Minnesota Session Laws - 1986, Regular Session

  

                         Laws of Minnesota 1986 

                        CHAPTER 427-H.F.No. 2051 
           An act relating to the city of St. Paul; permitting 
          the establishment of special service districts in the 
          city and providing taxing and other authority. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [DEFINITIONS.] 
    Subdivision 1.  For the purpose of this act the terms 
defined in this section have the following meanings. 
    Subd. 2.  "City" means the city of St. Paul. 
    Subd. 3.  "Special services" means:  
    (1) the promotion and management of a special service 
district as a trade or shopping area; and 
    (2) the repair, maintenance, and operation of improvements 
and replacement of minor improvements within the boundaries of 
special service districts established under section 2, 
subdivision 1. 
    Special services do not include services that are provided 
throughout the city from general tax revenues of the city except 
to the extent of an increased level of service provided in the 
special service district. 
    Subd. 4.  "Special service district" means a defined area 
within the city where special services are rendered and their 
costs are paid from revenues collected from a special service 
tax imposed within the area. 
    Subd. 5.  "Assessed value" means the assessed value as most 
recently certified by the commissioner of revenue on the 
effective date of an ordinance or resolution adopted pursuant to 
section 2 or 4. 
     Subd. 6.  "Land area" means the land area located within 
the district that is subject to property taxation. 
     Sec. 2.  [ESTABLISHMENT OF SPECIAL SERVICE DISTRICT.] 
     Subdivision 1.  [ORDINANCE.] The governing body of the city 
may adopt ordinances establishing special service districts: 
    (1) in the area of Grand Avenue between Oakland and Cretin 
Avenues; 
    (2) in the area of Cleveland Avenue between Bayard and 
Bohland Avenues and Ford Parkway between Howell Street and East 
Mississippi River Boulevard; and 
    (3) in the area of University Avenue and Snelling Avenue 
between Summit Avenue and Como Avenue.  
    The ordinance shall describe with particularity the areas 
to be included in the district and the special service to be 
furnished.  The ordinance may not be adopted until after a 
public hearing on the question.  Notice of the hearing shall 
include: 
    (1) the time and place of the hearing; 
    (2) a map showing the boundaries of the proposed district; 
    (3) a statement that all persons owning property in the 
proposed district will be given an opportunity to be heard at 
the hearing; 
    (4) a description of the proposed special services to be 
provided and the estimated taxes to be levied in the district; 
and 
     (5) a statement of the landowner's rights to object and to 
appeal pursuant to section 3. 
    Subd. 2.  [NOTICE.] Notice of the hearing shall be given by 
publication in two issues of a newspaper of general circulation 
in the city.  The two publications shall be a week apart and the 
hearing shall be held no sooner than three days after the last 
publication.  Not less than ten days before the hearing, notice 
shall also be mailed to the owner of each parcel of real estate 
proposed to be included in the district.  For the purpose of 
giving mailed notice, owners shall be those shown on the records 
of the county auditor.  Other records may be used to supply 
necessary information.  For properties which are subject to 
taxation on a gross earning basis in lieu of property tax and 
are not listed on the records of the county auditor, the owners 
shall be ascertained by any practicable means and mailed notice 
given them.  At the public hearing, any person who owns property 
in a proposed district or any interested party may be heard 
orally in respect to the proposed district.  The hearing may be 
adjourned from time to time and the ordinance establishing a 
district may be adopted at any time within six months after the 
date of the conclusion of the hearing, and after the 
determination of all objections under section 3.  
    Sec. 3.  [OBJECTION.] 
    Subdivision 1.  [FILING.] On or before the adoption of the 
ordinance, any affected landowner may file written objection 
with the city clerk objecting to:  
    (1) the inclusion of the landowner's property in the 
district; 
    (2) levy of the tax on the landowner's property; or 
    (3) the fact that the use of the landowner's property is 
not substantially benefited by the proposed special service;  
and asserting that the landowner's property should not be 
subjected to the special service tax.  The governing body of the 
city shall hold a public hearing on the objection within 30 days 
of the filing of the objection and shall make a determination on 
the objection. 
