SF 1867

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to local government; providing for an
alternative annexation process; amending Minnesota
Statutes 2004, sections 414.031, subdivisions 1, 3, 4,
by adding subdivisions; 414.0325, subdivision 1;
414.033, subdivision 2; 414.036; proposing coding for
new law in Minnesota Statutes, chapter 414.

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

Section 1.

new text begin [414.025] ALTERNATIVE ANNEXATION PROCESS.
new text end

new text begin Subdivision 1. new text end

new text begin Alternative to orderly annexation. new text end

new text begin A
municipality that determines that orderly annexation under
section 414.0325 is not feasible may proceed under this section
to establish a growth area for the purpose of future annexation
of unincorporated territory which is contiguous to the
municipality and not subject to an orderly annexation agreement
under section 414.0325 and which the city believes is or is
about to become developed in such a way as to require municipal
services the city is able and willing to provide and that are
not being provided by the town. The growth area sought by a
municipality under this section may be divided into multiple
sections along the municipality's boundaries, but in no case
shall the total growth area exceed an amount of land equal in
size to the amount of property developed and serviced by
municipal services, including water and wastewater, within the
city over the immediate preceding five years, unless the total
is less than 120 acres, in which case the growth area sought may
be up to 120 acres. Nothing in this section shall authorize any
annexation of property subject to an orderly annexation
agreement under section 414.0325 except as provided by the terms
of that agreement.
new text end

new text begin Subd. 2. new text end

new text begin Petition. new text end

new text begin The municipality shall file with the
director of the office of boundary adjustments, the clerk of the
affected town, and the clerk of any other municipality abutting
the town, a petition for the establishment of a growth area.
The petition shall provide the proposed boundaries for the
growth area, copies of all documentation used to determine the
size and location of the proposed growth area, and an outline of
the city's plan to provide municipal services to all property
annexed from the growth area. The petition must also state the
city's intended land use designation for the property when
annexed.
new text end

new text begin Subd. 3. new text end

new text begin Town objection. new text end

new text begin Within 60 days of receiving the
petition, the town board may file a written objection with the
director of the office of boundary adjustments outlining why the
town believes the amount of property subject to the petition
exceeds the maximum amount to which the city is entitled, or why
the area within the boundaries identified in the city's petition
is not the appropriate location for the growth area. The town
shall submit a copy of its written objection to the petitioning
municipality. If no objection is filed by the town, the
municipality's petition shall become an order establishing the
growth area described in the petition.
new text end

new text begin Subd. 4. new text end

new text begin Other municipality objection. new text end

new text begin Within 60 days of
receiving the petition, any other municipality abutting the town
may file an objection to the proposed growth area with the
director of the office of boundary adjustments. The objection
shall state the basis for the other municipality's concern
regarding the proposed growth area.
new text end

new text begin Subd. 5. new text end

new text begin Hearing. new text end

new text begin If a town files an objection under
subdivision 3, the director of the office of boundary
adjustments shall schedule a 60-day negotiating period between
the municipality and the town. If the municipality and town
resolve all disputes regarding the petition, they shall submit a
joint petition for the establishment of a growth area consistent
with the agreement reached. The joint petition shall be entered
by the director as an order establishing a growth area for the
purposes of this section. If no agreement is reached, the
director shall order the dispute to be resolved according to the
procedures allowed under section 414.12. If the decision maker
finds that the city's petition is for an amount of land not in
excess of the maximum provided for under subdivision 1, and that
any objection to the location of the area is unwarranted, an
order shall be issued establishing the growth area for which the
city petitioned. If the decision maker determines that the
growth area sought by the city exceeds the maximum allowed under
this section, an order shall be issued only for that portion of
the growth area that does not exceed the maximum area allowed
under this section. If the decision maker determines that a
town's objection to the location of all or a portion of the
proposed growth area is with merit, the city's petition shall be
denied with regard to the area inappropriately sited by the city.
Nothing in this section shall prohibit a city from filing a new
petition relocating any area of a growth area denied under this
section based on an objection to the original proposed location
for the growth area.
new text end

