2001 Minnesota Statutes

CHAPTER 414. Minnesota municipal board

     414.01 Creation; enabling provisions. 

    Subdivision 1.    Purpose.  The Minnesota municipal 
 board is hereby created to conduct proceedings, make 
 determinations and issue orders for the creation of a 
 municipality, the combination of two or more governmental units, 
 or the alteration of a municipal boundary. 

    The legislature finds that:  (1) sound urban development 
 and preservation of agricultural land and open spaces through 
 land use planning is essential to the continued economic growth 
 of this state; (2) municipal government most efficiently 
 provides governmental services in areas intensively developed 
 for residential, commercial, industrial, and governmental 
 purposes; and township government most efficiently provides 
 governmental services in areas used or developed for 
 agricultural, open space, and rural residential purposes; (3) 
 the public interest requires that municipalities be formed when 
 there exists or will likely exist the necessary resources to 
 provide for their economical and efficient operation; (4) 
 annexation to existing municipalities of unincorporated areas 
 unable to supply municipal services should be facilitated; and, 
 (5) the consolidation of municipalities should be encouraged.  
 The Minnesota municipal board is empowered to promote and 
 regulate development of municipalities to provide for the 
 extension of municipal government to areas which are developed 
 or are in the process of being developed for intensive use for 
 residential, commercial, industrial, institutional, and 
 governmental purposes or are needed for such purposes; and to 
 protect the stability of unincorporated areas which are used or 
 developed for agricultural, open space, and rural residential 
 purposes and are not presently needed for more intensive uses; 
 and to protect the integrity of land use planning in 
 municipalities and unincorporated areas so that the public 
 interest in efficient local government will be properly 
 recognized and served. 

    Subd. 2.    Members, qualifications, meetings.  The 
 board shall be composed of three members appointed by the 
 governor, at least one of whom shall be learned in the law, and 
 at least one of whom shall be a resident from outside of the 
 metropolitan area as defined in section 473.121, subdivision 2.  
 The board shall select from its members a chair who shall have 
 the powers and duties prescribed by the general law applicable 
 to the heads of departments and agencies of the state.  All 
 those appointed must be residents of the state for at least five 
 years before the appointment.  Each appointed member shall serve 
 for six years.  The board shall meet once each month at a 
 regular time to be established by the chair.  The removal of 
 members and filling of vacancies for members other than county 
 commissioner members on the board are as provided in section 
 15.0575.  

    In proceedings before the board for the incorporation of a 
 statutory city, consolidation of two or more municipalities, or 
 annexation of unincorporated land to a municipality, two county 
 commissioners of the board of the county in which all or a 
 majority of the affected land is located shall serve on the 
 board during such time as the board shall have under 
 consideration said matter.  The executive director of the board 
 shall upon initiation of a proceeding for such incorporation, 
 consolidation, or annexation notify the county auditor of the 
 county in which the majority of the affected property is 
 situated of the need for the appointment of the two county 
 commissioners to the board.  At the next succeeding meeting of 
 the county board the commissioners shall designate the two 
 appointed and shall thereupon immediately notify the Minnesota 
 municipal board executive director of their action.  The county 
 commissioners shall represent districts which do not contain any 
 of the affected territory.  If commissioners from the unaffected 
 districts are unavailable, commissioners from the affected 
 district may serve. 

    Subd. 3. Repealed, 1996 c 303 s 19 

    Subd. 3a. Repealed, 1996 c 303 s 19 

    Subd. 4. Repealed, 1996 c 303 s 19 

    Subd. 5.    Majority acts, chair's authority.  The board 
 shall transact business and conduct hearings by a majority of 
 its members except as otherwise provided for by subdivision 12 
 but a smaller number may adjourn from time to time.  The chair 
 may order the consolidation of separate proceedings in the 
 interest of economy and expedience.  In those proceedings in 
 which the board is composed of five members, no order of the 
 board shall be final unless approved by three of the five 
 members, and in all other proceedings unless approved by two of 
 the three members. 

    Subd. 6.  Repealed, 1969 c 1139 s 87 subd 2 

    Subd. 6a.    Per diem; expenses.  Each member of the 
 municipal board shall receive $50 per day when in attendance at 
 board meetings or hearings, or when otherwise engaged in the 
 performance of duties.  The county commissioners shall be paid 
 $25 per day for each hearing or meeting attended.  The county 
 auditors and commissioners shall be deemed to be performing 
 duties for the county without additional compensation when 
 serving as ex officio members of the board.  Each member of the 
 board and the county commission members of the board shall be 
 reimbursed for actual expenses incurred in accordance with state 
 travel regulations. 

    Subd. 7.  Repealed, 1969 c 1139 s 88 subd 2 

    Subd. 7a.    Executive director.  The Minnesota 
 municipal board shall appoint an executive director, not a 
 member of the board, who shall be qualified as a result of 
 practical, professional, or educational experience and receive a 
 salary fixed by law.  The director shall devote full time to the 
 duties of office.  All correspondence and petitions shall be 
 addressed to the executive director who is charged with 
 conducting the administrative affairs of the board. 

    Subd. 8.    Planning, consultants, hearing formalities.  
 The board shall have authority to contract with regional, state, 
 county, or local planning commissions or to hire expert 
 consultants to provide specialized information and assistance.  
 Any member of the board conducting or participating in any 
 hearing, or its executive director, shall have the power to 
 administer oaths and affirmations, to issue subpoenas, to compel 
 the attendance and testimony of witnesses, and the production of 
 papers, books, and documents. 

    Subd. 9.  Repealed, 1969 c 1146 s 20 

    Subd. 10.    Rules.  In order to carry out the duties 
 and powers imposed upon the board, it shall have the power to 
 make such rules, as are reasonably necessary, in accordance with 
 the procedure prescribed in the general laws relating to 
 departments and agencies of the state. 

    Subd. 11.    Fees.  The board may prescribe a schedule 
 of filing fees for any petitions, resolutions or ordinances 
 filed pursuant to this chapter by an appropriate rule 
 promulgated in accordance with the procedure prescribed in the 
 general laws relating to departments and agencies of the state 
 for the issuance of administrative rules. 

    Subd. 12.    Transcripts, evidence reports.  In 
 proceedings pursuant to this chapter, the executive director or 
 any board member may administer oaths and affirmations to 
 witnesses, examine witnesses, and receive and report evidence.  
 In any proceeding in which the evidence is received by one board 
 member or by the executive director, the board member or 
 executive director shall make a report of the evidence to the 
 board.  When all members of the board do not attend a hearing in 
 a proceeding, any party may request the executive director to 
 cause a transcript of the hearing to be made and distributed to 
 all board members.  Any party requesting a copy of the 
 transcript for board members is responsible for its costs. 

    Subd. 13.  Repealed, 1969 c 1146 s 20 

    Subd. 14.    Population of changed territory.  When a 
 board order or approval letter enlarges or diminishes the area 
 of an existing municipality or town, the board shall communicate 
 its order or approval letter to the municipality and the state 
 demographer.  The municipality shall prepare an estimate of 
 population and of the number of households for the annexed or 
 detached area of the municipality or town.  The estimate shall 
 be certified by the state demographer.  The estimate must 
 estimate the population as of the effective date of the board 
 order or approval letter and must be so dated.  When a new 
 municipality is created by an order of the board, the 
 municipality shall request a separation census from the United 
 States bureau of the census and bear any costs incurred.  

    Subd. 15.    Increased costs, levy period.  When a board 
 order enlarges an existing municipality or creates a new 
 municipality, the board may indicate in its order the estimated 
 increased costs to the municipality as the result of the 
 boundary adjustment, and the time period that the municipality 
 would be allowed a levy for these increased costs. 

    Subd. 16.    Compelled meetings; report.  In any 
 proceeding before the board, the board may at any time in the 
 process require representatives from the involved city, town, 
 county, political subdivision, or other governmental entity to 
 meet together to discuss resolution of issues raised by said 
 petition or order which confers jurisdiction on the board and 
 other issues of mutual concern.  The board may require that the 
 parties meet at least three times during a 60-day period.  The 
 parties shall designate a person to report to the board on the 
 results of the meetings immediately after the last meeting. 

    Subd. 17.    Data from state agencies.  The board may 
 request information from any state department or agency in order 
 to assist it to carry out its duties.  The department or agency 
 shall promptly furnish the requested information to the board. 

