HF 1538

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/25/2021 03:19pm

A bill for an act
relating to local government; permitting counties to convey certain nonconforming
real property; amending Minnesota Statutes 2020, section 373.01, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 373.01, subdivision 1, is amended to read:

Subdivision 1.

Public corporation; listed powers.

(a) Each county is a body politic
and corporate and may:

(1) Sue and be sued.

(2) Acquire and hold real and personal property for the use of the county, and lands sold
for taxes as provided by law.

(3) Purchase and hold for the benefit of the county real estate sold by virtue of judicial
proceedings, to which the county is a party.

(4) Sell, lease, and convey real or personal estate owned by the county, and give contracts
or options to sell, lease, or convey it, and make orders respecting it as deemed conducive
to the interests of the county's inhabitants.

(5) Make all contracts and do all other acts in relation to the property and concerns of
the county necessary to the exercise of its corporate powers.

(b) No sale, lease, or conveyance of real estate owned by the county, except the lease
of a residence acquired for the furtherance of an approved capital improvement project, nor
any contract or option for it, shall be valid, without first advertising for bids or proposals
in the official newspaper of the county for three consecutive weeks and once in a newspaper
of general circulation in the area where the property is located. The notice shall state the
time and place of considering the proposals, contain a legal description of any real estate,
and a brief description of any personal property. Leases that do not exceed $15,000 for any
one year may be negotiated and are not subject to the competitive bid procedures of this
section. All proposals estimated to exceed $15,000 in any one year shall be considered at
the time set for the bid opening, and the one most favorable to the county accepted, but the
county board may, in the interest of the county, reject any or all proposals.

(c) Sales of personal property the value of which is estimated to be $15,000 or more
shall be made only after advertising for bids or proposals in the county's official newspaper,
on the county's website, or in a recognized industry trade journal. At the same time it posts
on its website or publishes in a trade journal, the county must publish in the official
newspaper, either as part of the minutes of a regular meeting of the county board or in a
separate notice, a summary of all requests for bids or proposals that the county advertises
on its website or in a trade journal. After publication in the official newspaper, on the website,
or in a trade journal, bids or proposals may be solicited and accepted by the electronic selling
process authorized in section 471.345, subdivision 17. Sales of personal property the value
of which is estimated to be less than $15,000 may be made either on competitive bids or in
the open market, in the discretion of the county board. "Website" means a specific,
addressable location provided on a server connected to the Internet and hosting World Wide
Web pages and other files that are generally accessible on the Internet all or most of a day.

(d) Notwithstanding anything to the contrary herein, the county may, when acquiring
real property for county highway right-of-way, exchange parcels of real property of
substantially similar or equal value without advertising for bids. The estimated values for
these parcels shall be determined by the county assessor.

(e) Notwithstanding anything in this section to the contrary, the county may, when
acquiring real property for purposes other than county highway right-of-way, exchange
parcels of real property of substantially similar or equal value without advertising for bids.
The estimated values for these parcels must be determined by the county assessor or a private
appraisal performed by a licensed Minnesota real estate appraiser. For the purpose of
determining for the county the estimated values of parcels proposed to be exchanged, the
county assessor need not be licensed under chapter 82B. Before giving final approval to
any exchange of land, the county board shall hold a public hearing on the exchange. At least
two weeks before the hearing, the county auditor shall post a notice in the auditor's office
and the official newspaper of the county of the hearing that contains a description of the
lands affected.

(f) If real estate or personal property remains unsold after advertising for and
consideration of bids or proposals the county may employ a broker to sell the property. The
broker may sell the property for not less than 90 percent of its appraised market value as
determined by the county. The broker's fee shall be set by agreement with the county but
may not exceed ten percent of the sale price and must be paid from the proceeds of the sale.

(g) A county or its agent may rent a county-owned residence acquired for the furtherance
of an approved capital improvement project subject to the conditions set by the county board
and not subject to the conditions for lease otherwise provided by paragraph (a), clause (4),
and paragraphs (b), (c), (d), (f), and (h).

(h) In no case shall lands be disposed of without there being reserved to the county all
iron ore and other valuable minerals in and upon the lands, with right to explore for, mine
and remove the iron ore and other valuable minerals, nor shall the minerals and mineral
rights be disposed of, either before or after disposition of the surface rights, otherwise than
by mining lease, in similar general form to that provided by section 93.20 for mining leases
affecting state lands. The lease shall be for a term not exceeding 50 years, and be issued on
a royalty basis, the royalty to be not less than 25 cents per ton of 2,240 pounds, and fix a
minimum amount of royalty payable during each year, whether mineral is removed or not.
Prospecting options for mining leases may be granted for periods not exceeding one year.
The options shall require, among other things, periodical showings to the county board of
the results of exploration work done.

(i) Notwithstanding anything in this subdivision to the contrary, the county may, when
selling real property owned in fee simple that cannot be improved because of noncompliance
with local ordinances regarding minimum area, shape, frontage, or access, proceed to sell
the nonconforming parcel without advertising for bid. At the county's discretion, the real
property may be restricted to sale to adjoining landowners or may be sold to any other
interested party. The property shall be sold to the highest bidder, but in no case shall the
property be sold for less than 90 percent of its fair market value as determined by the county
assessor. All owners of land adjoining the land to be sold shall be given a written notice at
least 30 days before the sale. This paragraph shall be liberally construed to encourage the
sale of nonconforming real property and promote its return to the tax roles.

new text begin (j) Notwithstanding anything in this subdivision to the contrary, the county may offer a
free conveyance of nonconforming real property to adjoining landowners subject to the
following conditions:
new text end

new text begin (1) the nonconforming parcel of real property must be five acres or less;
new text end

new text begin (2) the landowner must have acquired the landowner's parcel prior to December 31,
1960;
new text end

new text begin (3) the conveyance must be restricted to adjoining or surrounding parcels of real property;
new text end

new text begin (4) the landowner's parcel must adjoin two or more sides of the county's nonconforming
real property; and
new text end

new text begin (5) the landowner must not owe delinquent property taxes on the landowner's parcel.
new text end

new text begin This paragraph shall be liberally construed to encourage the transfer of nonconforming real
property and promote its return to the tax rolls.
new text end