2007 Minnesota Statutes

CHAPTER 465. RIGHTS, POWERS AND DUTIES; MUNICIPALITIES

465.01 POWER OF EMINENT DOMAIN.
All cities may exercise the power of eminent domain for the purpose of acquiring private
property within or without the corporate limits thereof for any purpose for which it is authorized
by law to take or hold the same by purchase or gift and may exercise the power of eminent domain
for the purpose of acquiring a right-of-way for sewerage or drainage purposes and an outlet for
sewerage or drainage within or without the corporate limits thereof. The procedure in the event of
condemnation shall be that prescribed by chapter 117, or that prescribed by the charter of such city.
History: (1829) RL s 766; 1917 c 424 s 1; 1973 c 123 art 5 s 7; 2006 c 214 s 20

465.013 PROPERTY OR EASEMENTS NOT ACQUIRED BY PRESCRIPTION.
No city of the first class or any board or department thereof shall hereafter obtain or acquire
title to real property or any right or easement therein by prescription or adverse possession. This
section shall not be construed to prevent the adjudication hereafter of title in such city in cases
where lapse of time and adverse possession have already ripened into title but no adjudication
thereof has yet been had.
History: 1943 c 582 s 1,2

465.02 LANDS DEEDED TO STATE; MODIFICATION OF CONDITIONS.
Any city in this state, that has heretofore deeded, or may hereafter deed, to the state of
Minnesota any lands to be used by the state for a public purpose in such deed stated, conditioned,
among other things, that such lands shall be so used by the state for a period of time, which time
exceeds 20 years, and in case such use is not made thereof for the stated time, then such land
shall revert to such city, may at any time after 15 years from the date of the deed by a majority
vote of the city council at any regular meeting thereof, or at a properly called special meeting of
such council, pass a resolution or enact an ordinance modifying the terms and conditions above
specified and permit the noncompliance by the state with such terms and conditions as originally
made, either wholly or in part, and such resolution so adopted shall operate as a release of the
state from such terms and conditions to the extent provided in such resolution and the action by
the state in conformity with such resolution shall not in any way cause a reversion to such city of
the lands or any part thereof or interest therein.
History: (1930) 1911 c 182 s 1; 1973 c 123 art 5 s 7

465.025 GIFTS OF LAND TO STATE.
Any municipal corporation in the state of Minnesota, owning lands in fee simple and not
restricted by the grant, which are no longer necessary for municipal purposes, may convey said
lands to the state of Minnesota without consideration when duly authorized by the governing
body of said municipal corporation and the governor is authorized to accept such conveyances
in behalf of the state.
History: 1947 c 8 s 1

465.026 [Repealed, 1987 c 291 s 244]

465.03 GIFTS TO MUNICIPALITIES.
Any city, county, school district or town may accept a grant or devise of real or personal
property and maintain such property for the benefit of its citizens in accordance with the terms
prescribed by the donor. Nothing herein shall authorize such acceptance or use for religious or
sectarian purposes. Every such acceptance shall be by resolution of the governing body adopted
by a two-thirds majority of its members, expressing such terms in full.
History: (1830) RL s 767; 1913 c 319 s 1; 1949 c 294 s 1; 1973 c 123 art 5 s 7

465.035 PUBLIC CORPORATION, CONVEYANCE OR LEASE OF LAND.
Any county, town, city or other public corporation may lease or convey its lands for a
nominal consideration, without consideration or for such consideration as may be agreed upon to
the state or to any governmental subdivision, to the United States or to any agency of the federal
government, another public corporation or to the Minnesota State Armory Building commission
for public use when authorized by its governing body.
History: 1947 c 34 s 1; 1951 c 73 s 1; 1955 c 142 s 1; 1957 c 152 s 1; 1973 c 123 art 5 s 7

465.036 GIFTS, HOSPITALS.
Counties or cities, however organized, may accept gifts to aid in building, acquiring,
equipping or maintaining public hospitals whether such hospital is maintained by a county or a
city, or by any combination thereof.
History: 1949 c 152 s 1; 1973 c 123 art 5 s 7

465.037 GIFTS TO HOSPITALS.
A home rule charter or statutory city or town may make grants for the use of a private,
nonprofit, or public hospital that serves the city or town when authorized by the council in the
case of a city and the town board in the case of a town upon the affirmative vote of the town
electors at the annual or a special town meeting.
History: 1989 c 92 s 2

465.039 GIFTS TO ORGANIZATIONS DISTRIBUTING FOOD.
The governing body of a county, or of a home rule charter or statutory city, may appropriate
each year out of its general fund, or other unrestricted money, an amount to be determined by the
governing body to provide grants to nonprofit organizations operating community food shelves
that provide food to the needy without charge.
History: 1995 c 109 s 1; 1998 c 368 s 1

465.04 ACCEPTANCE OF GIFTS.
Cities of the second, third, or fourth class, having at any time a market value of not more
than $41,000,000, exclusive of money and credits, as officially equalized by the commissioner of
revenue, either under home rule charter or under the laws of this state, in addition to all other
powers possessed by them, hereby are authorized and empowered to receive and accept gifts
and donations for the use and benefit of such cities and the inhabitants thereof upon terms and
conditions to be approved by the governing bodies of such cities; and such cities are authorized to
comply with and perform such terms and conditions, which may include payment to the donor
or donors of interest on the value of the gift at not exceeding five percent per annum payable
annually or semiannually, during the remainder of the natural life or lives of such donor or donors.
History: (1663) 1923 c 395 s 1; 1973 c 582 s 3; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s
20; 1990 c 480 art 9 s 19

465.05 TAX LEVY TO PAY INTEREST.
When any such city shall so accept such gift or donation the governing body thereof shall
have the right to enter such a written contract for the payment of such interest so determined upon,
it shall be the duty of the city council annually, at the time other taxes are levied, to levy a tax
sufficient to pay such obligation so incurred.
History: (1664) 1923 c 395 s 2

465.06 [Repealed, 1976 c 44 s 70]

465.07 [Repealed, 1976 c 44 s 70]

465.08 [Repealed, 1976 c 44 s 70]

465.09 [Repealed, 1963 c 798 s 16]

465.091 [Repealed, 1963 c 798 s 16]

465.10 [Repealed, 1963 c 798 s 16]

465.11 [Repealed, 1963 c 798 s 16]

465.12 [Repealed, 1963 c 798 s 16]

465.121 [Repealed, 1963 c 798 s 16]

465.13 JUDGMENT AGAINST MUNICIPALITY; PAYMENT.
No execution shall issue on a judgment for the recovery of money against a city, except as
hereinafter provided. Upon delivery of a certified copy of the judgment, the treasurer of such
municipality shall pay it out of any moneys in or coming in not otherwise appropriated, unless
collection thereof be stayed on appeal, always retaining a sufficient sum to pay necessary current
expenses; and, if the treasurer fails so to do, the treasurer and bonding agents shall be liable for
the amount. In case there be no such treasurer, then, upon delivery of such certified copy and an
affidavit of the judgment creditor, the judgment creditor's agent or attorney, showing the amount
due, and that the judgment has not been stayed on appeal, the county treasurer shall pay such
judgment out of the funds of the municipality in or coming in, taking receipt therefor.
History: (1834) RL s 769; 1973 c 123 art 5 s 7; 1986 c 444

465.14 TAX LEVY; EXECUTION.
When a judgment against a city is unpaid at the time of the annual tax levy, unless the
proper officers thereof have otherwise provided sufficient funds to pay the same before the time
for collection of such tax levy, they shall levy a tax to pay such judgment and certify the same
and the purpose thereof to the county auditor. If the judgment be not paid within 20 days after
the time fixed by law for the county treasurer to pay over to the treasurer of the municipality the
moneys on hand belonging to it on account of such annual tax levy, execution may issue on such
judgment, but only the property of such municipality shall be liable thereon. If there be no officers
of the municipality to levy such tax, the judgment creditor may apply to the county auditor, who,
upon being satisfied that the judgment has not been paid or stayed, shall levy and extend the tax.
History: (1836) RL s 770; 1973 c 123 art 5 s 7; 1986 c 444

465.15 CITIES MAY ACQUIRE EXEMPT PROPERTY.
Each city of the first class now or hereafter having a population of 50,000 inhabitants or
more, including each such city operating under a charter adopted pursuant to the provisions of
the Constitution of the state of Minnesota, article IV, section 36, article XI, section 4, or article
XII, section 5, is hereby authorized and empowered to acquire by purchase, condemnation, or
otherwise any right or interest in land either platted or unplatted within the limits of the city,
which interest in land consists of a right or privilege in the owner of the land to offset certain
amounts against special assessments levied by the governing body, the city council, or the board
of park commissioners of such city for park or parkway purposes, or both.
History: (1541-1) 1931 c 385 s 1; 1997 c 7 art 4 s 6

