SF 913

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:17am

A bill for an act
relating to greenhouse gas emissions reduction; prohibiting new municipal
incorporations; authorizing city growth areas; limiting densities in certain
unincorporated areas; modifying tax increment financing standards; amending
Minnesota Statutes 2008, sections 462.352, by adding a subdivision; 462.357,
subdivision 1, by adding subdivisions; 462.358, subdivision 1a; 469.174,
by adding a subdivision; 469.176, subdivision 1b, by adding a subdivision;
proposing coding for new law in Minnesota Statutes, chapters 394; 414;
repealing Minnesota Statutes 2008, section 414.02.

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

Section 1.

new text begin [394.2311] LIMITED DENSITIES IN UNINCORPORATED AREAS.
new text end

new text begin (a) Except as provided in section 3, a county may not allow densities greater than
that provided in this section. This section does not apply to unincorporated areas within
a city's designated growth boundary established under section 462.357, areas that are
subdivided and for which there is a recorded plat as of August 1, 2011, areas governed
by shoreland regulations, or parcels classified as noncommercial seasonal residential
recreational property for property tax purposes.
new text end

new text begin (b) Unincorporated areas with no more than one residential unit per 40 acres as
of August 1, 2009, must not be developed with residential densities greater than one
unit per 40 acres. If the unincorporated area has a residential density greater than one
residential unit per 40 acres as of August 1, 2009, the density must not be increased. A
county may enact a new or enforce an existing cluster development ordinance provided
that the ordinance:
new text end

new text begin (1) limits the maximum number of dwelling units to no more than 150 percent of the
number otherwise permitted in the zoning district;
new text end

new text begin (2) limits lot sizes to no larger than two acres; and
new text end

new text begin (3) includes cluster development site standards designed to avoid development on,
fragmentation of, or interference with prime farmland soils, tillable farmland, large tracts
of land in agricultural use, woodlands, and other significant stands of vegetation.
new text end

new text begin (c) Except for unincorporated areas within a city's designated growth boundary, or
areas that are subdivided and for which there is a recorded plat as of August 1, 2011,
commercial and industrial uses must not be developed except for those uses, as determined
by the county in which the proposed development is located, that are appropriate for rural
settings such as those connected with agricultural, forestry, mining, or energy production
industries or those uses that are provided for the convenience of the traveling public such
as truck stops, gas stations, convenience stores, restaurants, or those that are recreational
in nature.
new text end

Sec. 2.

new text begin [394.2312] MODIFICATION TO LIMITED DENSITIES IN
UNINCORPORATED AREAS.
new text end

new text begin A county that has adopted a comprehensive plan in compliance with section 394.23,
may allow densities greater than those provided for in section 2, if the development does
not occur within two miles of a municipality or within a growth area established under
section 462.357. The development must conform to the following conditions:
new text end

new text begin (1) there must be a developed and implemented storm water management plan
for the development; and
new text end

new text begin (2) wastewater needs for the site must be handled by a wastewater collection and
treatment system that complies with section 115.55 and an administrative rule or county
ordinance adopted under section 115.55.
new text end

new text begin Before allowing development under this subdivision, the county must update its
comprehensive plan with an evaluation of the potential public infrastructure and
operational costs of serving the proposed development for a period of 25 years and
an analysis of the transportation-related carbon emissions, using commonly accepted
methodology, of the development.
new text end

Sec. 3.

new text begin [414.023] INCORPORATIONS PROHIBITED AFTER JUNE 1, 2009.
new text end

new text begin The chief administrative law judge must not order any municipal incorporations
after June 1, 2009.
new text end

Sec. 4.

Minnesota Statutes 2008, section 462.352, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin City. new text end

new text begin "City" means a statutory or home rule charter city.
new text end

Sec. 5.

Minnesota Statutes 2008, section 462.357, subdivision 1, is amended to read:

Subdivision 1.

Authority for zoning.