new text begin If another municipality files an objection under this
section, the director shall order a 60-day negotiating period
between the municipalities. If the municipalities reach an
agreement, they shall file with the director and the affected
town a joint petition for the establishment of a revised growth
area. If no agreement is reached, the director shall order the
municipalities to settle the dispute by any means authorized by
section 414.12. The decision maker may deny the original
petition, deny the objections of the objecting municipalities,
or order the reduction in size of the proposed growth area to
accommodate the concerns of the objecting municipality.
new text end

new text begin No revised growth area resulting from an objection filed by
another municipality may be larger than the one requested in the
original petition, nor shall any area not subject to the
original petition become subject to a growth area without a new
petition being filed under this section. Nothing in this
section shall allow an objecting municipality from establishing
a growth area of its own without filing a petition under this
section.
new text end

new text begin Subd. 6. new text end

new text begin Annexation by ordinance. new text end

new text begin At any time following
the establishment of a growth area under this section, the
municipality may annex by ordinance any property in the urban
growth area for which all of the property's owners have
petitioned for annexation. In the case of a proposed platted
residential subdivision, the municipality may annex all property
subject to the subdivision upon receipt of a petition for
annexation signed by all the owners of at least 51 percent of
the property. Prior to the adoption of an ordinance under this
section, the municipality shall hold a public hearing following
at least 30 days' notice by certified mail to the town and all
directly affected land owners.
new text end

new text begin Subd. 7. new text end

new text begin Joint planning. new text end

new text begin Within 90 days of any order
establishing a growth area under this section, the municipality
and town shall establish a joint planning board which shall have
sole jurisdiction to exercise all planning and land use
authority, including serving as the governing body and board of
appeals, under chapter 462, for the property subject to the
growth area prior to that property being annexed. Until the
time the joint planning board shall adopt new regulations, any
property subject to a growth area shall be subject to any town
or county land use regulation in place prior to the
establishment of the growth area. Following annexation, the
property shall be subject to the annexing municipality's zoning
classifications and land use regulations. The joint planning
board shall consist of two representatives appointed by the city
council, two representatives appointed by the town board of
supervisors, and one representative appointed by the county
board of commissioners. The county delegate shall not be a
resident of either the municipality or town unless agreed to by
a joint resolution of the city council and town board. Members
of an appointing authority's governing body or planning
commission are eligible for appointment to the joint planning
board. Members shall serve for a two-year term, unless removed
earlier by the governing body which appointed them. Members may
be reappointed to the joint planning board at the sole
discretion of the governing body having made the original
appointment. Unless otherwise jointly agreed to by the
respective governing bodies for both the city and town, the city
shall, at city expense, be responsible for providing any staff
determined necessary by the joint planning board. Unless
otherwise agreed to by the joint planning board, any fees
adopted and imposed by the joint planning board shall be paid to
the city if the city provides the staff under this section.
new text end

new text begin Subd. 8. new text end

new text begin Alteration of growth area boundaries. new text end

new text begin A
municipality may at any time after the establishment of a growth
area under this section file a petition in compliance with
subdivision 3 to remove a portion of the established growth area
and replace it with an equal or lesser amount of land located
elsewhere in the city. A municipality shall also have the right
to petition to add additional land to an established growth area
after any or all of the original growth area has been developed
and provided municipal services, including sewer and water.
However, at no time may a municipality's growth area exceed a
total area equal to the average amount of land developed and
serviced over the immediate preceding five years. The affected
town and any other abutting municipality shall have the same
right to object to any alteration of a growth area as provided
for in subdivision 4.
new text end

new text begin Subd. 9. new text end

new text begin Orderly annexation. new text end

new text begin At any time, the
municipality may abandon the alternative annexation process
under this section and enter into an orderly annexation
agreement for any or all of the area subject to this section.
new text end

Sec. 2.

Minnesota Statutes 2004, section 414.031,
subdivision 1, is amended to read:

Subdivision 1.

