1.1                          A bill for an act 
  1.2             relating to community-based land use planning; 
  1.3             establishing goals; establishing a county 
  1.4             community-based planning process; establishing a 
  1.5             municipal community-based planning process; sunsetting 
  1.6             the municipal board; establishing an alternative 
  1.7             dispute resolution process; appropriating money; 
  1.8             amending Minnesota Statutes 1996, sections 115.49, by 
  1.9             adding a subdivision; 394.23; 394.24, subdivision 1; 
  1.10            414.0325, subdivision 1; 414.033, subdivisions 2b, 11, 
  1.11            and 12; 462.352, subdivisions 5, 6, and by adding a 
  1.12            subdivision; and 462.357, subdivision 2; proposing 
  1.13            coding for new law in Minnesota Statutes, chapters 4A; 
  1.14            394; 414; 462; 473; and 572A; repealing Minnesota 
  1.15            Statutes 1996, section 414.033, subdivision 2a. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17                             ARTICLE 1 
  1.18                      COMMUNITY-BASED PLANNING 
  1.19     Section 1.  [4A.08] [COMMUNITY-BASED PLANNING GOALS.] 
  1.20     Subdivision 1.  [GOALS.] The ten goals of community-based 
  1.21  planning are as stated in subdivisions 2 to 11. 
  1.22     Subd. 2.  [CITIZEN PARTICIPATION.] Develop a 
  1.23  community-based planning process with broad citizen 
  1.24  participation in order to build local capacity to plan for 
  1.25  sustainable development and to benefit from the insights, 
  1.26  knowledge, and support of local residents.  
  1.27     Subd. 3.  [COOPERATION.] Promote cooperation among 
  1.28  communities to work towards the most efficient, planned, and 
  1.29  cost-effective delivery of governmental services by, among other 
  1.30  means, facilitating cooperative agreements among adjacent 
  2.1   communities and to coordinate planning to ensure compatibility 
  2.2   of one community's development with development of neighboring 
  2.3   communities. 
  2.4      Subd. 4.  [ECONOMIC DEVELOPMENT.] Create sustainable 
  2.5   economic development strategies and provide economic 
  2.6   opportunities throughout the state that will encourage a 
  2.7   balanced distribution of growth statewide. 
  2.8      Subd. 5.  [PUBLIC INVESTMENT.] Identify the full 
  2.9   environmental, social, and economic costs of new development, 
  2.10  including infrastructure costs such as transportation, sewers 
  2.11  and wastewater treatment, water, schools, recreation, and open 
  2.12  space, and plan the funding mechanisms necessary to cover the 
  2.13  costs of the infrastructure. 
  2.14     Subd. 6.  [LIVABLE COMMUNITY DESIGN.] Strengthen 
  2.15  communities by addressing the principles of livable community 
  2.16  design, which includes planning for the efficient use of land 
  2.17  resources through the use of compact and mixed-use development 
  2.18  open spaces, integration of differing housing types to serve all 
  2.19  income and age groups, access to public transit, bicycle and 
  2.20  pedestrian ways, and enhanced aesthetics and beauty in public 
  2.21  spaces. 
  2.22     Subd. 7.  [SUSTAINABLE DEVELOPMENT.] Encourage development 
  2.23  consistent with the definition of sustainable development in 
  2.24  section 4A.07, subdivision 1, and use natural resources and 
  2.25  public funds efficiently by directing growth towards areas with 
  2.26  existing infrastructure. 
  2.27     Subd. 8.  [CONSERVATION.] Consider methods to protect, 
  2.28  preserve, and enhance the state's resources, including 
  2.29  agricultural land, forests, surface water and groundwater, 
  2.30  recreation and open space, scenic areas, and significant 
  2.31  historic and archaeological sites. 
  2.32     Subd. 9.  [HOUSING.] Provide and preserve an adequate 
  2.33  supply of affordable and life-cycle housing. 
  2.34     Subd. 10.  [TRANSPORTATION.] Focus on the movement of 
  2.35  people and goods, rather than on the movement of automobiles, in 
  2.36  transportation planning, and to maximize the efficient use of 
  3.1   the transportation infrastructure by increasing the availability 
  3.2   and use of appropriate public transit throughout the state 
  3.3   through land-use planning and design that makes public transit 
  3.4   economically viable and desirable. 
  3.5      Subd. 11.  [COMMUNITY IDENTITY.] Permit communities to 
  3.6   maintain their unique identities and character consistent with 
  3.7   state law. 
  3.8      Sec. 2.  [4A.09] [TECHNICAL ASSISTANCE.] 
  3.9      The office shall provide local governments technical and 
  3.10  financial assistance in preparing their comprehensive plans to 
  3.11  meet the community-based planning goals in section 4A.08.  
  3.12     Sec. 3.  [4A.10] [PLAN REVIEW AND COMMENT.] 
  3.13     The office shall review and comment on community-based 
  3.14  comprehensive plans prepared by counties, including the 
  3.15  community-based comprehensive plans of municipalities and towns 
  3.16  that are incorporated into a county's plan, as required in 
  3.17  section 394.232, subdivision 3. 
  3.18     Sec. 4.  Minnesota Statutes 1996, section 394.23, is 
  3.19  amended to read: 
  3.20     394.23 [COMPREHENSIVE PLAN.] 
  3.21     The board ~~shall have~~ has the power and authority to prepare 
  3.22  and adopt by ordinance, a comprehensive plan.  A comprehensive 
  3.23  plan or plans when adopted by ordinance ~~shall~~ must be the basis 
  3.24  for official controls adopted under the provisions of sections 
  3.25  394.21 to 394.37.  
  3.26     Sec. 5.  [394.232] [COMMUNITY-BASED PLANNING.] 
  3.27     Subdivision 1.  [GENERAL.] Each county is encouraged to 
  3.28  prepare and implement a community-based comprehensive plan.  A 
  3.29  community-based comprehensive plan is a comprehensive plan that 
  3.30  is consistent with the goals of community-based planning in 
  3.31  section 4A.08. 
  3.32     Subd. 2.  [NOTICE AND PARTICIPATION.] Notice must be given 
  3.33  at the beginning of the community-based comprehensive planning 
  3.34  process to the office of strategic and long-range planning, the 
  3.35  department of natural resources, the department of agriculture, 
  3.36  the department of trade and economic development, the board of 
  4.1   soil and water resources, the pollution control agency, the 
  4.2   department of transportation, local government units, and local 
  4.3   citizens to actively participate in the development of the 
  4.4   plan.  An agency that is invited to participate in the 
  4.5   development of a local plan but declines to do so and fails to 
  4.6   participate or to provide written comments during the plan 
  4.7   development process waives the right during the office's review 
  4.8   and comment period to submit comments, except for comments 
  4.9   concerning consistency of the plan with laws and rules 
  4.10  administered by the agency.  In determining the merit of the 
  4.11  agency comment, the office shall consider the involvement of the 
  4.12  agency in the development of the plan. 
  4.13     Subd. 3.  [COORDINATION.] A county that prepares a 
  4.14  community-based comprehensive plan shall coordinate its plan 
  4.15  with the plans of its neighbors and its constituent 
  4.16  municipalities and towns in order both to prevent its plan from 
  4.17  having an adverse impact on other jurisdictions and to 
  4.18  complement plans of other jurisdictions.  The county's 
  4.19  community-based comprehensive plan must incorporate the 
  4.20  community-based comprehensive plan of any municipality or town 
  4.21  in the county prepared in accordance with section 462.3535.  A 
  4.22  county may incorporate a municipal or town community-based 
  4.23  comprehensive plan by reference.  
  4.24     Subd. 4.  [JOINT PLANNING.] Under the joint exercise of 
  4.25  powers provisions in section 471.59, a county may establish a 
  4.26  joint planning district with other counties, municipalities, and 
  4.27  towns, that are geographically contiguous, to adopt a single 
  4.28  community-based comprehensive plan for the district.  The county 
  4.29  may delegate its authority to adopt official controls under this 
  4.30  chapter, to the board of the joint planning district. 
  4.31     Subd. 5.  [REVIEW AND COMMENT.] (a) The county or joint 
  4.32  planning district shall submit its community-based comprehensive 
  4.33  plan to the office of strategic and long-range planning for 
  4.34  review.  The plan is deemed approved 60 days after submittal to 
  4.35  the office, unless the office disagrees with the plan as 
  4.36  provided in paragraph (c). 
