order for immediate possession, including penalties and interest, on the property sought to be condemned, the excess, if any, of the deposit made regarding the action, including monies earned by the investment and reinvestment of the deposit, shall be returned by the state treasurer to the plaintiff by a warrant that the department of administration shall issue upon direction of the state treasurer after having received a certified copy of the judgment and without regard to provisions requiring the filing of a claim against the state. Any monies remaining in the condemnation fund at the end of the fiscal year do not revert to the state general fund.
K. If the plaintiff elects to deposit the money or bond with the clerk of the court, the clerk shall receive the money or bond and return a receipt for the money or bond to the court, and the clerk is liable to the plaintiff if the money or bond is lost or abstracted. The clerk shall disburse the money or forfeit the bond as the court may direct pursuant to its judgment. Any money remaining in a deposit after the judgment of the court and all unpaid property taxes that were levied as of the date of the order for immediate possession, including penalties and interest, have been fully paid shall be returned by the clerk to the plaintiff.
L. On application by any party, the court may order that money deposited with the clerk of the court or the state treasurer be paid to any owner, possessor or person having an interest in any parcel.
M. Subject to court approval, the parties may also stipulate any of the following with any owner, occupant or possessor of any parcel:
1. To the amount of money that the plaintiff may deposit with the clerk of the court or with the state treasurer for any owner, occupant or possessor of any parcel.
2. To the amount of direct payment to any owner, occupant or possessor of any parcel.
3. To the payment of money deposited with the clerk of the court or the state treasurer to any owner, occupant or possessor of any parcel.
4. For the release of any bond on payment to any owner, occupant or possessor of any parcel.
N. A person in interest for whom a deposit has been made pursuant to stipulation for the person's withdrawal is entitled to interest on the amount that the person is allowed to withdraw from the date the order for immediate possession is signed by the court pursuant to subsection C of this section until the date of withdrawal. This person is also entitled to interest on that portion of the final judgment, exclusive of costs allowed by the court, that exceeds the amount that is deposited for the person's withdrawal from the date the order for immediate possession is signed by the court until the judgment is paid. If the amount that is withdrawn by any defendant exceeds the amount of the final judgment awarded the defendant inclusive of costs allowed by the court and any unpaid property taxes that were levied as of the date of the order for immediate possession, including penalties and interest, on the property sought to be condemned, the defendant withdrawing the funds immediately shall repay to the plaintiff the excess, with legal interest from the date of withdrawal to the date of repayment, except that the amount that is necessary to pay any unpaid property taxes that were levied as of the date of the order for immediate possession, including penalties and interest, on the property shall be paid to the county treasurer of the county in which the property sought to be condemned is located.
O. Any stipulation that is made or any evidence that is introduced pursuant to this section shall not be introduced in evidence or used to the prejudice of any party in interest on the trial of the action.
§ 12-1117. Complaint
The complaint shall set forth:
1. The name of the person asserting the public use for which the property is sought, as plaintiff.
2. The names of all owners and claimants of the property, if known, or a statement that they are unknown, as defendants.
3. A statement of the right of plaintiff.
4. If a right of way for a road, ditch, canal or other purpose is sought, the location and general route, accompanied with a map thereof.
5. A description of each piece of land sought to be taken, and whether the land includes the whole or only a part of an entire parcel or tract.
§ 12-1118. Joint or separate actions; consolidation
A. All parcels lying in the county, and required for the same public use, may be included in the same or separate proceedings, at the election of plaintiff, but the court may consolidate or separate them for convenience of the parties.
B. When application for condemnation of a right of way for sewage disposal, or to obtain water, is made on behalf of a settlement, village or an unincorporated town, the board of supervisors of the county may be the plaintiff.
§ 12-1119. Summons; contents; service
A. The clerk shall issue a summons containing:
1. The names of the parties.
2. A general description of the whole property.
3. A statement of the public use for which it is sought.
4. A reference to the complaint for descriptions of the respective parcels.
5. Notice to defendants to appear and show cause why the property described should not be condemned as prayed for in the complaint.
B. The summons in all other particulars shall be as provided in civil actions, and shall be served in like manner.
§ 12-1120. Right to defend action
All persons occupying, or having or claiming an interest in any of the property described in the complaint, or in the damages for the taking thereof, though not named, may appear, plead and defend in respect to his property or interest, or that claimed by him, as if named in the complaint.
§ 12-1121. Powers of court; precedence
A. The court may determine and regulate the place and manner of making connections and crossings or of enjoying the common use mentioned in paragraph 14 of § 12-1111. It shall hear and determine all adverse or conflicting claims to the property sought to be condemned and the claim of damages therefor, and shall determine the respective rights of different parties seeking condemnation of the same property.
B. The court in which any action brought under articles 2 and 3 of this chapter is pending shall, at the request of any party, give the action precedence over other civil actions.
§ 12-1122. Ascertainment and assessment of value, damages and benefits
A. The court or jury shall ascertain and assess:
1. The value of the property sought to be condemned and all improvements on the property pertaining to the realty, and of each and every separate estate or interest in the property, and if it consists of different parcels, the value of each parcel and each estate or interest in the parcel separately.