465.16 POWER OF EMINENT DOMAIN.
In the event that the chief governing body, city council or board of park commissioners of
such city shall exercise such right by condemnation such body may do so under any laws provided
for the condemnation of real property or eminent domain or under any provision of the charter of
such city granting to such body the right of condemnation or power of eminent domain; or, it
being for the best interests of such city, such chief governing board, city council, or board of park
commissioners shall have the power and authority to acquire the rights by purchase, taking into
consideration the present worth of such right to exemption and the probability or improbability
that such exemptions would ever be used as an offset to future assessments for benefits.
History: (1541-2) 1931 c 385 s 2; 2006 c 214 s 20

465.17 MAY ISSUE BONDS.
In order to carry out the purpose of sections 465.15 to 465.17 each such city is hereby
authorized to issue bonds or certificates of indebtedness to secure funds for the amount necessary
to acquire the right and the city council or other chief governing body shall levy annually a tax
on all the taxable property of the city sufficient to meet the interest and the principal about to
mature on the bond.
History: (1541-3) 1931 c 385 s 3

465.18 [Repealed, 1990 c 391 art 10 s 4]

465.19 CITY TO OWN OLD CHANNEL IF IT PAYS FOR UNITED STATES CHANNEL
CHANGE.
When any portion of the channel of any river navigable for commercial purposes within
the limits of any city in this state is changed by or under the authority of the United States
government or any other authority for the improvement of navigation and the cost of such change
or any portion thereof is borne by the city within which change is made the old bed of the river
or portion thereof abandoned by reason of any such change, shall belong to and become the
property in fee simple of the city in which the same is situate without further act or ceremony. The
recording, in the office of the county recorder of the county in which such city is located, of a
copy of this section together with the filing of a plat or map certified by the secretary of defense
of the United States or the United States government engineer in charge of the changes of the
channel hereinbefore referred to, showing the respective locations of the water line of the old or
original bed of the river and such changed location, shall constitute sufficient evidence of title of
such city to the old river bed and lands hereinbefore referred to. Upon the request of any such
city the governor and the commissioner of finance shall also execute and deliver to such city a
deed of conveyance transferring all of the right, title, and interest of the state of Minnesota in
and to such old river bed and lands within the limits of such city, and the lands so reclaimed or
acquired may be held, used, or disposed of by such city as the common council shall determine to
be for the best interests of such city.
History: (1350) 1911 c 291 s 2; 1973 c 492 s 14; 1976 c 2 s 135; 1976 c 181 s 2; 2005
c 4 s 114

465.20 APPLICATION.
Sections 465.19 and 465.20 shall apply to all cities including those now or hereafter
governed by a charter adopted pursuant to the Constitution of the state of Minnesota, article IV,
section 36, article XI, section 4, or article XII, section 5.
History: (1351) 1911 c 291 s 3; 1990 c 391 art 8 s 48; 1997 c 7 art 4 s 7

465.21 [Repealed, 1965 c 670 s 14]

465.22 [Repealed, 1965 c 670 s 14]

465.23 [Repealed, 1965 c 670 s 14]

465.24 [Repealed, 1965 c 670 s 14]

465.25 [Repealed, 1965 c 670 s 14]

465.26 DIVERSION OF UNNAVIGABLE STREAMS; RAISING WATERS OF LAKES.
Any first class city may, if in the judgment of its city council, the public health or welfare of
its citizens will be promoted thereby, divert any unnavigable stream, flowing wholly or partly
within the corporate limits, from its natural bed to an artificial channel or to another watercourse.
The diversion may take place at any feasible or desirable point within or without the corporate
limits, and the new channel may be created within or without or partly within and partly without
the corporate limits. For the purpose of controlling and regulating the flow of such stream in its
new channel, the city may, by the erecting of dams or other suitable means, raise the waters of
any lake or lakes from which the stream may flow, or through which the new channel may flow,
and control and regulate the discharge from such lake or lakes, and straighten, enlarge, and
make such changes and improvements in the channels as may be necessary for such purposes.
Such new channels may, where necessary, cross any highway or railway; in which case suitable
bridges shall be provided.
History: (1509) 1905 c 18 s 1; 1976 c 44 s 65

465.27 ORDINANCE; SURVEY AND MAP.
The city council shall by ordinance first adopt and file with the city clerk a survey and map
showing the point at which it is proposed to divert the stream, the route of the new channel, the
sites of dams and other controlling works, the lands proposed to be taken for right-of-way and for
flowage purposes, the levels to which it is proposed to raise and between which it is proposed to
maintain the waters of any lake, a profile of the route and of the water surface, the cross-section
of the proposed new channel, the enlargement, if any, of any existing channel, the bridges,
tunnels, culverts to be built, and in general, the entire extent and scope of the improvement
as nearly as may be.
History: (1510) 1905 c 18 s 2

465.28 LANDS; HOW ACQUIRED.
The city council may acquire in the name of the city by grant, dedication, purchase, or devise
the lands and the rights necessary to carry out such improvements.
History: (1511) 1905 c 18 s 3

465.29 CONDEMNATION; SPECIAL ASSESSMENTS.
The power of eminent domain and the power to levy special assessments for benefits are
hereby delegated to such cities for the purposes of sections 465.26 to 465.48, to acquire the lands
and rights needed or any of them, to be exercised as follows.
History: (1512) 1905 c 18 s 4

465.30 ORDINANCE; APPRAISERS.
The city council shall by ordinance determine and declare as nearly as may be the cost of
such improvements, exclusive of damages to property, and appoint five appraisers, who shall be
disinterested freeholders and qualified voters of the county, and none of whom shall be residents
of the town or ward or wards of the city in which the property so designated is situated, to view
the premises and appraise the damages which may be occasioned by the taking of private property
or otherwise in making such improvement, and to assess special benefits resulting therefrom.
These appraisers shall be notified as soon as practicable by the city clerk to attend, at a time
fixed by the clerk, for the purpose of qualifying and entering upon their duties. When a vacancy
may occur among these appraisers by neglect or refusal of any of them to act or otherwise,
such vacancy shall be filled by the city council.
History: (1513) 1905 c 18 s 5; 1986 c 444

465.31 OATH.
The appraisers shall be sworn to discharge their duty as appraisers in the matter with
impartiality and fidelity; and to make due return of their acts to the city council.
History: (1514) 1905 c 18 s 6

465.32 NOTICE OF MEETING.
The appraisers shall give notice of their meeting in a manner appropriate to inform the
public, which notice shall name the stream to be diverted, the point of diversion, the general
course of the new channel and the height to which it is proposed to raise or maintain any lake, the
location of proposed bridges, culverts, or tunnels, the estimated cost of construction, and contain a
description of the lands designated by the city council to be taken for right-of-way and for flowage
purposes, and give notice that a plan of the improvement has been filed in the office of the city
clerk, and that the appraisers will meet at a place and time designated in the notice, and thence
proceed to view the premises and appraise the damages for property to be taken, or which may be
damaged by the diversion of water or otherwise by such improvement, and to assess benefits in the
manner hereinafter specified. If any portion of such stream or of the lands to be taken is outside of
the county containing such city, then the notice shall also be given in the outside county.
History: (1515) 1905 c 18 s 7; 1984 c 543 s 61

465.33 MAILING NOTICES.
A copy of all subsequent notices relating to the proceeding which are required to be
published, shall be mailed by the city clerk immediately after the first publication thereof to such
persons as shall have appeared in the proceedings and requested in writing that such notices be
mailed to them.
History: (1516) 1905 c 18 s 8

465.34 MEETING OF APPRAISERS; DAMAGES AND BENEFITS.
At the time and place mentioned in the notice, the appraisers shall meet and thence proceed
to view the premises, and hear any evidence or proof offered by the parties interested and may
adjourn from time to time for the purpose aforesaid. When their view and hearing shall be
concluded they shall determine the amount of damages, if any, suffered by each piece or parcel of
land affected by the improvement. They shall determine the amount of special benefits, if any,
occurring by reason of diversion of water, drainage, or otherwise, to each piece or parcel of land
wherever situate and whether contiguous to the improvement or not. If the damages exceed the
benefits to any particular piece, the excess shall be awarded as damages. If the benefits exceed
the damages to any particular piece, the difference shall be assessed as benefits, but the total
assessment for benefits shall not be greater than the aggregate net award of damages added to the
estimated cost of construction; and in every case the benefits assessed upon the several parcels
shall be in proportion to the actual benefits received, and no assessment upon any particular piece
shall exceed the amount of actual special benefits after deducting the damages, if any.
History: (1517) 1905 c 18 s 9

465.35 BUILDINGS.
If there be any buildings standing, in whole or in part, upon any parcel of the land to be
taken, the appraisers shall, in such case, determine the amount of damages which should be paid
to the owners thereof, in case such building, or so much as may be necessary, should be taken,
and shall appraise and determine the amount of damages to be paid such owners in case they
shall elect to remove such buildings.
History: (1518) 1905 c 18 s 10

