2005 Minnesota Statutes

     469.029 Disposal of property. 

    Subdivision 1.    Sale, lease, or development.  In 
 accordance with a redevelopment plan, an authority may make any 
 of its land in a redevelopment project available for use by 
 private individuals, firms, corporations, partnerships, 
 insurance companies, or other private interests, or by public 
 agencies, by sale, lease, or otherwise, or the authority itself 
 may retain property for redevelopment by it.  The land shall be 
 made available at a price that shall, except as provided for in 
 subdivisions 9 and 10, take into consideration the estimated 
 fair market or rental value of the cleared land as determined 
 pursuant to section 469.032, for proposed uses in accordance 
 with the redevelopment plan.  

    Subd. 2.    Notice; public hearing; determination; terms 
 and conditions.  Any such lease or sale may be made without 
 public bidding but only after a public hearing, after published 
 notice, by the authority at least once not less than ten days 
 nor more than 30 days prior to the date of the hearing upon the 
 proposed lease or sale and the provisions thereof.  The terms of 
 any such lease shall be fixed by the authority, and the 
 instrument of lease may provide for renewals upon reappraisals 
 and with rentals and other provisions adjusted to the 
 reappraisals.  Every such lease or sale shall provide that the 
 lessee or purchaser shall carry out or cause to be carried out 
 the approved project area redevelopment plan or approved 
 modifications thereof and that no use shall be made of any land 
 or real property included in the lease or sale nor any building 
 or structure erected thereon which does not conform to the 
 approved plan or approved modifications thereof.  In the 
 instrument of lease or sale the authority may include other 
 terms, conditions, and provisions in the judgment of the 
 authority will provide reasonable assurance of the priority of 
 the obligations of the lease or sale and of conformance to the 
 plan over any other obligations of the lessee or purchaser, and 
 also assurance of the financial and legal ability of the lessee 
 or purchaser to carry out and conform to the plan and the terms 
 and conditions of the lease or sale, to begin the building of 
 any improvements within a period of time which the authority 
 fixes as reasonable.  The instrument shall also include the 
 terms, conditions, and specifications concerning buildings, 
 improvements, subleases, or tenancies, maintenance and 
 management, and any other related matters the authority may 
 reasonably impose or approve, including provisions whereby the 
 obligations to carry out and conform to the project area plan 
 shall run with the land.  If maximum rentals to be charged to 
 tenants of housing are specified, provision may be made for 
 periodic reconsideration of the rental bases, with a view to 
 proposing modification of the project area plan with respect to 
 the rentals.  

    Subd. 3.    Property devoted to public uses; transfer.  
 After the property in a project area has been assembled by an 
 authority, the authority may transfer by deed to local public 
 bodies those pieces of property which, in accordance with the 
 redevelopment plan, are to be devoted to public uses, other than 
 public housing or redevelopment purposes.  Except for property 
 transferred by dedication, gift, or exchange, the transferee 
 body shall pay to the authority the sum agreed upon, and, in the 
 absence of agreement, the sum determined by arbitration.  The 
 authority shall reimburse the redevelopment project fund the 
 fair use value of any property in a redevelopment project 
 transferred to a public low-rent housing project.  

    Subd. 4.    Disposition in parts.  The authority may 
 lease or sell parts of a project area separately to any 
 persons.  Any such sale or lease of a part or parts of a project 
 area shall be subject to the provisions of this section, 
 excluding property required for public low-rent housing projects.

    Subd. 5.    Limitation upon disposal by purchaser.  
 Until the authority certifies that all building constructions 
 and other physical improvements specified to be done and made by 
 the purchaser of the area have been completed, the purchaser 
 shall not convey the area, or any part thereof, without the 
 consent of the authority.  Consent shall not be given unless the 
 grantee or mortgagee of the purchaser is obligated by written 
 instrument to the authority to carry out that portion of the 
 redevelopment plan which falls within the boundaries of the 
 conveyed property, and also that the grantee, the grantee's 
 heirs, representatives, successors, and assigns, shall not 
 convey, lease, or let the conveyed property or any part thereof, 
 or erect or use any building or structure erected thereon, 
 except in conformance with the approved project area 
 redevelopment plan or approved modifications thereof.  