2. If the property sought to be condemned constitutes only a part of a larger parcel, the damages that will accrue to the portion not sought to be condemned by reason of its severance from the portion sought to be condemned, and the construction of the improvement in the manner proposed by the plaintiff.
3. How much the portion not sought to be condemned and each estate or interest in the portion will be benefited separately, if at all, by construction of the improvement proposed by the plaintiff. If the benefit is equal to the damages assessed under paragraph 2 of this subsection, the owner of the parcel shall be allowed no compensation except for the value of the portion taken, but if the benefit is less than the damages so assessed, the benefit shall be deducted from the damages, and the remainder shall be the only damages allowed in addition to the value.
4. If the property sought to be condemned is for a railroad, the cost of good and sufficient fences along the line of the railroad, and the cost of cattle guards where fences may cross the line of the railroad.
B. As far as practicable, compensation shall be assessed for each source of damage separately.
C. Value shall be determined by ascertaining the most probable price estimated in terms of cash in United States dollars or comparable market financial arrangements that the property would bring if exposed for sale in the open market, with reasonable time allowed in which to find a purchaser, buying with knowledge of all of the uses and purposes to which it was adapted and for which it was capable.
D. For the purpose of assessing compensation and damages with respect to property sought to be condemned by this state for transportation purposes, in addition to subsections A and B of this section, the court or a jury shall assess compensation and damages pursuant to §§ 28-7091 and 28-7097.
§ 12-1123. Accrual of right to compensation and damages; limitation
A. For the purpose of assessing compensation and damages, the right to compensation and damages shall be deemed to accrue at the date of the summons, and its actual value at that date shall be the measure of compensation and damages.
B. If there is an order for immediate possession before the final judgment, the compensation and damages awarded shall draw interest from the date the order is entered by the court. If the defendant is allowed to withdraw money deposited by the plaintiff pursuant to § 12-1116, subsection M, the defendant is entitled to interest on the money that the defendant is allowed to withdraw from the date the order for immediate possession is signed by the court until the date of the withdrawal.
C. No improvements placed upon the property subsequent to the date of service of the summons shall be included in the assessment of compensation or damages.
D. If an order is made letting plaintiff into possession before the recording of the final order of condemnation, the plaintiff shall record the order in the office of the county recorder of the county or counties in which the property is located and on the recording so much of the defendant's property as is affected by the order shall immediately be granted tax exempt status for future tax rolls and any unpaid property taxes that have been levied, including penalties and interest, on the property shall be paid to the county treasurer in the county in which the property is located pursuant to § 12-1116.
§ 12-1124. Payment of compensation; effect of failure to pay
Payment of compensation and damages may be made to a defendant or defendants entitled thereto, or the money may be deposited in court and distributed to the defendant or defendants entitled thereto. At the time the money is paid or deposited, all unpaid property taxes which were levied as of the date of the order for immediate possession, including penalties and interest, that are due on the property condemned shall be paid to the county treasurer in the county in which the condemned property is located. If the money is not so paid or deposited, the defendant or defendants or the county treasurer may have execution as in civil actions, and if the money cannot be collected on execution, the court, upon a showing to that effect, shall set aside and annul the entire proceedings, and restore possession of the property to defendant or defendants, if possession has been taken by plaintiff.
§ 12-1125. Payment of damages in proceedings by railroad
A. If the property sought to be condemned is for a railroad, plaintiff shall, within thirty days after final judgment, pay the sum assessed, but may, before payment, elect to build fences and cattle guards. If plaintiff so elects, he shall execute and deliver to defendant a bond, with sureties to be approved by the court, in double the assessed cost thereof conditioned that plaintiff will build the fences and cattle guards within eighteen months from the time the railroad is built on the land taken, and if bond is given, plaintiff shall not be required to pay the cost of the fences and cattle guards to defendant.
B. In an action on the bond reasonable attorney's fees, in addition to all damages, may be recovered.
§ 12-1126. Final order of condemnation; recording; vesting of property
A. When the final judgment has been satisfied and all unpaid property taxes which were levied as of the date of the order for immediate possession, including penalties and interest, on the property that is the subject of the condemnation action have been paid, the court shall make a final order of condemnation, describing the property condemned and the purposes of the condemnation.
B. A copy of the order shall be recorded in the office of the county recorder of the county or counties in which the property is located, and thereupon the property described shall vest in plaintiff for the purposes therein specified.
§ 12-1127. Possession by plaintiff after judgment or pending appeal; receipt of payment as abandonment; custody of money paid into court; costs of new trial
A. At any time after judgment is entered, or pending an appeal from the judgment to the supreme court, when plaintiff has paid into court for defendant or defendants the full amount of the judgment, and such other amounts as required by the court as a fund to pay further damages and costs which may be recovered in the proceedings, as well as all damages that may be sustained by defendant or defendants if for any cause the property is not finally taken for public use, the superior court in which the action was tried may, upon notice of not less than ten days, authorize plaintiff, if already in possession, to continue therein, or if not, then to take possession of and use the property until final conclusion of the litigation, and may, if necessary, stay all actions and proceedings against plaintiff on account thereof.