  5.1      (b) The office may not disapprove a community-based 
  5.2   comprehensive plan if the office determines that the plan meets 
  5.3   the requirements of this section.  
  5.4      (c) If the office disagrees with a community-based 
  5.5   comprehensive plan or any elements of the plan, the office shall 
  5.6   notify the county or district in writing of the plan 
  5.7   deficiencies and suggested changes.  Upon receipt of the 
  5.8   office's written comments, the county or district has 60 days to 
  5.9   revise the community-based comprehensive plan and resubmit it to 
  5.10  the office for reconsideration. 
  5.11     (d) If the county or district refuses to revise the plan or 
  5.12  the office disagrees with the revised plan, the office shall 
  5.13  within 60 days notify the county or district that it wishes to 
  5.14  initiate the dispute resolution process in chapter 572A. 
  5.15     (e) Within 30 days of notice from the office, the county or 
  5.16  joint planning district shall notify the office of its intent to 
  5.17  enter the dispute resolution process.  If the county or district 
  5.18  refuses to enter the dispute resolution process, the county or 
  5.19  district shall refund any state grant received for 
  5.20  community-based planning activities through the office. 
  5.21     Subd. 6.  [PLAN UPDATE.] The county board, or the board of 
  5.22  the joint planning district, shall review and update the 
  5.23  community-based comprehensive plan periodically, but at least 
  5.24  every ten years, and submit the updated plan to the office of 
  5.25  strategic and long-range planning for review and comment.  
  5.26     Subd. 7.  [CITIZEN ACTION.] No citizen may institute 
  5.27  mandamus proceedings against a county under this section to 
  5.28  require the county to conform its comprehensive plan to be 
  5.29  consistent with the community-based planning goals in section 
  5.30  4A.08.  
  5.31     Subd. 8.  [PLANNING AUTHORITY.] Nothing in this section 
  5.32  shall be construed to prohibit or limit a county's authority to 
  5.33  prepare and adopt a comprehensive plan and official controls 
  5.34  under this chapter. 
  5.35     Sec. 6.  Minnesota Statutes 1996, section 394.24, 
  5.36  subdivision 1, is amended to read: 
  6.1      Subdivision 1.  [ADOPTED BY ORDINANCE.] Official controls 
  6.2   which shall further the purpose and objectives of the 
  6.3   comprehensive plan and parts thereof shall be adopted by 
  6.4   ordinance.  The comprehensive plan must provide guidelines for 
  6.5   the timing and sequence of the adoption of official controls to 
  6.6   ensure planned, orderly, and staged development and 
  6.7   redevelopment consistent with the comprehensive plan.  
  6.8      Sec. 7.  Minnesota Statutes 1996, section 462.352, 
  6.9   subdivision 5, is amended to read: 
  6.10     Subd. 5.  [COMPREHENSIVE MUNICIPAL PLAN.] "Comprehensive 
  6.11  municipal plan" means a compilation of policy statements, goals, 
  6.12  standards, and maps for guiding the physical, social and 
  6.13  economic development, both private and public, of the 
  6.14  municipality and its environs, including air space and 
  6.15  subsurface areas necessary for mined underground space 
  6.16  development pursuant to sections 469.135 to 469.141, and may 
  6.17  include, but is not limited to, the following:  statements of 
  6.18  policies, goals, standards, a land use plan, including proposed 
  6.19  densities for development, a community facilities plan, a 
  6.20  transportation plan, and recommendations for plan execution.  A 
  6.21  comprehensive plan represents the planning agency's 
  6.22  recommendations for the future development of the community.  
  6.23     Sec. 8.  Minnesota Statutes 1996, section 462.352, 
  6.24  subdivision 6, is amended to read: 
  6.25     Subd. 6.  [LAND USE PLAN.] "Land use plan" means a 
  6.26  compilation of policy statements, goals, standards, and maps, 
  6.27  and action programs for guiding the future development of 
  6.28  private and public property.  The term includes a plan 
  6.29  designating types of uses for the entire municipality as well as 
  6.30  a specialized plan showing specific areas or specific types of 
  6.31  land uses, such as residential, commercial, industrial, public 
  6.32  or semipublic uses or any combination of such uses.  A land use 
  6.33  plan may also include the proposed densities for development. 
  6.34     Sec. 9.  Minnesota Statutes 1996, section 462.352, is 
  6.35  amended by adding a subdivision to read: 
  6.36     Subd. 18.  [URBAN GROWTH AREA.] "Urban growth area" means 
  7.1   the identified area around an urban area within which there is a 
  7.2   sufficient supply of developable land for at least a prospective 
  7.3   20-year period, based on demographic forecasts and the time 
  7.4   reasonably required to effectively provide municipal services to 
  7.5   the identified area. 
  7.6      Sec. 10.  [462.3535] [COMMUNITY-BASED PLANNING.] 
  7.7      Subdivision 1.  [GENERAL.] Each municipality is encouraged 
  7.8   to prepare and implement a community-based comprehensive 
  7.9   municipal plan.  A community-based comprehensive municipal plan 
  7.10  is a comprehensive plan that is consistent with the goals of 
  7.11  community-based planning in section 4A.08. 
  7.12     Subd. 2.  [COORDINATION.] A municipality that prepares a 
  7.13  community-based comprehensive municipal plan shall coordinate 
  7.14  its plan with the plans, if any, of the county and the 
  7.15  municipality's neighbors both in order to prevent the plan from 
  7.16  having an adverse impact on other jurisdictions and to 
  7.17  complement the plans of other jurisdictions.  The municipality 
  7.18  shall prepare its plan to be incorporated into the county's 
  7.19  community-based comprehensive plan, if the county is preparing 
  7.20  or has prepared one, and shall otherwise assist and cooperate 
  7.21  with the county in its community-based planning. 
  7.22     Subd. 3.  [JOINT PLANNING.] Under the joint exercise of 
  7.23  powers provisions in section 471.59, a municipality may 
  7.24  establish a joint planning district with other municipalities or 
  7.25  counties that are geographically contiguous, to adopt a single 
  7.26  community-based comprehensive plan for the district.  A 
  7.27  municipality may delegate its authority to adopt official 
  7.28  controls under sections 462.351 to 462.364, to the board of the 
  7.29  joint planning district. 
  7.30     Subd. 4.  [CITIES; URBAN GROWTH AREAS.] (a) The 
  7.31  community-based comprehensive municipal plan for a statutory or 
  7.32  home rule charter city, and official controls to implement the 
  7.33  plan, must at a minimum, address any urban growth area 
  7.34  identified in a county plan and may establish an urban growth 
  7.35  area for the urbanized and urbanizing area.  The city plan must 
  7.36  establish a staged process for boundary adjustment to include 
  8.1   the urbanized or urbanizing area within corporate limits as the 
  8.2   urban growth area is developed and provided municipal services. 
  8.3      (b) Within the urban growth area, the plan must provide for 
  8.4   the staged provision of urban services, including, but not 
  8.5   limited to, water, wastewater collection and treatment, and 
  8.6   transportation.  
  8.7      Subd. 5.  [URBAN GROWTH AREA BOUNDARY ADJUSTMENT 
  8.8   PROCESS.] (a) After an urban growth area has been identified in 
  8.9   a county or city plan, a city shall negotiate, as part of the 
  8.10  comprehensive planning process and in coordination with the 
  8.11  county, an orderly annexation agreement with the townships 
  8.12  containing the affected unincorporated areas located within the 
  8.13  identified urban growth area.  The agreement shall contain a 
  8.14  boundary adjustment staging plan that establishes a sequencing 
  8.15  plan over the subsequent 20-year period for the orderly growth 
  8.16  of the city based on its reasonably anticipated development 
  8.17  pattern and ability to extend municipal services into designated 
  8.18  unincorporated areas located within the identified urban growth 
  8.19  area.  The city shall include the staging plan agreed upon in 
  8.20  the orderly annexation agreement in its comprehensive plan.  
  8.21  Upon agreement by the city and town, prior adopted orderly 
  8.22  annexation agreements may be included as part of the boundary 
  8.23  adjustment plan and comprehensive plan without regard to whether 
  8.24  the prior adopted agreement is consistent with this section.  
  8.25  When either the city or town requests that an existing orderly 
  8.26  annexation agreement affecting unincorporated areas located 
  8.27  within an identified or proposed urban growth area be 
  8.28  renegotiated, the renegotiated plan shall be consistent with 
  8.29  this section. 
