4.4. SR 05-07-2018
Request for Action
To Item Number
Mayor and City Council 4.4
Agenda Section Meeting Date Prepared by
Consent May 7, 2018 Tina Allard, City Clerk
Item Description Reviewed by
Tax Forfeitures Cal Portner, City Administrator
Reviewed by
Zack Carlton, Planning Manager
Action Requested
Adopt, by motion, the following:
1. Resolution Regarding Classification of Certain Tax Forfeited Land Located within the City of Elk
River and Specifying the Parcels to be Sold
2. Resolution Approving Acquisition of Real Property and Dispensing with Statutory Requirements for
Review by Planning Commission.
Background/Discussion
Sherburne County notified us about parcels forfeited for non-payment of taxes. Options are approve for
private sale to adjacent property owners, approve for public auction, or request conveyance to the city.
Metes and Bounds Lot (Not Platted)
PID 75-116-2202 is zoned single family residential, is land locked, and does not meet the minimum 2 ½
acre lot size requirement. The parcel holds no benefit to the city and staff does not recommend
acquisition.
Twin Lakes Estates
PID 75-735-0020 was part of the Twin Lakes Estates subdivision. The parcel includes city stormwater
infrastructure and an area needed for the future extension of Twin Lakes Parkway, ultimately creating a
connection through Miske Meadows subdivision all the way to Cleveland Street. The parcel is needed to
establish right-of-way for the roadway connection.
Review Period
This item must be acted on by May 11, 2018.
Financial Impact
There will be nominal recording fees and state deed taxes
Attachments
Resolution Regarding Classification of Certain Tax Forfeited Land
Resolution Approving Acquisition & Dispensing with Statutory Requirements for Planning
Commission Review
Tax Forfeiture Basics
Parcel Maps
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
Resolution 18-____
A Resolution of the City of Elk River Regarding Classification of Certain Tax Forfeited
Land Located within the City of Elk River and Specifying the Parcels to be Sold
WHEREAS, Sherburne County has determined certain parcels shall be classified as non-conservation land
and be put out for public sale; and
WHEREAS, Minnesota Statutes, Section 282.01 requires that the classification or reclassification and sale
must first be approved by the city in which the lands are located; and
WHEREAS, the Elk River City Council approves the following:
PID
75-116-2202 Private sale to adjacent property owners
75-735-0020
Twin Lakes Estates Conveyance to city as right-of-way for a roadway connection
Outlots B & C
NOW, THEREFORE, BE IT RESOLVED by the City Council of Elk River, Minnesota, as follows: the
City Council hereby approves the classification of the above-described land as non-conservation, authorizes
the completion and submittal of the Certified of County Board Forfeited Lands with the land purposes
described above.
th
Passed and adopted this 7 day of May 2018.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
Resolution 18-____
A Resolution of the City of Elk River Approving Acquisition of Real Property and
Dispensing with Statutory Requirements for Review by Planning Commission
WHEREAS, Sherburne County, per Minn. Stat. §282 has certified certain lands within the City of Elk
River as tax forfeited; and
WHEREAS, PID 75-735-0020 is needed to protect right-of-way:
WHEREAS, the city has an opportunity to acquire said parcels through the tax-forfeiture laws of the
State of Minnesota; and
WHEREAS, Minn. Stat. §462.356, subd. 2 requires the Planning Commission review the city’s proposed
acquisitions and dispositions of property; and
WHEREAS, Minn. Stat. §462.356, subd. 2 provides for an exception from the Planning Commission
review requirements upon a 2/3 vote of the City Council dispensing with the requirement and funding that
the acquisition of the property has no relationship to the comprehensive municipal plan.
NOW, THEREFORE, BE IT RESOLVED by the City Council, of the City of Elk River, Minnesota
as follows:
1. The City Council finds that the acquisition of said property has no relationship to the
comprehensive municipal plan.
2. Review by the Planning Commission of the acquisition of said property is hereby dispensed with.
3. The acquisition as described in this resolution is hereby approved and the Mayor and the City Clerk
are authorized and directed to execute all documents, and take all appropriate measures, to acquire
said property as allowed by the tax forfeiture laws of the State of Minnesota and as further
identified in this Resolution.
th
Passed and adopted this 7 day of May, 2018.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
General Information Regarding Tax Forfeiture Process
The tax forfeiture process occurs as the result of uncollected property taxes. After due process and
notice, the title to the land and buildings is held by the State in trust for the local taxing districts. The
County acts as the agent for the State and their main responsibility is to manage and maintain the
inventory of properties by “encouraging the best use of the lands, recognizing that some lands in
public ownership should be retained and managed for public benefits, while other lands should be
returned to private ownership.” The end goal is to return the parcels of tax-forfeited land to the
property tax roles as productive taxable property or put them to a public use or public purpose.
The county notifies the city of tax forfeited properties and the city needs to act, via resolution, on
the classification of whether to approve or deny the property being sold within 60 days.
The city has the option to keep conservation property (farm-land) that may be purchased at less than
market value as negotiated between the county and the city as follows:
1. creation or preservation of wetlands;
2. drainage or storage of storm water under a storm water management plan;
3. preservation, or restoration and preservation, of the land in its natural state.
Conservation land would be put under a restrictive covenant and released from these use restrictions
30 years from the date the deed was acknowledged.
The city has the option to keep non-conservation property (non-farmland) as follows:
1. Public Purpose: The city would have to pay the appraised market value of public purpose land
as determined by the county auditor (and does not require a formal appraisal) and would
receive full, clear title to the land.
In 2010 there were legislative changes that allowed new methods of acquisition for
correcting blight and developing affordable housing at a price that may be less than
market value as negotiated between the county and the city.
2. Public Use: Receive the land for free for certain specified uses with an agreement that the
lands may only be used for a specified public use for a certain amount of time. These uses
are:
a road, or right-of-way for a road;
a park that is both available to, and accessible by, the public that contains amenities
such as campgrounds, playgrounds, athletic fields, trails, or shelters;
trails for walking, bicycling, snowmobiling, or other recreational purposes, along with
a reasonable amount of surrounding land maintained in its natural state;
transit facilities for buses, light rail transit, commuter rail or passenger rail, including
transit ways, park-and-ride lots, transit stations, maintenance and garage facilities, and
other facilities related to a public transit system;
public beaches or boat launches;
public parking;
civic recreation or conference facilities;
public service facilities such as fire halls, police stations, lift stations, water towers,
sanitation facilities, water treatment facilities, and administrative offices;
outlots that developers promised but failed to convey to the city under a developer’s
agreement (via a quit claim deed); and
parcels that associations of common interest communities were entitled to per
written agreement but that forfeited without conveyance.
For acquisition for a public use, the city would receive a use deed that specifies the uses for which
the city may use the land. If the city does not put the land to the specified use within 3 years, it will
automatically revert back to the state. If the city wishes to change the use at a later date, a public
hearing and approval is required from the Commissioner of Revenue and the County Board. One
exception to note is that the city could acquire property for a park or trail but not necessarily have
the trail in place within the 3 years as long as the trail is in an adopted plan such as the city’s
Comprehensive Parks Plan. The County Board must approve, via resolution, each request by the city
to acquire tax-forfeited land free of charge.
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