465.36 DIFFERENT OWNERS OR INTERESTS.
If the land and buildings belong to different persons or if the land be subject to lease,
mortgage, or judgment, or if there be any estate less than an estate in fee, the injury or damage
done to such person, or interests, respectively, may be awarded to them separately by the
appraisers. Neither such award of the appraisers, nor the confirmation thereof by the city council,
shall be deemed to require the payment of such damages to the person or persons named in such
award, in case it shall transpire that such persons are not entitled to receive the same.
History: (1519) 1905 c 18 s 11

465.37 REPORT.
The appraisers having ascertained and appraised the damages and assessed the benefits, as
aforesaid, shall make and file with the city clerk a written report of their action in the premises,
embracing a schedule and appraisement of the damages awarded and benefits assessed, with
descriptions of the lands, and the names of the owners, if known to them, and a statement of
the costs of the proceeding.
History: (1520) 1905 c 18 s 12

465.38 NOTICE OF APPRAISEMENT; CONFIRMATION OR ANNULMENT.
Upon such report being filed, the city clerk shall give notice that such appraisement has been
returned and that the same will be considered by the city council at a meeting thereof to be named
in the notice, which notice shall contain the schedule of damages awarded and benefits assessed
and be given in a manner appropriate to inform the public. Any person interested in any building
standing in whole or in part upon any land required to be taken by such improvement shall, on
or before the time specified for the meeting in such notice, notify the city council in writing of
the person's election to remove such building, if the person so elect. The city council, upon
the day fixed for the consideration of such report, or at any subsequent meeting to which the
same may stand over or be referred, shall have power in their discretion to confirm, revise, or
annul the appraisement and assessment, giving due consideration to any objections interposed
by parties interested in the manner hereinafter specified; provided that the city council shall not
have the power to reduce the amount of any award nor increase any assessment. In case the
appraisement and assessment is annulled, the city council may thereupon appoint new appraisers,
who shall proceed in like manner as in case of the first appraisement, and upon the coming in
of their report, the city council shall proceed in a like manner and with the same powers as in
the case of the first appraisement.
History: (1521) 1905 c 18 s 13; 1984 c 543 s 62; 1986 c 444

465.39 AWARD; APPEAL.
If not annulled or set aside, such award shall be final and a charge upon the city, for the
payment of which the credit of the city shall be pledged. Such assessments shall be and remain a
lien and charge upon the respective lands until paid. The award shall be paid to the persons
entitled thereto or deposited and set apart in the treasury of the city for the use of the persons
entitled thereto within six months after the confirmation of the appraisement and award. In
case any appeal shall be taken from the order confirming the appraisement and assessment, as
hereinafter provided, the time for payment of the awards shall be extended until and including
60 days after the final determination of all appeals taken in the proceedings, and in case of any
change in the awards or assessment upon appeal, the city council may, by resolution duly adopted,
at any time within 60 days after the determination of all appeals, set aside the entire proceeding.
Any awards so set aside shall not be paid, and the proceedings as to the tracts for which the
awards are so set aside shall be deemed abandoned. Any awards not so set aside shall be a charge
upon the city, for the payment of which the credit of the city shall be pledged. All awards shall
bear interest at the rate of six percent per annum from the time of the filing of the original
appraisers' report, and all subsequent awards and awards upon appeals shall be made as of the
day and date of filing of such original reports.
History: (1522) 1905 c 18 s 14

465.40 VESTURE OF TITLE.
Upon the conclusion of the proceedings and the payment of the awards, the several tracts of
land shall be deemed to be taken and appropriated for the purposes of sections 465.26 to 465.48,
and the title thereto shall vest in the city. In case the city council shall in any case be unable to
determine to whom the damages should in any particular case be paid, or in case of adverse claim
in relation thereto, or in case of the legal disability of any person interested, the city council shall,
and in any and every case the city council may in its discretion deposit the amount of damages
with the district court of the county in which such city is situate, for the use of the parties entitled
thereto, and the court shall, upon the application of any person interested, and upon such notice as
the court shall prescribe, determine who is entitled to the award, and shall order the same paid
accordingly. Any such deposit shall have the same effect as the payment to the proper persons.
History: (1523) 1905 c 18 s 15

465.41 REMOVAL OF BUILDINGS.
In case any owner of buildings, as aforesaid, shall have elected to remove the buildings they
shall be removed within 30 days from the confirmation of the report or within such further time as
the city council may allow for the purpose and shall be entitled to the payment of the amount
of damages awarded in such case in case of removal. When such person shall not have elected
to remove such buildings, or shall have neglected (after having elected) to remove the same
within the time above specified, such buildings, or so much thereof as may be necessary, upon
paying or depositing the damages awarded for such taking in manner aforesaid, may be taken and
appropriated, sold, or disposed of as the city council shall elect.
History: (1524) 1905 c 18 s 16; 1986 c 444

465.42 APPEAL; OBJECTIONS; NOTICE; RECORD.
Any person whose property is proposed to be taken or interfered with or assessed under any
provisions of sections 465.26 to 465.48, or who claims to be damaged by the improvement, and
who deems that there is any irregularity in the proceedings of the city council, or action of the
appraisers, by reason of which the award of the appraisers ought not to be confirmed, or who
is dissatisfied with the amount of damages awarded for the taking of, or interference with the
person's property, or the assessment thereon, may, at any time before the time specified for the
consideration of the award and assessment by the city council, file with the city clerk in writing
objections to such confirmation, setting forth therein specifically the particular irregularities
complained of, and the particular objection to the award or assessment, and containing a
description of the property, affected by such proceedings and the person's interest therein, and if,
notwithstanding such objections, the city council shall confirm the award or assessment, such
persons so objecting shall have the right to appeal from such order of confirmation of the city
council to the district court of the county in which the city is situate within 20 days after such
order. Such appeal shall be made by serving a written notice of appeal upon the city clerk, which
shall specify the property of the appellant affected by such award or improvement, and refer to
the objection filed, as aforesaid, thereupon the city clerk, at the expense of the appellant, shall
make out and transmit to the court administrator of the district court a copy of the record of the
entire proceedings and of the award of the appraisers as confirmed by the city council, and of
the order of the city council confirming the same, and of the objections filed by the appellant, as
aforesaid, and of the notice of appeal, all certified by the city clerk to be true copies, within ten
days after the taking of such appeal. If more than one appeal be taken in the same proceeding, it
shall not be necessary that the city clerk in appeals subsequent to the first shall send up anything
but a certified copy of the appellant's objections. There shall be no pleading on any appeal, but
the court shall determine in the first instance whether there was in the proceedings any such
irregularity or omission of duty prejudicial to the appellant and specified in the written objection
that as to that appellant the award or assessment of the appraisers ought not to stand, and whether
the appraisers had jurisdiction to take action in the premises.
History: (1525) 1905 c 18 s 17; 1986 c 444; 1Sp1986 c 3 art 1 s 82

465.43 HEARING; APPRAISERS; AWARD; APPEAL.
The case may be brought on for hearing on eight days' notice, at any general or special term
of the court, and the judgment of the court shall be to confirm or annul the proceedings, only so
far as the proceedings affect the property of the appellant proposed to be taken or damaged
or assessed, and described in the written objection. In case the amount of damages or benefits
assessed is complained of by the appellant, the court shall, if the proceedings be confirmed in
other respects, appoint three disinterested freeholders, residents of the county, appraisers, to
reappraise the damages, and reassess benefits as to the property of appellant. The parties to the
appeal shall be heard by the court upon the appointment of the appraisers. The court shall fix the
time and place of meeting of the appraisers. They shall be sworn to the faithful discharge of their
duties as appraisers, and shall proceed to view the premises and to hear the parties interested,
with their allegations and proofs pertinent to the question of the amount of damages or benefits,
and proceed in all other material respects as are provided in sections 465.26 to 465.48 for the
government of appraisers appointed by the city council. They shall, after the hearing and view of
the premises, report to the court their award of damages and assessments of benefits in respect to
the property of the appellant. The appellant shall, within five days of notice of filing the award,
file a written election to remove the buildings if the appellant so elect. The election shall not affect
the appellant's right to a review. The award shall be final unless set aside by the court. The motion
to set aside shall be made within 15 days. If the report is set aside, the court may, in its discretion,
recommit it to the same appraisers, or appoint new appraisers, as it deems best. The court shall
allow to the appraisers a reasonable compensation for their services, and make such awards of
costs on the appeal, including the compensation of appraisers, as it deems just in the premises,
and enforce them by execution. If the court is of the opinion that the appeal was frivolous or
vexatious, it may adjudge double costs against the appellant. An appeal may be taken to the court
of appeals from any final order of the district court in the proceedings.
History: (1526) 1905 c 18 s 18; 1983 c 247 s 159; 1986 c 444

465.44 TIME OF PAYMENT.
In case of any appeal the time for making payment of awards shall be extended as to all tracts
embraced in the proceeding to 60 days after final determination of all appeals.
History: (1527) 1905 c 18 s 19