    HIST: 1959 c 686 s 1; 1961 c 645 s 1; 1963 c 807 s 1-5; 1965 c 
 45 s 58; 1965 c 899 s 1-5; 1965 c 901 s 22; 1969 c 1139 s 87 
 subd 1,88 subd 1; 1969 c 1146 s 1-6; 1973 c 123 art 5 s 7; 1973 
 c 621 s 1; 1973 c 650 art 4 s 18; 1975 c 271 s 6; 1976 c 134 s 
 70-72; 1977 c 57 s 1; 1978 c 705 s 1-8; 1980 c 487 s 22; 1981 c 
 268 s 1; 1983 c 305 s 24; 1985 c 79 s 1; 1985 c 248 s 70; 1986 c 
 444; 1987 c 384 art 2 s 1; 1Sp1989 c 1 art 5 s 29; 1994 c 511 s 
 1,2; 1996 c 303 s 1-7; 1997 c 87 s 3 

     414.011 Definitions. 

    Subdivision 1.    Application.  For the purposes of this 
 chapter, the terms defined in this section have the meanings 
 given them. 

    Subd. 2.    Municipality.  "Municipality" means any 
 city, however organized. 

    Subd. 3.    Incorporated land.  "Incorporated land" 
 means land within a municipality; "unincorporated land" means 
 land outside a municipality. 

    Subd. 4.    Property, area, land.  The terms "property," 
 "area," and "land" mean geographical units of land within or 
 outside a municipality, depending upon the context in which the 
 term is used. 

    Subd. 5.    Property owner.  "Property owner" means the 
 fee owner of land, or the beneficial owner of land whose 
 interest is primarily one of possession and enjoyment.  The term 
 includes, but is not limited to, vendees under a contract for 
 deed, and mortgagors.  Any reference to a percentage of property 
 owners shall mean in number. 

    Subd. 6.    Abut, abuts, abutting.  The terms "abut," 
 "abuts," and "abutting" refer to areas whose boundaries at least 
 touch one another at a single point, including areas whose 
 boundaries would touch but for an intervening roadway, railroad, 
 waterway or parcel of publicly owned land. 

    Subd. 7.    Boundary adjustment.  "Boundary adjustment" 
 means any proceeding by the municipal board authorized by this 
 chapter. 

    Subd. 8.    Meetings, hearings.  "Meetings" and 
 "hearings" includes, but is not limited to, board deliberations 
 by electronic media. 

    Subd. 9.    Corporate boundary map.  "Corporate boundary 
 map" means a map which accurately describes the boundaries of a 
 municipality. 

    Subd. 10.    Plat map.  "Plat map" means that document 
 recorded in the office of the county recorder in the county 
 where the area is located. 

    HIST: 1969 c 1146 s 7; 1973 c 123 art 5 s 7; 1978 c 705 s 9,10 

     414.012 Maps. 

    Subdivision 1.    Corporate boundary map.  A 
 municipality initiating any boundary adjustment authorized by 
 this chapter shall file with the municipal board a corporate 
 boundary map.  Any proposed boundary adjustment shall be 
 delineated on a copy of the corporate boundary map. 

    Subd. 2.    Plat maps.  Any party initiating a boundary 
 adjustment, which includes platted land, shall file with the 
 municipal board maps which are necessary to support and identify 
 the land description.  The maps shall include copies of plats. 

    HIST: 1978 c 705 s 11 

     414.02 Municipal incorporation. 

    Subdivision 1.    Initiating the proceedings.  This 
 section provides the exclusive method of incorporating a 
 municipality in Minnesota.  Proceedings for incorporation of a 
 municipality may be initiated by petition of 100 or more 
 property owners or by resolution of the town board within an 
 area which is not included within the limits of any incorporated 
 municipality and which area includes land that has been platted 
 into lots and blocks in the manner provided by law.  The 
 petition or resolution shall be submitted to the executive 
 director and shall state the proposed name of the municipality, 
 the names of all parties entitled to mailed notice under section 
 414.09, the reason for requesting incorporation, and shall 
 include a proposed corporate boundary map. 

    Subd. 2.    Hearing time, place.  Upon receipt of a 
 petition or resolution made pursuant to subdivision 1, the 
 executive director of the board shall designate a time and place 
 for a hearing in accordance with section 414.09. 

    Subd. 3.    Board factors, order.  In arriving at its 
 decision, the board shall consider the following factors: 

    (a) Present population and number of households, past 
 population and projected population growth for the subject area; 

    (b) Quantity of land within the subject area; the natural 
 terrain including recognizable physical features, general 
 topography, major watersheds, soil conditions and such natural 
 features as rivers, lakes and major bluffs; 

    (c) Present pattern of physical development, planning, and 
 intended land uses in the subject area including residential, 
 industrial, commercial, agricultural, and institutional land 
 uses and the impact of the proposed action on those uses; 

    (d) The present transportation network and potential 
 transportation issues, including proposed highway development; 

    (e) Land use controls and planning presently being utilized 
 in the subject area, including comprehensive plans, policies of 
 the metropolitan council; and whether there are inconsistencies 
 between proposed development and existing land use controls; 

    (f) Existing levels of governmental services being provided 
 to the subject area, including water and sewer service, fire 
 rating and protection, law enforcement, street improvements and 
 maintenance, administrative services, and recreational 
 facilities and the impact of the proposed action on the delivery 
 of the services; 

    (g) Existing or potential environmental problems and 
 whether the proposed action is likely to improve or resolve 
 these problems; 

    (h) Fiscal impact on the subject area and adjacent units of 
 local government, including present bonded indebtedness; local 
 tax rates of the county, school district, and other governmental 
 units, including, where applicable, the net tax capacity of 
 platted and unplatted lands and the division of homestead and 
 nonhomestead property; and other tax and governmental aid 
 issues; 

    (i) Relationship and effect of the proposed action on 
 affected and adjacent school districts and communities; 

    (j) Whether delivery of services to the subject area can be 
 adequately and economically delivered by the existing 
 government; 

    (k) Analysis of whether necessary governmental services can 
 best be provided through the proposed action or another type of 
 boundary adjustment; 

    (l) Degree of contiguity of the boundaries of the subject 
 area and adjacent units of local government; and 

    (m) Analysis of the applicability of the state building 
 code. 

    Based upon these factors, the board may order the 
 incorporation if it finds that (a) the property to be 
 incorporated is now, or is about to become, urban or suburban in 
 character, or (b) that the existing township form of government 
 is not adequate to protect the public health, safety, and 
 welfare, or (c) the proposed incorporation would be in the best 
 interests of the area under consideration.  The board may deny 
 the incorporation if the area, or a part thereof, would be 
 better served by annexation to an adjacent municipality. 

    The board may alter the boundaries of the proposed 
 incorporation by increasing or decreasing the area to be 
 incorporated so as to include only that property which is now, 
 or is about to become, urban or suburban in character, or may 
 exclude property that may be better served by another unit of 
 government.  The board may also alter the boundaries of the 
 proposed incorporation so as to follow visible, clearly 
 recognizable physical features for municipal boundaries.  In all 
 cases, the board shall set forth the factors which are the basis 
 for the decision. 

    Notwithstanding any other provision of law to the contrary 
 relating to the number of wards which may be established, the 
 board may provide for election of council members by wards, not 
 less than three nor more than seven in number, whose limits are 
 prescribed in the board order upon a finding that area 
 representation is required to accord proper representation in 
 the proposed incorporated area because of uneven population 
 density in different parts thereof or the existence of 
 agricultural lands therein which are in the path of suburban 
 development, but after four years from the effective date of an 
 incorporation the council of the municipality may by resolution 
 adopted by a four-fifths vote abolish the ward system and 
 provide for the election of all council members at large as in 
 other municipalities. 

    The board's order for incorporation shall provide for the 
 election of municipal officers in accordance with section 
 414.09.  The plan of government shall be "Optional Plan A", 
 provided that an alternate plan may be adopted pursuant to 
 section 412.551, at any time.  The ordinances of the township in 
 which the new municipality is located shall continue in effect 
 until repealed by the governing body of the new municipality. 

    Subd. 4.    Effective date.  The incorporation shall be 
 effective upon the election and qualification of new municipal 
 officers or on such later date as is fixed by the board in its 
 order. 