  8.30     (b) After a city's community-based comprehensive plan is 
  8.31  approved under this section, the orderly annexation agreement 
  8.32  shall be filed with the municipal board or its successor 
  8.33  agency.  Thereafter, the city may orderly annex the part or 
  8.34  parts of the designated unincorporated area according to the 
  8.35  sequencing plan and conditions contained in the negotiated 
  8.36  orderly annexation agreement by submitting a resolution to the 
  9.1   municipal board or its successor agency.  The resolution shall 
  9.2   specify the legal description of the area designated pursuant to 
  9.3   the staging plan contained in the agreement, a map showing the 
  9.4   new boundary and its relation to the existing city boundary, a 
  9.5   description of and schedule for extending municipal services to 
  9.6   the area, and a determination that all applicable conditions in 
  9.7   the agreement have been satisfied.  Within 30 days of receipt of 
  9.8   the resolution, the municipal board or its successor shall 
  9.9   review the resolution and if it finds that the terms and 
  9.10  conditions of the orderly annexation agreement have been met, 
  9.11  shall order the annexation.  The boundary adjustment shall 
  9.12  become effective upon issuance of an order by the municipal 
  9.13  board or its successor.  The municipal board or its successor 
  9.14  shall cause copies of the boundary adjustment order to be mailed 
  9.15  to the secretary of state, department of revenue, state 
  9.16  demographer, and the department of transportation.  No further 
  9.17  proceedings under chapter 414 or 572A shall be required to 
  9.18  accomplish the boundary adjustment.  This section provides the 
  9.19  sole method for annexing unincorporated land within an urban 
  9.20  growth area, unless the parties agree otherwise. 
  9.21     (c) If a community-based comprehensive plan is updated, the 
  9.22  parties shall renegotiate the orderly annexation agreement as 
  9.23  needed to incorporate the adjustments and shall refile the 
  9.24  agreement with the municipal board or its successor. 
  9.25     Subd. 6.  [REVIEW BY ADJACENT MUNICIPALITIES; CONFLICT 
  9.26  RESOLUTION.] Before a community-based comprehensive municipal 
  9.27  plan is incorporated into the county's plan under section 
  9.28  394.232, subdivision 3, a municipality's community-based 
  9.29  comprehensive municipal plan must be coordinated with adjacent 
  9.30  municipalities within the county.  As soon as practical after 
  9.31  the development of a community-based comprehensive municipal 
  9.32  plan, the municipality shall provide a copy of the draft plan to 
  9.33  adjacent municipalities within the county for review and 
  9.34  comment.  An adjacent municipality has 30 days after receipt to 
  9.35  review the plan and submit written comments. 
  9.36     Subd. 7.  [COUNTY REVIEW.] (a) If a city does not plan for 
 10.1   growth beyond its current boundaries, the city shall submit its 
 10.2   community-based comprehensive municipal plan to the county for 
 10.3   review and comment.  A county has 60 days after receipt to 
 10.4   review the plan and submit written comments to the city.  The 
 10.5   city may amend its plan based upon the county's comments.  
 10.6      (b) If a town prepares a community-based comprehensive 
 10.7   plan, it shall submit the plan to the county for review and 
 10.8   comment.  As provided in section 394.33, the town plan may not 
 10.9   be inconsistent with or less restrictive than the county plan.  
 10.10  A county has 60 days after receipt to review the plan and submit 
 10.11  written comments to the town.  The town may amend its plan based 
 10.12  on the county's comment. 
 10.13     Subd. 8.  [COUNTY APPROVAL.] (a) If a city plans for growth 
 10.14  beyond its current boundaries, the city's proposed 
 10.15  community-based comprehensive municipal plan and proposed urban 
 10.16  growth area must be reviewed and approved by the county before 
 10.17  the plan is incorporated into the county's plan.  The county may 
 10.18  review and provide comments on any orderly annexation agreement 
 10.19  during the same period of review of a comprehensive plan. 
 10.20     (b) Upon receipt by the county of a community-based 
 10.21  comprehensive plan submitted by a city for review and approval 
 10.22  under this subdivision, the county shall, within 60 days of 
 10.23  receipt of a city plan, review and approve the plan in 
 10.24  accordance with this subdivision.  The county shall review and 
 10.25  approve the city plan if it is consistent with the goals stated 
 10.26  in section 4A.08. 
 10.27     (c) In the event the county does not approve the plan, the 
 10.28  county shall submit its comments to the city within 60 days.  
 10.29  The city may, thereafter, amend the plan and resubmit the plan 
 10.30  to the county.  The county shall have an additional 60 days to 
 10.31  review and approve a resubmitted plan.  In the event the county 
 10.32  and city are unable to come to agreement, either party may 
 10.33  initiate the dispute resolution process contained in chapter 
 10.34  572A.  Within 30 days of receiving notice that the other party 
 10.35  has initiated dispute resolution, the city or county shall send 
 10.36  notice of its intent to enter dispute resolution.  If the city 
 11.1   refuses to enter the dispute resolution process, it must refund 
 11.2   any grant received from the county for community-based planning 
 11.3   activities.  
 11.4      Subd. 9.  [PLAN ADOPTION.] The municipality shall adopt and 
 11.5   implement the community-based comprehensive municipal plan after 
 11.6   the office of strategic and long-range planning has reviewed and 
 11.7   commented on the county's plan that incorporates the 
 11.8   municipality's plan.  The municipality shall thereafter, where 
 11.9   it deems appropriate, incorporate any comments made by the 
 11.10  office into its plan and adopt the plan. 
 11.11     Subd. 10.  [CITIZEN ACTION.] No citizen may institute 
 11.12  mandamus proceedings against a municipality under this section 
 11.13  to require the municipality to conform its comprehensive plan to 
 11.14  be consistent with the community-based planning goals in section 
 11.15  4A.08. 
 11.16     Sec. 11.  Minnesota Statutes 1996, section 462.357, 
 11.17  subdivision 2, is amended to read: 
 11.18     Subd. 2.  [GENERAL REQUIREMENTS.] At any time after the 
 11.19  adoption of a land use plan for the municipality, the planning 
 11.20  agency, for the purpose of carrying out the policies and goals 
 11.21  of the land use plan, may prepare a proposed zoning ordinance 
 11.22  and submit it to the governing body with its recommendations for 
 11.23  adoption.  Subject to the requirements of subdivisions 3, 4 and 
 11.24  5, the governing body may adopt and amend a zoning ordinance by 
 11.25  a two-thirds vote of all its members.  ~~If the comprehensive~~ 
 11.26  ~~municipal plan is in conflict with the zoning ordinance, the~~ 
 11.27  ~~zoning ordinance supersedes the plan.~~  The plan must provide 
 11.28  guidelines for the timing and sequence of the adoption of 
 11.29  official controls to ensure planned, orderly, and staged 
 11.30  development and redevelopment consistent with the plan. 
 11.31     Sec. 12.  [473.1455] [METROPOLITAN DEVELOPMENT GUIDE 
 11.32  GOALS.] 
 11.33     The metropolitan council shall, in any update of the 
 11.34  metropolitan development guide after December 31, 1998, amend 
 11.35  the metropolitan development guide, as necessary, to reflect and 
 11.36  implement the community-based planning goals in section 4A.08.  
 12.1   The office of strategic and long-range planning shall review and 
 12.2   comment on the metropolitan development guide.  
 12.3      Sec. 13.  [ADVISORY COUNCIL ON COMMUNITY-BASED PLANNING.] 
 12.4      Subdivision 1.  [ESTABLISHMENT; PURPOSE.] An advisory 
 12.5   council on community-based planning is established to provide a 
 12.6   forum for discussion and development of the framework for 
 12.7   community-based planning and the incentives and tools to 
 12.8   implement the plans. 