B. The defendant or defendants who are entitled to the money paid into court upon any judgment may demand and receive the money at any time thereafter upon an order of the court. The court shall, upon application, order the money so paid into court delivered to the party entitled thereto upon his filing either a satisfaction of the judgment or a receipt for the money, and an abandonment of all defenses to the action or proceeding except as to the amount of damages to which he may be entitled if a new trial is granted. Such payment shall be deemed an abandonment of all defenses, except the party's claim for greater compensation.
C. The money paid into court on final judgment may be placed by order of court in the custody of the clerk or state treasurer to be held or disbursed upon order of court, and plaintiff and such officers shall be subject to the same responsibility, liabilities and restrictions with respect thereto as provided in this article when money is paid into court by plaintiff upon application for possession before trial.
D. When a new trial is granted upon application of a defendant, and he fails upon the trial to obtain greater compensation than was allowed upon the first trial, the costs of the new trial shall be taxed against him.
§ 12-1128. Costs and jury fees
A. Costs may be allowed or not, and if allowed may be apportioned between the parties on the same or adverse sides, in the discretion of the court.
B. The jury fee may be assessed or not against the plaintiff, in the discretion of the court. If jury fees are so assessed, they shall be calculated in the same manner and amounts as in other civil actions and the plaintiff shall pay such fee to the clerk of the court for transmittal to the county treasurer who shall dispose such monies in the same manner as the disposition of other jury fees.
C. In an action for condemnation of property by or on behalf of an educational, reformatory or penal institution of the state, if the board or officers having charge of the institution, prior to commencement of the action or proceeding, tender to the owner of the property such sum of money as the board or officers deem the reasonable value of the property, and the owner refuses to accept it and transfer the property, then all costs and expenses of the action or proceeding shall be taxed against the owner unless the sum of money assessed in the judgment as the value of the property and compensation to be paid therefor is greater than the amount so tendered.
§ 12-1129. Dismissal of condemnation action; litigation expenses
A. If a plaintiff causes a condemnation action under this article to be dismissed without prejudice before payment of the compensation and damages awarded the defendant by the court or jury, the plaintiff shall not initiate any eminent domain proceeding with respect to the same property for the same or a related project for at least two years after the date of the verdict or judgment.
B. The court having jurisdiction of a condemnation action under this article shall award the owner with any right to, title to or interest in the property that is the subject of the action an amount that will reimburse the owner for the owner's reasonable costs, disbursements and expenses, including reasonable attorney, appraisal and engineering fees, actually incurred because of the condemnation proceeding if either of the following occurs:
1. The final judgment is that the plaintiff cannot acquire the real property by condemnation.
2. The proceeding is abandoned on a motion by the plaintiff.
C. If the proceeding is dismissed on a motion by the plaintiff because the parties have agreed to settle the matter out of court, both parties shall pay their own costs, disbursements and expenses, including reasonable attorney, appraisal and engineering fees unless otherwise specified by the parties in the settlement agreement.
§ 12-1130. Fees and expenses; appraisal; relocation benefits; applicability
A. In a proposed condemnation action if an owner-occupant of a residential property disagrees with the offer and appraisal, the owner-occupant may obtain a second appraisal from an appraiser who is on the approved list that is maintained by the governmental entity and the governmental entity shall pay for the second appraisal.
B. Before filing an eminent domain action, the governmental entity shall provide to the owner-occupant all appraisals of the property that the governmental entity obtains.
C. Any governmental entity that acquires owner-occupied residential property by condemnation or threat of condemnation shall provide the owner-occupant with a determination of relocation benefits in an amount that allows the owner-occupant to purchase a comparable replacement dwelling as provided under applicable relocation law.
D. In a condemnation action to acquire owner-occupied residential property, the court may award fees and other expenses to any party other than this state or a city, town or county or any other political subdivision of this state. In making the determination, the court may consider the amount of the difference between the final offer and the compensation awarded, the percentage of the difference between the final offer and the award and any other factors the court deems appropriate. For the purposes of this subsection, "fees and other expenses" means the reasonable expenses of expert witnesses, the reasonable cost of any study, analysis, engineering report, test or project that the court finds to be directly related to and necessary for the presentation of the party's case and reasonable and necessary attorney fees.
E. This section does not apply to actions for acquisition of property for public safety, transportation, flood control or utility purposes.
Article 2.1. Private Property Rights Protection Act
§ 12-1131. Property may be taken only for public use consistent with this article
Eminent domain may be exercised only if the use of eminent domain is authorized by this state, whether by statute or otherwise, and for a public use as defined by this article.
§ 12-1132. Burden of proof
A. In all eminent domain actions the judiciary shall comply with the state constitution's mandate that whenever an attempt is made to take private property for a use alleged to be public, the question whether the contemplated use be really public shall be a judicial question, and determined as such without regard to any legislative assertion that the use is public.