For the purpose of promoting the public
health, safety, morals, and general welfare, a municipality may by ordinance regulate
on the earth's surface, in the air space above the surface, and in subsurface areas, the
location, height, width, bulk, type of foundation, number of stories, size of buildings
and other structures, the percentage of lot which may be occupied, the size of yards and
other open spaces, the density and distribution of population, the uses of buildings and
structures for trade, industry, residence, recreation, public activities, or other purposes,
and the uses of land for trade, industry, residence, recreation, agriculture, forestry, soil
conservation, water supply conservation, conservation of shorelands, as defined in
sections 103F.201 to 103F.221, access to direct sunlight for solar energy systems as
defined in section 216C.06, flood control or other purposes, and may establish standards
and procedures regulating such uses. To accomplish these purposes, official controls may
include provision for purchase of development rights by the governing body in the form of
conservation easements under chapter 84C in areas where the governing body considers
preservation desirable and the transfer of development rights from those areas to areas the
governing body considers more appropriate for development. No regulation may prohibit
earth sheltered construction as defined in section 216C.06, subdivision 14, relocated
residential buildings, or manufactured homes built in conformance with sections 327.31
to 327.35 that comply with all other zoning ordinances promulgated pursuant to this
section. The regulations may divide the surface, above surface, and subsurface areas of the
municipality into districts or zones of suitable numbers, shape, and area. The regulations
shall be uniform for each class or kind of buildings, structures, or land and for each class
or kind of use throughout such district, but the regulations in one district may differ from
those in other districts. The ordinance embodying these regulations shall be known
as the zoning ordinance and shall consist of text and maps. deleted text begin A city may by ordinance
extend the application of its zoning regulations to unincorporated territory located within
two miles of its limits in any direction, but not in a county or town which has adopted
zoning regulations; provided that where two or more noncontiguous municipalities have
boundaries less than four miles apart, each is authorized to control the zoning of land on
its side of a line equidistant between the two noncontiguous municipalities unless a town
or county in the affected area has adopted zoning regulations. Any city may thereafter
enforce such regulations in the area to the same extent as if such property were situated
within its corporate limits, until the county or town board adopts a comprehensive zoning
regulation which includes the area. deleted text end

Sec. 6.

Minnesota Statutes 2008, section 462.357, is amended by adding a subdivision
to read:

new text begin Subd. 1i. new text end

new text begin Limited densities in unincorporated areas. new text end

new text begin (a) This subdivision does
not apply to unincorporated areas within a city's designated growth boundary, areas that
are subdivided and for which there is a recorded plat as of August 1, 2011, areas governed
by shoreland regulations, or parcels classified as noncommercial seasonal residential
recreational property for property tax purposes.
new text end

new text begin (b) Unincorporated areas with no more than one residential unit per 40 acres as
of August 1, 2011, must not be developed with residential densities greater than one
unit per 40 acres. If the unincorporated area has a residential density greater than one
residential unit per 40 acres as of August 1, 2011, the density must not be increased. A
county may enact a new or enforce an existing cluster development ordinance provided
that the ordinance:
new text end

new text begin (1) limits the maximum number of dwelling units to no more than 150 percent of the
number otherwise permitted in the zoning district;
new text end

new text begin (2) limits lot sizes to no larger than two acres; and
new text end

new text begin (3) includes cluster development site standards designed to avoid development on,
fragmentation of, or interference with prime farmland soils, tillable farmland, large tracks
of land in agricultural use, woodlands, and other significant stands of vegetation.
new text end

new text begin (c) Except for unincorporated areas within a city's designated growth boundary, or
areas that are subdivided and for which there is a recorded plat as of August 1, 2011,
commercial and industrial uses must not be developed except for those uses, as determined
by the county in which the proposed development is located, that are appropriate for rural
settings such as those connected with agricultural, forestry, mining, or energy production
industries or those uses that are provided for the convenience of the traveling public such
as truck stops, gas stations, convenience stores, restaurants, or those that are recreational
in nature.
new text end

Sec. 7.