 12.9      Subd. 2.  [DUTIES.] The advisory council shall propose 
 12.10  legislation for the 1998 legislative session to establish the 
 12.11  framework to implement community-based planning.  The advisory 
 12.12  council shall: 
 12.13     (1) develop a model process to involve citizens in 
 12.14  community-based planning from the beginning of the planning 
 12.15  process; 
 12.16     (2) hold meetings statewide to solicit advice and 
 12.17  information on how to implement community-based planning; 
 12.18     (3) develop specific, measurable criteria for the office of 
 12.19  strategic and long-range planning to use in reviewing plans for 
 12.20  consistency with the goals in Minnesota Statutes, section 4A.08; 
 12.21     (4) review and recommend changes to the community-based 
 12.22  planning framework established in this act; 
 12.23     (5) recommend a procedure for review and comment on 
 12.24  community-based plans; 
 12.25     (6) recommend a process for coordination of plans among 
 12.26  local jurisdictions; 
 12.27     (7) review and recommend a dispute resolution process for 
 12.28  determining planning related disputes and boundary adjustment 
 12.29  issues between local government units; 
 12.30     (8) recommend an alternative dispute resolution process for 
 12.31  citizens to use to challenge proposed plans or the 
 12.32  implementation of plans; 
 12.33     (9) recommend incentives to encourage state agencies to 
 12.34  implement the goals of community-based planning; 
 12.35     (10) recommend incentives for local governments to develop 
 12.36  community-based plans, including for example, assistance with 
 13.1   computerized geographic information systems, builders' remedies 
 13.2   and density bonuses, and revised permitting processes; 
 13.3      (11) describe the tools and strategies that a county, city, 
 13.4   or town may use to achieve the goals, including, but not limited 
 13.5   to, densities, urban growth areas, purchase or transfer of 
 13.6   development rights programs, public investment surcharges, 
 13.7   transit and transit-oriented development, and zoning and other 
 13.8   official controls; 
 13.9      (12) recommend the time frame in which the community-based 
 13.10  plans must be completed; 
 13.11     (13) recommend changes to state law to increase the 
 13.12  consistency between the land use planning enabling laws of 
 13.13  counties, cities, and townships; 
 13.14     (14) review and recommend changes to Minnesota Statutes, 
 13.15  sections 16B.62, subdivision 1; 462.357, subdivision 1; and 
 13.16  462.358, subdivision 1, relating to a municipality's authority 
 13.17  to extend zoning ordinances and building codes; 
 13.18     (15) consider the need for ongoing stewardship and 
 13.19  oversight of sustainable development initiatives and the 
 13.20  community-based planning process; and 
 13.21     (16) make other recommendations to implement 
 13.22  community-based planning as the advisory council determines 
 13.23  would be necessary or helpful in achieving the goals. 
 13.24     Subd. 3.  [MEMBERSHIP.] The advisory council consists of 24 
 13.25  members who serve at the pleasure of the appointing authority as 
 13.26  follows: 
 13.27     (1) four members of the house of representatives appointed 
 13.28  by the speaker, at least one of whom shall be a member of the 
 13.29  minority caucus; 
 13.30     (2) four members of the senate appointed by the 
 13.31  subcommittee on committees of the committee on rules and 
 13.32  administration of the senate, at least one of whom shall be a 
 13.33  member of the minority caucus; 
 13.34     (3) the commissioners, or their designees, of the 
 13.35  departments of natural resources, agriculture, transportation, 
 13.36  and trade and economic development, and the director, or the 
 14.1   director's designee, of the office of strategic and long-range 
 14.2   planning; 
 14.3      (4) the chair, or the chair's designee, of the metropolitan 
 14.4   council; 
 14.5      (5) one representative appointed by the coalition of 
 14.6   greater Minnesota cities, one representative appointed by the 
 14.7   Minnesota association of townships, one representative appointed 
 14.8   by the association of Minnesota counties, and one representative 
 14.9   appointed by the builders association of Minnesota; 
 14.10     (6) three public members, appointed by the speaker of the 
 14.11  house of representatives; and 
 14.12     (7) three public members, appointed by the subcommittee on 
 14.13  committees of the committee on rules and administration of the 
 14.14  senate. 
 14.15     The advisory council may form an executive committee to 
 14.16  facilitate the work of the council. 
 14.17     Subd. 4.  [CHAIR.] The advisory council shall select from 
 14.18  among its members a person to serve as chair. 
 14.19     Subd. 5.  [ADMINISTRATION.] The office of strategic and 
 14.20  long-range planning, with assistance from other state agencies 
 14.21  and the metropolitan council as needed, shall provide 
 14.22  administrative and staff assistance to the advisory council. 
 14.23     Subd. 6.  [EXPENSES.] The office of strategic and 
 14.24  long-range planning shall compensate members of the advisory 
 14.25  council.  Members shall receive per diem and expenses as 
 14.26  provided by Minnesota Statutes, section 15.059, subdivision 3.  
 14.27     Subd. 7.  [EXPIRATION.] This section expires June 30, 1998. 
 14.28     Sec. 14.  [CITATION.] 
 14.29     Sections 1 to 13 may be cited as the "Community-based 
 14.30  Planning Act." 
 14.31     Sec. 15.  [APPROPRIATIONS.] 
 14.32     Subdivision 1.  [PLANNING GRANTS.] $750,000 is appropriated 
 14.33  from the general fund to the director of the office of strategic 
 14.34  and long-range planning for planning grants to counties, joint 
 14.35  planning districts that include at least one county, or to a 
 14.36  county and one or more municipalities within the county, when 
 15.1   they submit a joint planning application to prepare 
 15.2   community-based plans.  A county receiving a grant may provide 
 15.3   funding to municipalities within the county for purposes of the 
 15.4   grant.  The office shall give priority for grants to joint 
 15.5   planning districts or joint applications from a county and one 
 15.6   or more municipalities.  This appropriation is available 
 15.7   beginning in fiscal year 1999 and remains available until June 
 15.8   30, 2000. 
 15.9      Subd. 2.  [TECHNOLOGY GRANTS.] $750,000 is appropriated 
 15.10  from the general fund to the director of the office of strategic 
 15.11  and long-range planning for technology grants to counties, or 
 15.12  joint planning districts that include at least one county, that 
 15.13  elect to prepare community-based plans.  This appropriation is 
 15.14  available beginning in fiscal year 1999 and remains available 
 15.15  until June 30, 2000. 
 15.16     Subd. 3.  [ADVISORY COUNCIL.] $230,000 is appropriated in 
 15.17  fiscal year 1998 and $235,000 is appropriated in fiscal year 
 15.18  1999 from the general fund to the director of the office of 
 15.19  strategic and long-range planning for compensation for members 
 15.20  of the advisory council under section 12, subdivision 6, and 
 15.21  administrative and staff expenses.  
 15.22     Sec. 16.  [APPLICATION.] 
 15.23     Section 12 applies in the counties of Anoka, Carver, 
 15.24  Dakota, Hennepin, Ramsey, Scott, and Washington. 
 15.25     Sec. 17.  [EFFECTIVE DATE.] 
 15.26     Sections 1 to 14 and 16 are effective the day following 
 15.27  final enactment.  
 15.28     Section 15 is effective July 1, 1997. 
 15.29                             ARTICLE 2 
 15.30              COMMUNITY-BASED PLANNING PILOT PROJECTS 
 15.31     Section 1.  [PILOT PROJECTS ESTABLISHED.] 
 15.32     The office of strategic and long-range planning shall 
 15.33  establish community-based comprehensive land use planning pilot 
 15.34  projects as specified in this article. 
 15.35     Sec. 2.  [PLAN SUBMITTAL; REVIEW.] 
 15.36     A county or joint planning district participating in a 
 16.1   pilot project must prepare a community-based comprehensive plan 
 16.2   as specified in Minnesota Statutes, section 394.232.  The county 
 16.3   or joint powers board must submit the plan to the office of 
 16.4   strategic and long-range planning within 24 months of the 
 16.5   effective date of this article.  The office shall review each 
 16.6   plan to determine if it is consistent with the community-based 
 16.7   planning goals in Minnesota Statutes, section 4A.08.  The office 
 16.8   shall complete its review and comment as specified in Minnesota 
 16.9   Statutes, section 394.232, subdivision 5.  
 16.10     Sec. 3.  [PLAN CONTENT.] 
 16.11     Subdivision 1.  [GOALS.] The plan must address the 
 16.12  community-based planning goals in Minnesota Statutes, section 
 16.13  4A.08.  
 16.14     Subd. 2.  [MUNICIPAL AND TOWN PLAN INCORPORATION.] The plan 
 16.15  must incorporate the community-based comprehensive plan of each 
 16.16  municipality and town in the county.  Incorporation of a 
 16.17  municipal or town plan is sufficient if the county or joint 
 16.18  powers board adopts a resolution approving and incorporating by 
 16.19  reference the plan or any subsequent amendments to the plan.  