B. In any eminent domain action for the purpose of slum clearance and redevelopment, this state or a political subdivision of this state shall establish by clear and convincing evidence that each parcel is necessary to eliminate a direct threat to public health or safety caused by the property in its current condition, including the removal of structures that are beyond repair or unfit for human habitation or use, or to acquire abandoned property and that no reasonable alternative to condemnation exists.
§ 12-1133. Just compensation; slum clearance and redevelopment
In any eminent domain action for the purpose of slum clearance and redevelopment, if private property consisting of an individual's principal residence is taken, the occupants shall be provided a comparable replacement dwelling that is decent, safe, and sanitary as defined in the state and federal relocation laws, § 11-961 et seq. and 42 USC 4601 et seq., and the regulations promulgated thereunder. At the owner's election, if monetary compensation is desired in lieu of a replacement dwelling, the amount of just compensation that is made and determined for that taking shall not be less than the sum of money that would be necessary to purchase a comparable replacement dwelling that is decent, safe, and sanitary as defined in the state and federal relocation laws and regulations.
§ 12-1134. Diminution in value; just compensation
A. If the existing rights to use, divide, sell or possess private real property are reduced by the enactment or applicability of any land use law enacted after the date the property is transferred to the owner and such action reduces the fair market value of the property the owner is entitled to just compensation from this state or the political subdivision of this state that enacted the land use law.
B. This section does not apply to land use laws that:
1. Limit or prohibit a use or division of real property for the protection of the public's health and safety, including rules and regulations relating to fire and building codes, health and sanitation, transportation or traffic control, solid or hazardous waste, and pollution control;
2. Limit or prohibit the use or division of real property commonly and historically recognized as a public nuisance under common law;
3. Are required by federal law;
4. Limit or prohibit the use or division of a property for the purpose of housing sex offenders, selling illegal drugs, liquor control, or pornography, obscenity, nude or topless dancing, and other adult oriented businesses if the land use laws are consistent with the constitutions of this state and the United States;
5. Establish locations for utility facilities;
6. Do not directly regulate an owner's land; or
7. Were enacted before the effective date of this section.
C. This state or the political subdivision of this state that enacted the land use law has the burden of demonstrating that the land use law is exempt pursuant to subsection B.
D. The owner shall not be required to first submit a land use application to remove, modify, vary or otherwise alter the application of the land use law to the owner's property as a prerequisite to demanding or receiving just compensation pursuant to this section.
E. If a land use law continues to apply to private real property more than ninety days after the owner of the property makes a written demand in a specific amount for just compensation to this state or the political subdivision of this state that enacted the land use law, the owner has a cause of action for just compensation in a court in the county in which the property is located, unless this state or political subdivision of this state and the owner reach an agreement on the amount of just compensation to be paid, or unless this state or political subdivision of this state amends, repeals, or issues to the landowner a binding waiver of enforcement of the land use law on the owner's specific parcel.
F. Any demand for landowner relief or any waiver that is granted in lieu of compensation runs with the land.
G. An action for just compensation based on diminution in value must be made or forever barred within three years of the effective date of the land use law, or of the first date the reduction of the existing rights to use, divide, sell or possess property applies to the owner's parcel, whichever is later.
H. The remedy created by this section is in addition to any other remedy that is provided by the laws and constitution of this state or the United States and is not intended to modify or replace any other remedy.
I. Nothing in this section prohibits this state or any political subdivision of this state from reaching an agreement with a private property owner to waive a claim for diminution in value regarding any proposed action by this state or a political subdivision of this state or action requested by the property owner.
§ 12-1135. Attorney fees and costs
A. A property owner is not liable to this state or any political subdivision of this state for attorney fees or costs in any eminent domain action or in any action for diminution in value.
B. A property owner shall be awarded reasonable attorney fees, costs and expenses in every eminent domain action in which the taking is found to be not for a public use.
C. In any eminent domain action for the purpose of slum clearance and redevelopment, a property owner shall be awarded reasonable attorney fees in every case in which the final amount offered by the municipality was less than the amount ascertained by a jury or the court if a jury is waived by the property owner.
D. A prevailing plaintiff in an action for just compensation that is based on diminution in value pursuant to § 12-1134 may be awarded costs, expenses and reasonable attorney fees.
§ 12-1136. Definitions
In this article, unless the context otherwise requires:
1. "Fair market value" means the most likely price estimated in terms of money which the land would bring if exposed for sale in the open market, with reasonable time allowed in which to find a purchaser, buying with knowledge of all the uses and purposes to which it is adapted and for which it is capable.
2. "Just compensation" for purposes of an action for diminution in value means the sum of money that is equal to the reduction in fair market value of the property resulting from the enactment of the land use law as of the date of enactment of the land use law.
3. "Land use law" means any statute, rule, ordinance, resolution or law enacted by this state or a political subdivision of this state that regulates the use or division of land or any interest in land or that regulates accepted farming or forestry practices.
4. "Owner" means the holder of fee title to the subject real property.