465.45 NOTICE OF PENDENCY; PERSONS AFFECTED.
The notice prescribed in section 465.32 shall be sufficient to charge all persons whose rights
or interests may be affected by the diversion of such waters, but whose lands are not otherwise
taken, with notice of the pendency of the proceeding, and all such persons may present to the
appraisers evidence of the damages which they will suffer, and the appraisers shall determine and
award such damages as they may find, particularly specifying in their award the location and the
nature of such damages, and all persons failing to present their claims for damages arising from
the diversion of waters, shall be concluded by the proceeding hereunder, whether any award of
damages is made to them or not, and shall be barred from claiming damages afterwards in any
other form of action or proceeding.
History: (1528) 1905 c 18 s 20

465.46 AWARD, ASSESSMENT CERTIFIED; ASSESSMENT PROCESS.
Upon the final determination of all appeals in such proceeding, the city clerk shall transmit to
the auditor of the county or counties in which the respective lands lie a copy duly certified by the
clerk of the awards and assessment of the appraisers as confirmed by the city council; and the
court administrator of the district court shall, in like manner, certify the award and assessment as
finally made upon all appeals; and the county auditors shall include such assessments of benefits
against each tract of land assessed, with and as a part of the taxes upon such respective tracts of
land in the next annual list of taxes for general, state, county and other purposes, and the same
proceedings shall be had for the collection and enforcement thereof, as for such general taxes,
including like penalties in case of nonpayment, and including also proceedings for the collection
and enforcement of delinquent taxes. When any of such assessments are collected, they shall be
credited to the city conducting such proceedings, and paid over and accounted for in like manner
as other taxes.
History: (1529) 1905 c 18 s 21; 1986 c 444; 1Sp1986 c 3 art 1 s 82

465.47 DUTY OF CITY.
It shall be the duty of such city to proceed with all reasonable dispatch to complete such
improvements, unless the proceedings are set aside by the city council as provided in sections
465.26 to 465.46.
History: (1530) 1905 c 18 s 22

465.48 POWERS AND DUTIES OF COUNCIL; PENALTIES.
The city council shall have power and it shall be its duty after the construction of such
works to maintain the same and to prevent injury or obstruction to the channel or works and
contamination of the waters. For such purposes the city council may enact suitable ordinances
and prescribe penalties for their violation, not exceeding a fine of $100 for each offense or
confinement in the city workhouse not exceeding 90 days. The district court having chambers in
the county in which the city is located shall have jurisdiction of the offenses.
History: (1531) 1905 c 18 s 23; 1998 c 254 art 2 s 48

465.49 MAY SELL LAKE WATER, ICE; SPEND, GET GIFTS TO KEEP UP LAKE.
All cities of the fourth class and the city councils of the same, in addition to all powers
now possessed by such cities, shall have the power to dredge lakes wholly or partly within the
corporate limits of such cities, to park the shores thereof, maintain a water level in such lakes,
and expend money therefor.
Such cities are given the right to accept donations from any person, firm, or corporation to
aid in defraying such expenses and such cities and the city councils thereof shall have the power
to make contracts with any person, firm, or corporation for the taking of water and ice from such
lake upon such terms and conditions as may be agreed upon between such city council and the
person, firm, or corporation acquiring the right to the use of the water and ice.
History: (1746) 1913 c 331 s 1

465.50 OBSERVANCE OF MEMORIAL DAY.
The council of each and every city in the state, in addition to all other powers now possessed
by it, is hereby empowered and authorized to set apart, appropriate, and expend, or cause to be
expended, in such manner as it may deem best, from any funds in the city treasury available
therefor, an amount not to exceed the sum of $300 annually for each 75,000 of population of
such city for the purpose of aiding in the appropriate observance of Memorial Day on the last
Monday in May of each year and in the annual commemoration of the noble and valiant deeds
of the nation's soldier dead.
History: (1318) 1909 c 365 s 1; 1923 c 375; 1971 c 25 s 81

465.51 [Repealed, 1976 c 44 s 70]

465.52 [Repealed, 1976 c 44 s 70]

465.53 [Repealed, 1987 c 291 s 244]

465.54 MAY PAY EXPENSES FROM GENERAL FUND OF STATUTORY CITY.
The council of any statutory city may pay from the general fund of the municipality, for the
purposes of section 469.186, expenses incurred by the governing officers in the performance
of their official duties. Trips for lobbying purposes or trips to meetings or conventions not in
connection with specific municipal projects pending before the officer making the trip are not
authorized for payment under this section.
History: (1192-4, 1192-5) 1933 c 60 s 4,5; 1973 c 123 art 5 s 7; 1977 c 50 s 2; 1987 c 291 s
223; 1994 c 505 art 4 s 4

465.55 [Repealed, 1987 c 291 s 244]

465.56 [Repealed, 1987 c 291 s 244]

465.57 [Repealed, 1976 c 44 s 70]

465.58 MEMBERS OF THE LEAGUE OF CITIES.
    Subdivision 1. Dues, annual meeting expense. Any city of this state, whether organized
under the general laws or a special or home rule charter, or any town having the powers of a
statutory city under section 368.01, may appropriate through its council or town board, out of
its general fund, money to pay the annual dues in the League of Minnesota Cities and the actual
and necessary expenses of such delegates as such council or town board may designate to attend
meetings of the league.
    Subd. 2.[Repealed, 1957 c 935 s 27]
History: (1933-4) 1923 c 211 s 1; 1951 c 259 s 1; 1961 c 49 s 1; 1973 c 123 art 5 s 7;
1977 c 347 s 54

465.59 [Repealed, 1976 c 44 s 76]

465.60 [Renumbered 413.135]

465.61 [Repealed, 1976 c 44 s 70]

465.62 [Repealed, 1963 c 798 s 16]

465.63 [Repealed, 1976 c 44 s 70]

465.64 [Repealed, 1976 c 44 s 70]

465.65 [Repealed, 1976 c 44 s 70]

465.66 [Repealed, 1976 c 44 s 70]

465.67 [Repealed, 1976 c 44 s 70]

465.68 [Repealed, 1976 c 44 s 70]

465.681 [Repealed, 1996 c 310 s 1]

465.69 TRAINING OF SCHOOL SAFETY PATROL MEMBERS.
Any statutory city of this state may provide for the training of members of the school
safety patrol at any authorized school patrol camp located in this state and may pay the expense
necessarily incurred in providing such training, out of any funds available for said purpose.
History: 1955 c 316 s 1; 1973 c 123 art 4 s 11

465.70 TELEVISION SIGNAL DISTRIBUTION SYSTEMS, CERTAIN CITIES.
Any statutory city or any home rule charter city of the third or fourth class more than 50
miles from the boundaries of a city of the first class, or any two or more of such cities acting under
an agreement accepted by the governing body of each such participating municipality, may own,
construct, acquire, purchase, maintain and operate within its corporate limits a television signal
distribution system for the purpose of receiving, transmitting, and distributing television impulses
and television energy, including audio signals and transient visual images, to the inhabitants of
the city. This system shall be considered a public utility. The city may erect, construct, operate,
repair, and maintain in, upon, along, over, across, through and under its streets, alleys, highways
and public grounds, poles, cross-arms, cables, wires, guy-wires, stubs, anchors, towers, antennas,
pipes, connections, and other appliances, fixtures, and equipment necessary, expedient, or useful
in connection therewith. It may prescribe reasonable rates and charges for the use of these
facilities and the services furnished. It may prescribe, make and maintain rules for the operation
thereof and do all things necessary and incidental to accomplish such purpose. Subject to and in
accordance with chapter 475, the city may issue obligations in a maximum amount of $100,000
for acquisition and betterment of the system.
History: 1957 c 100 s 1; 1959 c 257 s 1; 1973 c 123 art 5 s 7; 1976 c 44 s 66

465.71 INSTALLMENT, LEASE PURCHASE; CITY, COUNTY, TOWN, SCHOOL.
A home rule charter city, statutory city, county, town, or school district may purchase
personal property under an installment contract, or lease real or personal property with an option to
purchase under a lease-purchase agreement, by which contract or agreement title is retained by the
seller or vendor or assigned to a third party as security for the purchase price, including interest, if
any, but such purchases are subject to statutory and charter provisions applicable to the purchase
of real or personal property. For purposes of the bid requirements contained in section 471.345,
"the amount of the contract" shall include the total of all lease payments for the entire term of the
lease under a lease-purchase agreement. The obligation created by a lease-purchase agreement for
personal property or a lease-purchase agreement for real property if the amount of the contract for
purchase of the real property is less than $1,000,000 shall not be included in the calculation of
net debt for purposes of section 475.53, and shall not constitute debt under any other statutory
provision. No election shall be required in connection with the execution of a lease-purchase
agreement authorized by this section. The city, county, town, or school district must have the right
to terminate a lease-purchase agreement at the end of any fiscal year during its term.
History: 1965 c 266 s 1; 1976 c 44 s 67; 1979 c 3 s 1; 1982 c 523 art 15 s 4; 1988 c 639 s 6;
1989 c 329 art 5 s 16; 1990 c 562 art 5 s 12; 1997 c 231 art 2 s 33