 16.20     Subd. 3.  [URBAN GROWTH AREAS.] The plan must identify, 
 16.21  establish, and address urban growth areas, as defined in 
 16.22  Minnesota Statutes, section 462.352, subdivision 18, within the 
 16.23  county.  The land outside an urban growth area must be zoned as 
 16.24  permanent rural or agricultural land, or other appropriate land 
 16.25  use, and must be maintained at density levels consistent with 
 16.26  those uses. 
 16.27     Subd. 4.  [EXISTING PLANS.] If the county has a previously 
 16.28  adopted plan, the county board or joint powers board shall 
 16.29  review, update, and submit to the office of strategic and 
 16.30  long-range planning a revised plan and official controls meeting 
 16.31  the requirements of this section, including the community-based 
 16.32  comprehensive municipal plan for each municipality or town in 
 16.33  the county, if any, within 24 months of the effective date of 
 16.34  this article. 
 16.35     Sec. 4.  [COORDINATION WITH ADJACENT COUNTIES.] 
 16.36     Before submitting the community-based comprehensive plan to 
 17.1   the office of strategic and long-range planning, the county or 
 17.2   joint powers board shall coordinate its plan with adjacent 
 17.3   counties.  The adjacent counties shall review and submit written 
 17.4   comments on the proposed plan to the board within 60 days of 
 17.5   receiving the plan.  
 17.6      Sec. 5.  [COORDINATION WITH METROPOLITAN COUNCIL.] 
 17.7      A county or joint planning district adjacent to the 
 17.8   metropolitan area shall coordinate its plan with the 
 17.9   metropolitan council, in relation to the council's development 
 17.10  guide. 
 17.11     The county or joint planning district shall not submit its 
 17.12  plan to the office of strategic and long-range planning until 
 17.13  the metropolitan council has had 60 days for review and comment 
 17.14  on the plan.  
 17.15     Sec. 6.  [LIMITATION ON PLAN AMENDMENT.] 
 17.16     The county or joint powers board shall not amend its plan 
 17.17  for an area inside an urban growth area that is outside a 
 17.18  municipality's jurisdiction without the municipality's approval. 
 17.19     Sec. 7.  [APPROPRIATION.] 
 17.20     Subdivision 1.  [ST. CLOUD AREA PILOT PROJECT.] $200,000 is 
 17.21  appropriated from the general fund to the director of the office 
 17.22  of strategic and long-range planning to make a grant to a joint 
 17.23  powers board, if one is established by the counties of Benton, 
 17.24  Sherburne, and Stearns, and the cities of St. Cloud, Waite Park, 
 17.25  Sartell, St. Joseph, and Sauk Rapids, for the purposes of joint 
 17.26  planning under this act.  The director may make the grant once 
 17.27  the joint powers board has been formed and a copy of the joint 
 17.28  powers agreement has been received by the director.  Members of 
 17.29  the joint powers board may delegate their authority to adopt 
 17.30  official controls to the joint powers board. 
 17.31     Subd. 2.  [SHERBURNE, BENTON, STEARNS PILOT 
 17.32  PROJECT.] $150,000 is appropriated from the general fund to the 
 17.33  director of the office of strategic and long-range planning to 
 17.34  make a grant to a joint powers board, if one is established by 
 17.35  the counties of Benton, Sherburne, and Stearns, for the purposes 
 17.36  of joint planning for the areas not included in subdivision 1.  
 18.1   The director may make the grant once the joint powers board has 
 18.2   been formed and a copy of the joint powers agreement has been 
 18.3   received by the director.  Members of the joint powers board may 
 18.4   delegate their authority to adopt official controls to the joint 
 18.5   powers board. 
 18.6      Subd. 3.  [OTHER PILOT PROJECTS.] $150,000 is appropriated 
 18.7   from the general fund to the office of strategic and long-range 
 18.8   planning for the purpose of making three grants to additional 
 18.9   counties or joint powers boards selected to participate in the 
 18.10  community-based planning pilot project.  A county that receives 
 18.11  a grant under this subdivision may provide funding to 
 18.12  municipalities within the county for purposes relating to the 
 18.13  grant. 
 18.14     Sec. 8.  [EFFECTIVE DATE.] 
 18.15     This article is effective July 1, 1997. 
 18.16                             ARTICLE 3 
 18.17                          MUNICIPAL BOARD 
 18.18     Section 1.  Minnesota Statutes 1996, section 115.49, is 
 18.19  amended by adding a subdivision to read: 
 18.20     Subd. 2a.  [EXTENSION OF SERVICE.] If a determination or 
 18.21  order is made by the pollution control agency under this section 
 18.22  that cooperation by contract is necessary and feasible between a 
 18.23  municipality and an unincorporated area located outside the 
 18.24  existing corporate limits of a municipality, the municipality 
 18.25  being required to provide or extend through a contract a 
 18.26  governmental service to an unincorporated area, during the 
 18.27  statutory 90-day period provided in this section to formulate a 
 18.28  contract, may in the alternative to formulating a service 
 18.29  contract to provide or extend the service, declare the 
 18.30  unincorporated area as described in the pollution control 
 18.31  agency's determination letter or order annexed to the 
 18.32  municipality under section 414.0335. 
 18.33     Sec. 2.  Minnesota Statutes 1996, section 414.0325, 
 18.34  subdivision 1, is amended to read: 
 18.35     Subdivision 1.  [INITIATING THE PROCEEDING.] One or more 
 18.36  townships and one or more municipalities, by joint resolution, 
 19.1   may designate an unincorporated area as in need of orderly 
 19.2   annexation.  The joint resolution will confer jurisdiction on 
 19.3   the board over annexations in the designated area and over the 
 19.4   various provisions in said agreement by submission of said joint 
 19.5   resolution to the executive director.  The resolution shall 
 19.6   include a description of the designated area and the reasons for 
 19.7   designation.  Thereafter, an annexation of any part of the 
 19.8   designated area may be initiated by: 
 19.9      (1) submitting to the executive director a resolution of 
 19.10  any signatory to the joint resolution; or 
 19.11     (2) the board of its own motion~~; or~~ 
 19.12     ~~(3) as provided in section 414.033, subdivision 2a~~. 
 19.13     Whenever ~~the pollution control agency or other~~ a state 
 19.14  agency ~~pursuant to sections 115.03, 115.071, 115.49, or any law~~ 
 19.15  ~~giving a state agency similar powers~~ other than the pollution 
 19.16  control agency, orders a municipality to extend a municipal 
 19.17  service to an area, such an order will confer jurisdiction on 
 19.18  the Minnesota municipal board to consider designation of the 
 19.19  area for orderly annexation. 
 19.20     If a joint resolution designates an area as in need of 
 19.21  orderly annexation and states that no alteration of its stated 
 19.22  boundaries is appropriate, the board may review and comment, but 
 19.23  may not alter the boundaries.  
 19.24     If a joint resolution designates an area as in need of 
 19.25  orderly annexation, provides for the conditions for its 
 19.26  annexation, and states that no consideration by the board is 
 19.27  necessary, the board may review and comment, but shall, within 
 19.28  30 days, order the annexation in accordance with the terms of 
 19.29  the resolution.  
 19.30     Sec. 3.  Minnesota Statutes 1996, section 414.033, 
 19.31  subdivision 2b, is amended to read: 
 19.32     Subd. 2b.  [NOTICE REQUIRED.] Before a municipality may 
 19.33  adopt an ordinance under subdivision 2, clause (2), (3), or (4), 
 19.34  ~~or subdivision 2a,~~ a municipality must hold a public hearing and 
 19.35  give 30 days' written notice by certified mail to the town or 
 19.36  towns affected by the proposed ordinance and to all landowners 
 20.1   within and contiguous to the area to be annexed.  
 20.2      Sec. 4.  Minnesota Statutes 1996, section 414.033, 
 20.3   subdivision 11, is amended to read: 
 20.4      Subd. 11.  [FLOODPLAIN; SHORELAND AREA.] When a 
 20.5   municipality declares land annexed to the municipality under 
 20.6   subdivision 2, clause (3), ~~or subdivision 2a,~~ and the land is 
 20.7   within a designated floodplain, as provided by section 103F.111, 
 20.8   subdivision 4, or a shoreland area, as provided by section 
 20.9   103F.205, subdivision 4, the municipality shall adopt or amend 
 20.10  its land use controls to conform to chapter 103F, and any new 
 20.11  development of the annexed land shall be subject to chapter 103F.