5. "Public use":
(a) means any of the following:
(i) the possession, occupation, and enjoyment of the land by the general public, or by public agencies;
(ii) the use of land for the creation or functioning of utilities;
(iii) the acquisition of property to eliminate a direct threat to public health or safety caused by the property in its current condition, including the removal of a structure that is beyond repair or unfit for human habitation or use; or
(iv) the acquisition of abandoned property.
(b) does not include the public benefits of economic development, including an increase in tax base, tax revenues, employment or general economic health.
6. "Taken" and "taking" mean the transfer of ownership or use from a private property owner to this state or a political subdivision of this state or to any person other than this state or a political subdivision of this state.
§ 12-1137. Applicability
If a conflict between this article and any other law arises, this article controls.
§ 12-1138. Severability
If any provision of this act or its application to any person or circumstance is held invalid that invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.
Article 3. Eminent Domain for Public Works
§ 12-1141. Definitions
In this article, unless the context otherwise requires:
1. "Authorized corporation" means a corporation or association engaged or about to engage in a public works project, as defined in this article, for a public use, but the construction of the public works project and its conduct thereafter by the corporation or association is subject to regulation or supervision by a federal agency, as defined in this article, or a state public body, as defined in this article, whether by virtue of an agreement, provision of law or otherwise.
2. "Court" means the court in which jurisdiction over proceedings under this article is vested by the provisions of § 12-1142.
3. "Federal agency" means the United States, the federal emergency administration of public works or any other agency or instrumentality, corporate or otherwise, of the United States.
4. "Plaintiff" means the person by whom proceedings for acquisition of real property, as defined in this article, are instituted pursuant to the provisions of § 12-1142.
5. "Public works project" means a work or undertaking which is financed in whole or in part by a federal agency, as defined in this article, or by a state public body, as defined in this article.
6. "Real property," "property" or "land" means all lands, including improvements and fixtures thereon, lands under water, all easements and hereditaments, corporeal or incorporeal, and every estate, interest and right, legal or equitable, in lands or water, and all rights, interests, privileges, easements, encumbrances and franchises relating thereto, including terms for years and liens of judgment, mortgage or otherwise.
7. "State public body" means the state or a county, city, town, municipal corporation, authority or any other subdivision, agency or instrumentality thereof, corporate or otherwise.
§ 12-1142. Agencies qualified to institute proceedings; jurisdiction of court; right of plaintiff to enter upon land
A. A federal agency, state public body or authorized corporation may institute condemnation proceedings under this article for acquisition of real property necessary for a public works project. The proceedings may be instituted in the superior court in a county in which any part of the real property or the proposed public works project is located, and they shall be entitled to precedence over other civil actions.
B. The plaintiff may enter upon the real property proposed to be acquired for the purpose of making a survey thereof, or posting any notice thereon required by this article. The survey and posting of notice shall be done in such manner as will cause the least possible inconvenience to the owners of the property.
§ 12-1143. Complaint
A proceeding under this article may be instituted by filing a complaint which shall be sufficient if it sets forth:
1. The name of plaintiff.
2. A description of the property, sufficient for identification thereof, to which there may be attached a plat or map thereof.
3. A statement that the acquisition of the property by plaintiff is necessary for a public works project and a brief general description of the public works project.
4. A statement that the action is instituted under this article.
5. An appropriate prayer for relief.
§ 12-1144. Inclusion of separate parcels in single action
Any number of parcels of land, whether owned by the same or different persons and whether contiguous or not, may be included and condemned in one action, if the parcels are to be used for a single public works project.
§ 12-1145. Notice of proceedings; effect of filing notice
A. Notice of the action shall be given by one publication in a newspaper having a general circulation in each county in which any part of the property sought to be condemned is located. The notice shall be published at least twenty and not more than thirty days prior to the date set for the hearing on the validity of the proceedings. The notice shall be in substantially the following form:
"TO WHOM IT MAY CONCERN:
Notice is hereby given that ...... (here insert name of plaintiff) has filed a complaint in the above court under the laws relating to the condemnation of real property for public works projects to acquire by condemnation for ...... (here give brief general description of the public works project for which the land is sought to be acquired), the following described land:
(Here describe the land sufficiently for identification thereof. The description may be by a plat or map.)
Notice is further given that on ...... (here insert date of hearing, which must be at least twenty days and not more than thirty days after the date of publication) there will be a hearing in this court, at the opening thereof, for the following purposes:
1. To determine the validity of the action and the right of plaintiff, if it so elects, to take title to and possession of such property prior to final judgment, as authorized by § 12-1155, and any persons having an interest in or lien upon the above described property shall be deemed to have waived their rights thereafter to object to the court's decision with respect to such issue, unless prior to that date they have filed in writing with the clerk of the court their objection thereto.
2. To consider the appointment of a special master to determine the compensation to be awarded for such property and the persons entitled thereto, unless written demand for a jury is filed with the court before the date of hearing, in which even the compensation to be awarded to the person filing such demand shall be ascertained by jury trial and not by special master.
3. Fixing the date and place at which the special master will hear and determine the compensation to be paid for such property and the person entitled thereto.