Initiating the proceeding.

deleted text begin (a) deleted text end A
proceeding for the annexation of unincorporated property
abutting a municipality new text begin outside of a growth area under section
414.025 or an orderly annexation agreement under section
414.0325 new text end may be initiated by deleted text begin submitting to the director and the
affected township one deleted text end new text begin any new text end of the following new text begin methods new text end :

new text begin (a) by submitting to the director and the affected township
one of the following:
new text end

(1) a resolution of the annexing municipality;

(2) deleted text begin a resolution of the township containing the area
proposed for annexation;
deleted text end

deleted text begin (3) deleted text end a petition of 20 percent of the property owners or 100
property owners, whichever is less, in the area to be annexed new text begin ,
accompanied by a resolution of the annexing municipality
supporting the petition new text end ;

deleted text begin (4) a resolution of the municipal council together with a
resolution of the township board stating their desire to have
the entire township annexed to the municipality.
deleted text end

new text begin (b) by submitting to the director and the proposed annexing
municipality a resolution by the town board of the township
containing the area proposed for annexation;
new text end

new text begin (c) by submitting to the director a joint resolution
adopted by both the municipal council and the township board
stating their mutual desire to have the entire township annexed
to the municipality.
new text end

deleted text begin (b) deleted text end new text begin Subd. 1a. new text end [PETITION FORMAT.] deleted text begin The deleted text end new text begin Any new text end petition deleted text begin , deleted text end or
resolution new text begin submitted under subdivision 1 new text end shall set forth the
boundaries of the territory proposed for annexation, the names
of all parties entitled to notice under section 414.09, and the
reasons for requesting annexation.

deleted text begin (c) If the proceeding is initiated by a petition of
property owners, the petition shall be accompanied by a
resolution of the annexing municipality supporting the petition.
deleted text end

Sec. 3.

Minnesota Statutes 2004, section 414.031, is
amended by adding a subdivision to read:

new text begin Subd. 1b. new text end

new text begin Supporting documents. new text end

new text begin Except for annexations
initiated under subdivision 1, paragraph (b), in addition to the
petition or resolution required in subdivision 1, the annexing
municipality must also submit to the director the following
information:
new text end

new text begin (a) a map showing the area proposed to be annexed and its
relation to the current municipal boundaries;
new text end

new text begin (b) a report detailing the urban characteristics of the
area subject to the proposed annexation and the reasons for the
proposed annexation;
new text end

new text begin (c) a proposed update to the municipality's comprehensive
land use plan to include the area subject to the proposed
annexation;
new text end

new text begin (d) a report describing, as applicable to both the annexing
municipality and the area proposed to be annexed, the general
physical land use pattern, current and proposed land uses,
current and proposed land use controls, projected growth,
service needs applicable to both the current and expected growth
status, environmental impact issues, and transportation impact
issues;
new text end

new text begin (e) a service provision plan. At a minimum the service
provision plan must include an outline of the annexing
municipality's intent and ability to provide the following
services to the area proposed to be annexed:
new text end

new text begin (1) law enforcement;
new text end

new text begin (2) fire protection;
new text end

new text begin (3) water and wastewater services, including a map showing
existing and proposed service boundaries; a summary of the
current capacity of any municipal treatment plant; a listing and
map indicating areas currently within the municipality but not
serviced by municipal water and wastewater services and the
amount of capacity necessary to service such areas; and an
estimate of the amount of capacity needed to fully service the
area proposed to be annexed;
new text end

new text begin (4) street maintenance; and
new text end

new text begin (5) other municipal services currently being or proposed to
be offered by the annexing municipality.
new text end

new text begin The plan must discuss how such services will differ from the way
the services are currently provided within the township,
including a cost comparison, and must provide a time line not to
exceed two years during which each component of the service plan
is implemented;
new text end

new text begin (f) a property tax comparison between current and expected
municipal levies as they would apply to the area proposed to be
annexed and the area's existing township levy; and
new text end

new text begin (g) a report and map showing the quantity of undeveloped
land existing within the annexing municipality and the intended
use, including a service extension plan, for each area.
new text end

Sec. 4.