    HIST: 1959 c 686 s 2; 1961 c 645 s 2; 1963 c 807 s 6,7; 1965 c 
 899 s 6-11; 1969 c 1146 s 8; 1973 c 123 art 4 s 5; 1975 c 271 s 
 6; 1978 c 705 s 12; 1986 c 444; 1988 c 719 art 5 s 84; 1989 c 
 329 art 13 s 20; 1Sp1989 c 1 art 2 s 11; 1996 c 303 s 8 

  414.021 Repealed, 1978 c 705 s 33 

  414.03 Repealed, 1969 c 1146 s 20 

     414.031 Annexation of unincorporated property by board 
  order. 

    Subdivision 1.    Initiating the proceeding.  A 
 proceeding for the annexation of unincorporated property 
 abutting a municipality may be initiated by submitting to the 
 executive director and the affected township one of the 
 following: 

    (a) A resolution of the annexing municipality; 

    (b) A resolution of the township containing the area 
 proposed for annexation; 

    (c) A petition of 20 percent of the property owners or 100 
 property owners, whichever is less, in the area to be annexed; 

    (d) A resolution of the municipal council together with a 
 resolution of the township board stating their desire to have 
 the entire township annexed to the municipality. 

    The petition, or resolution shall set forth the boundaries 
 of the territory proposed for annexation, the names of all 
 parties entitled to notice under section 414.09, and the reasons 
 for requesting annexation.  If the proceeding is initiated by a 
 petition of property owners, the petition shall be accompanied 
 by a resolution of the annexing municipality supporting the 
 petition. 

    Subd. 2.  Repealed, 1973 c 621 s 9 

    Subd. 3.    Hearing time, place.  Upon receipt of a 
 petition or resolution initiating an annexation the executive 
 director shall designate a time and a place for a hearing in 
 accordance with section 414.09. 

    Subd. 4.    Board factors, order.  In arriving at its 
 decision, the board shall consider the following factors: 

    (a) Present population and number of households, past 
 population and projected population growth of the subject area 
 and adjacent units of local government; 

    (b) Quantity of land within the subject area and adjacent 
 units of local government; and natural terrain including 
 recognizable physical features, general topography, major 
 watersheds, soil conditions and such natural features as rivers, 
 lakes and major bluffs; 

    (c) Degree of contiguity of the boundaries between the 
 annexing municipality and the subject area; 

    (d) Present pattern of physical development, planning, and 
 intended land uses in the subject area and the annexing 
 municipality including residential, industrial, commercial, 
 agricultural and institutional land uses and the impact of the 
 proposed action on those land uses; 

    (e) The present transportation network and potential 
 transportation issues, including proposed highway development; 

    (f) Land use controls and planning presently being utilized 
 in the annexing municipality and the subject area, including 
 comprehensive plans for development in the area and plans and 
 policies of the metropolitan council, and whether there are 
 inconsistencies between proposed development and existing land 
 use controls and the reasons therefore; 

    (g) Existing levels of governmental services being provided 
 in the annexing municipality and the subject area, including 
 water and sewer service, fire rating and protection, law 
 enforcement, street improvements and maintenance, administrative 
 services, and recreational facilities and the impact of the 
 proposed action on the delivery of said services; 

    (h) Existing or potential environmental problems and 
 whether the proposed action is likely to improve or resolve 
 these problems; 

    (i) Plans and programs by the annexing municipality for 
 providing needed governmental services to the subject area; 

    (j) An analysis of the fiscal impact on the annexing 
 municipality, the subject area, and adjacent units of local 
 government, including net tax capacity and the present bonded 
 indebtedness, and the local tax rates of the county, school 
 district, and township; 

    (k) Relationship and effect of the proposed action on 
 affected and adjacent school districts and communities; 

    (l) Adequacy of town government to deliver services to the 
 subject area; 

    (m) Analysis of whether necessary governmental services can 
 best be provided through the proposed action or another type of 
 boundary adjustment; and 

    (n) If only a part of a township is annexed, the ability of 
 the remainder of the township to continue or the feasibility of 
 it being incorporated separately or being annexed to another 
 municipality. 

    Based upon the factors, the board may order the annexation 
 (a) if it finds that the subject area is now, or is about to 
 become, urban or suburban in character, or (b) if it finds that 
 municipal government in the area proposed for annexation is 
 required to protect the public health, safety, and welfare, or 
 (c) if it finds that the annexation would be in the best 
 interest of the subject area.  If only a part of a township is 
 to be annexed, the board shall consider whether the remainder of 
 the township can continue to carry on the functions of 
 government without undue hardship.  The board shall deny the 
 annexation if it finds that the increase in revenues for the 
 annexing municipality bears no reasonable relation to the 
 monetary value of benefits conferred upon the annexed area.  The 
 board may deny the annexation (a) if it appears that annexation 
 of all or a part of the property to an adjacent municipality 
 would better serve the interests of the residents of the 
 property or (b) if the remainder of the township would suffer 
 undue hardship. 

    The board may alter the boundaries of the area to be 
 annexed by increasing or decreasing the area so as to include 
 only that property which is now or is about to become urban or 
 suburban in character or to add property of such character 
 abutting the area proposed for annexation in order to preserve 
 or improve the symmetry of the area, or to exclude property that 
 may better be served by another unit of government.  The board 
 may also alter the boundaries of the proposed annexation so as 
 to follow visible, clearly recognizable physical features.  If 
 the board determines that part of the area would be better 
 served by another municipality or township, the board may 
 initiate and approve annexation on its own motion by conducting 
 further hearings and issuing orders pursuant to subdivisions 3 
 and 4.  In all cases, the board shall set forth the factors 
 which are the basis for the decision. 

    Subd. 4a.    Proceedings initiated by joint resolution.  
 If the proceeding has been initiated under subdivision 1, clause 
 (d), any annexation order shall include a provision for the 
 election of new municipal officers in accordance with section 
 414.09.  The expanded municipality shall be governed by the home 
 rule charter or statutory form which governs the annexing 
 municipality, except that any ward system for the election of 
 council members shall be inoperable.  The ordinances of both the 
 annexing municipality and the township shall continue in effect 
 within the former boundaries until repealed by the governing 
 body of the new municipality. 

    Notwithstanding any other provision of law to the contrary 
 the board may provide for election of council members by wards, 
 not less than three nor more than seven in number, whose limits 
 are prescribed in the board order, upon a finding that area 
 representation is required to accord proper representation in 
 the municipality because of uneven population density in 
 different parts thereof or the existence of agricultural lands 
 therein which are in the path of suburban development; but after 
 four years from the effective date of an annexation the council 
 of the municipality may by resolution adopted by a four-fifths 
 vote abolish the ward system and provide for the election of all 
 council members at large. 

    Until the effective date of the annexation order, the town 
 board and other officers of the town shall continue to exercise 
 their powers and duties under the town laws in that portion of 
 the municipality that was formerly the town, and the council and 
 other officers of the annexing municipality shall continue to 
 exercise their powers and duties in that portion of the expanded 
 municipality that was formerly the municipality.  Thereafter the 
 town board and the council of the annexing municipality shall 
 have no jurisdiction within the municipality, and the new 
 municipal council and other new officers shall act in respect to 
 any matters previously undertaken by the town board of 
 supervisors or municipal council within the limits of the 
 expanded municipality, including the making of any improvement 
 and the levying of any special assessments therefor in the same 
 manner and to the same effect as if such improvement had been 
 undertaken by the municipality. 

    The new municipal council may continue or discontinue any 
 board that may have previously existed in the town or former 
 municipality. 

    Subd. 5. Repealed, 1992 c 556 s 12 

    Subd. 6.    Effective date.  The annexation shall be 
 effective as of the date fixed in the annexation order or on 
 such later date as is fixed in the annexation order.  A copy of 
 the annexation order must be delivered immediately by the 
 executive director of the Minnesota municipal board to the 
 appropriate county auditor or auditors.  For the purposes of 
 taxation, if the annexation becomes effective on or before 
 August 1 of a levy year, the municipality may levy on the 
 annexed area beginning with that same levy year.  If the 
 annexation becomes effective after August 1 of a levy year, the 
 town may continue to levy on the annexed area for that levy 
 year, and the municipality may not levy on the annexed area 
 until the following levy year. 

    HIST: 1969 c 1146 s 10; 1973 c 123 art 5 s 7; 1973 c 621 s 11; 
 1975 c 271 s 6; 1978 c 705 s 13; 1986 c 444; 1988 c 719 art 5 s 
 84; 1989 c 329 art 13 s 20; 1Sp1989 c 1 art 2 s 11; 1991 c 291 
 art 12 s 22; 1996 c 303 s 9 

  414.032 Repealed, 1978 c 705 s 33 

     414.0325 Orderly annexations within a designated area. 

    Subdivision 1.    Initiating the proceeding.  One or 
 more townships and one or more municipalities, by joint 
 resolution, may designate an unincorporated area as in need of 
 orderly annexation.  The joint resolution will confer 
 jurisdiction on the board over annexations in the designated 
 area and over the various provisions in said agreement by 
 submission of said joint resolution to the executive director.  
 The resolution shall include a description of the designated 
 area and the reasons for designation.  Thereafter, an annexation 
 of any part of the designated area may be initiated by: 

    (1) submitting to the executive director a resolution of 
 any signatory to the joint resolution; or 

    (2) the board of its own motion. 