Notice is further given that all claims or demands for compensation because of the taking and condemnation of such property shall be filed with the above court before ...... (here insert a date fifteen days after the date above specified for the court hearing), or the compensation will be deemed waived.
Dated the ...... day of .......
....................
Clerk of the court"
B. Notice of the action shall also be given:
1. By posting a copy of the notice in conspicuous places on the real property sought to be condemned.
2. By filing a copy of the notice in the office of the clerk of the court in which such proceedings are pending.
3. By filing, in the same manner as lis pendens is filed, a copy of the notice in the office of the county recorder in each county in which any part of the real property is located.
C. The publication, posting and filing shall constitute legal and sufficient notice of the action to all persons having any interest in or lien upon the property described in the notice. Filing of the notice in the office of the county recorder shall be construction notice of the proceedings to all persons who subsequently acquired an interest in or lien upon the property, and plaintiff shall take all property condemned under this article free of the claims of such persons.
§ 12-1146. Waiver of certain rights by persons in interest; determination of issues; judgment on issues; appointment of guardian ad litem
A. All persons who have not filed written objections with the court prior to the time of the hearing specified in the notice prescribed by § 12-1145, shall be deemed to have waived the right to file objections as to the sufficiency and validity of the complaint, the action and the relief sought thereby, and of the right of plaintiff to take title and possession prior to final judgment, as authorized by § 12-1155. All persons who have not filed with the clerk of the court prior to the date of hearing specified in the notice prescribed in § 12-1145, written demand for trial by jury as to the amount of compensation to be awarded shall be deemed to have waived the right.
B. The court, at the time specified in the notice, after hearing and determining all issues of fact and law raised by the objections which have been filed, shall enter a final judgment with respect to such issues, and thereafter there shall remain for determination only the amount of the compensation to be paid and the persons entitled thereto.
C. If an infant or other person under legal disability does not appear in the proceedings by his duly authorized legal representative, the court shall appoint a guardian ad litem to represent such person's interest in the proceedings before the special master appointed as provided by § 12-1147.
§ 12-1147. Special master; duties; qualifications; compensation; oath; limitation upon powers
A. The court, at the time of the hearing, shall appoint a special master to fix the amount of damages and compensation for the taking and condemnation of the property described in the complaint, to determine the persons entitled thereto and to report such facts to the court.
B. The special master shall be a disinterested person not related to anyone having an interest in or lien upon the property sought to be condemned. The compensation of the special master shall not exceed fifteen dollars per day plus travel and subsistence expenses.
C. The special master immediately after appointment shall subscribe to an oath that to the best of his ability he will truly find and return the compensation for the taking and condemnation of the property and the persons entitled thereto.
D. This section and the succeeding sections of this article pertaining to the appointment, duties and powers of, and proceedings before, a special master shall not apply to any person who has filed a written demand for trial by jury as to the amount of compensation. The rights of such persons as to the amount of compensation shall be determined by jury trial and not by the special master.
§ 12-1148. Notice of hearing by special master
A. Immediately after being appointed and taking the oath, the special master shall send notice by registered mail to all persons who have appeared in the action, or to their attorneys of record, and to all others having any interest in or lien upon the real property sought to be condemned, as shown by the records of the office of the county recorder, and to guardians ad litem appointed pursuant to the provisions of § 12-1146. The notice shall be addressed to such persons at their respective last known addresses and shall be substantially in the following form:
"IN THE ................ COURT FOR THE ................ OF ..................
TO WHOM IT MAY CONCERN:
Notice is hereby given that .................... (here insert name of plaintiff) has filed a complaint in the above court to acquired by condemnation under the laws relating to the condemnation of real property for public works projects for .......... (here give a brief general description of the public works project for which the land is sought to be acquired), the following described land: (Here describe the land sufficiently for the identification thereof. The description may be by a plat or map).
All persons having an interest in or lien upon the above described property, for which compensation will be demanded, are hereby notified that all claims or demands for compensation by reason of the taking and condemnation of such property shall be filed in writing with said court before .................... (here insert date at least fifteen days after the date set for the court hearing in the notice specified in § 12-1145), and shall be deemed waived unless so filed, and that on .................... a hearing will be held by the special master at ...................... (insert time and place fixed by the court for such hearing) with respect to the amount of compensation to be paid for the property sought to be condemned, and the persons entitled thereto.
Dated ...................... day of ......................
.........................
Special master appointed by the court."
B. The special master shall also cause a copy of the notice to be posted in conspicuous places on the property sought to be condemned.
§ 12-1149. Hearing by special master
A. After notice by mailing and posting has been given as provided by § 12- 1148, the special master, on the date for hearing specified in the notice, shall proceed immediately to hear and determine the question of just compensation for the taking and condemnation of the property and the persons entitled to the compensation.