465.715 [Repealed, 2000 c 455 art 1 s 4]

465.717 CREATION OF CORPORATIONS.
    Subdivision 1. Statutory authorization required. A county, home rule charter city,
statutory city, town, school district, or other political subdivision, including a joint powers entity
operating under section 471.59, may not create a corporation, whether for profit or not for profit,
unless explicitly authorized to do so by law.
    Subd. 2. Authority to incorporate a joint powers entity. A joint powers entity created
under section 471.59 may incorporate itself as a nonprofit under chapter 317A. A corporation
created under this subdivision shall comply with every law that applies to the participating
political subdivisions and shall possess no greater authority or power than that held by the joint
powers entity itself.
History: 2000 c 455 art 1 s 1

465.719 CORPORATIONS CREATED BEFORE MAY 31, 1997.
    Subdivision 1. Definitions. The following definitions apply to this section:
(a) "Political subdivision" means a county, a statutory or home rule charter city, a town, a
school district, or other political subdivision of the state. Political subdivision includes a political
subdivision acting individually or jointly as provided under section 471.59.
(b) "Corporation" means a corporation created by a political subdivision before May 31,
1997, in which (i) the corporation's articles of incorporation or bylaws provide for the governing
body of the political subdivision to serve as a corporation's governing board; (ii) the articles of
incorporation or bylaws provide for appointed officials of the political subdivision or members of
the governing body of the political subdivision or both to be automatically appointed to the board
solely by virtue of their appointment or election to office and they constitute a majority of the
corporation's board members; or (iii) the governing body of the political subdivision approves
the budget or expenditures of the corporation for purposes other than those related to oversight
of public grants or loans made to the corporation under a competitive process for which other
entities are eligible. Corporation does not include:
(1) a corporation established under chapters 453, 453A, or sections 245.62 to 245.66;
256E.30 to 256E.32;
(2) a nonprofit corporation created to raise funds for use by a political subdivision if less than
a majority of the board of directors of the corporation are members of the governing body of the
political subdivision appointed to the board of directors by virtue of their election to office; or
(3) a corporation created by a political subdivision pursuant to state statute or special law
or federal law.
    Subd. 2. Resolution required. In order to provide for the continued existence of a
corporation created by a political subdivision, the political subdivision, or its successor, that
created the corporation must adopt a resolution at a regularly scheduled meeting of the governing
body of the political subdivision. The resolution must include the information required in
subdivisions 4 to 9. A certified copy of the resolution must be filed with the secretary of state.
If a resolution is not adopted within three years of August 1, 2000, the board of directors of the
corporation shall direct and authorize an officer or designee of the corporation to file with the
secretary of state immediately a notice of intent to dissolve the corporation and then as soon as
possible, complete dissolution of the corporation as provided in the corporation's articles of
incorporation and bylaws, and the law under which the corporation was formed.
    Subd. 3. Amended articles of incorporation, bylaws. If the political subdivision adopts a
resolution under subdivision 2, the board of directors of the corporation shall direct and authorize
an officer or designee of the corporation to file amended articles of incorporation, if necessary,
as soon as practicable after adoption of the resolution to make the articles of incorporation
consistent with the resolution and to provide for the application of the laws under subdivision
9. Thereafter, the corporation may not amend its articles of incorporation unless the political
subdivision adopts a resolution in support of the change as provided in subdivision 2 for ratifying
existing corporations and a certified copy of the resolution is attached to the amended articles of
incorporation filed with the secretary of state.
    Subd. 4. Existing contracts. If on August 1, 2000, the corporation has contracts or other
obligations that are inconsistent with any requirement of this section, the resolution may provide
for the delayed application of that requirement for the time necessary to avoid a breach or
impairment of the contract or obligation.
    Subd. 5. Need for corporation. The resolution must make a detailed and specific finding
regarding the purpose of the corporation, and why the corporation is the best alternative for
accomplishing the purpose.
    Subd. 6. Authorities and powers of corporation limited. The resolution must specify what
authorities and powers the corporation possesses. The authorities and powers of the corporation
must not exceed the authorities and powers of the political subdivision that created it, except as
otherwise authorized in this section.
    Subd. 7. Board membership. If a majority of the corporation's governing board includes
elected or appointed officials of the political subdivision creating the corporation, the resolution
must make a detailed and specific finding regarding the purpose of those officials serving on the
board, and why the corporation cannot accomplish its purpose unless those officials serve on the
board. Alternatively, the resolution may provide for other board membership and the articles of
incorporation amended to be consistent with the resolution.
    Subd. 8. Allocation of assets and liabilities. If the political subdivision that created the
corporation is a joint powers board, the joint powers agreement and the resolution must specify
how the assets and liabilities of the corporation are allocated or attributed to each member of the
joint powers board, including, but not limited to, for the purposes of any applicable levy or debt
limits. If a corporation is created by more than one political subdivision, each political subdivision
that ratifies creation of the corporation must adopt a resolution required by this section and,
among other requirements, each resolution must specify and agree with the resolution of the
other political subdivisions as to how the assets and liabilities of the corporation are allocated
or attributed to each political subdivision, including, but not limited to, for the purposes of any
applicable levy or debt limits.
    Subd. 9. Application of other laws. A corporation created by a political subdivision
under this section must comply with every law that applies to the political subdivision, as if the
corporation is a part of the political subdivision, unless the resolution ratifying creation of the
corporation specifically exempts the corporation from part or all of a law. If the resolution exempts
the corporation from part or all of a law, the resolution must make a detailed and specific finding
as to why the corporation cannot fulfill its purpose if the corporation is subject to that law. A
corporation may not be exempted from chapter 13D, the Minnesota Open Meeting Law, sections
138.163 to 138.25, governing records management, or chapter 13, the Minnesota Government
Data Practices Act. Any affected or interested person may bring an action in district court to void
the resolution on the grounds that the findings are not sufficiently detailed and specific, or that the
corporation can fulfill its purpose if it is subject to the law from which the resolution exempts the
corporation. Laws that apply to a political subdivision that also apply to a corporation created by a
political subdivision under this subdivision include, but are not limited to:
(1) chapter 13D, the Minnesota Open Meeting Law;
(2) chapter 13, the Minnesota Government Data Practices Act;
(3) section 471.345, the Uniform Municipal Contracting Law;
(4) sections 43A.17, limiting the compensation of employees based on the governor's
salary; 471.991 to 471.999, providing for equitable pay; and 465.72 and 465.722, governing
severance pay;
(5) section 275.065, providing for truth-in-taxation hearings. If any tax revenues of the
political subdivision will be appropriated to the corporation, the corporation's annual operating
and capital budgets must be included in the truth-in-taxation hearing of the political subdivision
that created the corporation;
(6) if the corporation issues debt, its debt is included in the political subdivision's debt limit
if it would be included if issued by the political subdivision, and issuance of the debt is subject to
the election and other requirements of chapter 475 and section 471.69;
(7) section 471.895, prohibiting acceptance of gifts from interested parties, and sections
471.87 to 471.89, relating to interests in contracts;
(8) chapter 466, relating to municipal tort liability;
(9) chapter 118A, requiring deposit insurance or bond or pledged collateral for deposits;
(10) chapter 118A, restricting investments;
(11) section 471.346, requiring ownership of vehicles to be identified;
(12) sections 471.38 to 471.41, requiring claims to be in writing, itemized, and approved by
the governing board before payment can be made; and
(13) the corporation cannot make advances of pay, make or guarantee loans to employees, or
provide in-kind benefits unless authorized by law.
    Subd. 10. Three-year review of applicability of other laws. At least every three years after
adoption of a resolution that exempts a corporation from part or all of a law under subdivision 9,
the political subdivision must review the activities of the corporation and whether the exemption
should continue to apply to the corporation. The political subdivision must conduct the review
at a regularly scheduled meeting of its governing body. The political subdivision must adopt a
resolution to continue any exemption and a certified copy of the resolution must be filed with the
secretary of state. The political subdivision cannot exempt the corporation from a law for the first
time under the review process of this subdivision.
    Subd. 11. Taxes used for public purpose. If the political subdivision has authority under
other law to appropriate tax revenues for use by the corporation, those funds must be appropriated
and used only for public purposes.
    Subd. 12. Audit. A corporation created by a political subdivision that receives public money
from the political subdivision, other than grants or loans made under a competitive process for
which other entities are eligible, must be audited annually by either a certified public accountant
or the state auditor. Except as provided below, the audit report must be presented at a regularly
scheduled meeting of the governing body of the political subdivision that created the corporation.
The audit report must be made available to individuals after presentation of the audit report to the
governing body of the political subdivision. The data classification of an audit performed by the
Office of the State Auditor is governed by chapter 6.
    Subd. 13. State auditor powers. The state auditor has the same powers with regard to a
corporation created by a political subdivision as the state auditor has with regard to the political
subdivision that created the corporation.
    Subd. 14. Data classification. The following data created, collected, or maintained by a
corporation subject to this section are classified as private data under section 13.02, subdivision
12 , or as nonpublic data under section 13.02, subdivision 9: (1) data relating either (i) to private
businesses consisting of financial statements, credit reports, audits, business plans, income and
expense projections, customer lists, balance sheets, income tax returns, and design, market, and
feasibility studies not paid for with public funds, or (ii) to enterprises operated by the corporation
that are in competition with entities offering similar goods and services, so long as the data are not
generally known or readily ascertainable by proper means and disclosure of specific data would
cause harm to the competitive position of the enterprise or private business, provided that the
goods or services do not require a tax levy; and (2) any data identified in sections 13.201 and
13.72, subdivision 9, collected or received by a transit organization.
History: 1999 c 227 s 22; 2000 c 455 art 1 s 2; 2005 c 98 art 1 s 24