    Whenever a state agency other than the pollution control 
 agency, orders a municipality to extend a municipal service to 
 an area, such an order will confer jurisdiction on the Minnesota 
 municipal board to consider designation of the area for orderly 
 annexation. 

    If a joint resolution designates an area as in need of 
 orderly annexation and states that no alteration of its stated 
 boundaries is appropriate, the board may review and comment, but 
 may not alter the boundaries.  

    If a joint resolution designates an area as in need of 
 orderly annexation, provides for the conditions for its 
 annexation, and states that no consideration by the board is 
 necessary, the board may review and comment, but shall, within 
 30 days, order the annexation in accordance with the terms of 
 the resolution.  

    Subd. 1a.    Electric utility service notice.  At least 
 60 days before a petition is filed under this section or section 
 414.033, the petitioner must notify the municipality that the 
 petitioner intends to file a petition for annexation.  At least 
 30 days before a petition is filed for annexation, the 
 petitioner must be notified by the municipality that the cost of 
 electric utility service to the petitioner may change if the 
 land is annexed to the municipality.  The notice must include an 
 estimate of the cost impact of any change in electric utility 
 services, including rate changes and assessments, resulting from 
 the annexation. 

    Subd. 2.    Hearing time, place.  Upon receipt of a 
 resolution for annexation of a part of the designated area, the 
 executive director shall set a time and place for a hearing in 
 accordance with section 414.09. 

    Subd. 3.    Board factors, order.  In arriving at its 
 decision, the board shall consider the factors in section 
 414.031, subdivision 4. 

    Based upon factors in section 414.031, subdivision 4, the 
 board may order the annexation: 

    (a) if it finds that the subject area is now or is about to 
 become urban or suburban in character and that the annexing 
 municipality is capable of providing the services required by 
 the area within a reasonable time; or (b) if it finds that the 
 existing township form of government is not adequate to protect 
 the public health, safety, and welfare; or (c) if it finds that 
 annexation would be in the best interests of the subject area.  
 The board may deny the annexation if it conflicts with any 
 provision of the joint agreement.  The board may alter the 
 boundaries of the proposed annexation by increasing or 
 decreasing the area so as to include that property within the 
 designated area which is in need of municipal services or will 
 be in need of municipal services. 

    If the annexation is denied, no proceeding for the 
 annexation of substantially the same area may be initiated 
 within two years from the date of the board's order unless the 
 new proceeding is initiated by a majority of the area's property 
 owners and the petition is supported by affected parties to the 
 resolution.  In all cases, the board shall set forth the factors 
 which are the basis for the decision. 

    Subd. 4.    Effective date of annexation.  The board's 
 order shall be effective upon the issuance of the order or at 
 such later time as is provided by the board in its order.  A 
 copy of the annexation order must be delivered immediately by 
 the executive director of the Minnesota municipal board to the 
 appropriate county auditor or auditors.  For the purposes of 
 taxation, if the annexation becomes effective on or before 
 August 1 of a levy year, the municipality may levy on the 
 annexed area beginning with that same levy year.  If the 
 annexation becomes effective after August 1 of a levy year, the 
 town may continue to levy on the annexed area for that levy 
 year, and the municipality may not levy on the annexed area 
 until the following levy year. 

    Subd. 5.    Planning in the area designated for orderly 
 annexation.  A joint resolution may provide for the 
 establishment of a board to exercise planning and land use 
 control authority within any area designated as an orderly 
 annexation area pursuant to this section, in the manner 
 prescribed by Minnesota Statutes 1976, section 471.59, 
 subdivisions 2 to 8, inclusive. 

    (a) A board established pursuant to a joint resolution 
 shall have all of the powers contained in sections 462.351 to 
 462.364, and shall have the authority to adopt and enforce the 
 Uniform Fire Code promulgated pursuant to section 299F.011. 

    (b) The joint resolution may provide that joint planning 
 and land use controls shall apply to any or all parts of the 
 area designated for orderly annexation as well as to any 
 adjacent unincorporated or incorporated area, provided that the 
 area to be included shall be described in the joint resolution. 

    (c) If the joint resolution does not provide for joint 
 planning and land use control, the following procedures shall 
 govern: 

    If the county and townships agree to exclude the area from 
 their zoning and subdivision ordinances, the municipality may 
 extend its zoning and subdivision regulations to include the 
 entire orderly annexation area as provided in section 462.357, 
 subdivision 1, and section 462.358, subdivision 1. 

    If the county and township do not agree to such 
 extraterritorial zoning and subdivision regulation by the 
 municipality, zoning and subdivision regulation within the 
 orderly annexation area shall be controlled by a three-member 
 committee with one member appointed from each of the municipal, 
 town, and county governing bodies.  This committee shall serve 
 as the "governing body" and "board of appeals and adjustments", 
 for purposes of sections 462.357 and 462.358, within the orderly 
 annexation area.  The committee shall have all of the powers 
 contained in sections 462.351 to 462.364, and shall have the 
 authority to adopt and enforce the Uniform Fire Code promulgated 
 pursuant to section 299F.011. 

    HIST: 1978 c 705 s 14; 1Sp1981 c 4 art 1 s 171,172; 1982 c 424 
 s 116; 1983 c 18 s 1; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 
 20; 1Sp1989 c 1 art 2 s 11; 1991 c 291 art 12 s 23; 1992 c 556 s 
 4; 1994 c 511 s 3; 1996 c 303 s 10-12; 1997 c 202 art 5 s 2 

     414.033 Annexation by ordinance. 

    Subdivision 1.    Unincorporated property.  
 Unincorporated property abutting a municipality may be annexed 
 to the municipality by ordinance as provided for in this section.

    Subd. 2.    Conditions.  A municipal council may by 
 ordinance declare land annexed to the municipality and any such 
 land is deemed to be urban or suburban in character or about to 
 become so if: 

    (1) the land is owned by the municipality; 

    (2) the land is completely surrounded by land within the 
 municipal limits; 

    (3) the land abuts the municipality and the area to be 
 annexed is 60 acres or less, and the area to be annexed is not 
 presently served by public sewer facilities or public sewer 
 facilities are not otherwise available, and the municipality 
 receives a petition for annexation from all the property owners 
 of the land; or 

    (4) the land has been approved after August 1, 1995, by a 
 preliminary plat or final plat for subdivision to provide 
 residential lots that average 21,780 square feet or less in area 
 and the land is located within two miles of the municipal limits.

    Subd. 2a. Repealed, 1997 c 202 art 5 s 9 

    Subd. 2b.    Notice required.  Before a municipality may 
 adopt an ordinance under subdivision 2, clause (2), (3), or (4), 
 a municipality must hold a public hearing and give 30 days' 
 written notice by certified mail to the town or towns affected 
 by the proposed ordinance and to all landowners within and 
 contiguous to the area to be annexed.  

    Subd. 3.    Perimeter, acreage requirements.  If the 
 perimeter of the area to be annexed by a municipality is 60 
 percent or more bordered by the municipality and if the area to 
 be annexed is 40 acres or less, the municipality shall serve 
 notice of intent to annex upon the town board and the municipal 
 board, unless the area is appropriate for annexation by 
 ordinance under subdivision 2, clause (3).  The town board shall 
 have 90 days from the date of service to serve objections with 
 the board.  If no objections are forthcoming within the said 90 
 day period, such land may be annexed by ordinance.  If 
 objections are filed with the board, the board shall conduct 
 hearings and issue its order as in the case of annexations under 
 section 414.031, subdivisions 3 and 4. 

