4.4 SR 06-01-2020City of
Elk*
River
Request for Action
To
Item Number
Mayor and City Council
4.4
Agenda Section
Meeting Date
Prepared by
Consent
June 1, 2020
Tina Allard, City Clerk
Item Description
Reviewed by
Tax Forfeiture
Cal Portner, City Administrator
Reviewed by
Action Requested
Adopt, by motion, a resolution regarding classification of certain tax forfeited land located within the city
and specifying the parcel be sold.
Background/Discussion
Sherburne County has notified the city of a parcel forfeited for non-payment of taxes. Options are to
approve for private sale to adjacent property owners, approve for public auction, or request conveyance to
the city.
Parcel ID 75-002-4100 is 20 acres and fully located in a wetland. The parcel holds no benefit to the city and
staff does not recommend acquisition. Staff recommends approving for private sale to adjacent property
owners.
Review Period
This item must be acted on by July 10, 2020.
Financial Impact
N/A
Attachments
Maps
Resolution
■ Tax Forfeiture Basics
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional,` 01 e
service, and community engagement that encourages and inspires pi ospei ly INAWRE1
",, i3vY Beacon Sherburne County, MN
Overview
Legend
❑ Parcels
Streams
Parcel ID 75-002-4100 Alternate ID n/a Owner Address
Sec/Twp/Rng 2-32-26 Class 670-Tax Forfeited -Real Estate/PILTorSev Min
Property Address Acreage 20.24
District ELK RIVER C ITY
Brief Tax Description n/a
(Note: Not to be used on lega I documents)
Disclaimer: Every attempt has been made to ensure that the information contained on this web site is valid at the time of publication. Sherburne County reserves the right to make additions,
changes, or corrections at anytime and without notice. Additionally, Sherburne County disclaims any and all liability for damages incurred directly or indirectly as a result of errors, omissions or
discrepancies and is not responsible for misuse or misinterpretation. Data is updated periodically. For the most current information contact the appropriate county department.
Disclaimer forStaoud Parcels: Sherburne County information about St Cloud properties are limited to classification and value. Anyquestions regarding additional information please contact
the City of St Cloud's assessor office.
Date created:5/1V2020
Last Data Uploaded: 5/10/202010:12:38 PM
Developed by4" Schneider
GEOSPATIAL
'TO
, ; Beacof l Sherburne County, MN
Parcel ID 75-002-4100 Alternate ID n/a
Sec/Twp/Rng 2-32-26 Class 670-Tax Forfeited -Real Estate/PILTorSev Min
Property Address Acreage 20.24
District ELK RIVER CITY
Brief Tax Description n/a
(Note: Not to be used on legal documents)
Date created: 5/27/2020
Last Data Uploaded: 5/27/20201:43:27AM
Developed by" Schneider
OEDSPATIAL
Overview
Legend
Roads
Streams
Owner Address
City of
Elk
River
City of Elk River
City Council
Resolution 20-
A Resolution of the City Council 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 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 PID 75-002-4100 for private sale to
adjacent property owners.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, Minnesota, as follows: the City Council hereby approves the classification of the
above -described land as non -conservation, and authorizes completion and submittal of the
Sherburne County Resolution certifying county board forfeited lands.
Passed and adopted this 1" day of June 2020.
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:
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;
0 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.