465.72 SEVERANCE PAY.
    Subdivision 1. Payment; limits. Except as may otherwise be provided in Laws 1959, chapter
690, as amended, a county, city, township, school district or other governmental subdivision
may pay severance pay to its employees and adopt rules for the payment of severance pay
to an employee who leaves employment. Severance pay does not include compensation for
accumulated sick leave or other payments in the form of periodic contributions by an employer
toward premiums for group insurance policies for a former employee. The severance pay must be
excluded from retirement deductions and from any calculations in retirement benefits. Severance
pay must be paid in a manner mutually agreeable to the employee and employer over a period
not to exceed five years from retirement or termination of employment. If a retired or terminated
employee dies before all or a portion of the severance pay has been disbursed, that balance
due must be paid to a named beneficiary or, lacking one, to the deceased's estate. Severance
pay provided for an employee leaving employment may not exceed an amount equivalent to
one year of pay.
    Subd. 2.[Repealed, 1988 c 605 s 14]
History: 1973 c 123 art 5 s 7; 1973 c 298 s 1; 1979 c 334 art 6 s 24; 1980 c 614 s 151;
1Sp1981 c 4 art 2 s 37; 1986 c 455 s 91; 1988 c 605 s 10

465.721 FUNDING.
No county, city, township, or other governmental subdivision shall implement a plan for
payment of severance pay pursuant to section 465.72 until a plan providing for full funding has
been developed and approved by the governing body. This section does not apply to school
districts.
History: 1980 c 600 s 9; 1984 c 463 art 7 s 21

465.722 SEVERANCE PAY FOR HIGHLY COMPENSATED EMPLOYEES.
    Subdivision 1. Definitions. For the purposes of this section, the terms defined in this
subdivision have the meanings given them.
(a) "Local unit of government" means a statutory or home rule charter city, county, town,
school district, metropolitan or regional agency, or other political subdivision.
(b) "Wages" has the meaning provided by section 3401(a) of the Internal Revenue Code of
1986, as amended through December 31, 1992.
(c) "Highly compensated employee" means an employee of a local unit of government
with estimated annual wages that:
(1) are greater than 60 percent of the governor's annual salary; and
(2) are equal to, or greater than, 80 percent of the estimated annual wages of the second
highest paid employee of the local unit of government.
    Subd. 2. Limits on severance pay. Notwithstanding any contrary provision of section
465.72, subdivision 1, severance pay for a highly compensated employee includes benefits or
compensation with a quantifiable monetary value, that are provided for an employee upon
termination of employment and are not part of the employee's annual wages and benefits and are
not specifically excluded by this subdivision. Severance pay shall not include payments for
accumulated vacation, accumulated sick leave, and accumulated sick leave liquidated to cover the
cost of group term insurance provided under section 471.61 to retiring employees. Severance
pay for a highly compensated employee does not include payments of periodic contributions by
an employer toward premiums for group insurance policies. The severance pay for a highly
compensated employee must be excluded from retirement deductions and from any calculations of
retirement benefits. Severance pay for a highly compensated employee must be paid in a manner
mutually agreeable to the employee and the governing body of the local unit of government over
a period not to exceed five years from retirement or termination of employment. If a retired or
terminated employee dies before all or a portion of the severance pay has been disbursed, the
balance due must be paid to a named beneficiary or, lacking one, to the deceased's estate. Except
as provided in subdivision 3, severance pay provided for a highly compensated employee leaving
employment may not exceed an amount equivalent to six months of wages.
    Subd. 3. Exceptions to maximum allowable severance pay for a highly compensated
employee. Severance pay for a highly compensated employee may exceed an amount equivalent
to six months of wages if:
(1) the severance pay benefit is included in an employment contract between the employee
and the local unit of government that is in effect on August 1, 1993, and the termination of
employment occurs before the expiration date of said contract;
(2) the severance pay is part of an early retirement incentive offer approved by the governing
body of the local unit of government and the same early retirement incentive offer is also made
available to all other employees of the local unit of government who meet generally defined
criteria relative to age or length of service;
(3) the governing body of a local unit of government adopts a resolution certifying that:
(i) the highly-compensated employee was a full-time employee of the local unit of
government for the entire period between January 1, 1983, and December 31, 1992;
(ii) the highly-compensated employee was covered by one or more employment contracts
or agreements which entitled the employee to specified severance pay benefits throughout the
entire ten-year period specified in clause (i);
(iii) the employment contract or agreement in effect on December 31, 1992, will, at the time
of the employee's separation from employment with the local unit of government, result in a
severance payment that exceeds the limits specified in subdivision 2; and
(iv) the amount of severance pay that exceeds the limits specified in subdivision 2 was based
on a commitment to provide the employee with a specified severance guarantee in lieu of a higher
level of some other form of compensation; or
(4) the commissioner of employee relations has determined a position within a specific local
unit of government requires special expertise necessitating a larger severance pay guarantee to
attract or retain a qualified person. The commissioner shall develop a process for the governing
body of a local unit of government to use when applying for an exemption under this clause. The
commissioner shall review each proposed exemption giving due consideration to severance pay
guarantees that are made to other persons with similar responsibilities in the state and nation.
Nothing in this subdivision shall be deemed to allow total severance payments for a highly
compensated employee that exceed the limits established in section 465.72.
    Subd. 4. Governing body must approve certain payments; time for rescission.
Notwithstanding section 13.43, subdivision 2, any payment to a highly compensated employee for
settling disputed claims, whether or not the claims have been filed, or any payment to a highly
compensated employee for terminating a written employment contract, must be approved by the
governing body of the local unit of government during a public meeting. The financial terms of a
payment made pursuant to this subdivision must be made public at the meeting. The effective date
of the governing body's approval of a payment made pursuant to this subdivision shall be 15 days
after the date of the public meeting. The governing body of a local unit of government approving
a payment pursuant to this subdivision, or the employee to whom the payment is to be made, may
rescind or reject the payment, prior to the effective date of the governing body's approval.
History: 1993 c 315 s 15

465.73 LOAN FROM, SECURED BY U.S. AGRICULTURE DEPARTMENT AGENCY.
For purposes of constructing, repairing, or acquiring city halls, town halls, fire halls or fire
or rescue equipment, or libraries or child care facilities if otherwise authorized by law, a city,
county, or town may borrow not to exceed $450,000 from (i) funds granted to a rural electric
cooperative organized under chapter 308A by the United States Department of Agriculture Rural
Business-Cooperative Service or (ii) directly from or in the form of funds guaranteed by the Rural
Housing Service or other agency of the United States Department of Agriculture by a note secured
by a mortgage or other security agreement on the property purchased with the borrowed funds.
The city, county, or town may pledge its full faith and credit and assign or pledge the revenues, if
any, from the facilities or equipment so financed together with any other properly available funds
to secure the loan. The obligation of the note is not to be included when computing the net debt of
the city, county, or town, nor is the approval of the voters required for the issuance of the note.
History: 1976 c 140 s 1; 1977 c 210 s 1; 1978 c 476 s 1; 1Sp1989 c 1 art 5 s 34; 1991 c 120
s 1; 1995 c 256 s 6; 2002 c 390 s 5