    Subd. 4.  Repealed, 1978 c 705 s 33 

    Subd. 5.    Petition, objections.  If the land is 
 platted, or, if unplatted, does not exceed 200 acres, a majority 
 of the property owners in number may petition the municipal 
 council to have such land included within the abutting 
 municipality and, within ten days thereafter, shall file copies 
 of the petition with the board, the town board, the county board 
 and the municipal council of any other municipality which 
 borders the land to be annexed.  Within 90 days from the date of 
 service, the town board or the municipal council of such 
 abutting municipality may submit written objections to the 
 annexation to the board and the annexing municipality.  Upon 
 receipt of such objections, the board shall proceed to hold a 
 hearing and issue its order in accordance with section 414.031, 
 subdivisions 3 and 4.  If written objections are not submitted 
 within the time specified in this section and if the municipal 
 council determines that property proposed for the annexation is 
 now or is about to become urban or suburban in character, it may 
 by ordinance declare such land annexed to the municipality.  If 
 the petition is not signed by all the property owners of the 
 land proposed to be annexed, the ordinance shall not be enacted 
 until the municipal council has held a hearing on the proposed 
 annexation after at least 30 days' mailed notice to all property 
 owners within the area to be annexed. 

    Subd. 6.    If also in board proceeding.  Whenever a 
 proceeding for annexation is initiated under this section and 
 all or any part of the land is included in another boundary 
 adjustment proceeding pending before the board, no action 
 thereon shall be taken by the municipality, unless otherwise 
 provided by an order of the board, until final disposition has 
 been made of the petition pending before the board.  Under this 
 section the board will accept a waiver from all parties having a 
 right to object, stating they have no objections to the proposed 
 annexation and waiving the 90 day period before an annexation 
 ordinance may be adopted. 

    Subd. 7.    Filing; effective date; copy, levies.  Any 
 annexation ordinance provided for in this section must be filed 
 with the board, the township, the county auditor and the 
 secretary of state and is final on the date the ordinance is 
 approved by the board.  A copy of the annexation ordinance must 
 be delivered immediately by the governing body of the 
 municipality to the appropriate county auditor or auditors.  

    Subd. 8. Repealed, 1980 c 487 s 23 

    Subd. 9. Repealed, 1997 c 87 s 4 

    Subd. 10.    Information to board.  The municipal board 
 may, at its discretion, require the city or property owners to 
 furnish additional information concerning an annexation by 
 ordinance to inform the board about the extent to which the 
 proposed annexation conforms to the statutory criteria set forth 
 in sections 414.01, subdivision 1 and 414.031, subdivision 4. 

    Subd. 11.    Floodplain; shoreland area.  When a 
 municipality declares land annexed to the municipality under 
 subdivision 2, clause (3), and the land is within a designated 
 floodplain, as provided by section 103F.111, subdivision 4, or a 
 shoreland area, as provided by section 103F.205, subdivision 4, 
 the municipality shall adopt or amend its land use controls to 
 conform to chapter 103F, and any new development of the annexed 
 land shall be subject to chapter 103F. 

    Subd. 12.    Property taxes.  When a municipality 
 annexes land under subdivision 2, clause (2), (3), or (4), 
 property taxes payable on the annexed land shall continue to be 
 paid to the affected town or towns for the year in which the 
 annexation becomes effective.  If the annexation becomes 
 effective on or before August 1 of a levy year, the municipality 
 may levy on the annexed area beginning with that same levy 
 year.  If the annexation becomes effective after August 1 of a 
 levy year, the town may continue to levy on the annexed area for 
 that levy year, and the municipality may not levy on the annexed 
 area until the following levy year.  In the first year following 
 the year when the municipality could first levy on the annexed 
 area under this subdivision, and thereafter, property taxes on 
 the annexed land shall be paid to the municipality.  In the 
 first year following the year the municipality could first levy 
 on the annexed area, the municipality shall make a cash payment 
 to the affected town or towns in an amount equal to 90 percent 
 of the property taxes distributed to the town in regard to the 
 annexed area in the last year the property taxes from the 
 annexed area were payable to the town; in the second year, an 
 amount equal to 70 percent; in the third year, an amount equal 
 to 50 percent; in the fourth year, an amount equal to 30 
 percent; and in the fifth year, an amount equal to ten percent.  
 The municipality and the affected township may agree to a 
 different payment. 

    Subd. 13.    Electric utility service notice.  At least 
 60 days before a petition is filed under section 414.0325 or 
 this section, the petitioner must notify the municipality that 
 the petitioner intends to file a petition for annexation.  At 
 least 30 days before a petition is filed for annexation, the 
 petitioner must be notified by the municipality that the cost of 
 electric utility service to the petitioner may change if the 
 land is annexed to the municipality.  The notice must include an 
 estimate of the cost impact of any change in electric utility 
 services, including rate changes and assessments, resulting from 
 the annexation.  

    HIST: 1969 c 1146 s 12; 1975 c 271 s 6; 1978 c 705 s 15-21; 
 1979 c 50 s 52; 1985 c 30 s 2,3; 1991 c 291 art 12 s 24; 1992 c 
 556 s 5-8; 1994 c 511 s 4-8; 1996 c 303 s 13,14; 1997 c 31 art 3 
 s 14,15; 1997 c 202 art 5 s 3-5 

     414.0335 Ordered governmental service extension; 
  annexation by ordinance. 

    If a determination or order by the pollution control 
 agency, under section 115.49 or other similar statute is made, 
 that cooperation by contract is necessary and feasible between a 
 municipality and an unincorporated area located outside the 
 existing corporate limits of a municipality, the municipality 
 required to provide or extend through a contract a governmental 
 service to an unincorporated area, during the statutory 90-day 
 period provided in section 115.49 to formulate a contract, may 
 in the alternative to formulating a service contract to provide 
 or extend the service, declare the unincorporated area described 
 in the pollution control agency's determination letter or order 
 annexed to the municipality by adopting an ordinance and 
 submitting it to the municipal board or its successor.  The 
 municipal board or its successor may review and comment on the 
 ordinance but shall approve the ordinance within 30 days of 
 receipt.  The ordinance is final and the annexation is effective 
 on the date the municipal board or its successor approves the 
 ordinance.  Thereafter, the city shall amend its comprehensive 
 plan and official controls in accordance with chapter 462. 

    HIST: 1997 c 202 art 5 s 6 

  414.034 Repealed, 1978 c 705 s 33 

     414.035 Differential taxation. 

    Whenever a board order, under section 414.031, 414.0325, or 
 414.033, annexes part or all of a township to a municipality, 
 the board may provide that the tax rate of the annexing 
 municipality on the area annexed shall be increased in 
 substantially equal proportions over not more than six years to 
 equality with the tax rate on the property already within the 
 municipality.  The appropriate period, if any, shall be based on 
 the time reasonably required to effectively provide full 
 municipal services to the annexed area. 

    HIST: 1978 c 705 s 22; 1979 c 50 s 53; 1987 c 50 s 1; 1989 c 
 277 art 4 s 46 

     414.036 Municipal reimbursement. 

    When a board order under section 414.0325 annexes part of a 
 town to a municipality, the orderly annexation agreement between 
 the town and municipality may provide a reimbursement from the 
 municipality to the town for all or part of the taxable property 
 annexed as part of the board order.  The reimbursement shall be 
 completed in substantially equal payments over not less than two 
 nor more than six years from the time of annexation. 

    HIST: 1981 c 189 s 1 

  414.04 Repealed, 1969 c 1146 s 20 

     414.041 Consolidation of municipalities. 

    Subdivision 1.    Initiating the proceeding.  Two or 
 more municipalities may be the subject of a single proceeding 
 provided that each municipality abuts at least one of the 
 included municipalities.  The proceeding shall be initiated in 
 one of the following ways:  

    (a) Submitting to the executive director a resolution of 
 the city council of each affected municipality; 

    (b) Submitting to the executive director a petition signed 
 by five percent or more of the resident voters of a municipality 
 who voted for governor at the last general election; or 

    (c) By the board on its own motion.  

    The petition or resolution shall set forth the following 
 information about each included municipality: name, description 
 of boundaries, the reasons for requesting the consolidation and 
 the names of all parties entitled to mailed notice under section 
 414.09.  The party initiating the proceeding shall serve copies 
 of the petition or resolution on all of the included 
 municipalities. 

    Subd. 2.    Consolidation commission.  Upon receipt of a 
 petition or a resolution requesting consolidation or upon the 
 board's own motion, the board shall appoint a consolidation 
 commission from a list of ten candidates submitted by each 
 affected city council.  The commission shall be composed of not 
 fewer than five members from each affected municipality.  From a 
 separate list of three persons submitted by each affected city 
 council, the board shall appoint a commission chair who is not a 
 resident of an affected municipality but who resides in an 
 affected county.  

    No person is disqualified from serving on a consolidation 
 commission by reason of holding other elected or appointed 
 office.  Consolidation commission members shall hold office 
 until a consolidation report has been issued by the commission.  
 The board shall fill vacancies in the commission by 
 appointment.  The consolidation commission shall make rules with 
 reference to its operation and procedures including quorum 
 requirements with reference to its operations and procedures.  

