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Minnesota Legislature

Office of the Revisor of Statutes

    Subdivision 1. Power. An economic development authority may sell and convey property
owned by it within the city or an economic development district if it determines that the sale and
conveyance are in the best interests of the city or district and its people, and that the transaction
furthers its general plan of economic development. This section is not limited by other law on
powers of economic development authorities.
    Subd. 2. Notice; hearing. An authority shall hold a hearing on the sale. At the hearing a
taxpayer may testify for or against the sale. At least ten, but not more than 20, days before the
hearing the authority shall publish notice of the hearing on the proposed sale in a newspaper. The
newspaper must be published and have general circulation in the authority's county and city. The
notice must describe the property to be sold and state the time and place of the hearing. The notice
must also state that the public may see the terms and conditions of the sale at the authority's office
and that at the hearing the authority will meet to decide if the sale is advisable.
    Subd. 3. Decision; appeal. The authority shall make its findings and decision on whether the
sale is advisable and enter its decision on its records within 30 days of the hearing. A taxpayer
may appeal the decision by filing a notice of appeal with the district court in the city or economic
development district's county and serving the notice on the secretary of the authority, within 20
days after the decision is entered. The only ground for appeal is that the action of the authority
was arbitrary, capricious, or contrary to law.
    Subd. 4. Terms. The terms and conditions of sale of the property must include the use that
the bidder will be allowed to make of it. The authority may require the purchaser to file security
to assure that the property will be given that use. In deciding the sale terms and conditions
the authority may consider the nature of the proposed use and the relation of the use to the
improvement of the authority's city and the business and the facilities of the authority in general.
The sale must be made on the authority's terms and conditions. The authority may publish an
advertisement for bids on the property at the same time and in the same manner as the notice of
hearing required in this section. The authority may award the sale to the bid considered by it to be
most favorable considering the price and the specified intended use. The authority may also sell
the property at private sale at a negotiated price if after its hearing the authority considers that sale
to be in the public interest and to further the aims and purposes of sections 469.090 to 469.108.
    Subd. 5. One-year deadline. Within one year from the date of purchase, the purchaser shall
devote the property to its intended use or begin work on the improvements to the property to
devote it to that use. If the purchaser fails to do so, the authority may cancel the sale and title to
the property shall return to it. The authority may extend the time to comply with a condition if
the purchaser has good cause. The terms of sale may contain other provisions that the authority
considers necessary and proper to protect the public interest. A purchaser must not transfer title to
the property within one year of purchase without the consent of the authority.
    Subd. 6. Covenant running with the land. A sale made under this section must incorporate
in the deed as a covenant running with the land the conditions of sections 469.090 to 469.108
relating to the use of the land. If the covenant is violated the authority may declare a breach
of the covenant and seek a judicial decree from the district court declaring a forfeiture and
a cancellation of the deed.
    Subd. 7. Plans; specifications. A conveyance must not be made until the purchaser gives
the authority plans and specifications to develop the property sold. The authority must approve
the plans and specifications in writing. The authority may require preparation of final plans and
specifications before the hearing on the sale.
History: 1987 c 291 s 106