 20.12     Sec. 5.  Minnesota Statutes 1996, section 414.033, 
 20.13  subdivision 12, is amended to read: 
 20.14     Subd. 12.  [PROPERTY TAXES.] When a municipality annexes 
 20.15  land under subdivision 2, clause (2), (3), or (4), ~~or~~ 
 20.16  ~~subdivision 2a,~~ property taxes payable on the annexed land shall 
 20.17  continue to be paid to the affected town or towns for the year 
 20.18  in which the annexation becomes effective.  Thereafter, property 
 20.19  taxes on the annexed land shall be paid to the municipality.  In 
 20.20  the first year following the year the land was annexed, the 
 20.21  municipality shall make a cash payment to the affected town or 
 20.22  towns in an amount equal to 90 percent of the property taxes 
 20.23  paid in the year the land was annexed; in the second year, an 
 20.24  amount equal to 70 percent of the property taxes paid in the 
 20.25  year the land was annexed; in the third year, an amount equal to 
 20.26  50 percent of the property taxes paid in the year the land was 
 20.27  annexed; in the fourth year, an amount equal to 30 percent of 
 20.28  the property taxes paid in the year the land was annexed; and in 
 20.29  the fifth year, an amount equal to ten percent of the property 
 20.30  taxes paid in the year the land was annexed.  The municipality 
 20.31  and the affected township may agree to a different payment. 
 20.32     Sec. 6.  [414.0335] [ORDERED GOVERNMENTAL SERVICE 
 20.33  EXTENSION; ANNEXATION BY ORDINANCE.] 
 20.34     If a determination or order by the pollution control 
 20.35  agency, under section 115.49 or other similar statute is made, 
 20.36  that cooperation by contract is necessary and feasible between a 
 21.1   municipality and an unincorporated area located outside the 
 21.2   existing corporate limits of a municipality, the municipality 
 21.3   required to provide or extend through a contract a governmental 
 21.4   service to an unincorporated area, during the statutory 90-day 
 21.5   period provided in section 115.49 to formulate a contract, may 
 21.6   in the alternative to formulating a service contract to provide 
 21.7   or extend the service, declare the unincorporated area described 
 21.8   in the pollution control agency's determination letter or order 
 21.9   annexed to the municipality by adopting an ordinance and 
 21.10  submitting it to the municipal board or its successor.  The 
 21.11  municipal board or its successor may review and comment on the 
 21.12  ordinance but shall approve the ordinance within 30 days of 
 21.13  receipt.  The ordinance is final and the annexation is effective 
 21.14  on the date the municipal board or its successor approves the 
 21.15  ordinance.  Thereafter, the city shall amend its comprehensive 
 21.16  plan and official controls in accordance with chapter 462. 
 21.17     Sec. 7.  [414.10] [ALTERNATIVE PROCESS OF DISPUTE 
 21.18  RESOLUTION.] 
 21.19     Subdivision 1.  [DEFINITION.] For the purposes of 
 21.20  subdivision 2, a "party" or "parties" means a property owner or 
 21.21  the governing body or town board of a jurisdiction that files an 
 21.22  initiating document or a timely objection pursuant to this 
 21.23  chapter, and the governing body or town board of the 
 21.24  jurisdiction or jurisdictions in which the subject area is 
 21.25  located. 
 21.26     Subd. 2.  [CHAPTER 572A PROCESS.] As an alternative to the 
 21.27  procedure provided by this chapter, a party filing an initiating 
 21.28  document or timely objection with the municipal board may file 
 21.29  with the bureau of mediation services a written request for 
 21.30  mediation within 30 days of the filing as provided in section 
 21.31  572A.015.  The request for mediation must contain the written 
 21.32  consent of all parties to have the dispute settled through the 
 21.33  process provided by chapter 572A.  The filing party must also 
 21.34  file written notice with the municipal board notifying the board 
 21.35  that all parties have agreed to use the dispute resolution 
 21.36  process in chapter 572A. 
 22.1      Sec. 8.  [414.11] [MUNICIPAL BOARD SUNSET.] 
 22.2      The municipal board shall terminate on December 31, 1999, 
 22.3   and all of its authority and duties under this chapter shall be 
 22.4   transferred to the office of strategic and long-range planning. 
 22.5      Sec. 9.  [REPEALER.] 
 22.6      Minnesota Statutes 1996, section 414.033, subdivision 2a, 
 22.7   is repealed. 
 22.8      Sec. 10.  [EFFECTIVE DATE.] 
 22.9      This act is effective the day following final enactment.  
 22.10                             ARTICLE 4 
 22.11                         DISPUTE RESOLUTION 
 22.12     Section 1.  [572A.01] [COMPREHENSIVE PLANNING DISPUTES; 
 22.13  MEDIATION.] 
 22.14     Subdivision 1.  [FILING.] In the event of a dispute between 
 22.15  a county and the office of strategic and long-range planning 
 22.16  under section 394.232 or a county and a city under section 
 22.17  462.3535, regarding the development, content, or approval of a 
 22.18  community-based comprehensive land use plan, an aggrieved party 
 22.19  may file a written request for mediation, as provided in 
 22.20  subdivision 2, with the bureau of mediation services at any time 
 22.21  prior to a final action on a community-based comprehensive plan 
 22.22  or within 30 days of a final action on a community-based 
 22.23  comprehensive plan. 
 22.24     Subd. 2.  [MEDIATION.] Within ten days of receiving a 
 22.25  request for mediation in subdivision 1, the bureau of mediation 
 22.26  services shall provide written notice of the request for 
 22.27  mediation to the parties and provide a list of neutrals 
 22.28  experienced in land use planning or local government issues 
 22.29  obtained from the supreme court, Minnesota municipal board, 
 22.30  bureau of mediation services, Minnesota state bar association, 
 22.31  Hennepin county bar association, office of dispute resolution, 
 22.32  and others.  Within 30 days thereafter, the affected parties 
 22.33  shall select a mediator from the list of neutrals or someone 
 22.34  else acceptable to the parties and submit to mediation for a 
 22.35  period of 30 days facilitated by the bureau.  If the dispute 
 22.36  remains unresolved after the close of the 30-day mediation 
 23.1   period, the bureau shall prepare a report of its recommendations 
 23.2   and transmit the report within 30 days to the parties.  Within 
 23.3   60 days after the date of issuance of the mediator's report, the 
 23.4   dispute shall be submitted to binding arbitration as provided in 
 23.5   this chapter.  The mediator's report submitted to the parties is 
 23.6   informational only and is not admissible in arbitration. 
 23.7      Sec. 2.  [572A.015] [CHAPTER 414 DISPUTES; MEDIATION.] 
 23.8      Subdivision 1.  [FILING.] As provided by section 414.10, if 
 23.9   an initiating document or timely objection under chapter 414 is 
 23.10  filed with the municipal board, the filing party, jurisdiction, 
 23.11  or jurisdictions may also file a written request for mediation 
 23.12  with the bureau of mediation services within 30 days of filing 
 23.13  the initiating document or timely objection.  The request for 
 23.14  mediation must contain the written consent to the mediation and 
 23.15  arbitration process by all the parties, as defined in section 
 23.16  414.10, subdivision 1. 
 23.17     Subd. 2.  [MEDIATION.] Within ten days of receiving a 
 23.18  request for mediation, the bureau shall provide written notice 
 23.19  of the request for mediation to the parties and provide a list 
 23.20  of neutrals experienced in land use planning and local 
 23.21  government issues obtained from the supreme court, Minnesota 
 23.22  municipal board, bureau of mediation services, Minnesota state 
 23.23  bar association, Hennepin county bar association, office of 
 23.24  dispute resolution and others.  Within 30 days thereafter, the 
 23.25  affected parties, as defined in section 414.10, subdivision 1, 
 23.26  shall select a mediator from the list of neutrals or someone 
 23.27  else acceptable to the parties and submit to mediation for a 
 23.28  period of 30 days facilitated by the bureau.  If the dispute 
 23.29  remains unresolved after the close of the 30-day mediation 
 23.30  period, the bureau shall prepare a report of its recommendations 
 23.31  and transmit the report within 30 days to the parties.  Within 
 23.32  60 days after the date of issuance of the mediator's report, the 
 23.33  dispute shall be submitted to binding arbitration as provided in 
 23.34  this chapter.  The mediator's report submitted to the parties is 
 23.35  informational only and is not admissible in arbitration. 