    Subd. 3.    Commission's hearing and report.  The 
 consolidation commission shall conduct hearings regarding the 
 proposed consolidation.  The hearings shall include, but are not 
 limited to, the following subjects:  

    (a) The contents of any city charter for the proposed 
 consolidated city or the form of government of the proposed 
 consolidated city; 

    (b) Analysis of whether a ward system shall be included in 
 the form of government of the proposed consolidated city; and 

    (c) Each factor considered by the board under section 
 414.02, subdivision 3.  

    Based on these factors and upon other matters which come 
 before the consolidation commission, the commission shall issue 
 a report to the municipal board with findings and 
 recommendations within two years from the date of the board's 
 initial appointment of the commission.  

    Subd. 4.    Board's hearing and notice.  Upon receipt of 
 the commission's report, the executive director shall designate 
 a time and a place for a hearing in accordance with section 
 414.09. 

    Subd. 5.    Board's factors, order.  In arriving at its 
 decision, the board shall consider the factors in section 
 414.02, subdivision 3. 

    The board shall consider and may accept, amend, return to 
 the commission for amendment or further study, or reject the 
 commission's findings and recommendations based upon the board's 
 written determination of what is in the best interests of the 
 affected municipalities.  

    The board shall order the consolidation if it finds that 
 consolidation will be for the best interests of the 
 municipalities.  In all cases, the board shall set forth the 
 factors which are the basis for the decision.  

    If the board orders consolidation, it shall provide for 
 election of new municipal officers in accordance with section 
 414.09.  If the most populous of the included municipalities is 
 a statutory city, the new municipality shall be a statutory city 
 and the plan of government shall be Optional Plan A, provided 
 that an alternate plan may be adopted pursuant to section 
 412.551, at any time.  If the most populous of the included 
 municipalities is a home rule charter city or organized under a 
 statute other than chapter 412, the new municipality shall be 
 governed by its home rule charter or the statutory form under 
 which it is governed except that any ward system for the 
 election of council members shall be inoperable.  If the 
 commission's findings and recommendations include a proposed 
 home rule charter for the new municipality, the board may in its 
 order combine the issue of the adoption of the charter and the 
 vote on approval of the order for consolidation into one 
 question on the ballot, and shall submit it in a special or 
 general election as provided in section 410.10.  The ordinances 
 of all of the included municipalities shall continue in effect 
 within their former boundaries until repealed by the governing 
 body of the new municipality. 

    Notwithstanding any other provision of law to the contrary, 
 the board may in its order establish a ward system in the new 
 municipality, in which event it shall establish not less than 
 three nor more than seven wards, each of which shall elect one 
 council member.  When more than two years have elapsed after 
 consolidation, the governing body may, by a four-fifths vote, 
 abolish the ward system. 

    The new municipality shall assume the name of the most 
 populous municipality unless previous to the election another 
 name is chosen by joint resolution of a majority of the included 
 municipalities or by the consolidation commission. 

    The number of license privileges existing in the included 
 municipalities prior to consolidation and pursuant to state law 
 shall not be diminished as a result of the consolidation. 

    If the consolidation is denied or defeated in a referendum, 
 no proceeding for the consolidation of the same municipalities 
 may be initiated within two years from the date of the board's 
 order unless authorized by the board. 

    Subd. 6.    Final approval.  (a) If the consolidation 
 was initiated by a petition of the resident voters of a 
 municipality, the board's order for consolidation shall be final 
 upon approval by resolution of the city councils in each of the 
 affected municipalities unless ten percent or more of the 
 resident voters of an affected municipality who voted for 
 governor at the last general election petition the city council 
 for a referendum on the consolidation.  The petition must be 
 submitted within 90 days of the final date of the board's order 
 or the date of final approval of the board's order by the city 
 councils, whichever is later.  Upon receipt and verification of 
 the petition, the board shall order the municipalities to 
 conduct separate referenda at a general or special election in 
 each municipality on the same day, and the referenda shall be 
 held within six months of the receipt of the petition.  Costs of 
 the respective referenda shall be borne by the respective 
 municipality.  A majority of those voting in each city must 
 approve the proposed consolidation.  The results of the 
 referenda shall be certified to the executive director of the 
 municipal board by the chief election judge within ten days 
 after the referenda.  The executive director shall upon receipt 
 of the certificate notify all parties of the election results. 

    (b) If the consolidation was initiated by a city council 
 resolution of each affected municipality, the board's order for 
 consolidation shall be final unless ten percent or more of the 
 resident voters of an affected municipality petition for a 
 referendum as provided in clause (a).  

    (c) If the consolidation was initiated by the board's own 
 motion, no consolidation order of the board involving existing 
 municipalities shall become effective unless adopted by the 
 council of each affected municipality by a majority vote and 
 unless the consolidation order of the board is approved by the 
 qualified voters of the affected municipalities at a general or 
 special election set according to law.  The form of the ballot 
 shall be fixed by the board; and, if a majority of the votes 
 cast on the question in each municipality are in favor of its 
 adoption, the order of the board shall become effective as 
 provided herein.  

    (d) Notwithstanding a disapproval of the board's order for 
 consolidation by a city council of an affected municipality 
 required to approve the board's order in clause (a) or (c), the 
 board's order for consolidation shall nevertheless be deemed 
 approved by that city council if ten percent or more of the 
 resident voters of that municipality who voted for governor at 
 the last general election petition the city council for a 
 referendum on the consolidation as provided in clause (a), and a 
 majority of those voting in that municipality approve the 
 board's order for consolidation.  

    Subd. 7.    Differential taxation.  Where one 
 municipality is receiving substantially fewer municipal 
 services, the board may provide that the tax rate of the 
 municipality shall be increased in substantially equal 
 proportions over a period of not more than five years to 
 equality with the tax rate in the remainder of the new 
 municipality.  The period shall be determined by the board on 
 the basis of the period reasonably required to provide 
 substantially equal municipal services. 

    Subd. 8.    Effective date.  The consolidation shall be 
 effective upon the election and qualification of new municipal 
 officers, or at such later date as set by the board in its order.

    HIST: 1969 c 1146 s 13; 1973 c 123 art 5 s 7; 1973 c 621 s 5; 
 1975 c 271 s 6; 1978 c 705 s 23; 1979 c 287 s 1; 1986 c 444; 
 1989 c 277 art 4 s 47; 1996 c 303 s 15,16 

  414.05 Repealed, 1969 c 1146 s 20 

     414.051 Board's review of townships according to 
  population. 

    After each federal census the board may determine the 
 townships which have a population in excess of 2,000 exclusive 
 of any municipality or part of a municipality within the 
 township and make recommendations which it deems necessary and 
 reasonable to the board of any such township. 

    HIST: 1969 c 1146 s 14; 1975 c 271 s 6; 1981 c 357 s 106 

     414.06 Detachment of property from a municipality. 

    Subdivision 1.    Initiating the proceeding.  Property 
 which is situated within a municipality and abutting the 
 municipal boundary, rural in character and not developed for 
 urban residential, commercial, or industrial purposes may be 
 detached from the municipality according to the following 
 procedure.  The proceeding may be initiated by submitting to the 
 board a resolution of the municipality to which the land is 
 attached or by submitting to the board a petition of all of the 
 property owners of the land to be detached if the area is less 
 than 40 acres or of 75 percent of the property owners if over 40 
 acres.  The petition or resolution shall set forth the 
 boundaries and the area of the land to be detached, the number 
 and character of the buildings, the resident population, and the 
 municipal improvements, if any, in the area. 

    Subd. 2.    Hearing, if needed.  If both a resolution of 
 the municipality and a petition by all the property owners are 
 submitted, no hearing is necessary.  In any other case, upon 
 receipt of a petition or resolution, the executive director of 
 the board shall designate a time and place for a hearing in 
 accordance with section 414.09. 