B. The special master may issue subpoenas, administer oaths to witnesses, receive evidence and have it recorded.
§ 12-1150. Admissibility of certain evidence before special master; effect of increased property value upon award
A. For the purpose of determining the value of the real property sought to be condemned and fixing just compensation therefor, the following evidence, in addition to other evidence which is relevant, material and competent, shall be admitted and considered relevant, material and competent by the special master:
1. Evidence that a building or improvement is unsafe or unsanitary or a public nuisance, or is in a state of disrepair, and of the cost to correct the condition, even though no action has been taken by local authorities to remedy the condition.
2. Evidence that any public body of the state, charged with the duty of abating or requiring the correction of nuisances or like conditions, or demolishing unsafe or unsanitary structures, issued an order directing the abatement or correction of such conditions existing with respect to the building or improvement or the demolition of the building or improvement, and of the cost which compliance with the order would entail.
3. Evidence of the last assessed valuation of the property for purposes of taxation and of affidavits or tax return made by the owner in connection with such assessment which reflect the value of the property, and income tax returns of the owner disclosing amounts deducted on account of obsolescence or depreciation of the property.
4. Evidence that the buildings and improvements are being used for illegal purposes or are so overcrowded as to be dangerous or injurious to the health, safety, morals or welfare of the occupants thereof, and the extent to which the rentals from such buildings or improvements are enhanced by reason of such use.
5. Evidence of the price and other terms upon a sale or the rent reserved and other terms of a lease or tenancy relating to the property or to similar property in the vicinity when the sale or leasing occurred or the tenancy existed within a reasonable time of the hearing.
B. The award of compensation shall not be increased by reason of an increase in the value of the property resulting from the public works project to be placed thereon.
C. No allowance shall be made for improvements begun on property after publication of the notice specified in § 12-1145, except upon good cause being shown.
§ 12-1151. Limitation on time for filing report of special master
The report of the special master shall be filed with the clerk of the court in which the action is pending within thirty days after the date of the master taking the oath, unless further time is granted by the court. The court shall grant additional time for filing the report only on a showing that the report cannot, with due diligence, be prepared within the time fixed.
§ 12-1152. Notice of filing report and of hearing objections to report; waiver of right to object
Upon filing the report by the special master, the court, without delay, shall fix a date for hearing objections filed thereto. Notice that the report has been filed, that all objections thereto shall be filed with the court within ten days after the date of mailing the notice, and that the court has fixed a certain date, which shall be stated therein, for the hearing of such objections, shall be given by sending a copy of the notice by registered mail to all persons who have appeared in the action, or their attorneys of record, at their last known addresses. After ten days subsequent to mailing the notice, all objections to the report shall be deemed waived by all persons who have not filed written objections with the court.
§ 12-1153. Final judgment; hearing objections to findings or report; proceedings upon rejection of report; vesting of property
A. If no objections are filed to the special master's report, the court, but only on motion of plaintiff unless title to the property has vested in plaintiff, shall enter a final judgment fixing the compensation to be paid for the property and the persons entitled thereto. If objections are filed to the special master's report, the court on the date specified in the notice provided for by § 12-1152, shall hear and determine such questions of law and fact as are raised by the exceptions, and may approve, disapprove or modify the special master's findings or may reject the special master's report in its entirety.
B. If the special master's report is rejected in its entirety, the court shall at once appoint another special master in the same manner the first special master was appointed, and he shall have the same powers and duties as the special master first appointed, except that notice of the time for filing claims and the hearing thereon may be given by registered mail to all persons who have appeared in the proceedings, or their attorneys of record, at their last known addresses, and no other notice shall be necessary.
C. If the court approves the special master's report with or without modifications, the court, but only on motion of plaintiff unless title to the property has previously vested in plaintiff, shall enter a final judgment fixing the compensation to be paid for the property and the persons entitled thereto.
D. If title to the property has not previously been vested in plaintiff, the title and right to possession of the property shall vest in plaintiff immediately upon entry of the final judgment and upon deposit in court by plaintiff of the amount of the judgment fixed by the court as the compensation for such property. Upon entry of the judgment and vesting of title, the court shall designate the day, not exceeding thirty days thereafter except upon good cause shown, on which the parties in possession of the property shall be required to surrender possession to plaintiff.
§ 12-1154. Filing certified copy of judgment
A. Upon rendition of final judgment vesting title in plaintiff, the clerk of the court shall make and certify, under the seal of the court a copy or copies of the judgment, which shall be recorded in the office of the county recorder, and the recording shall constitute notice to all persons of the contents thereof.
B. A copy of the judgment certified by the clerk of the court shall be admissible in evidence in any judicial proceedings.
§ 12-1155. Application by plaintiff to take possession; notice of hearing; money deposit; bond in lieu of deposit; judgment for deficiency
A. The plaintiff may at any time after determination of the issues as provided in § 12-1146, if the court at such time found that the use for which the property is sought to be condemned is a necessary use, make application to the court for an order permitting plaintiff to take possession of and use the property sought to be condemned for the purposes prayed for.
B. Upon filing the application a time for the hearing thereof shall be fixed and notice thereof served upon the parties in interest by personal service within the state, or by publication if they reside without the state, in such manner as the court may direct.