Minnesota Statutes 2008, section 462.357, is amended by adding a subdivision
to read:

new text begin Subd. 1j. new text end

new text begin Status of unincorporated area before establishment of growth area.
new text end

new text begin Before, or in the absence of, the establishment of a growth area and adoption of land use
controls under subdivision 10, the area outside of a city for two miles in any direction is
deemed to be the city's preliminary growth area. Except for areas that are subdivided and
for which there is a recorded plat as of February 1, 2009, areas governed by shoreland
regulations, parcels classified as noncommercial seasonal residential recreational property
for property tax purposes, or development that is adjacent to a city and that would be
served by city sewer and water at the time of development, the residential density of the
preliminary growth area must not exceed the limits of this subdivision. Areas within the
preliminary growth area with no more than one residential unit per 40 acres as of August
1, 2009, must not be developed with residential densities greater than one unit per 40
acres. If the area within the preliminary growth area has a residential density greater than
one unit per 40 acres as of August 1, 2009, the density must not be increased.
new text end

Sec. 8.

Minnesota Statutes 2008, section 462.357, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin City growth areas. new text end

new text begin (a) Upon request of a city to a township, a joint
powers board consisting of three city and three township residents shall be appointed for
the purpose of establishing and administering a city growth area. The members of the joint
powers board must be residents of the jurisdictions they represent and shall be appointed
by and serve at the pleasure of the respective governing bodies. The joint powers board
may create a growth area for the city after determining that: (1) population growth
demands more housing than can be developed in the space available within the city, or
growth in commercial or industrial use requires more space than available within the city,
(2) planning of city services is necessary to facilitate the growth, and (3) the city has the
capacity and willingness to extend city services such as sewer and water throughout the
growth area. An area must not be included in the growth area if the city is not willing or is
unable to extend sewer or water services. An area is appropriate to be included in a city's
growth area to the extent that future development within the growth area will maximize
existing transportation, water, sewer, and other municipal infrastructure, while avoiding to
the extent practicable the development of class A agricultural land.
new text end

new text begin (b) Before designating the growth area, the joint powers board must hold a hearing
to present to the public its proposed findings for a designated growth area. Notice of
the hearing must be published in the city and in the proposed designated growth area.
Members of the public must be given a reasonable opportunity to present their comments.
The joint powers board also must provide the proposed findings and designated growth
area to the county planning authority of each county affected. A county has 90 days to
approve or reject the growth area plan proposed by the joint powers board. If the county
rejects the growth area, the county must submit an alternative growth area plan to the joint
powers board within 90 days of the receipt of the original plan from the joint powers
board. If the county takes no action within the 90-day period the growth area is deemed
approved as submitted to the county.
new text end

new text begin (c) If more than one city claims the same unincorporated area for its growth area, an
administrative law judge will determine in accordance with chapter 414 and this section
which city is best positioned to serve the area, weighing factors that include existing
development and population growth patterns; existing transportation infrastructure;
impact on vehicle miles traveled from the area to regional amenities, schools, jobs, and
governmental services; and the overall costs of extending services to the area.
new text end

new text begin (d) If the city's growth area includes land zoned by the county or town for
agricultural use at the time the growth area is adopted, that land continues to be subject
only to the county's or town's official controls for agricultural use. When the county or
town receives a request to change the zoning classification of that land to a nonagricultural
use, and that request is approved by the appropriate land use authority, it becomes subject
to the authority of the joint powers board in paragraph (e).
new text end

new text begin (e) Once established, the growth area shall be governed by the joint powers board
that established the growth area. Except as provided in paragraph (d), the joint powers
board has the exclusive authority to plan, adopt, and enforce official controls in the growth
area. Planning and development in the growth area must be at densities that are consistent
with the rest of the city.
new text end

new text begin (f) Growth areas must be reviewed by the city council at least every ten years.
new text end

new text begin (g) As development occurs in the growth area and sewer and water service is
extended to the development, that part of the growth area may be annexed to the city by
ordinance under chapter 414. Annexation by ordinance under this paragraph is not subject
to the conditions for annexation by ordinance in section 414.033, subdivision 2.
new text end

new text begin (h) A joint powers board that has established a growth area must file its growth
area plan and maps with the Office of Administrative Hearings municipal boundary
adjustments.
new text end

Sec. 9.

Minnesota Statutes 2008, section 462.358, subdivision 1a, is amended to read:

Subd. 1a.

Authority.