Minnesota Statutes 2004, section 414.031, is
amended by adding a subdivision to read:

new text begin Subd. 1c. new text end

new text begin Notice of intent to annex. new text end

new text begin Except for
annexations initiated under subdivision 1, paragraph (b), at
least ten days before submitting to the director a petition or
resolution under subdivision 1, the annexing municipality shall
provide written notice of the intent to annex to the township
and the county by mailing or delivering the notice to the town
clerk and county auditor. The notice must clearly identify the
boundaries of the area proposed to be annexed and must be
accompanied by a copy of each of the supporting documents
required under subdivision 1b.
new text end

new text begin At least ten days before submitting to the director a
petition or resolution under subdivision 1, a notice of the
intent to annex must also be mailed or delivered to each
property owner within the area subject to the proposed
annexation. The notice must clearly identify the boundaries of
the area proposed to be annexed, explain how a copy of the
supporting documents required under subdivision 1b can be
obtained, and the right of the property owner to participate in
a contested case proceeding. At least ten days before
submitting a petition or resolution to the director, a copy of
the notice mailed to each property owner must also be published
in a qualified newspaper of general circulation within the
township.
new text end

new text begin The annexing municipality must provide all required notices
except for annexations initiated by subdivision 1, paragraph
(b), in which case the town board must provide the notice.
new text end

Sec. 5.

Minnesota Statutes 2004, section 414.031,
subdivision 3, is amended to read:

Subd. 3.

new text begin public new text end hearing time, place new text begin , manner new text end .

Upon
receipt of a petition or resolution initiating an
annexation new text begin under subdivision 1 new text end , the director shall deleted text begin designate a
time and a place for a hearing in accordance with section
414.09. deleted text end new text begin order a joint public hearing of the city council of the
annexing municipality and the town board of the township
containing the land proposed to be annexed. The time, date, and
place of the public hearing must be determined jointly by the
town chair and the annexing municipality's mayor. The hearing
must be scheduled not earlier than 20 days and not later than 60
days after the director's receipt of the petition or
resolution. The chair of the affected township and the mayor of
the annexing municipality must serve as the cochairs for the
hearing. Notice of the time, date, place, and purpose of the
hearing must be posted by the town clerk in the township's
designated posting place, and by the city clerk in the city's
designated posting place. In addition, except for annexations
initiated under subdivision 1, paragraph (b), the city must also
be responsible for publishing notice of the time, date, place,
and purpose of the hearing in a qualified newspaper of general
circulation within both the city and the township. For
annexations initiated under subdivision 1, paragraph (b), the
township must provide published notice of the time, date, place,
and purpose of the hearing in a qualified newspaper of general
circulation in both the city and the township. All notice
required by this subdivision must be provided at least ten days
before the date for the public hearing.
new text end

new text begin At the public hearing, all persons appearing must have an
opportunity to be heard. The city council for the annexing
municipality, the town board for the affected township, and any
resident or affected property owner may be represented by
counsel and introduce any evidence, including but not limited to
expert testimony, into the record of the hearing. The township
clerk must record minutes of the proceedings of the hearing and
the city must tape record the hearing. The township must
provide the director and the city with a copy of the printed
minutes and the city must provide the director and the township
with a copy of the tape recording. The record of the hearing
shall be admissible in any proceeding under subdivision 4 and
shall be taken into consideration by the director or the
director's designee.
new text end

Sec. 6.

Minnesota Statutes 2004, section 414.031,
subdivision 4, is amended to read:

Subd. 4.

deleted text begin relevant factors, order deleted text end new text begin administrative hearing new text end .

(a) new text begin For all annexation proceedings under this section, the
director must designate a time and place for a hearing in
accordance with section 414.09.
new text end

new text begin (b) new text end In arriving at a decision, the director new text begin or the
director's designee new text end shall consider the following factors:

(1) present population and number of households, past
population and projected population growth of the subject area
and adjacent units of local government;

(2) quantity of land within the subject area and adjacent
units of local government; new text begin quantity of available land within the
annexing municipality; new text end and natural terrain including
recognizable physical features, general topography, major
watersheds, soil conditions and such natural features as rivers,
lakes and major bluffs;

(3) degree of contiguity of the boundaries between the
annexing municipality and the subject area;

(4) present pattern of physical development, planning, and
intended land uses in the subject area and the annexing
municipality including residential, industrial, commercial,
agricultural and institutional land uses and the impact of the
proposed action on those land uses;

(5) the present transportation network and potential
transportation issues, including proposed highway development;

(6) land use controls and planning presently being utilized
in the annexing municipality and the subject area, including
comprehensive plans for development in the area and plans and
policies of the Metropolitan Council, and whether there are
inconsistencies between proposed development and existing land
use controls and the reasons therefore;

