An Act To Base Value in Eminent Domain Takings of Businesses on Going Concern Value
Maine Legislature, Session 123, LD 0960
Committee: Judiciary
Sponsors: GILES, FLOOD, ROSEN, STRANG BURGESS
Amends: 23 MRSA §151, 23 MRSA §154-G, 30-A MRSA §3101, 30-A MRSA §5204

Legislative Document 
No. 960 
H.P.720 
House of Representatives, March 1,2007 
An Act To Base Value in Eminent Domain Takings of Businesses on 
Going Concern Value 
Reference to the Committee on Judiciary suggested and ordered printed. 
Presented by Representative GILES of Belfast. 
11/~ 
/J7.7JldC~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: FLOOD of Winthrop, ROSEN of Bucksport, STRANG 
BURGESS of Cumberland, TIllBODEAU of Winterport, Senator: SA V AGE of Knox. 
Printed on recycled puper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 23 MRSA §151, as amended by PL 1975, c. 771, §235, is further amended 
to read: 
§151. Purposes 
The purposes of this subchapter are to establish an independent, impartial board 
composed of persons well learned in the elements that may be properly considered in the 
detennination of fair market value of property taken in condemnation proceedings; to 
empower such board to make awards of just compensation in highway condemnations 
and to establish before such board a procedure designed to afford to any interested party 
lOan opportunity to appear, present his that party's case and have his that party's rights fully 
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protected without the necessity for retaining professional assistance; to determine awards 
of just compensation in municipal condemnations under Title 30-A, sections 3101 and 
5204; to thus provide to any interested party a prompt, efficient and inexpensive method 
of detennination of just compensation and prompt payment of all or part of such 
compensation without prejudice to any right of appeal allowed. 
Sec. 2. 23 MRSA §154-G is enacted to read: 
§154-G. Compensation for loss or impairment of going concern value 
1. Displacement of business. If the taking of property under this chapter involves 
the displacement of a business, the owner may request valuation under this section to 
detennine just compensation that includes loss or impainnent of the going concern value 
of the business. 
2. Elements. In addition to the value detennined under section 154, compensation to 
the owner of a business conducted on the property taken includes compensation for loss 
or impainnent of the going concern value of the business if the owner proves that: 
A. The loss or impainnent cannot reasonably be prevented by a relocation of the 
business or by taking steps and adopting procedures that a reasonably prudent person 
would take and adopt in preserving the going concern value; 
B. The loss or impainnent will not be included in moving and relocation lli!Y.illents 
under section 244; and 
C. The loss or impainnent will not be duplicated in the compensation awarded to Jb~ 
owner. 
3. Loss or impairment of going concern value; definition. For the purpo~;e:; of this 
section, "loss or impainnent of the going concern value" means the Q~nefit~_Jb£lj '!o'!.crue t9 
a business as a result_of its location, reputation for dependability, skill or~:,tl!(lJity or anv 
other circumstances resulting in probable retention of. old or acquisition of_ne\\ 
patronage. 
4. Procedure. The owner and the department shall each select a licensed ap12r~15er 
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to calculate the amount of additional compensation due under this section._JiJhe 
appraisers agree, the additional amount must be added to the department's offer of just 
fgmp-~!!~jlQn. If the appraisers do not agr~e but the giff~r.~l~S;_.ildl9..t lltQEe th<'\1lJQ'Z'o of 
the higher appraisal, th~ average of the 2 appraisals must be added to the department's 
offer of just compensation. If the appraisers do not agree and the difference is more than 
10% of the higher appraisal, the owner may have the matter referred to the State Claims 
Commission for assessment of the damage. 
Sec. 3. 30-A MRSA §3101, sub-§5 is enacted to read: 
5. Just compensation for established businesses. Just compensation paid by the 
municipality must include compensation for damages for the loss or impairment of the 
going concern value of a business established for more than 3 years that is located on land 
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that is the subject of the proceedings or located on adjoining lands if that business owns 
the land that is the subject of the proceedings. Title 23, section 154-G governs the 
awardiMSJf such cOl!!Pensation. 
Sec. 4. 30-A MRSA §5204, sub-§12 is enacted to read: 
IS 
12. Just compensation for certain businesses. For purposes of eminent domain 
proceedings, just compensation for a business established for more than 3 years that is 
located on land that is the subject of the proceedings or located on adjoining lands if that 
business owns the land that is the subject of the proceedings must include compensation 
for the damages for the loss or impairment of the going concern value of the business. 
Title 23, section 154-G governs the awarding of such compensation. 
SUMMARY 
This bill establishes the criteria for determination of compensation for loss or 
impairment of the going concern value of a business when the property of a business is 
taken by the Department of Transportation or a municipality exercising its eminent 
domain power. The burden is on the business to prove the loss. The analysis takes place 
at the request of the owner of the displaced business. The process requires both the 
owner and the governmental authority to each select a licensed appraiser to make the 
determination of the loss or impairment of the going concern value. If they agree, that 
additional compemation must be added to the compensation offer. If they disagree but 
are within 10% of each other, the average appraisal is used. If they disagree by more than 
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10%, the owner may ask the State Claims Commission to apply the same analysis when 
the owner appeals the offer. 
This process applies to compensation to be paid by 
municipalities when exercising eminent domain authority under general authorization 
provisions and for economic development purposes. 
This bill amends the duties of the State Claims Commission to include determination 
of just compensation in 2 categories of municipal condemnations: 
general eminent 
domain authority under the Maine Revised Statutes, Title 30-A, chapter 151 and 
community development under Title 30-A, chapter 205.