SF 2001

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; modifying the process for disposition of surplus real
property; amending Minnesota Statutes 2006, sections 16B.281, subdivisions 1,
3; 16B.282; 16B.283; 16B.284; 16B.287, subdivision 2; repealing Minnesota
Statutes 2006, sections 16B.281, subdivisions 2, 4, 5; 16B.285.

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

Section 1.

Minnesota Statutes 2006, section 16B.281, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

All tracts or lots of real property belonging to the state
or that may hereafter accrue to the state, including tracts or lots that have escheated to the
state, may be disposed of according to sections 16B.281 to . Sections
16B.281 to do not apply to school or other trust fund lands belonging
to the state, or that may hereafter accrue to the state, under and by virtue of any act of
Congress or to any other state-owned lands the sale or disposition of which is provided for
under sections 94.09 to 94.16 or other law.

Sec. 2.

Minnesota Statutes 2006, section 16B.281, subdivision 3, is amended to read:

Subd. 3.

Notice to agencies; determination of surplus.

deleted text begin On or before October 1 of
each year, the commissioner shall review the certifications of heads of each department or
agency provided for in this section. deleted text end The commissioner new text begin of administration new text end shall send written
notice to all state departments, agencies, and the University of Minnesota describing any
lands or tracts that may be declared surplus. If a department or agency or the University of
Minnesota desires custody of the lands or tracts, it shall submit a written request to the
commissioner, no later than four calendar weeks after mailing of the notice, setting forth
in detail its reasons for desiring to acquire and its intended use of the land or tract. The
commissioner shall then determine whether any of the lands described deleted text begin in the certifications
of the heads of the departments or agencies deleted text end should be declared surplus and offered for
sale or otherwise disposed of by transferring custodial control to other requesting state
departments or agencies or to the Board of Regents of the University of Minnesota for
educational purposes, provided however that transfer to the Board of Regents shall not be
determinative of tax exemption or immunity. If the commissioner determines that any of
the lands are no longer needed for state purposes, the commissioner shall make findings of
fact, describe the lands, declare the lands to be surplus state land, new text begin and new text end state the reasons for
the sale or disposition of the lands deleted text begin , and notify the Executive Council of the determination deleted text end .

Sec. 3.

Minnesota Statutes 2006, section 16B.282, is amended to read:

16B.282 SURVEYS, APPRAISALS, AND SALE.

Subdivision 1.

Appraisal; notice and offer to public bodies.

(a) Before offering
any surplus state-owned lands for sale, the commissioner new text begin of administration new text end may survey the
lands and, if the value of the lands is estimated to be deleted text begin $40,000 deleted text end new text begin $50,000 new text end or less, may have
the lands appraised. The commissioner shall have the lands appraised if the estimated
value is in excess of deleted text begin $40,000 deleted text end new text begin $50,000 new text end .

(b) deleted text begin The appraiser shall, before entering upon the duties of the office, take and
subscribe an oath that the appraiser will faithfully and impartially discharge the duties
of appraiser according to the best of the appraiser's ability and that the appraiser is not
interested, directly or indirectly, in any of the lands to be appraised or the timber or
improvements on the lands or in the purchase of the lands, timber, or improvements
and has entered into no agreement or combination to purchase any of the lands, timber,
or improvements. The oath shall be attached to the appraisal report. deleted text end new text begin Appraisals must
be made by an appraiser that holds a state appraiser license issued by the Department
of Commerce. The appraisal must be in conformity with the Uniform Standards of
Professional Appraisal Practice of the Appraisal Foundation.
new text end

(c) Before offering surplus state-owned lands for public sale, the lands shall first be
offered to the city, county, town, school district, or other public body corporate or politic
in which the lands are situated for public purposes and the lands may be sold for public
purposes for not less than the appraised value of the lands. To determine whether a public
body desires to purchase the surplus land, the commissioner shall give a written notice to
the governing body of each political subdivision whose jurisdictional boundaries include
or are adjacent to the surplus land. If a public body desires to purchase the surplus land,
it shall submit a written offer to the commissioner no later than two weeks after receipt
of notice setting forth in detail its reasons for desiring to acquire and its intended use of
the land. In the event that more than one public body tenders an offer, the commissioner
shall determine which party shall receive the property and shall submit written findings
regarding the decision. If lands are offered for sale for public purposes and if a public
body notifies the commissioner of its desire to acquire the lands, the public body may have
up to two years from the date of the accepted offer to commence payment for the lands
in the manner provided by law.

Subd. 2.