(7) existing levels of governmental services being provided
in the annexing municipality and the subject area, including
water and sewer service, fire rating and protection, law
enforcement, street improvements and maintenance, administrative
services, and recreational facilities and the impact of the
proposed action on the delivery of said services;

(8) existing or potential environmental problems and
whether the proposed action is likely to improve or resolve
these problems new text begin in a more cost-effective method than could be
achieved without the proposed annexation new text end ;

(9) plans and programs by the annexing municipality for
providing needed governmental services to the subject area new text begin and
the actual ability of the annexing municipality to provide the
services, including but not limited to wastewater treatment at a
level equal to all applicable state and federal discharge
standards, in a timely and cost-effective manner new text end ;

(10) an analysis of the fiscal impact on the annexing
municipality, the subject area, and adjacent units of local
government, including net tax capacity and the present bonded
indebtedness, and the local tax rates of the county, school
district, and township;

(11) relationship and effect of the proposed action on
affected and adjacent school districts and communities;

(12) adequacy of town government to deliver services to the
subject area;

(13) analysis of whether necessary governmental services
can best be provided through the proposed action or another type
of boundary adjustment; deleted text begin and
deleted text end

(14) if only a part of a township is annexed, the ability
of the remainder of the township to continue or the feasibility
of it being incorporated separately or being annexed to another
municipality new text begin ; and
new text end

new text begin (15) all testimony and evidence made a part of record at
the public hearing conducted under subdivision 3 new text end .

(b) Based upon the factors, the director may order the
annexation on finding:

(1) that the subject area is now, or is about to become,
urban or suburban in character;

(2) that municipal government in the area proposed for
annexation is required to protect the public health, safety, and
welfare; deleted text begin or
deleted text end

(3) that the annexation would be in the best interest of
the subject area new text begin ; or
new text end

new text begin (4) the subject township initiated or supported the
proposed annexation under subdivision 1 new text end .

(c) If only a part of a township is to be annexed, the
director shall consider whether the remainder of the township
can continue to carry on the functions of government without
undue hardship new text begin and may deny the annexation if an undue hardship
would be created new text end .

(d) The director shall deny the annexation on finding that
the increase in revenues for the annexing municipality bears no
reasonable relation to the monetary value of benefits conferred
upon the annexed area new text begin , or that the annexing municipality cannot
or likely will not be able to extend municipal services,
including water and wastewater treatment services that comply
with all applicable state and federal regulations, in a timely
and cost-effective manner, or that the municipality is currently
not providing such services to at least 95 percent of its
existing properties new text end .

(e) The director may deny the annexation on finding:

(1) that annexation of all or a part of the property to an
adjacent municipality would better serve the interests of the
residents of the property; deleted text begin or
deleted text end

(2) that the deleted text begin remainder of the township would suffer undue
hardship deleted text end new text begin proposed annexation will not significantly increase the
protection of the public health, safety, and welfare; or
new text end

new text begin (3) that the city has sufficient existing areas of
undeveloped or underdeveloped land to meet current growth and
land use plans new text end .

(f) The director may alter the boundaries of the area to be
annexed by increasing or decreasing the area so as to include
only that property which is now or is about to become urban or
suburban in character or to add property of such character
abutting the area proposed for annexation in order to preserve
or improve the symmetry of the area, or to exclude property that
may better be served by another unit of government.

(g) The director may also alter the boundaries of the
proposed annexation so as to follow visible, clearly
recognizable physical features.

(h) If the director determines that part of the area would
be better served by another municipality or township, the
director may initiate and approve annexation by conducting
further hearings and issuing orders pursuant to deleted text begin subdivisions 3
and 4 deleted text end new text begin this section new text end .

(i) In all cases, the director shall set forth the factors
which are the basis for the decision.

new text begin (j) If an annexation is ordered or approved under this
section, the order must include a listing of all services to be
extended into the annexed area and a time line not to exceed two
years for the extension. At a minimum, the order must address
how water and wastewater services are to be provided.
new text end

Sec. 7.

Minnesota Statutes 2004, section 414.0325,
subdivision 1, is amended to read:

Subdivision 1.