    Subd. 6.    Modification of plan.  A redevelopment plan 
 may be modified at any time.  The modification must be adopted 
 by the authority and the governing body of the political 
 subdivision in which the project is located, upon the notice and 
 after the public hearing required for the original adoption of 
 the redevelopment plan.  If the authority determines the 
 necessity of changes in an approved redevelopment plan or 
 approved modification thereof, which changes do not alter or 
 affect the exterior boundaries, and do not substantially alter 
 or affect the general land uses established in the plan, the 
 changes shall not constitute a modification of the redevelopment 
 plan nor require approval by the governing body of the political 
 subdivision in which the project is located.  

    Subd. 7.    Purchaser or lessee to furnish performance 
 bond.  As security for its fulfillment of the agreement with 
 the authority, a purchaser or lessee shall furnish a performance 
 bond, with the surety and in the form and amount the authority 
 may approve, or make any other guaranty the authority deems 
 necessary in the public interest.  If the authority finds that 
 the redevelopment is not being carried out or maintained in 
 accordance with the contract terms and conditions, or there is a 
 failure to prosecute the work with diligence, or to assume its 
 completion on time, it shall notify the purchaser or lessee and 
 the surety in writing of the noncompliance.  Unless the 
 purchaser or lessee complies with the terms of agreement within 
 20 days from the date of the notice, the authority may take over 
 the work and may cause the work to be done, and the cost of the 
 work shall be paid by the surety.  The authority may take 
 possession of and utilize in completion of the work the 
 materials, appliances, and plant as may be on the site of the 
 work and necessary for it. 

    Subd. 8.    Discrimination forbidden.  There shall be no 
 discrimination in the use of any land in a redevelopment project 
 because of race or religious, political, or other affiliations.  

    Subd. 9.    Sale, grant or development.  With or without 
 accordance to a redevelopment plan, an authority may make any of 
 its lands in a project that are vacant, open and undeveloped or 
 lands that contain vacated residential dwelling structures that 
 are substandard as that term is defined in section 469.012, 
 subdivision 1h, available for use by sale, lease, 
 grant, transfer, conveyance, or otherwise to persons or families 
 of low and moderate income.  The property shall be made 
 available at a price which may take into consideration the 
 estimated fair market value of the real estate, as determined 
 pursuant to section 469.032, if the low or moderate income 
 persons or families have the financial ability or building trade 
 skills, as determined by the authority, to build on the vacant, 
 open and undeveloped land or to repair, improve, or rehabilitate 
 the residential dwelling structures, so as to conform with the 
 applicable state, county, or city, health, housing, building, 
 fire prevention, and housing maintenance codes within a 
 reasonable period of time as determined by the authority.  The 
 authority may require an agreement from those persons or 
 families of low or moderate income to build on the lands or to 
 repair, improve, or rehabilitate the residential dwelling 
 structures within a reasonable period of time so as to conform 
 to the codes as a condition to final legal title to the lands 
 and the residential dwelling units.  Nothing in Laws 1974, 
 chapter 228, shall prohibit an authority from making 
 rehabilitation loans and grants, pursuant to section 469.012, 
 subdivision 6, or procuring other authorized financial 
 assistance for persons or families of low and moderate income 
 who acquire real property pursuant to this section, in 
 furtherance of the objectives of this section.  

    Subd. 10.    Excess land.  On or before December 31 each 
 year, each authority shall make a survey of all lands held, 
 owned, or controlled by it to determine what land, including air 
 rights, is in excess of its foreseeable needs.  A description of 
 each parcel found to be in excess of foreseeable needs shall be 
 made a matter of public record.  Any low or moderate income 
 resident or nonprofit housing corporation shall upon request be 
 provided with a list of the parcels without charge.  With or 
 without accordance to a redevelopment plan, an authority may 
 make the excess lands available for use as a housing or housing 
 development project by a nonprofit housing corporation by sale, 
 lease, grant, transfer, conveyance, or otherwise.  The price may 
 take into consideration the estimated fair market or rental 
 value of the real property, as determined pursuant to section 
 469.032 and upon terms and conditions, notwithstanding any other 
 provisions of law to the contrary, that the authority deems to 
 be best suited to the development of the parcel for housing 
 available to persons and families of low and moderate income.  

    HIST: 1987 c 291 s 29