    Subd. 3.    Board's order.  Upon completion of the 
 hearing, the board may order the detachment if it finds that the 
 requisite number of property owners have signed the petition if 
 initiated by the property owners, that the property is rural in 
 character and not developed for urban residential, commercial or 
 industrial purposes, that the property is within the boundaries 
 of the municipality and abuts a boundary, that the detachment 
 would not unreasonably affect the symmetry of the detaching 
 municipality, and that the land is not needed for reasonably 
 anticipated future development.  The board may deny the 
 detachment if it finds that the remainder of the municipality 
 cannot continue to carry on the functions of government without 
 undue hardship. The board shall have authority to decrease the 
 area of property to be detached and may include only a part of 
 the proposed area to be detached.  If the tract abuts more than 
 one township, it shall become a part of each township, being 
 divided by projecting through it the boundary line between the 
 townships.  The detached area may be relieved of the primary 
 responsibility for existing indebtedness of the municipality and 
 be required to assume the indebtedness of the township of which 
 it becomes a part, in such proportion as the board shall deem 
 just and equitable having in view the amount of taxes due and 
 delinquent and the indebtedness of each township and the 
 municipality affected, if any, and for what purpose the same was 
 incurred, all in relation to the benefit inuring to the detached 
 area as a result of the indebtedness and the last net tax 
 capacity of the taxable property in each township and 
 municipality. 

    Subd. 4.    Effective date.  The detachment shall be 
 effective upon the issuance of the board's order, or at such 
 later date, as provided by the board in its order.  A copy of 
 the detachment order must be delivered immediately by the 
 executive director of the Minnesota municipal board to the 
 appropriate county auditor or auditors.  For the purposes of 
 taxation, if the detachment becomes effective on or before 
 August 1 of a levy year, the town or towns acquiring the 
 detached area may levy on it beginning with that same levy 
 year.  If the detachment becomes effective after August 1 of a 
 levy year, the municipality may continue to levy on the detached 
 area for that levy year, and the town or towns acquiring the 
 detached area may not levy on it until the following levy year. 

    HIST: 1959 c 686 s 6; 1961 c 645 s 6; 1963 c 807 s 11; 1965 c 
 899 s 15; 1969 c 1146 s 15; 1975 c 271 s 6; 1978 c 705 s 24; 
 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20; 1991 c 291 art 12 
 s 25 

     414.061 Concurrent detachment and annexation of 
  incorporated land. 

    Subdivision 1.    Initiating the proceeding.  Property 
 of one municipality which abuts another may be concurrently 
 detached and annexed by the procedure set forth in this 
 section.  The proceeding shall be initiated by submitting to the 
 executive director resolutions of both municipalities describing 
 the land and stating their desire to detach and annex the land. 

    Subd. 2.    Board's order.  If the resolutions are in 
 order, the board may order the detachment and annexation. 

    Subd. 3.    Effective date.  The concurrent detachment 
 and annexation shall be effective upon the issuance of the 
 board's order, or at such later date as provided by the board in 
 its order.  A copy of the annexation order must be delivered 
 immediately by the executive director of the Minnesota municipal 
 board to the appropriate county auditor or auditors.  For the 
 purposes of taxation, if the annexation becomes effective on or 
 before August 1 of a levy year, the municipality acquiring the 
 detached area of another municipality may levy on it beginning 
 with that same levy year.  If the annexation becomes effective 
 after August 1 of a levy year, the municipality losing the 
 detached area may continue to levy on it for that levy year, and 
 the municipality acquiring the detached area may not levy on it 
 until the following levy year. 

    Subd. 4.    Board initiation.  The board may initiate 
 proceedings for the concurrent detachment and annexation of 
 portions of one municipality completely surrounded by another 
 municipality, on its own motion or upon the petition of all of 
 the owners of property in the completely surrounded area.  In 
 such cases the board shall conduct hearings and issue its order 
 pursuant to section 414.09.  In arriving at its decision, the 
 board shall consider the factors in section 414.02, subdivision 
 3.  The board shall order the proposed action if it finds that 
 it will be for the best interests of the municipalities and the 
 property owners.  In all cases, the board shall set forth the 
 factors which are the basis for the decision. 

    Subd. 4a. Repealed, 1996 c 303 s 19 

    Subd. 5.    Property owner initiation.  Property owners 
 may initiate proceedings for the concurrent detachment of their 
 property from one municipality and its annexation to an adjacent 
 municipality by a petition signed by all of them that they 
 submit to the board accompanied by a resolution of the city 
 council of at least one of the affected municipalities.  The 
 board shall conduct hearings and issue its order pursuant to 
 section 414.09.  In arriving at its decision, the board shall 
 consider the factors in section 414.02, subdivision 3.  The 
 board shall order the proposed action if it finds that it will 
 be for the best interests of the municipalities and the property 
 owner.  In all cases, the board shall set forth the factors 
 which are the basis for the decision. 

    HIST: 1969 c 1146 s 16; 1973 c 621 s 6; 1975 c 271 s 6; 1978 c 
 705 s 25-27; 1985 c 30 s 4; 1Sp1986 c 3 art 1 s 53-55; 1991 c 
 291 art 12 s 26; 1994 c 511 s 9; 1996 c 303 s 17,18 

     414.063 Joint agreements. 

    After notice and hearing as provided in section 414.09, the 
 board may include provisions of joint agreements between 
 political subdivisions in its orders. 

    HIST: 1978 c 705 s 28 

     414.065 State lands, proceedings. 

    In any case in which the state is the fee owner of land 
 partly or wholly within any area proposed to be part of a 
 boundary adjustment, the executive council of the state of 
 Minnesota may petition for, or consent to, any action proceeding 
 under this chapter, if the council deems such action to be in 
 the best interests of the state. 

    HIST: 1965 c 899 s 16; 1978 c 705 s 29 

     414.067 Apportionment of assets and obligations. 

    Subdivision 1.    Township or municipality divided.  
 Whenever the board divides an existing governmental unit, the 
 board may apportion the property and obligations between the 
 governmental unit adding territory and the governmental unit 
 from which the territory was obtained.  The apportionment shall 
 be made in a just and equitable manner having in view the value 
 of the existing township or municipal property located in the 
 area to be added, the assets, value, and location of all the 
 taxable property in the existing township or municipality, the 
 indebtedness, the taxes due and delinquent, other revenue 
 accrued but not paid to the existing township or municipality 
 and the ability of any remainder of the township or municipality 
 to function as an effective governmental unit.  The order shall 
 not relieve any property from any tax liability for payment for 
 any bonded obligation, but the taxable property in the new 
 municipality may be made primarily liable thereon. 

    Subd. 2.    Entire township or municipality.  When an 
 entire township is annexed by an existing municipality, or an 
 entire township is incorporated into a new municipality, or a 
 municipality is consolidated into a new municipality, all money, 
 claims, or properties, including real estate owned, held, or 
 possessed by the annexed, incorporated township or municipality, 
 and any proceeds or taxes levied by such town or municipality, 
 collected or uncollected, shall become and be the property of 
 the new or annexing municipality with full power and authority 
 to use and dispose of the same for public purposes as the 
 council or new annexing municipality may deem best, subject to 
 the rights of creditors.  Any taxes levied to pay bonded 
 indebtedness of a town or former municipality annexed to an 
 existing municipality or incorporated or consolidated into a new 
 municipality shall be borne only by that taxable property within 
 the boundaries of the former town or municipality, provided, 
 however, the units of government concerned may by resolution of 
 their governing bodies agree that taxes levied to pay the 
 indebtedness must be levied upon all taxable property within the 
 boundaries of the new municipality.  Notwithstanding that the 
 bonded indebtedness may be payable from taxes levied on only a 
 portion of the taxable property in the new or surviving 
 municipality, the full faith and credit of the new or surviving 
 municipality must secure any outstanding bonded indebtedness to 
 which the full faith and credit of the annexed or consolidated 
 township or municipality was pledged.  If any general funds of 
 the new or surviving municipality are used to pay debt service 
 on the bonded indebtedness, the general funds must be 
 reimbursed, with or without interest, from taxes levied on 
 taxable property in the former township or municipality. 

    Subd. 3.    Revision of tax records; redistribution of 
 levies.  In an apportionment made under this section the board 
 may order the county auditor to revise tax records and respread 
 levies at any time prior to December 15 or order the county 
 treasurer to redistribute taxes levied and receivable. 

    HIST: 1969 c 1146 s 17; 1971 c 62 s 1; 1973 c 621 s 7; 1975 c 
 271 s 6; 1978 c 705 s 30; 1997 c 219 s 4 

  414.068 Repealed, 1978 c 705 s 33 

     414.07 Appeals. 

    Subdivision 1.    Orders of board, time limitation.  All 
 orders of the board shall be issued within one year from the 
 date of the day of the first hearing thereon provided that the 
 time may be extended for a fixed additional period upon consent 
 of all parties of record.  Failure to so order shall be deemed 
 to be an order denying the matter before the board.  An appeal 
 may be taken from such failure to so order in the same manner as 
 an appeal from an order as provided in subdivision 2. 