Initiating the proceeding.

(a) One or
more townships and one or more municipalities, by joint
resolution, may designate an unincorporated area as in need of
orderly annexation.

(b) The joint resolution will confer jurisdiction on the
director over annexations in the designated area and over the
various provisions in said agreement by submission of said joint
resolution to the director.

(c) The resolution shall include a description of the
designated area and the reasons for designation.

(d) Thereafter, an annexation of any part of the designated
area may be initiated by:

(1) submitting to the director a resolution of any
signatory to the joint resolution; or

(2) the director.

(e) Whenever a state agency, other than the pollution
control agency, orders a municipality to extend a municipal
service to an area, the order confers jurisdiction on the
director to consider designation of the area for orderly
annexation.

(f) If a joint resolution designates an area as in need of
orderly annexation and states that no alteration of its stated
boundaries is appropriate, the director may review and comment,
but may not alter the boundaries.

(g) If a joint resolution designates an area as in need of
orderly annexation, provides for the conditions for its
annexation, and states that no consideration by the director is
necessary, the director may review and comment, but shall,
within 30 days, order the annexation in accordance with the
terms of the resolution.

new text begin (h) In a county in which there is no organized township, a
municipality may negotiate with the county. In such a case, the
county takes the place of the township in this section and
elsewhere in this chapter where this section applies.
new text end

Sec. 8.

Minnesota Statutes 2004, section 414.033,
subdivision 2, is amended to read:

Subd. 2.

Conditions.

A municipal council may by
ordinance declare land annexed to the municipality and any such
land is deemed to be urban or suburban in character or about to
become so if:

(1) the land is owned by the municipality new text begin . Property
annexed under this section must not be transferred to private
ownership during the first ten years following the annexation new text end ;

(2) new text begin before June 1, 2005, new text end the land is completely surrounded
by land within the municipal limits new text begin and is land not owned by the
township new text end ; new text begin or
new text end

(3) the land abuts the municipality and the area to be
annexed is 60 acres or less, and the area to be annexed is not
presently served by public deleted text begin sewer deleted text end new text begin wastewater new text end facilities or public
deleted text begin sewer deleted text end new text begin wastewater new text end facilities are not otherwise available, and the
municipality receives a petition for annexation from all the
property owners of the land deleted text begin ; or deleted text end new text begin . A property owner must not
petition for more than one annexation every two years under this
provision for any contiguous parcels of land of 60 acres or
less, nor for any noncontiguous parcels of 60 acres or less that
had been part of a larger parcel within the past two years.
new text end

deleted text begin (4) the land has been approved after August 1, 1995, by a
preliminary plat or final plat for subdivision to provide
residential lots that average 21,780 square feet or less in area
and the land is located within two miles of the municipal limits.
deleted text end

Sec. 9.

Minnesota Statutes 2004, section 414.036, is
amended to read:

414.036 MUNICIPAL REIMBURSEMENT TO TOWN FOR ANNEXED
TAXABLE PROPERTY.

When an order new text begin or other approval new text end under deleted text begin section 414.0325 deleted text end new text begin this
chapter new text end annexes part of a town to a municipality, the deleted text begin orderly
annexation agreement between the town and deleted text end new text begin order or approval must
provide that the new text end municipality deleted text begin may deleted text end provide a reimbursement from
the municipality to the town for all or part of the taxable
property annexed as part of the order new text begin and also the outstanding
value of all special assessments assigned by the township to the
annexed property, and for the property's equitable share of
payment as determined by the director towards all outstanding
debt instruments held by the township for which payment is not
covered by the special assessments. The director must also
order reimbursement for the proportionate value, including
construction or installation costs, for any infrastructure,
including but not limited to roads and wastewater treatment
services, constructed or installed by or under the direction of
the township when the infrastructure primarily benefits the
municipality after the annexation new text end . The reimbursement shall be
completed in substantially equal payments over deleted text begin not less than two
nor more than six years from the time of annexation deleted text end new text begin the
remaining terms of the applicable special assessment or debt
instrument. This section does not prohibit an annexing
municipality and an affected township from negotiating a
different reimbursement agreement that must then be included in
the order or approval in place of the director's reimbursement
assignment new text end .