    Subd. 2.  [APPEAL TO DISTRICT COURT.] Within 30 days after 
the adoption of the ordinance, any person aggrieved, who is not 
precluded by failure to object prior to or at the hearing, or 
whose failure to so object is due to a reasonable cause, may 
appeal to the district court by serving a notice upon the mayor 
or clerk of the municipality.  The notice shall be filed with 
the clerk of the district court within ten days after its 
service.  The municipal clerk shall furnish appellant a 
certified copy of the findings and determination of the 
governing body.  The appeal shall be placed upon the calendar of 
the next general term commencing more than five days after the 
date of serving the notice and shall be tried as other appeals 
in such cases.  The court shall either affirm the matter 
objected to or modify or deny it.  If appellant does not prevail 
upon the appeal, the costs incurred shall be taxed by the court 
and judgment entered therefor.  All objections shall be deemed 
waived unless presented on appeal.  This section provides the 
exclusive method of appeal from an action taken pursuant to this 
act. 
    Sec. 4.  [TAXING AUTHORITY; NOTICE AND HEARING 
REQUIREMENTS.] 
    Subdivision 1.  [TAXES; HEARING.] Upon a finding of public 
purpose and subject to any determination under section 3, a 
special service tax based upon property value, square footage, 
or front footage or allocated by another fair method determined 
by the governing body may be levied on real properties within 
zoning districts classified by the city of St. Paul as:  OS-1, 
B-1, B-2, B-2C, B-3, I-1 and P-1, found within the special 
district at a rate or amount sufficient to produce revenues 
required to provide the special services within the district.  
If the property value method is used, taxable property or value 
shall be determined without regard to captured or original 
assessed value under Minnesota Statutes, section 273.76, or to 
the distribution or contribution value under Minnesota Statutes, 
section 473F.08.  A special service tax may not be imposed on 
the receipts from the sale of intoxicating liquor, food, or 
lodging.  Before the levy of special service taxes in a 
district, notice shall be given and a hearing held pursuant to 
section 2 or 3.  For purposes of this section the notice shall 
include: 
    (1) a statement that the owners of all taxable property 
included in the proposed district will be given an opportunity 
to be heard at the hearing regarding the proposed special 
service tax; 
    (2) the estimated cost of special services to be paid for 
in whole or part by the special service tax imposed under this 
section, the estimated cost of operating and maintaining 
improvements and providing other special services during the 
first year after their completion, the proposed method and 
source of financing, and the annual cost of repairing, 
operating, maintaining, and replacing improvements and providing 
other special services; and 
    (3) the proposed rate or amount and duration of special 
service taxes to be levied in the district during the calendar 
year and the nature and character of special services to be 
rendered in the district during the calendar year. 
    Within six months of the public hearing and determination 
by the governing body of all objections under section 3, the 
city may adopt a resolution levying a special service tax within 
the district that does not exceed the amount or rate stated in 
the notice issued pursuant to this section. 
    Any amendment increasing the amount of a special service 
tax from that estimated in the notice shall only be considered 
after further notice in accordance with this subdivision. 
    Subd. 2.  [EXEMPTION OF CERTAIN PROPERTIES FROM 
TAXES.] Property exempt from taxation by Minnesota Statutes, 
section 272.02, and property used exclusively for residential 
purposes is exempt from any tax imposed pursuant to this act. 
    Subd. 3.  [LEVY LIMIT EXEMPTIONS.] A special service tax 
imposed pursuant to this act shall be included in the 
calculation of levies or limits on levies provided by other law 
or home rule charter. 
    Subd. 4.  [EXCLUSION FROM HOMESTEAD CREDIT.] A special 
service tax levied under this section shall not be reduced 
pursuant to Minnesota Statutes, section 273.13, subdivision 22. 
    Sec. 5.  [ENLARGEMENT OF SPECIAL SERVICE DISTRICTS.] 
    A special service district may be enlarged only after 
hearing and notice as provided in section 2 and section 3.  
Notice shall be served on property owners in the original 
district and in the area proposed to be added to the district.  
Property added to the district shall be subject to all special 
service taxes levied within the district after the property 
becomes a part of the district.  The petition requirement in 
section 6 and the veto power in section 7 shall only apply to 
owners of property in the area proposed to be added to the 
district. 
    Sec. 6.  [PETITION REQUIRED.] 
