Minnesota Session Laws - 1999, Regular Session

                            CHAPTER 180-S.F.No. 1572 
                  An act relating to natural resources; modifying 
                  provisions for the exchange or sale of leased 
                  lakeshore lots; amending Laws 1998, chapter 389, 
                  article 16, section 31, subdivisions 2, 3, and 4. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Laws 1998, chapter 389, article 16, section 31, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXCHANGE OF COUNTY LAKESHORE LAND FOR LEASED 
        LAKESHORE LOTS.] (a) For the purposes of this section: 
           (1) "county land" includes, but is not limited to, 
        tax-forfeited land administered by any county; and 
           (2) "leased lakeshore lots" means lands leased by the 
        state, including lots for which leases have been canceled, 
        pursuant to Minnesota Statutes, section 92.46, subdivision 1.; 
        and 
           (3) "plan for exchange" means a listing of parcels proposed 
        for exchange with legal descriptions, county estimates of 
        values, and maps and acreage for each parcel.  By July 1, 1999, 
        counties shall include exchange plans for all lakeshore lease 
        lots that are in substantial compliance with official controls.  
        The plan shall also include a timeline that provides for the 
        completion of the exchange of all remaining lakeshore lease lots 
        by December 31, 2000.  
           (b) By June July 1, 1999, a county board with leased 
        lakeshore lots must petition the land exchange board with a plan 
        for an exchange of county land for leased lakeshore lots in the 
        county that are not listed by the commissioner pursuant to 
        subdivision 1.  Notwithstanding Minnesota Statutes, section 
        94.342, the land proposed for the exchange must be land 
        bordering on or adjacent to meandered or other public waters.  A 
        county board proposing an exchange under this section may 
        include tax-forfeited land administered by another county in the 
        proposal with the consent of that county board.  
           (c) In determining the value of the leased lakeshore lots 
        for purposes of the exchange, the land exchange board must 
        review an appraisal of each lot prepared by an appraiser 
        licensed by the commissioner of commerce.  The selection of the 
        appraiser must be agreed to by the commissioner of natural 
        resources and the county board of the county containing the 
        leased lakeshore lot.  The commissioner of natural resources 
        must pay the costs of appraisal and may recover these costs as 
        provided in this section.  The commissioner must submit 
        appraisals under this paragraph to the land exchange board by 
        June 1, 1999.  
           (d) The land exchange board must determine whether the land 
        offered for exchange by a county under this section is lakeshore 
        of substantially equal value to the leased lakeshore lots 
        included in the county's petition.  In making this 
        determination, the land exchange board must review an appraisal 
        of the land offered for exchange prepared by an appraiser 
        licensed by the commissioner of commerce.  The selection of the 
        appraiser must be agreed to by the commissioner of natural 
        resources and the county board of the county containing the 
        leased lakeshore lots.  The county must pay the costs of this 
        appraisal and may recover those costs as provided in this 
        section.  
           (e) Before the proposed exchange may be submitted to the 
        land exchange board, the commissioner of natural resources must 
        ensure that, whenever possible, state lands are added to the 
        leased lakeshore lots when necessary to provide conformance with 
        zoning requirements official controls.  The lands added to the 
        leased lakeshore lots must be included in the appraised value of 
        the lots.  If the commissioner is unable to add the necessary 
        land to a lot, the lot shall be treated as if purchased at the 
        time the state first leased the site, for the purposes of local 
        zoning and other ordinances at the time of sale of the lot by 
        the county.  
           (f) Additional state or county lands, including state 
        riparian land leased for a commercial use, may be added to the 
        exchanges if mutually agreed upon by the commissioner and the 
        affected county board to meet county zoning standards or other 
        regulatory needs for the lots, for use of the land by the county 
        or state, or to avoid leaving unmanageable parcels of land in 
        state or county ownership after an exchange, or to dispose of 
        state commercial riparian leases.  The additional county land 
        may include nonriparian land, if the land is adjacent to county 
        land exchanged under this section and is beneficial to or 
        enhances the value of the school trust land.  Notwithstanding 
        Minnesota Statutes, chapter 282, or any other law to the 
        contrary, a county board may sell all or part of any additional 
        land to an owner of a lakeshore lot sold by the county under 
        this section, or sold by the state at a lakeshore lot sale, or 
        to the lessee of a commercial lease.  