465.74 AUTHORIZATION TO OPERATE DISTRICT HEATING SYSTEMS.
    Subdivision 1. Cities of the first class. Any city operating or authorized to operate a
public utility pursuant to chapter 452 or its charter is authorized to acquire, construct, own,
and operate a municipal district heating system pursuant to the provisions of that chapter or its
charter. Acquisition or construction of a municipal district heating system shall not be subject to
the election requirement of sections 452.11 and 452.12, or city charter provision, but must be
approved by a three-fifths vote of the city's council or other governing body. Loans obtained by
a municipality pursuant to Minnesota Statutes 1992, section 216C.36, are not subject to the
limitations on the amount of money which may be borrowed upon a pledge of the city's full faith
and credit or the election requirements for general obligation borrowing, contained in section
452.08.
    Subd. 1a. Cities with over 50,000 inhabitants. A city with over 50,000 inhabitants that
is not a city of the first class is authorized to acquire, construct, improve, and operate a district
heating system under the same terms and conditions as a city of the first class except as provided
herein. Acquisition or construction and financing of a municipal district heating system is not
subject to the election requirements of sections 452.11 and 452.12, however, a resolution for the
acquisition or construction and financing must be approved by a two-thirds vote of the governing
body of the city.
    Subd. 2. Cities of the second, third, and fourth class. A home rule or statutory city of the
second, third, or fourth class may, pursuant to sections 412.331 to 412.391, or chapter 455 or its
charter acquire, construct, own, and operate a municipal district heating system.
    Subd. 3. Extension of service outside city. A municipal district heating system, operating
pursuant to this section, may sell energy to customers located outside of the municipality.
    Subd. 4. Net debt limits. The loan obligations or debt incurred by a political subdivision
pursuant to section 475.525, or Minnesota Statutes 1992, section 216C.36, shall not be considered
as a part of its indebtedness under the provisions of its governing charter or of any law of this
state fixing a limit of indebtedness.
    Subd. 5. District heating facilities. Notwithstanding any other law, general or special, or the
provisions of any home rule charter city to the contrary, the governing body of a municipality may
by ordinance grant a district heating franchise for a term not to exceed 31 years and by resolution
or ordinance secure any obligations issued by the municipality for a district heating system with a
mortgage or indenture of trust coextensive with the term of the obligations.
    Subd. 6. Definition. For the purposes of this section, and chapters 474 and 475, "district
heating system" means any existing or proposed facility for (1) the production, through
cogeneration or otherwise, of hot water or steam to be used for district heating, or (2) the
transmission and distribution of hot water or steam for district heating either directly to heating
consumers or to another facility or facilities for transmission and distribution, or (3) any part or
combination of the foregoing facilities.
In keeping with the public purpose to encourage state and local leadership and aid in
providing available and economical district heating service, the definition of "district heating
system" under this section should be broadly construed to allow municipal government sufficient
flexibility and authority to evaluate and undertake such policies and projects as will most
efficiently and economically encourage local expansion of district heating service.
    Subd. 7. Port authorities, ownership and operation of district heating systems. A port
authority organized pursuant to sections 469.048 to 469.068 or a special law may acquire, own,
construct, and operate a district heating system or systems to provide heating and cooling services
and other energy services within the statutory or home rule charter city within which it is created.
The authority may, in conjunction with a district heating system, acquire, own, construct, and
operate an energy management and control system to monitor and control users' energy demand
within the city as a related ancillary function of the district heating system. The authority may, in
conjunction with a district heating system, acquire, own, construct, and operate ancillary services
related to an energy management and control system including, but not limited to, sensing and
monitoring services for supervision of fire and life safety systems and building security systems
within the city.
This section shall be effective for a port authority only after adoption of an ordinance or
resolution by the board of the port authority and by the governing body of the city stating their
intention to exercise the authority allowed by this section.
A port authority may, with approval of the city, lease part or all of the district heating system
or contract with respect to part or all of the district heating system, with any person, corporation,
association, or public utility company for the purpose of constructing, improving, operating, or
maintaining the district heating system.
    Subd. 8. Management of a district heating system by a port authority. A statutory or
home rule charter city within which a port authority has been created may delegate to the port
authority some or all powers and responsibilities for the management and operation of a district
heating system.
    Subd. 9. Operation by a county. A statutory or home rule charter city may contract with a
county to operate a district heating system for the provision of district heating services within
some or all of the city.
History: 1981 c 334 s 6; 1981 c 356 s 248; 1982 c 561 s 12; 1984 c 449 s 1-4; 1987 c 291 s
224; 1987 c 312 art 1 s 10 subd 1; 1993 c 327 s 19-21

465.75 REGULATION OF VEHICLE TOWERS LIMITED.
    Subdivision 1. Definitions. For the purposes of this section, the following terms have the
meanings given them:
(a) "Vehicle tower" means a person engaged in the business of towing or recovering vehicles
by means of a crane, hoist, tow bar, tow line, or dolly for the purpose of moving or transporting
wrecked, damaged, disabled, replacement, or abandoned vehicles; and
(b) "Municipality" means a statutory or home rule charter city or a town.
    Subd. 2. Request by owner. No municipality may prohibit the operation within its
boundaries of a vehicle tower who is not licensed by that municipality and who is responding to a
service request from a person who is the owner or operator or the agent of the owner or operator
of the motor vehicle for which vehicle towing service is requested.
    Subd. 3. Private property. No vehicle tower may remove a motor vehicle by towing,
carrying, hauling or pushing from private property except at the request of a person who is the
owner or operator or the agent of the owner or operator of the vehicle, or the owner or agent of
the owner of the private property.
History: 1983 c 115 s 1

465.76 MAY PAY FOR OFFICER OR EMPLOYEE'S CRIMINAL DEFENSE.
    Subdivision 1. If lawfully doing duty. If reimbursement is requested by the officer or
employee, the governing body of a home rule charter or statutory city, a town or a county may,
after consultation with its legal counsel, reimburse the city, town or county officer or employee
for any costs and reasonable attorney's fees incurred by the person to defend charges of a criminal
nature brought against the person that arose out of the reasonable and lawful performance of
duties for the city, town or county.
    Subd. 2. When judge must approve. If less than a quorum of the governing body is
disinterested, the reimbursement under subdivision 1 shall be approved by a judge of the district
court.
History: 1984 c 650 s 1; 1999 c 30 s 1

465.77 MAY REGULATE DRILLING OF MINED UNDERGROUND SPACE.
A home rule charter city or statutory city may regulate drilling for the purposes and in the
manner provided in section 469.141.
History: 1985 c 194 s 25; 1987 c 291 s 225

465.78 PARTICIPATE IN ECONOMIC DEVELOPMENT SECONDARY MARKET.
(a) A municipality may sell at private or public sale, at the price or prices determined
by the municipality, any note, mortgage, lease, sublease, lease purchase, or other instrument
or obligation evidencing or securing a loan made for the purpose of economic development,
job creation, redevelopment, or community revitalization to a business, for-profit or nonprofit
organization, or an individual.
(b) Sales under this section must be made through arrangements whereby the ultimate sale
of the instrument is to be made as part of a pool of instruments on behalf of one or more other
municipalities, port authorities, housing and redevelopment authorities, or rural development
finance authorities (other than a port authority or housing and redevelopment authority located
wholly or partly within the municipality). The restrictions of the previous sentence do not apply if
the sale is a public sale or if the proposed sale is submitted to and approved by the commissioner
of commerce. The commissioner shall review the proposed sale to determine if the agreed
upon price adequately compensates the municipality, given the maturity, risk, and yield of the
instrument. If a proposed sale is submitted to the commissioner of commerce and the sale is not
disapproved in writing by the commissioner within 30 days, the sale is deemed approved. The
restrictions contained in this paragraph apply to sales made under sections 469.059, subdivision
17 ; 469.101, subdivision 22; and 469.146, subdivision 3.
(c) This section does not apply to an obligation to make payments to the municipality, if the
underlying obligation arose out of a transaction in which the proceeds of the loan were financed
by revenues derived from tax increments from a tax increment financing district that includes
property owned by the borrower. For the purpose of this section, a "municipality" is any home
rule charter city, statutory city, county, or town.
History: 1989 c 317 s 1

465.79 ESTABLISHMENT OF BOUNDARY COMMISSION.
    Subdivision 1. City council, town or county board. By resolution, the city council of
a statutory or home rule charter city, town board, or county board may create a boundary
commission. Members of the commission shall be residents of the county or counties in which
the city or town is located who are familiar with real property.
    Subd. 2. Duties of boundary commission. Upon initiation by resolution of the governing
body or upon petition of an adjoining or affected property owner, the boundary commission shall
review property descriptions of the disputed areas in the respective jurisdiction. Upon mailed
notice to all known parties in interest, the commission shall attempt to establish agreements
between adjoining landowners as to the location of common boundaries as delineated by a certified
land survey. If agreement cannot be reached, the commission shall make a recommendation as to
the location of the common boundaries within the disputed area. The commission shall prepare
a plan designating all agreed and recommended boundary lines and report to the city council,
town board, or county board.
    Subd. 3. Hearing. Upon receipt of the plan and a report from the commission, the city
council, town board, or county board shall hold a public hearing. The council, town board, or
county board shall give mailed notice to all known parties in interest and published notice 20 days
prior to the hearing. The council, town board, or county board shall hear all interested parties and
may make adjustments to the proposed plan that it deems just and necessary.
    Subd. 4. Judicial review. Following the public hearing, the council or board may petition the
district court for judicial approval of the proposed plan. If any affected parcel is land registered
under chapter 508, the petition must be referred to the examiner of titles for a report. The council
or board shall provide sufficient information to identify all parties in interest and shall give
notice to parties in interest as the court may order. The court shall determine the location of any
contested, disputed, or unagreed boundary and shall determine adverse claims to each parcel as
provided in chapter 559. After hearing and determining all disputes, the court shall issue its
judgment in the form of a plat complying with chapter 505 and an order designating the owners
and encumbrancers of each lot. Real property taxes need not be paid or current as a condition of
filing the plat, notwithstanding the requirements of section 505.04.
    Subd. 5. Special assessments. The city or board may assess part or all of the cost incurred by
it against the benefited properties on a per parcel basis as provided in chapter 429.
History: 1990 c 386 s 1; 1992 c 493 s 9,10; 1997 c 78 s 1