Public sale requirements.

(a) deleted text begin Lands certified as surplus by the head of
a department or agency under section 16B.281 shall be offered for public sale by the
commissioner as provided in this subdivision. deleted text end After complying with subdivision 1 and
before any public sale of surplus state-owned land is made new text begin and at least 30 days before the
sale new text end , the commissioner new text begin of administration new text end shall publish a notice of the sale deleted text begin at least once each
week for four successive weeks in a legal newspaper and also deleted text end in a newspaper of general
distribution in the deleted text begin city or deleted text end county in which the real property to be sold is situated. The notice
shall specify the time and place at which the sale will commence, a general description of
the lots or tracts to be offered, and a general statement of the terms of sale. deleted text begin Each tract or
lot shall be sold separately and shall be sold for no less than its appraised value. deleted text end

new text begin (b) Surplus state-owned land shall be sold for no less than the estimated or appraised
value. The minimum bid may include expenses incurred by the commissioner in rendering
the property saleable, including survey, appraisal, legal, advertising, and other expenses.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end Parcels remaining unsold after the offering may be sold to anyone agreeing
to pay the appraised value. The sale shall continue until all parcels are sold or until the
commissioner orders a reappraisal or withdraws the remaining parcels from sale.

deleted text begin (c) Except as provided in section 16B.283, the cost of any survey or appraisal as
provided in subdivision 1 shall be added to and made a part of the appraised value of the
lands to be sold, whether to any political subdivision of the state or to a private purchaser
as provided in this subdivision. deleted text end

Sec. 4.

Minnesota Statutes 2006, section 16B.283, is amended to read:

16B.283 TERMS OF PAYMENT.

deleted text begin No less than ten percent of the purchase price shall be paid at the time of sale with
the balance payable according to this section. If the purchase price of any lot or parcel is
$5,000 or less, the balance shall be paid within 90 days of the date of sale. If the purchase
price of any lot or parcel is in excess of $5,000, the balance shall be paid in equal annual
installments for no more than five years, at the option of the purchaser, with principal
and interest payable annually in advance at a rate equal to the rate in effect at the time
under section 549.09 on the unpaid balance, payable to the state treasury on or before
June 1 each year. Any installment of principal or interest may be prepaid. deleted text end new text begin The purchaser
must pay at the time of sale ten percent of the total amount bid and the remainder of the
payment is due within 90 days of the sale date. A person who fails to make final payment
within 90 days of the sale date is in default. On default, all right, title, and interest of
the purchaser or heirs, representatives, or assigns of the purchaser in the premises shall
terminate without the state doing any act or thing. A record of the default must be made in
the state land records of the commissioner. new text end

Sec. 5.

Minnesota Statutes 2006, section 16B.284, is amended to read:

16B.284 deleted text begin CONTRACT FOR DEED AND deleted text end QUITCLAIM DEED.

deleted text begin In the event a purchaser elects to purchase surplus real property on an installment
basis, the commissioner shall enter into a contract for deed with the purchaser, in which
shall be set forth the description of the real property sold and the price of the property,
the consideration paid and to be paid for the property, the rate of interest, and time and
terms of payment. The contract for deed shall be made assignable and shall further set
forth that in case of the nonpayment of the annual principal or interest payment due by the
purchaser, or any person claiming under the purchaser, then the contract for deed, from the
time of the failure, is entirely void and of no effect and the state may be repossessed of the
lot or tract and may resell the lot or tract as provided in sections 16B.281 to 16B.287. In
the event the terms and conditions of a contract for deed are completely fulfilled or if a
purchaser makes a lump-sum payment for the subject property in lieu of entering into a
contract for deed, deleted text end The commissioner new text begin of administration new text end shall sign and cause to be issued a
quitclaim deed on behalf of the state. The quitclaim deed shall be in a form prescribed by
the attorney general and shall vest in the purchaser all of the state's interest in the subject
property except as provided in section .

Sec. 6.

Minnesota Statutes 2006, section 16B.287, subdivision 2, is amended to read:

Subd. 2.

Payment of expenses.

A portion of the proceeds from the sale equal in
amount to the survey, appraisal, legal, advertising, and other expenses incurred by the
commissioner new text begin of administration new text end or other state official in rendering the property salable shall
be remitted to the account from which the expenses were paid and are appropriated and
immediately available for expenditure in the same manner as other money in the account.

Sec. 7. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 16B.281, subdivisions 2, 4, and 5; and 16B.285, new text end new text begin
are repealed.
new text end