           (g) In the event that commercial leased state land is 
        proposed for exchange, the state and county must submit to the 
        land exchange board prior to exchanges, without regard to the 
        dates provided in this section, the reports, appraisals, and 
        plan for exchange required by this section.  The county is not 
        required to sell the commercially leased lands it receives from 
        the state within the times stated in this section. 
           (h) The land exchange board must determine whether the lots 
        are of substantially equal value and may approve the exchange, 
        notwithstanding the requirements of Minnesota Statutes, sections 
        94.342 to 94.347, relating to the approval process.  If the 
        board approves the exchange, the commissioner must exchange the 
        leased lakeshore lots for the county lands, together with any 
        additional state land provided for under this section, subject 
        to the requirements of the Minnesota Constitution, article XI, 
        section 10, relating to the reservation of mineral and water 
        power rights.  
           (i) The deeds between the state and counties for land 
        exchanges under this section are exempt from the deed tax 
        imposed by Minnesota Statutes, section 287.21. 
           Sec. 2.  Laws 1998, chapter 389, article 16, section 31, 
        subdivision 3, is amended to read: 
           Subd. 3.  [COUNTY SALE.] Notwithstanding Minnesota 
        Statutes, section 282.018, or any other law to the contrary, a 
        county board must offer land that it has acquired through an 
        exchange under this section for sale to the lessee of the land 
        within 90 days from the date of acquisition for the value of the 
        land as determined by the county board.  The county board may 
        include the cost of appraisal of the county land, abstract, and 
        survey for the purposes of this section in the value of the 
        land.  If the lessee does not elect to purchase the land within 
        90 days from the date of the offer by the county, the county 
        board may shall sell the land by public sale at the expiration 
        of the lease term no later than four years from the date the 
        county acquires the land through an exchange under this section 
        for no less than the value of the land as determined by the 
        county board, including the cost of appraisal required by this 
        section, any survey or abstract costs, and the value of 
        improvements to the land.  The county may sell the land with a 
        directed sale to adjacent landowners within four years from the 
        date of acquisition, if the lessee does not elect to purchase 
        the lot within the 90-day period and if the county board 
        determines that a lot cannot be brought into substantial 
        compliance with official controls absent such a sale.  The 
        county board must reimburse the lessee for the value of the 
        improvements to the land and the county may retain a sum from 
        the proceeds of the sale equivalent to the cost of appraisal, 
        abstract, and survey.  The county board must reimburse the 
        commissioner of natural resources for the costs of appraisal 
        under subdivision 2, paragraph (c), survey, and abstract from 
        the proceeds of the sale. 
           Scheduled lease rate increases shall be suspended for lots 
        when the county certifies that the lessee has elected to 
        purchase the lot within 90 days from the date of the offer by 
        the county. 
           Sec 3.  Laws 1998, chapter 389, article 16, section 31, 
        subdivision 4, is amended to read: 
           Subd. 4.  [COUNTY ENVIRONMENTAL TRUST FUND.] 
        Notwithstanding the provisions of Minnesota Statutes, chapter 
        282, and any other law relating to the apportionment of proceeds 
        from the sale of tax-forfeited land, and except as otherwise 
        provided in this section, a county board must deposit the money 
        received from the sale of land under subdivision 3 into an 
        environmental trust fund established by the county under this 
        subdivision.  If the proceeds from the sale of tax-forfeited 
        land in a county is $250,000 or more, the principal from the 
        sale of the land may not be expended, and the county board may 
        spend interest earned on the principal only for purposes related 
        to the improvement of natural resources.  To the extent money 
        received from the sale is attributable to tax-forfeited land 
        from another county, the money must be deposited in an 
        environmental trust fund established under this section by that 
        county board. 
           Presented to the governor May 15, 1999 
           Signed by the governor May 19, 1999, 4:14 p.m.