 23.36     Sec. 3.  [572A.02] [ARBITRATION.] 
 24.1      Subdivision 1.  [SUBMITTAL TO BINDING ARBITRATION.] If a 
 24.2   dispute remains unresolved after the close of mediation, the 
 24.3   dispute shall be submitted to binding arbitration within 60 days 
 24.4   of issuance of the mediation report pursuant to the terms of 
 24.5   this section and the Uniform Arbitration Act, sections 
 24.6   572.08-572.30, except the period may be extended for an 
 24.7   additional 15 days as provided in this section.  In the event of 
 24.8   a conflict between the provisions of the Uniform Arbitration Act 
 24.9   and this section, this section controls. 
 24.10     Subd. 2.  [APPOINTMENT OF PANEL.] (a) The parties shall 
 24.11  each appoint one qualified arbitrator within 30 days of issuance 
 24.12  of the mediation report.  If a party does not appoint an 
 24.13  arbitrator within 30 days, the bureau of mediation services 
 24.14  shall appoint a qualified arbitrator from the list of neutrals 
 24.15  under sections 572A.01, subdivision 2, and 572A.015, subdivision 
 24.16  2, or someone else for the party.  The parties shall notify the 
 24.17  bureau prior to the close of the 30-day appointment period of 
 24.18  the name and address of their respective appointed arbitrator.  
 24.19  Each party is responsible for the fees and expenses for the 
 24.20  arbitrator it selects.  
 24.21     (b) After appointment of the two arbitrators to the 
 24.22  arbitration panel by the parties, or by the bureau should one or 
 24.23  both of the parties fail to act, the two appointed arbitrators 
 24.24  shall appoint a third arbitrator who must be learned in the law, 
 24.25  within 15 days of the close of the initial 30-day arbitrator 
 24.26  appointment period.  If the arbitrators cannot agree on the 
 24.27  selection of the third arbitrator within 15 days, the 
 24.28  arbitrators shall jointly submit a request to the district court 
 24.29  of the county in which the disputed area is located in 
 24.30  accordance with the selection procedures established in section 
 24.31  572.10.  Within 15 days of receipt of an application by the 
 24.32  district court, the district court shall select a neutral 
 24.33  arbitrator and notify the parties and the bureau of mediation 
 24.34  services of the name and address of the selected arbitrator.  
 24.35  The fees and expenses of the third arbitrator shall be shared 
 24.36  equally by the parties.  The third appointed arbitrator shall 
 25.1   act as chair of the arbitration panel and shall conduct the 
 25.2   proceedings.  If the district court selects the third 
 25.3   arbitrator, the date required for first hearing the matter may 
 25.4   be extended an additional 15 days. 
 25.5      Subd. 3.  [HEARING.] Except as otherwise provided, within 
 25.6   60 days, the matter must be brought on for hearing in accordance 
 25.7   with section 572.12.  The bureau of mediation services shall 
 25.8   provide for the proceedings to occur in the county in which the 
 25.9   majority of the affected property is located. 
 25.10     Subd. 4.  [CONTRACTS; INFORMATION.] The arbitration panel 
 25.11  shall have authority to contract with regional, state, county, 
 25.12  or local planning commissions or to hire expert consultants to 
 25.13  provide specialized information and assistance.  Any member of 
 25.14  the panel conducting or participating in any hearing shall have 
 25.15  the power to administer oaths and affirmations, to issue 
 25.16  subpoenas, to compel the attendance and testimony of witnesses, 
 25.17  and the production of papers, books, and documents.  Any costs 
 25.18  related to this subdivision shall be shared equally by the 
 25.19  parties. 
 25.20     Subd. 5.  [DECISION FACTORS.] In comprehensive planning 
 25.21  disputes, the arbitration panel shall consider the goals stated 
 25.22  in section 4A.08 and the following factors in making a 
 25.23  decision.  In all other disputes brought under this section, the 
 25.24  arbitration panel shall consider the following factors in making 
 25.25  a decision: 
 25.26     (1) present population and number of households, past 
 25.27  population, and projected population growth of the subject area 
 25.28  and adjacent units of local government; 
 25.29     (2) quantity of land within the subject area and adjacent 
 25.30  units of local government; and natural terrain including 
 25.31  recognizable physical features, general topography, major 
 25.32  watersheds, soil conditions, and such natural features as 
 25.33  rivers, lakes and major bluffs; 
 25.34     (3) degree of contiguity of the boundaries between the 
 25.35  municipality and the subject area; 
 25.36     (4) present pattern of physical development, planning, and 
 26.1   intended land uses in the subject area and the municipality 
 26.2   including residential, industrial, commercial, agricultural, and 
 26.3   institutional land uses and the impact of the proposed action on 
 26.4   those land uses; 
 26.5      (5) the present transportation network and potential 
 26.6   transportation issues, including proposed highway development; 
 26.7      (6) land use controls and planning presently being utilized 
 26.8   in the municipality and the subject area, including 
 26.9   comprehensive plans for development in the area and plans and 
 26.10  policies of the metropolitan council, and whether there are 
 26.11  inconsistencies between proposed development and existing land 
 26.12  use controls and the reasons therefore; 
 26.13     (7) existing levels of governmental services being provided 
 26.14  in the municipality and the subject area, including water and 
 26.15  sewer service, fire rating and protection, law enforcement, 
 26.16  street improvements and maintenance, administrative services, 
 26.17  and recreational facilities and the impact of the proposed 
 26.18  action on the delivery of said services; 
 26.19     (8) existing or potential environmental problems and 
 26.20  whether the proposed action is likely to improve or resolve 
 26.21  these problems; 
 26.22     (9) plans and programs by the municipality for providing 
 26.23  needed governmental services to the subject area; 
 26.24     (10) an analysis of the fiscal impact on the municipality, 
 26.25  the subject area, and adjacent units of local government, 
 26.26  including net tax capacity and the present bonded indebtedness, 
 26.27  and the local tax rates of the county, school district, and 
 26.28  township; 
 26.29     (11) relationship and effect of the proposed action on 
 26.30  affected and adjacent school districts and communities; 
 26.31     (12) adequacy of town government to deliver services to the 
 26.32  subject area; 
 26.33     (13) analysis of whether necessary governmental services 
 26.34  can best be provided through the proposed action or another type 
 26.35  of boundary adjustment; and 
 26.36     (14) if only a part of a township is annexed, the ability 
 27.1   of the remainder of the township to continue or the feasibility 
 27.2   of it being incorporated separately or being annexed to another 
 27.3   municipality. 
 27.4   Any party to the proceeding may present evidence and testimony 
 27.5   on any of the above factors at the hearing on the matter. 
 27.6      Subd. 6.  [DECISION.] The arbitrators, after a hearing on 
 27.7   the matter, shall make a decision regarding the dispute within 
 27.8   60 days and transmit an order to the parties and the office of 
 27.9   strategic and long-range planning or the municipal board.  
 27.10  Unless appealed by an aggrieved party within 30 days of receipt 
 27.11  of the arbitration panel's order by the municipal board, the 
 27.12  municipal board shall execute an order in accordance with the 
 27.13  arbitration panel's order and shall cause copies of the same to 
 27.14  be mailed to all parties entitled to mailed notice, the 
 27.15  secretary of state, the department of revenue, the state 
 27.16  demographer, individual property owners if initiated in that 
 27.17  manner, the affected county auditor, and any other party of 
 27.18  record.  The affected county auditor shall record the order 
 27.19  against the affected property. 
 27.20     Sec. 4.  [572A.03] [ARBITRATION PANEL DECISION STANDARDS.] 
 27.21     Subdivision 1.  [DECISION STANDARDS.] The arbitration 
 27.22  panel, based upon the factors in section 572A.02, subdivision 5, 
 27.23  shall decide the matter based upon the decision standards in 
 27.24  subdivisions 2 to 6.  
