473.167 HIGHWAY PROJECTS.
Subd. 2. Loans for acquisition.
(a) The council may make loans to counties, towns, and
statutory and home rule charter cities within the metropolitan area for the purchase of property
within the right-of-way of a state trunk highway shown on an official map adopted pursuant to
or for the purchase of property within the proposed right-of-way of a
principal or intermediate arterial highway designated by the council as a part of the metropolitan
highway system plan and approved by the council pursuant to section
. The loans shall
be made by the council, from the fund established pursuant to this subdivision, for purchases
approved by the council. The loans shall bear no interest.
(b) The council shall make loans only:
(1) to accelerate the acquisition of primarily undeveloped property when there is a reasonable
probability that the property will increase in value before highway construction, and to update
an expired environmental impact statement on a project for which the right-of-way is being
(2) to avert the imminent conversion or the granting of approvals which would allow the
conversion of property to uses which would jeopardize its availability for highway construction;
(3) to advance planning and environmental activities on highest priority major metropolitan
river crossing projects, under the transportation development guide chapter/policy plan; or
(4) to take advantage of open market opportunities when developed properties become
available for sale, provided all parties involved are agreeable to the sale and funds are available.
(c) The council shall not make loans for the purchase of property at a price which exceeds
the fair market value of the property or which includes the costs of relocating or moving persons
or property. The eminent domain process may be used to settle differences of opinion as to fair
market value, provided all parties agree to the process.
(d) A private property owner may elect to receive the purchase price either in a lump sum
or in not more than four annual installments without interest on the deferred installments. If
the purchase agreement provides for installment payments, the council shall make the loan in
installments corresponding to those in the purchase agreement. The recipient of an acquisition
loan shall convey the property for the construction of the highway at the same price which the
recipient paid for the property. The price may include the costs of preparing environmental
documents that were required for the acquisition and that were paid for with money that the
recipient received from the loan fund. Upon notification by the council that the plan to construct
the highway has been abandoned or the anticipated location of the highway changed, the
recipient shall sell the property at market value in accordance with the procedures required for
the disposition of the property. All rents and other money received because of the recipient's
ownership of the property and all proceeds from the conveyance or sale of the property shall be
paid to the council. If a recipient is not permitted to include in the conveyance price the cost of
preparing environmental documents that were required for the acquisition, then the recipient is
not required to repay the council an amount equal to 40 percent of the money received from the
loan fund and spent in preparing the environmental documents.
(e) The proceeds of the tax authorized by subdivision 3 and distributed to the right-of-way
acquisition loan fund pursuant to subdivision 3a, paragraph (a), all money paid to the council by
recipients of loans, and all interest on the proceeds and payments shall be maintained as a separate
fund. For administration of the loan program, the council may expend from the fund each year an
amount no greater than three percent of the amount of the proceeds distributed to the right-of-way
acquisition loan fund pursuant to subdivision 3a, paragraph (a), for that year.
Subd. 2a. Hardship acquisition and relocation.
(a) The council may make hardship loans
to acquiring authorities within the metropolitan area to purchase homestead property located in
a proposed state trunk highway right-of-way or project, and to provide relocation assistance.
Acquiring authorities are authorized to accept the loans and to acquire the property. Except as
provided in this subdivision, the loans shall be made as provided in subdivision 2. Loans shall be
in the amount of the fair market value of the homestead property plus relocation costs and less
salvage value. Before construction of the highway begins, the acquiring authority shall convey
the property to the commissioner of transportation at the same price it paid, plus relocation costs
and less its salvage value. Acquisition and assistance under this subdivision must conform to
(b) The council may make hardship loans only when:
(1) the owner of affected homestead property requests acquisition and relocation assistance
from an acquiring authority;
(2) federal or state financial participation is not available;
(3) the owner is unable to sell the homestead property at its appraised market value because
the property is located in a proposed state trunk highway right-of-way or project as indicated on
an official map or plat adopted under section
(4) the council agrees to and approves the fair market value of the homestead property, which
approval shall not be unreasonably withheld; and
(5) the owner of the homestead property is burdened by circumstances that constitute a
hardship, such as catastrophic medical expenses; a transfer of the homestead owner by the owner's
employer to a distant site of employment; or inability of the owner to maintain the property due to
physical or mental disability or the permanent departure of children from the homestead.
(c) For purposes of this subdivision, the following terms have the meanings given them.
(1) "Acquiring authority" means counties, towns, and statutory and home rule charter cities
in the metropolitan area.
(2) "Homestead property" means a single-family dwelling occupied by the owner, and the
surrounding land, not exceeding a total of ten acres.
(3) "Salvage value" means the probable sale price of the dwelling and other property that is
severable from the land if offered for sale on the condition that it be removed from the land at
the buyer's expense, allowing a reasonable time to find a buyer with knowledge of the possible
uses of the property, including separate use of serviceable components and scrap when there is no
other reasonable prospect of sale.
Subd. 3. Tax.
The council may levy a tax on all taxable property in the metropolitan area,
as defined in section
, to provide funds for loans made pursuant to subdivisions 2 and
2a. This tax for the right-of-way acquisition loan fund shall be certified by the council, levied,
and collected in the manner provided by section
. The tax shall be in addition to that
authorized by section
and any other law and shall not affect the amount or rate of taxes
which may be levied by the council or any metropolitan agency or local governmental unit. The
amount of the levy shall be as determined and certified by the council, provided that the tax
levied by the Metropolitan Council for the right-of-way acquisition loan fund shall not exceed
$2,828,379 for taxes payable in 2004 and $2,828,379 for taxes payable in 2005. The amount of
the levy for taxes payable in 2006 and subsequent years shall not exceed the product of (1)
the Metropolitan Council's property tax levy limitation under this subdivision for the previous
year, multiplied by (2) one plus a percentage equal to the growth in the implicit price deflator
as defined in section
275.70, subdivision 2
Subd. 3a.[Repealed, 1996 c 464 art 1 s 12
Subd. 4. State review.
The commissioner of revenue shall certify the council's levy limitation
under this section to the council by August 1 of the levy year. The council must certify its
proposed property tax levy to the commissioner of revenue by September 1 of the levy year. The
commissioner of revenue shall annually determine whether the property tax for the right-of-way
acquisition loan fund certified by the Metropolitan Council for levy following the adoption of its
proposed budget is within the levy limitation imposed by this section. The determination must be
completed prior to September 10 of each year. If current information regarding market valuation
in any county is not transmitted to the commissioner in a timely manner, the commissioner may
estimate the current market valuation within that county for purposes of making the calculation.
Subd. 5.[Repealed, 1996 c 464 art 1 s 12
History: 1975 c 13 s 15; 1976 c 166 s 7; 1982 c 520 s 4; 1984 c 654 art 3 s 111; 1985 c 47 s
1,2; 1985 c 248 s 70; 1986 c 444; 1986 c 460 s 21; 1988 c 675 s 6-9; 1989 c 306 s 5-7; 1Sp1989 c
1 art 9 s 66; 1993 c 353 s 3; 1993 c 375 art 7 s 17; 1994 c 416 art 1 s 52; 1994 c 628 art 3 s 48;
1994 c 640 s 3; 1995 c 255 art 2 s 5-7; 1996 c 464 art 1 s 2-4; 1Sp2003 c 21 art 4 s 8