1.1                          A bill for an act 
  1.2             relating to transportation; authorizing metropolitan 
  1.3             council to expand highway corridor uses for money from 
  1.4             its right-of-way acquisition loan fund; amending 
  1.5             Minnesota Statutes 1994, section 473.167, subdivision 
  1.6             2a; Minnesota Statutes 1995 Supplement, section 
  1.7             473.167, subdivision 2. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.10  473.167, subdivision 2, is amended to read: 
  1.11     Subd. 2.  [LOANS FOR ACQUISITION.] (a) The council may make 
  1.12  loans to counties, towns, and statutory and home rule charter 
  1.13  cities within the metropolitan area for the purchase of property 
  1.14  within the right-of-way of a state trunk highway shown on an 
  1.15  official map adopted pursuant to section 394.361 or 462.359 or 
  1.16  for the purchase of property within the proposed right-of-way of 
  1.17  a principal or intermediate arterial highway designated by the 
  1.18  council as a part of the metropolitan highway system plan and 
  1.19  approved by the council pursuant to subdivision 1.  The loans 
  1.20  shall be made by the council, from the fund established pursuant 
  1.21  to this subdivision, for purchases approved by the council.  The 
  1.22  loans shall bear no interest. 
  1.23     (b) The council shall make loans only: 
  1.24     (1) to accelerate the acquisition of primarily undeveloped 
  1.25  property when there is a reasonable probability that the 
  1.26  property will increase in value before highway construction, and 
  2.1   to update an expired environmental impact statement on a project 
  2.2   for which the right-of-way is being purchased; 
  2.3      (2) to avert the imminent conversion or the granting of 
  2.4   approvals which would allow the conversion of property to uses 
  2.5   which would jeopardize its availability for highway 
  2.6   construction; or 
  2.7      (3) to advance planning and environmental activities on 
  2.8   highest priority major metropolitan river crossing projects, 
  2.9   under the transportation development guide chapter/policy plan; 
  2.10  or 
  2.11     (4) to take advantage of open market opportunities when 
  2.12  properties become available for sale, provided all parties 
  2.13  involved are agreeable to the sale and funds are available.  
  2.14     (c) The council shall not make loans for the purchase of 
  2.15  property at a price which exceeds the fair market value of the 
  2.16  property or which includes the costs of relocating or moving 
  2.17  persons or property.  The eminent domain process may be used to 
  2.18  settle differences of opinion as to fair market value, provided 
  2.19  all parties agree to the process. 
  2.20     (d) A private property owner may elect to receive the 
  2.21  purchase price either in a lump sum or in not more than four 
  2.22  annual installments without interest on the deferred 
  2.23  installments.  If the purchase agreement provides for 
  2.24  installment payments, the council shall make the loan in 
  2.25  installments corresponding to those in the purchase agreement.  
  2.26  The recipient of an acquisition loan shall convey the property 
  2.27  for the construction of the highway at the same price which the 
  2.28  recipient paid for the property.  The price may include the 
  2.29  costs of preparing environmental documents that were required 
  2.30  for the acquisition and that were paid for with money that the 
  2.31  recipient received from the loan fund.  Upon notification by the 
  2.32  council that the plan to construct the highway has been 
  2.33  abandoned or the anticipated location of the highway changed, 
  2.34  the recipient shall sell the property at market value in 
  2.35  accordance with the procedures required for the disposition of 
  2.36  the property.  All rents and other money received because of the 
  3.1   recipient's ownership of the property and all proceeds from the 
  3.2   conveyance or sale of the property shall be paid to the 
  3.3   council.  If a recipient is not permitted to include in the 
  3.4   conveyance price the cost of preparing environmental documents 
  3.5   that were required for the acquisition, then the recipient is 
  3.6   not required to repay the council an amount equal to 40 percent 
  3.7   of the money received from the loan fund and spent in preparing 
  3.8   the environmental documents.  
  3.9      (e) The proceeds of the tax authorized by subdivision 3 and 
  3.10  distributed to the right-of-way acquisition loan fund pursuant 
  3.11  to subdivision 3a, paragraph (a), all money paid to the council 
  3.12  by recipients of loans, and all interest on the proceeds and 
  3.13  payments shall be maintained as a separate fund.  For 
  3.14  administration of the loan program, the council may expend from 
  3.15  the fund each year an amount no greater than three percent of 
  3.16  the amount of the proceeds distributed to the right-of-way 
  3.17  acquisition loan fund pursuant to subdivision 3a, paragraph (a), 
  3.18  for that year. 
  3.19     Sec. 2.  Minnesota Statutes 1994, section 473.167, 
  3.20  subdivision 2a, is amended to read: 
  3.21     Subd. 2a.  [HARDSHIP ACQUISITION AND RELOCATION.] (a) The 
  3.22  council may make hardship loans to acquiring authorities within 
  3.23  the metropolitan area to purchase homestead property located in 
  3.24  a proposed state trunk highway right-of-way or project, and to 
  3.25  provide relocation assistance.  Acquiring authorities are 
  3.26  authorized to accept the loans and to acquire the property. 
  3.27  Except as provided in this subdivision, the loans shall be made 
  3.28  as provided in subdivision 2.  Loans shall be in the amount of 
  3.29  the appraised fair market value of the homestead property plus 
  3.30  relocation costs and less salvage value.  Before construction of 
  3.31  the highway begins, the acquiring authority shall convey the 
  3.32  property to the commissioner of transportation at the same price 
  3.33  it paid, plus relocation costs and less its salvage value. 
  3.34  Acquisition and assistance under this subdivision must conform 
  3.35  to sections 117.50 to 117.56.  
  3.36     (b) The council may make hardship loans only when: 
  4.1      (1) the owner of affected homestead property requests 
  4.2   acquisition and relocation assistance from an acquiring 
  4.3   authority; 
  4.4      (2) federal or state financial participation is not 
  4.5   available; 
  4.6      (3) the owner is unable to sell the homestead property at 
  4.7   its appraised market value because the property is located in a 
  4.8   proposed state trunk highway right-of-way or project as 
  4.9   indicated on an official map or plat adopted under section 
  4.10  160.085, 394.361, or 462.359; 
  4.11     (4) the appraisal of council agrees to and approves the 
  4.12  fair market value of the homestead property has been approved by 
  4.13  the council.  The council's, which approval shall not be 
  4.14  unreasonably withheld; and 
  4.15     (5) the owner of the homestead property is burdened by 
  4.16  circumstances that constitute a hardship, such as catastrophic 
  4.17  medical expenses; a transfer of the homestead owner by the 
  4.18  owner's employer to a distant site of employment; or inability 
  4.19  of the owner to maintain the property due to physical or mental 
  4.20  disability or the permanent departure of children from the 
  4.21  homestead.  
  4.22     (c) For purposes of this subdivision, the following terms 
  4.23  have the meanings given them. 
  4.24     (1) "Acquiring authority" means counties, towns, and 
  4.25  statutory and home rule charter cities in the metropolitan area. 
  4.26     (2) "Homestead property" means a single-family dwelling 
  4.27  occupied by the owner, and the surrounding land, not exceeding a 
  4.28  total of ten acres. 
  4.29     (3) "Salvage value" means the probable sale price of the 
  4.30  dwelling and other property that is severable from the land if 
  4.31  offered for sale on the condition that it be removed from the 
  4.32  land at the buyer's expense, allowing a reasonable time to find 
  4.33  a buyer with knowledge of the possible uses of the property, 
  4.34  including separate use of serviceable components and scrap when 
  4.35  there is no other reasonable prospect of sale.