C. On the day of the hearing, the court shall receive evidence as to the probable damages to each owner, possessor or person having an interest in each parcel of real property sought to be condemned, and may direct that upon a deposit of money equal to the amount of such probable damage so found to each person in interest, plaintiff shall be let into the possession and full use of the parcels of real property as described in the order for the purposes therein specified.
D. Monies so paid shall be deposited with the clerk of the court, and held by him to the use and benefit of each person having an interest in each parcel of real property sought to be condemned, subject to final judgment upon trial of the action, and held also as a fund to pay any further damages and costs recovered in the action as well as all damages sustained by defendant if for any cause the property is not finally taken for public use. The clerk of the court shall be liable to plaintiff for the deposit.
E. The parties may stipulate as to the amount of deposit, or for a bond from plaintiff in lieu of the deposit. The stipulation or evidence of the deposit shall not be introduced in evidence or used to the prejudice of any party in interest on the trial of the action.
F. The ultimate amount of compensation shall be fixed in the manner specified in this article. If the amount fixed exceeds the amount deposited by plaintiff, the court shall enter judgment against plaintiff in the amount of the deficiency, together with interest at the rate of six per cent per annum on the deficiency, from the date of the order of the court permitting plaintiff to take possession as provided by this section, but subject to abatement for use, income, rents or profits derived from the property by the owner thereof subsequent to the date of the order. The court shall order plaintiff to deposit the amount of the deficiency in court for the use and benefit of the person entitled thereto.
§ 12-1156. Right to dismiss
At any time prior to vesting title to the property in the plaintiff, the plaintiff may withdraw or dismiss the plaintiff's complaint with respect to any or all the property described in the complaint, except that if the plaintiff causes the complaint to be dismissed without prejudice before payment of the compensation and damages awarded the defendant by the court or jury, the plaintiff shall not initiate any eminent domain proceeding with respect to the same property for the same or a related project for at least two years after the date of the verdict or judgment.
§ 12-1157. Effect of vesting of title
Upon vesting of title to any property in plaintiff, all the right, title and interest of all persons having an interest therein or lien thereupon shall be divested immediately, and such persons thereafter shall be entitled only to receive compensation for the property.
§ 12-1158. Effect of payment into court; security; disbursement
A. The payment into court by plaintiff of the amount of the judgment, or the deposit in court of the amount fixed and determined as provided in § 12- 1155, shall be deemed a payment or deposit of money for the use of the persons entitled thereto. The payment or deposit shall constitute a payment to the persons entitled thereto to the extent of the monies so paid or deposited in the court.
B. Any such payment shall be as valid and effectual in all respects as if made by plaintiff directly to the person entitled thereto, or in the case of a person under legal disability, as if made to his guardian, whether or not:
1. Such person or his whereabouts is known or unknown.
2. Such person is under a legal disability.
3. There are adverse or conflicting claims to such awards.
C. The money paid into court shall be secured in the manner directed by the court, and shall be paid to the persons found entitled thereto as provided by the final judgment of the court.
§ 12-1159. Action to recover award paid to wrong person
If an award is paid to a person not entitled thereto, the sole recourse of the person entitled to the award is against the person to whom it has been paid. In such event the person entitled to the award may bring an action to recover the award, with interest and costs, as money had and received to his use by the person to whom the award was paid.
§ 12-1160. Appeal; stay of proceedings; bond
A. Any time within thirty days from filing an interlocutory or final order or judgment by the court, any person or persons of record in the action who have filed exceptions at any stage of the action within the time and in the manner specified, may appeal therefrom, but only with respect to those questions or issues which were raised by the exceptions.
B. The taking of an appeal shall not operate to stay the action, except when the person or persons appealing have obtained a stay of execution of the judgment or order appealed from. In such event the proceedings shall be stayed only with respect to the person or persons appealing and as to their respective interests in the action. Upon taking an appeal, the action shall be deemed severed as to the person or persons appealing and their respective interests in the action.
C. An interlocutory or final order or judgment shall be final and conclusive upon all persons affected thereby who have not appealed within the time prescribed by this section.
D. Any plaintiff, other than a corporation authorized to transact business in this state, may appeal without giving bond, but any other person or persons appealing shall give bond with good and sufficient surety to be approved by the court, conditioned that the party appealing will pay all costs taxed against such party on the appeal.
§ 12-1161. Costs
If plaintiff, prior to making the award, has tendered to an interested person for his real property, or deposited in court for the property, an amount which the interested person refused to accept or agree to as just compensation, all costs shall be assessed against such person if the amount tendered or deposited is equal to or in excess of the award fixed or confirmed by the court with respect to such parcel of real property.
§ 12-1162. Supplemental nature of article; procedure
A. The powers conferred by this article shall be additional and supplemental to and not in substitution for the power conferred by any other law. No other law pertaining to eminent domain is repealed by this article in whole or in part. Eminent domain may be exercised under this article even though another law may provide for the exercise thereof for like purposes, and shall be operative without regard to the requirements, restrictions or procedural provisions of any other law.
B. Procedure not prescribed in this article shall be the procedure otherwise prescribed by law of the state.
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