Minnesota Session Laws - 1985, Regular Session

  

                         Laws of Minnesota 1985 

                        CHAPTER 115-S.F.No. 1308 
           An act relating to Olmsted county; providing for 
          sales, leases, and conveyances; providing certain 
          exceptions to public bidding requirements. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [PROPERTY AQUISITION.] 
    Notwithstanding Minnesota Statutes, section 373.01, any 
real property of Olmsted county may be conveyed and reacquired 
together with improvements financed under an installment 
purchase contract or lease-purchase agreement in accordance with 
section 2, and used for county purposes or leased in part to any 
government unit, agency, or instrumentality of the state or the 
United States, without advertisement for bids or proposals. 
    Taxes for any payments under the installment purchase 
contract or lease-purchase agreement which are attributable to 
the acquisition, equipping, or improvement of property to be 
used for county or regional jail purposes or properties to be 
leased to a governmental unit, agency, or instrumentality of the 
state or the United States for law enforcement purposes must be 
levied as provided in Minnesota Statutes, section 641.264, 
subdivision 2. 
    Sec. 2.  [CONDITIONS.] 
    Olmsted county may purchase real or personal property under 
an installment contract, or lease personal property with an 
option to purchase under a lease-purchase agreement, by which 
contract or agreement title is retained by the seller or vendor 
or assigned to a third party as security for the purchase price, 
including interest, if any, but the purchases are subject to 
statutory provisions applicable to the purchase of real or 
personal property.  For purposes of the bid requirements 
contained in Minnesota Statutes, section 471.345, "the amount of 
the contract" shall include the total of all lease payments for 
the entire term of the lease under a lease-purchase agreement.  
The obligation created by an installment contract or a lease- 
purchase agreement shall not be included in the calculation of 
net debt for purposes of Minnesota Statutes, section 475.53, and 
shall not constitute debt under any other statutory provision.  
No election shall be required in connection with the execution 
of an installment contract or a lease-purchase agreement 
authorized by this section.  The county shall have the right to 
terminate a lease-purchase agreement at the end of any fiscal 
year during its term.  To finance improvements or provide funds 
for its governmental purposes, the county may convey real or 
personal property to a private entity, without advertising for 
bids or proposals, at a price equal to either the price at which 
the property was acquired by the county or at its appraised 
market value, as determined by the governing body, provided 
that, immediately following the conveyance, the county enters 
into an installment contract or lease-purchase agreement 
complying with this section with respect to the property so 
conveyed and any improvements constructed or to be constructed 
on it.  Any and all properties acquired and used, whether under 
lease-purchase agreement or installment contract, by the county 
for the purposes authorized and contemplated in this section 
shall be deemed and are declared to be public property 
exclusively used for a public purpose and exempt from taxation, 
so long as and to the extent that the property is devoted to the 
public purposes and is not subleased to any private individual, 
association, or corporation in connection with a business 
conducted for a profit, for a term of three or more years. 
     Sec. 3.  [EFFECTIVE DATE.] 
     Sections 1 and 2 are effective the day following final 
enactment. 
    Approved May 14, 1985