    Subd. 2.    Grounds for appeal.  Any person aggrieved by 
 any order of the board may appeal to the district court upon the 
 following grounds: 

    (a) that the board had no jurisdiction to act; 

    (b) that the board exceeded its jurisdiction; 

    (c) that the order of the board is arbitrary, fraudulent, 
 capricious or oppressive or in unreasonable disregard of the 
 best interests of the territory affected; or 

    (d) that the order is based upon an erroneous theory of law.

    The appeal shall be taken in the district court in the 
 county in which the majority of the area affected is located.  
 The appeal shall not stay the effect of the order.  All notices 
 and other documents shall be served on both the executive 
 director and the attorney general's assistant assigned to the 
 board. 

    If the court determines that the action of the board 
 involved is unlawful or unreasonable or is not warranted by the 
 evidence in case an issue of fact is involved, the court may 
 vacate or suspend the action of the board involved, in whole or 
 in part, as the case requires.  The matter shall then be 
 remanded to the board for further action in conformity with the 
 decision of the court. 

    To render a review of a board order effectual, the 
 aggrieved person shall file with the court administrator of the 
 district court of the county in which the majority of the area 
 is located, within 30 days of the order, an application for 
 review together with the grounds upon which the review is sought.

    An appeal lies from the district court as in other civil 
 cases. 

    HIST: 1959 c 686 s 7; 1961 c 645 s 7; 1969 c 1146 s 18; 1975 c 
 271 s 6; 1976 c 239 s 42; 1978 c 705 s 31; 1983 c 247 s 150; 
 1Sp1986 c 3 art 1 s 82; 1994 c 511 s 10 

     414.08 Appeals from district court. 

    An appeal may be taken under the rules of civil appellate 
 procedure by the Minnesota municipal board from a final order or 
 judgment made or rendered by the district court when the board 
 determines that the final order or judgment adversely affects 
 the public interest. 

    HIST: 1965 c 834 s 1; 1975 c 271 s 6; 1976 c 239 s 43; 1983 c 
 247 s 151 

     414.09 Uniform procedures of board. 

    Subdivision 1.    Hearings.  Proceedings initiated by 
 the submission of an initiating document or by the board of its 
 own motion shall come on for hearing within 30 to 60 days from 
 receipt of the document by the board or from the date of board 
 action and the board must submit its order no later than one 
 year from the date of the day of the first hearing.  In any 
 proceeding before the board and upon the request of any party, 
 the board shall meet physically rather than by means of 
 electronic media.  The place of the hearing shall be in the 
 county where a majority of the affected territory is situated, 
 and shall be established for the convenience of the parties.  
 The executive director shall mail notice of the hearing to the 
 following parties:  the township or municipality presently 
 governing the affected territory; any township or municipality 
 abutting the affected territory; the county where the affected 
 territory is situated; and each planning agency which has 
 jurisdiction over the affected area.  The executive director 
 shall cause notice of the hearing to be published for two 
 successive weeks in a legal newspaper of general circulation in 
 the affected area.  When the board exercises its authority to 
 change the boundaries of the affected area so as to increase the 
 quantity of the land, the hearing shall be recessed and 
 reconvened upon two weeks' published notice in a legal newspaper 
 of general circulation in the affected area. 

    Subd. 2.    Transmittal of board's order.  The executive 
 director shall cause copies of the board's order to be mailed to 
 all parties entitled to mailed notice of hearing under 
 subdivision 1, the secretary of state, the department of 
 revenue, the state demographer, individual property owners if 
 initiated in that manner, affected county auditor, and any other 
 party of record.  The affected county auditor shall record the 
 order against the affected property. 

    Subd. 3.    Elections of municipal officers.  An order 
 approving an incorporation or consolidation pursuant to this 
 chapter shall set a date for this election of new municipal 
 officers not less than 45 days nor more than 60 days after the 
 issuance of such order.  The board shall appoint an acting clerk 
 for election purposes, at least three election judges who shall 
 be residents of the new municipality, and shall designate 
 polling places within the new municipality. 

    The acting clerk shall prepare the official election 
 ballot.  Affidavits of candidacy may be filed by any person 
 eligible to hold municipal office not more than four weeks nor 
 less than two weeks before the date designated by the board for 
 the election.  

    The election shall be conducted in conformity with the 
 charter and the laws for conducting municipal elections insofar 
 as applicable.  Any person eligible to vote at a township or 
 municipal election within the area of the new municipality, is 
 eligible to vote at such election. 

    Any excess in the expense of conducting the election over 
 receipts from filing fees shall be a charge against the new 
 municipality; any excess of receipts shall be deposited in the 
 treasury of the new municipality. 

    HIST: 1969 c 1146 s 19; 1973 c 123 art 5 s 7; 1975 c 271 s 6; 
 1976 c 44 s 31; 1978 c 705 s 32; 1984 c 543 s 48; 1994 c 511 s 
 11,12 

  414.10 Repealed, 2000 c 446 s 4 

     414.11 Municipal board sunset. 

    The municipal board shall terminate on June 1, 1999, and 
 all of its authority and duties under this chapter shall be 
 transferred to the office of strategic and long-range planning 
 according to section 15.039, and any money remaining available 
 on that date of the amount appropriated to the municipal board 
 for fiscal year 2000 is transferred and appropriated to the 
 director of the office of strategic and long-range planning to 
 be used for the purposes of this chapter. 

    HIST: 1997 c 202 art 5 s 8; 1999 c 243 art 16 s 24 

     414.12 Director's powers. 

    Subdivision 1.    Alternative dispute resolution.  
 Notwithstanding anything to the contrary in sections 414.01 to 
 414.11, the director of the office of strategic and long-range 
 planning, upon consultation with affected parties and 
 considering the procedures and principles established in 
 sections 414.01 to 414.11, and Laws 1997, chapter 202, article 
 4, sections 1 to 13, may require that disputes over proposed 
 boundary adjustments be resolved by means of alternative dispute 
 resolution processes in place of hearings that would otherwise 
 be required pursuant to sections 414.01 to 414.09, including 
 those provided in chapter 14, in the execution of the office's 
 duties under this chapter.  Alternative dispute resolution 
 processes that may be required include: 

    (1) the contested case procedures provided by sections 
 14.57 to 14.62; 

    (2) the mediation and arbitration process provided by 
 sections 572A.015 to 572A.03; or 

    (3) another mediation and arbitration process ordered by 
 the director.  

    Subd. 2.    Delegation of authority.  The director may, 
 with the agreement of the chief administrative law judge, 
 delegate to the office of administrative hearings, in any 
 individual case or group of cases, the director's authority and 
 responsibility to conduct hearings and issue final orders under 
 sections 414.01 to 414.09.  In the case of detachment of lands 
 from a municipality, if the parties do not agree to resolve a 
 boundary adjustment matter by mediation or arbitration, then the 
 case shall be referred to an administrative law judge to conduct 
 hearings and issue final orders under sections 414.01 to 414.09. 

    Subd. 3.    Cost of proceedings.  The parties to any 
 matter directed to alternative dispute resolution under 
 subdivision 1 or delegated to the office of administrative 
 hearings under subdivision 2 must pay the costs of the 
 alternative dispute resolution process or hearing in the 
 proportions that they agree to.  Notwithstanding section 14.53 
 or other law, the office of strategic and long-range planning is 
 not liable for the costs.  If the parties do not agree to a 
 division of the costs before the commencement of mediation, 
 arbitration, or hearing, the costs must be allocated on an 
 equitable basis by the mediator, arbitrator, or chief 
 administrative law judge.  The chief administrative law judge 
 may contract with the parties to a matter directed or delegated 
 to the office of administrative hearings under subdivisions 1 
 and 2 for the purpose of providing administrative law judges and 
 reporters for an administrative proceeding or alternative 
 dispute resolution.  The chief administrative law judge shall 
 assess the cost of services rendered as provided by section 
 14.53. 

    Subd. 4.    Parties.  In this section, "party" means: 

    (1) a property owner, group of property owners, 
 municipality, or township that files an initiating document or 
 timely objection under this chapter; 

    (2) the municipality or township within which the subject 
 area is located; 

    (3) a municipality abutting the subject area; and 

    (4) any other person, group of persons, or governmental 
 agency residing in, owning property in, or exercising 
 jurisdiction over the subject area that files with the director 
 a notice of appearance within 14 days of publication of the 
 notice required by section 414.09. 

    HIST: 1999 c 243 art 16 s 25; 2000 c 446 s 1