 27.25     Subd. 2.  [COMPREHENSIVE LAND USE PLANNING.] For 
 27.26  comprehensive land use planning disputes under section 462.3535, 
 27.27  if a community-based comprehensive plan addresses the goals of 
 27.28  section 4A.08 and the arbitrators find that the city's projected 
 27.29  estimates found in its comprehensive plan are reasonable with 
 27.30  respect to an identified urban growth area, the arbitration 
 27.31  panel may order approval of the city plan.  If the order is to 
 27.32  approve the community-based comprehensive plan, the order shall 
 27.33  contain notice directing the county to approve the city plan 
 27.34  within ten days of receipt of the arbitration order.  The city 
 27.35  shall, thereafter, adopt the plan.  If the order is to deny the 
 27.36  plan, the arbitration order shall state the reasons for the 
 28.1   denial in the order and transmit the order to the city, county, 
 28.2   and the office of strategic and long-range planning.  The city 
 28.3   shall within 30 days of receipt of the order amend its plan and 
 28.4   resubmit the plan to the county for review and approval under 
 28.5   this subdivision.  The county shall not unreasonably withhold 
 28.6   approval of the plan if the resubmitted city plan is in keeping 
 28.7   with the arbitration panel's order. 
 28.8      Subd. 3.  [MUNICIPAL INCORPORATIONS.] For municipal 
 28.9   incorporations under section 414.02, the arbitration panel may 
 28.10  order the incorporation if it finds that:  (1) the property to 
 28.11  be incorporated is now, or is about to become, urban or suburban 
 28.12  in character; (2) that the existing township form of government 
 28.13  is not adequate to protect the public health, safety, and 
 28.14  welfare; or (3) the proposed incorporation would be in the best 
 28.15  interests of the area under consideration.  The panel may deny 
 28.16  the incorporation if the area, or a part of it, would be better 
 28.17  served by annexation to an adjacent municipality.  The panel may 
 28.18  alter the boundaries of the proposed incorporation by increasing 
 28.19  or decreasing the area to be incorporated so as to include only 
 28.20  that property which is now, or is about to become, urban or 
 28.21  suburban in character, or may exclude property that may be 
 28.22  better served by another unit of government.  The panel may also 
 28.23  alter the boundaries of the proposed incorporation so as to 
 28.24  follow visible, clearly recognizable physical features for 
 28.25  municipal boundaries.  In all cases, the panel shall set forth 
 28.26  the factors which are the basis for the decision.  
 28.27     Subd. 4.  [ANNEXATIONS OF UNINCORPORATED PROPERTY.] For 
 28.28  annexations of unincorporated property under section 414.031 or 
 28.29  414.033, subdivisions 3 and 5, the arbitration panel may order 
 28.30  the annexation:  (1) if it finds that the subject area is now, 
 28.31  or is about to become, urban or suburban in character; (2) if it 
 28.32  finds that municipal government in the area proposed for 
 28.33  annexation is required to protect the public health, safety, and 
 28.34  welfare; or (3) if it finds that the annexation would be in the 
 28.35  best interest of the subject area.  If only a part of a township 
 28.36  is to be annexed, the panel shall consider whether the remainder 
 29.1   of the township can continue to carry on the functions of 
 29.2   government without undue hardship.  The panel shall deny the 
 29.3   annexation if it finds that the increase in revenues for the 
 29.4   annexing municipality bears no reasonable relation to the 
 29.5   monetary value of benefits conferred upon the annexed area.  The 
 29.6   panel may deny the annexation:  (1) if it appears that 
 29.7   annexation of all or a part of the property to an adjacent 
 29.8   municipality would better serve the interests of the residents 
 29.9   of the property; or (2) if the remainder of the township would 
 29.10  suffer undue hardship. 
 29.11     The panel may alter the boundaries of the area to be 
 29.12  annexed by increasing or decreasing the area so as to include 
 29.13  only that property which is now or is about to become urban or 
 29.14  suburban in character or to add property of that character 
 29.15  abutting the area proposed for annexation in order to preserve 
 29.16  or improve the symmetry of the area, or to exclude property that 
 29.17  may better be served by another unit of government.  The panel 
 29.18  may also alter the boundaries of the proposed annexation so as 
 29.19  to follow visible, clearly recognizable physical features.  If 
 29.20  the panel determines that part of the area would be better 
 29.21  served by another municipality or township, the panel may 
 29.22  initiate and approve annexation on its own motion by conducting 
 29.23  further hearings.  In all cases, the arbitration panel shall set 
 29.24  forth the factors that are the basis for the decision. 
 29.25     Subd. 5.  [ORDERLY ANNEXATIONS WITHIN A DESIGNATED 
 29.26  AREA.] For orderly annexations within a designated area under 
 29.27  section 414.0325, which require a hearing, the arbitration panel 
 29.28  may order the annexation:  (1) if it finds that the subject area 
 29.29  is now or is about to become urban or suburban in character and 
 29.30  that the annexing municipality is capable of providing the 
 29.31  services required by the area within a reasonable time; (2) if 
 29.32  it finds that the existing township form of government is not 
 29.33  adequate to protect the public health, safety, and welfare; or 
 29.34  (3) if it finds that annexation would be in the best interests 
 29.35  of the subject area.  The board may deny the annexation if it 
 29.36  conflicts with any provision of the joint agreement.  The board 
 30.1   may alter the boundaries of the proposed annexation by 
 30.2   increasing or decreasing the area so as to include that property 
 30.3   within the designated area which is in need of municipal 
 30.4   services or will be in need of municipal services. 
 30.5      If the annexation is denied, no proceeding for the 
 30.6   annexation of substantially the same area may be initiated 
 30.7   within two years from the date of the board's order unless the 
 30.8   new proceeding is initiated by a majority of the area's property 
 30.9   owners and the petition is supported by affected parties to the 
 30.10  resolution.  In all cases, the arbitration panel shall set forth 
 30.11  the factors which are the basis for the decision. 
 30.12     Subd. 6.  [CONSOLIDATION OF MUNICIPALITIES.] For municipal 
 30.13  consolidations under section 414.041, the arbitration panel 
 30.14  shall consider and may accept, amend, return to the commission 
 30.15  for amendment or further study, or reject the commission's 
 30.16  findings and recommendations based upon the panel's written 
 30.17  determination of what is in the best interests of the affected 
 30.18  municipalities.  The panel shall order the consolidation if it 
 30.19  finds that consolidation will be for the best interests of the 
 30.20  municipalities.  In all cases, the arbitration panel shall set 
 30.21  forth the factors that are the basis for the decision.  
 30.22     Subd. 7.  [DETACHMENT OF PROPERTY FROM A MUNICIPALITY.] For 
 30.23  detachments of property from a municipality under section 
 30.24  414.06, the arbitration panel may order the detachment if it 
 30.25  finds that the requisite number of property owners have signed 
 30.26  the petition if initiated by the property owners, that the 
 30.27  property is rural in character and not developed for urban 
 30.28  residential, commercial, or industrial purposes, that the 
 30.29  property is within the boundaries of the municipality and abuts 
 30.30  a boundary, that the detachment would not unreasonably affect 
 30.31  the symmetry of the detaching municipality, and that the land is 
 30.32  not needed for reasonably anticipated future development.  The 
 30.33  panel shall deny the detachment if it finds that the remainder 
 30.34  of the municipality cannot continue to carry on the functions of 
 30.35  government without undue hardship.  The panel shall have 
 30.36  authority to decrease the area of property to be detached and 
 31.1   may include only a part of the proposed area to be detached.  If 
 31.2   the tract abuts more than one township, it shall become a part 
 31.3   of each township, being divided by projecting through it the 
 31.4   boundary line between the townships.  The detached area may be 
 31.5   relieved of the primary responsibility for existing indebtedness 
 31.6   of the municipality and be required to assume the indebtedness 
 31.7   of the township of which it becomes a part, in the proportion 
 31.8   that the panel deems just and equitable considering the amount 
 31.9   of taxes due and delinquent and the indebtedness of each 
 31.10  township and the municipality affected, if any, and for what 
 31.11  purpose the indebtedness was incurred, in relation to the 
 31.12  benefit inuring to the detached area as a result of the 
 31.13  indebtedness and the last net tax capacity of the taxable 
 31.14  property in each township and municipality. 
 31.15     Subd. 8.  [CONCURRENT DETACHMENT AND ANNEXATION OF 
 31.16  INCORPORATED PROPERTY.] For concurrent detachment and annexation 
 31.17  of incorporated property under section 414.061, subdivisions 4 
 31.18  and 5, the arbitration panel shall order the proposed action if 
 31.19  it finds that it will be for the best interests of the 
 31.20  municipalities and the property owner.  In all cases, the 
 31.21  arbitration panel shall set forth the factors which are the 
 31.22  basis for the decision. 
 31.23     Sec. 5.  [EFFECTIVE DATE.] 
 31.24     This article is effective the day following final enactment.