465.795 [Repealed, 2002 c 220 art 10 s 40]

465.796 [Repealed, 2002 c 220 art 10 s 40]

465.797 [Repealed, 2002 c 220 art 10 s 40]

465.7971 [Repealed, 2002 c 220 art 10 s 40]

465.798 [Repealed, 2002 c 220 art 10 s 40]

465.799 [Repealed, 2002 c 220 art 10 s 40]

SERVICE SHARING AND COMBINATION INCENTIVES

465.80 [Repealed, 1994 c 587 art 8 s 13]

465.801 [Repealed, 2002 c 220 art 10 s 40]

465.802 [Repealed, 2002 c 220 art 10 s 40]

465.803 [Repealed, 2002 c 220 art 10 s 40]

465.81 COOPERATION AND COMBINATION.
    Subdivision 1. Scope. Sections 465.81 to 465.86 establish procedures to be used by counties,
cities, or towns that adopt by resolution an agreement providing a plan to provide combined
services during an initial cooperation period that may not exceed two years and then:
(1) to merge into a single unit of government over the succeeding two-year period; or
(2) to agree to apportion the entire area of at least one local government unit between or
among two or more local government units contiguous to the unit to be apportioned, resulting in
the elimination of at least one local government unit over the succeeding two years.
    Subd. 2. Definitions. As used in sections 465.81 to 465.86, the words defined in this
subdivision have the meanings given them in this subdivision.
"City" means home rule charter or statutory cities.
"Governing body" means, in the case of a county, the county board; in the case of a city, the
city council; and, in the case of a town, the town board.
"Local government unit" or "unit" includes counties, cities, and towns.
    Subd. 3. Combination requirements. Counties may combine with one or more other
counties. Cities may combine with one or more other cities or with one or more towns. Towns
may combine with one or more other towns or with one or more cities. Units that combine must
be contiguous. A county, through the adoption of a resolution by all county boards that are
affected by the combination, may apportion its territory between or among two or more counties
contiguous to the county that is to be apportioned. A city, through the adoption of a resolution
by all city councils that are affected by the combination, may apportion its territory between or
among two or more cities contiguous to the city that is to be apportioned. A township, through the
adoption of a resolution by all town boards or city councils that are affected by the combination,
may apportion its territory between or among two or more townships or cities contiguous to the
township that is to be apportioned.
History: 1991 c 291 art 14 s 2; 1993 c 375 art 15 s 10; 1995 c 264 art 8 s 7; 1997 c 231
art 2 s 34,35; 2003 c 2 art 6 s 1,2

465.82 COOPERATION AND COMBINATION PLAN.
    Subdivision 1. Adoption and state agency review. Each governing body that proposes to
take part in a combination under sections 465.81 to 465.86 must by resolution adopt a plan for
cooperation and combination. The plan must address each item in this section. The plan must be
specific for any item that will occur within three years and may be general or set forth alternative
proposals for an item that will occur more than three years in the future. For a metropolitan
area local government unit, the plan must be submitted to the Metropolitan Council for review
and comment. The council may point out any resources or technical assistance it may be able
to provide a governing body submitting a plan under this subdivision. Significant modifications
and specific resolutions of items must be submitted to the council, if appropriate, for review and
comment. In the official newspaper of each local government unit proposing to take part in the
combination, the governing body shall publish at least a summary of the adopted plans, each
significant modification and resolution of items, and, if appropriate, the results of each council
review and comment. If a territory of a unit is to be apportioned between or among two or more
units contiguous to the unit that is to be apportioned, the plan must specify the area that will
become a part of each remaining unit.
    Subd. 2. Contents of plan. The plan must state:
(1) the specific cooperative activities the units will engage in during the first two years
of the venture;
(2) the steps to be taken to effect the merger of the governmental units, with completion no
later than four years after the process begins;
(3) the steps by which a single governing body will be created or, when the entire territory of
a unit will be apportioned between or among two or more units contiguous to the unit that is to be
apportioned, the steps to be taken by the governing bodies of the remaining units to provide for
representation of the residents of the apportioned unit;
(4) changes in services provided, facilities used, and administrative operations and staffing
required to effect the preliminary cooperative activities and the final merger, and a two-, five-, and
ten-year projection of expenditures for each unit if it combined and if it remained separate;
(5) treatment of employees of the merging governmental units, specifically including
provisions for reassigning employees, dealing with exclusive representatives, and providing
financial incentives to encourage early retirements;
(6) financial arrangements for the merger, specifically including responsibility for debt
service on outstanding obligations of the merging units;
(7) one- and two-year impact analyses, prepared by the granting state agency at the request
of the local government unit, of major state aid revenues received for each unit if it combined and
if it remained separate, including an impact analysis, prepared by the Department of Revenue, of
any property tax revenue implications associated with tax increment financing districts and fiscal
disparities under chapter 276A or 473F resulting from the merger;
(8) procedures for a referendum to be held before the proposed combination to approve
combining the local government units, specifically stating whether a majority of those voting in
each district proposed for combination or a majority of those voting on the question in the entire
area proposed for combination is needed to pass the referendum; and
(9) a time schedule for implementation.
Notwithstanding clause (3) or any other law to the contrary, all current members of the
governing bodies of the local government units that propose to combine under sections 465.81 to
465.86 may serve on the initial governing body of the combined unit until a gradual reduction
in membership is achieved by foregoing election of new members when terms expire until the
number permitted by other law is reached.
    Subd. 3. Interim governing body. The plan for cooperation and combination adopted
in accordance with subdivision 1 may establish an interim governing body to act on behalf of
the new local government unit before the effective date of the combination. If established, the
interim governing body must consist of at least a majority of the elected officials from each local
government unit taking part in the combination. If the plan establishes an interim governing body,
the governing body of each unit taking part in the combination shall appoint its representatives
to serve on the interim governing body. An interim governing body may not take any official
action on behalf of the new local government unit before approval of the combination through
the referendum required by section 465.84. After approval of the combination through the
referendum, and before the effective date of the combination, an interim governing body may
exercise all statutory authority of the governing body of the new local government unit, including
the authority to enter into contracts and adopt policies and local ordinances.
    Subd. 4. Differential taxation. The plan for cooperation and combination adopted in
accordance with subdivision 1 may establish that the tax rate of the local government unit with
the lesser tax rate prior to the effective date of combination 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 borders of the local unit of government with the higher tax rate. The appropriate period
of time, if any, for transition to the higher tax rate shall be based on the time reasonably required
to effectively provide equal municipal services to the residents of the local unit of government
with the lower tax rate.
History: 1991 c 291 art 14 s 3; 1993 c 375 art 15 s 11; 1995 c 264 art 8 s 8; 1996 c 471 art
11 s 13; 1997 c 231 art 2 s 36-38; 1999 c 243 art 6 s 7; 2003 c 2 art 6 s 3,4

465.83 [Repealed, 2002 c 220 art 10 s 40]

465.84 REFERENDUM.
During the first or second year of cooperation, a referendum on the question of combination
must be conducted. The referendum must be on a date called by the governing bodies of the units
that propose to combine. The referendum must be conducted according to the Minnesota Election
Law, as defined in section 200.01. If the referendum fails, the same question or a modified question
may be submitted the following year. If the referendum fails again, the same question may not be
submitted. Referendums shall be conducted on the same date in all local government units.
History: 1991 c 291 art 14 s 5; 1995 c 264 art 8 s 9; 2003 c 2 art 6 s 5

465.85 COUNTY AUDITOR TO PREPARE PLAT.
Upon the request of two or more local government units that have adopted a resolution to
cooperate and combine, the county auditor shall prepare a plat. If the proposed combined local
government unit is located in more than one county, the request must be submitted to the county
auditor of the county that has the greatest land area in the proposed district. The plat must show:
(1) the boundaries of each of the present units;
(2) the boundaries of the proposed unit;
(3) the boundaries of proposed election districts, if requested; and
(4) other information deemed pertinent by the governing bodies or the county auditor.
History: 1991 c 291 art 14 s 6; 1995 c 264 art 8 s 10

465.86 BONDED DEBT AT THE TIME OF COMBINATION.
Debt service for bonds outstanding at the time of the combination may be levied by the
combined governing body consistent with the plan adopted according to section 465.82, and any
subsequent modifications, subject to section 475.61. The primary obligation to pay the bonded
indebtedness outstanding on the effective date of combination remains with the local government
unit that issued the bonds, but a combined unit may make debt service payments on behalf of a
preexisting unit.
History: 1991 c 291 art 14 s 7

465.87 [Repealed, 2002 c 220 art 10 s 40]

465.88 [Repealed, 2002 c 220 art 10 s 40]