To protect and promote the public health, safety, and general
welfare, to provide for the orderly, economic, and safe development of land, to preserve
agricultural lands, to promote the availability of housing affordable to persons and families
of all income levels, and to facilitate adequate provision for transportation, water, sewage,
storm drainage, schools, parks, playgrounds, and other public services and facilities, a
municipality may by ordinance adopt subdivision regulations establishing standards,
requirements, and procedures for the review and approval or disapproval of subdivisions.
The regulations may contain varied provisions respecting, and be made applicable only
to, certain classes or kinds of subdivisions. The regulations shall be uniform for each
class or kind of subdivision.

deleted text begin A municipality may by resolution extend the application of its subdivision
regulations to unincorporated territory located within two miles of its limits in any
direction but not in a town which has adopted subdivision regulations; provided that where
two or more noncontiguous municipalities have boundaries less than four miles apart,
each is authorized to control the subdivision of land equal distance from its boundaries
within this area.
deleted text end

Sec. 10.

Minnesota Statutes 2008, section 469.174, is amended by adding a subdivision
to read:

new text begin Subd. 10c. new text end

new text begin Compact development district. new text end

new text begin "Compact development district" means
a type of tax increment financing district consisting of a project, or portions of a project,
within which the authority finds by resolution that the following conditions are satisfied:
new text end

new text begin (1) parcels consisting of 70 percent of the area of the district are occupied by
buildings or other structures that are classified as class 3a property under section 273.13,
subdivision 24; and
new text end

new text begin (2) the planned redevelopment or development of the district, when completed, will
increase the total square footage of buildings, classified as class 3a under section 273.13,
subdivision 24, occupying the district by three times or more relative to the square footage
of similar buildings occupying the district when the resolution was approved.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts for which the request for
certification is made after June 30, 2009.
new text end

Sec. 11.

Minnesota Statutes 2008, section 469.176, subdivision 1b, is amended to read:

Subd. 1b.

Duration limits; terms.

(a) No tax increment shall in any event be
paid to the authority

(1) after 15 years after receipt by the authority of the first increment for a renewal
and renovation district,

(2) after 20 years after receipt by the authority of the first increment for a soils
condition district,

(3) after eight years after receipt by the authority of the first increment for an
economic development district,

(4) for a housing district new text begin , a compact development district, new text end or a redevelopment
district, after 25 years from the date of receipt by the authority of the first increment.

(b) For purposes of determining a duration limit under this subdivision or subdivision
1e that is based on the receipt of an increment, any increments from taxes payable in
the year in which the district terminates shall be paid to the authority. This paragraph
does not affect a duration limit calculated from the date of approval of the tax increment
financing plan or based on the recovery of costs or to a duration limit under subdivision
1c. This paragraph does not supersede the restrictions on payment of delinquent taxes in
subdivision 1f.

(c) An action by the authority to waive or decline to accept an increment has no
effect for purposes of computing a duration limit based on the receipt of increment under
this subdivision or any other provision of law. The authority is deemed to have received an
increment for any year in which it waived or declined to accept an increment, regardless
of whether the increment was paid to the authority.

(d) Receipt by a hazardous substance subdistrict of an increment as a result of a
reduction in original net tax capacity under section 469.174, subdivision 7, paragraph
(b), does not constitute receipt of increment by the overlying district for the purpose of
calculating the duration limit under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts for which the request for
certification is made after June 30, 2009.
new text end

Sec. 12.

Minnesota Statutes 2008, section 469.176, is amended by adding a subdivision
to read:

new text begin Subd. 1i. new text end

new text begin Compact development districts. new text end

new text begin Tax increments derived from a compact
development district may be used only to pay:
new text end

new text begin (1) administrative expenses up to the amount permitted under subdivision 3;
new text end

new text begin (2) the cost of acquiring land located in the district or abutting the boundary of
the district;
new text end

new text begin (3) demolition and removal of buildings or other improvements and other site
preparation costs for lands located in the district or abutting the boundary of the district;
and
new text end

new text begin (4) installation of public infrastructure or public improvements serving the district,
but excluding the costs of streets, roads, highways, parking, or other public improvements
primarily designed to serve private passenger motor vehicles.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts for which the request for
certification is made after June 30, 2009.
new text end

Sec. 13. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 414.02, new text end new text begin is repealed.
new text end