Metropolitan St Louis Sewer District (MSD) Black Creek Sanitary Sewer Project
The Metropolitan St Louis Sewer District (MSD) is proposing to construct nearly 2.5 miles of sanitary sewer from I-170 to Heatherwood Drive in Olivette. MSD will be acquiring easements from some property owners to build this project. Affected owners can expect to receive a written offer from MSD or one of its agents.
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So, what happens next?
When a utility needs to cross over private property, it will typically seek an easement. An easement is the right to use property, while ownership of the property remains with the original owner. While the United States and Missouri constitutions allow for the use of eminent domain for utility easements, they stipulate that landowners must be paid “just compensation” for any damages to their property.
With this type of project, they also stipulate that landowners must be paid “just compensation” for their property.
The Denlow & Henry law firm has represented thousands of property owners in eminent domain cases in over 56 counties throughout Missouri for more than 35 years.
Denlow & Henry principal Paul Henry, said the firm has seen every kind of condemnation case imaginable, from individual landowners to large corporations and properties ranging from single family residences, retail, industrial and agricultural.
How does eminent domain work?
The legal process used to take utility easements is called “condemnation” and is controlled by Missouri statutes and court rules, including:
- A written notice to property owners advising them of the taking sent at least 60 days before court proceedings.
- A written offer to the property owner that includes an appraisal or explanation of the offer sent at least 30 days before court proceedings.
- If there is not settlement, a court case is filed in the county where the property is located.
- The court appoints three residents of the county so serve as “commissioners” who will view the property and hold a hearing so that both the agency and the property owners can present evidence of value.
- The commissioners will file a report with the court establishing the amount of payment.
- After the agency pays the amount of the award established by the commissioners, it has the right to take possession of the property being condemned, so work on the project can begin.
- In some cases, there may be a jury trial.
Henry said the primary disagreement in most condemnation cases is about money, but in some cases the more important issue is to get the agency to agree to changes in the project to minimize negative impacts. In cases where a property owner must leave the property, there are relocation issues and expenses that may be reimbursable.
Landowners who receive an notice of taking or an offer from an agency should not sign anything until they have a lawyer review the documents, because there is no way to undo the transaction after an agreement has been reached. In fact, property owners should not speak to a government representative or appraiser about their property before seeking legal advice. In condemnation, property owners receive a one-time payment for all of the impacts to a property that’s being taken or affected by a project. It is vitally important that an attorney with years of experience, knowledge and skills be consulted because there is no second chance after the acquisition is completed.
The attorneys at Denlow & Henry will initially consult with property owners for no charge. This will often include a visit to the property to assess the situation.
What are property owners owed?
Simply stated, a property owner is entitled to “just compensation” which means the fair market value of their property. However, the rules of valuation in the condemnation setting can be complicated. When a project only requires and easement or a portion of a property, there may be damages to the portion that remains. These are called consequential or severance damages. Depending on the circumstances, consequential damages may be significant. While a land value disagreement is usually straight-forward, consequential damages are typically more complicated and may not be as apparent to someone who does not have experience in condemnation cases.
Again, it is important that anyone who receives an eminent domain offer not sign anything until after consulting with a lawyer, because there is no way for an agreement to be undone. There is only one opportunity to be compensated for a taking and property owners should take time to carefully consider what they are owed.
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