    No public hearing may be held pursuant to section 2 unless 
owners of 35 percent or more of the land area subject to the 
proposed tax and owners of 35 percent or more of the assessed 
value of the proposed district file a petition with the city 
clerk requesting the hearing.  No public hearing may be held 
pursuant to section 4 to impose a special service tax unless 
owners of 35 percent or more of the land area subject to the 
proposed tax and owners of 35 percent or more of the assessed 
value subject to the proposed tax file a petition with the city 
clerk requesting the hearing.  If the boundaries of a proposed 
district or the land area of assessed value subject to a tax are 
changed, a petition meeting the requirements of this section 
must be filed with the city clerk before the ordinance 
establishing the district or resolution imposing the tax may 
become effective. 
    Sec. 7.  [VETO POWER OF OWNERS.] 
    Subdivision 1.  [NOTICE OF RIGHT TO FILE OBJECTIONS.] 
Except as provided in section 8, the effective date of an 
ordinance or resolution adopted pursuant to sections 2 and 4 
shall be at least 45 days after it is adopted.  Within ten days 
after adoption of the ordinance or resolution, a copy of the 
ordinance or resolution shall be mailed to the owner of each 
parcel of real estate subject to the proposed tax included in 
the special service district in the same manner that notice is 
mailed pursuant to section 2.  The mailing shall include a 
notice that owners subject to a special service tax have a right 
to veto the ordinance or resolution by filing the required 
number of objections with the city clerk before the effective 
date of the ordinance or resolution and their rights under 
section 3. 
    Subd. 2.  [REQUIREMENT FOR VETO.] If owners of 25 percent 
of the land area subject to the special service tax in the 
district and owners of 25 percent of the assessed value in the 
district file a written objection to the ordinance adopted by 
the city pursuant to section 2 with the city clerk before the 
effective date of the ordinance, the ordinance shall not become 
effective.  If owners of 25 percent of the land area subject to 
a tax and owners of 25 percent of the assessed value subject to 
a tax file an objection to the resolution adopted pursuant to 
section 4 with the city clerk before the effective date of the 
resolution, the resolution shall not become effective. 
    Sec. 8.  [EXCLUSION FROM PETITION REQUIREMENTS AND VETO 
POWER.] 
    The petition requirement of section 6 and the right of 
owners to veto a resolution in section 7 do not apply to the 
second or a subsequent year's application of a special service 
tax that is authorized to be in effect for more than one year 
pursuant to a resolution that has met the petition requirements 
of section 6 and has not been vetoed under section 7 for the 
first year's application.  A resolution levying a special 
service tax shall not exceed three years and shall not be 
adopted unless the notice of public hearing required by section 
4 and the notice mailed with the adopted resolution pursuant to 
section 7 include the maximum rate or amount of the special 
service tax to be levied in any year and the maximum number of 
years the tax will be levied.  
    The resolution may provide that the maximum amount of a 
special service tax to be levied in any year will increase or 
decrease from the maximum amount authorized in the preceding 
year based on a statistical indicator, increased cost, or a 
percentage established by the resolution. 
    Sec. 9.  [COLLECTION OF TAXES.] 
    Special service taxes levied within a special service 
district shall be collected like other property taxes but only 
from property described in the ordinance.  Taxes collected 
pursuant to this act shall not be included in computations under 
Minnesota Statutes, section 273.76, chapter 473F, or any other 
law that applies to general property taxes. 
    Sec. 10.  [ADVISORY BOARD.] 
    The governing body of the city may create and appoint an 
advisory board for each special service district in the city to 
advise the governing body in connection with the construction, 
maintenance, and operation of improvements, and the furnishing 
of all other special services in a district.  The advisory board 
shall make recommendations to the governing body on the requests 
and complaints of owners, occupants, and users of property 
within the district and members of the public.  Before the 
adoption of any proposal by the governing body to provide 
service or impose a special service tax within the district, the 
advisory board of the district must have an opportunity to 
review and comment upon the proposal. 
    Sec. 11.  [EFFECTIVE DATE.] 
    Sections 1 to 10 are effective the day after compliance 
with Minnesota Statutes, section 645.021, subdivision 3, by the 
governing body of the city of St. Paul. 
    Approved March 24, 1986