2004 Minnesota Statutes

     414.0325 Orderly annexation in designated 
  unincorporated area. 

    Subdivision 1.    Initiating the proceeding.  (a) One or 
 more townships and one or more municipalities, by joint 
 resolution, may designate an unincorporated area as in need of 
 orderly annexation.  

    (b) The joint resolution will confer jurisdiction on the 
 director over annexations in the designated area and over the 
 various provisions in said agreement by submission of said joint 
 resolution to the director.  

    (c) The resolution shall include a description of the 
 designated area and the reasons for designation.  

    (d) Thereafter, an annexation of any part of the designated 
 area may be initiated by: 

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

    (2) the director. 

    (e) Whenever a state agency, other than the pollution 
 control agency, orders a municipality to extend a municipal 
 service to an area, the order confers jurisdiction on the 
 director to consider designation of the area for orderly 
 annexation. 

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

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

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

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

    Subd. 3.    Relevant factors, order.  (a) In arriving at 
 a decision, the director shall consider the factors in section 
 414.031, subdivision 4. 

    (b) Based upon factors in section 414.031, subdivision 4, 
 the director may order the annexation: 

    (1) on finding that the subject area is now or is about to 
 become urban or suburban in character and that the annexing 
 municipality is capable of providing the services required by 
 the area within a reasonable time; or 

    (2) on finding that the existing township form of 
 government is not adequate to protect the public health, safety, 
 and welfare; or 

    (3) on finding that annexation would be in the best 
 interests of the subject area.  

    (c) The director may deny the annexation if it conflicts 
 with any provision of the joint agreement.  

    (d) The director may alter the boundaries of the proposed 
 annexation by increasing or decreasing the area so as to include 
 that property within the designated area which is in need of 
 municipal services or will be in need of municipal services. 

    (e) If the annexation is denied, no proceeding for the 
 annexation of substantially the same area may be initiated 
 within two years from the date of the denial order unless the 
 new proceeding is initiated by a majority of the area's property 
 owners and the petition is supported by affected parties to the 
 resolution.  

    (f) In all cases, the director shall set forth the factors 
 which are the basis for the decision. 

    Subd. 4.    Effective date of annexation.  The 
 director's order shall be effective upon the issuance of the 
 order or at such later time as is provided in the order. 

    Subd. 4a.    Copy to county auditors.  A copy of the 
 annexation order must be delivered immediately by the director 
 to the appropriate county auditors. 

    Subd. 4b.    Timing for tax levy.  For the purposes of 
 taxation, if the annexation becomes effective on or before 
 August 1 of a levy year, the municipality may levy on the 
 annexed area beginning with that same levy year.  If the 
 annexation becomes effective after August 1 of a levy year, the 
 town may continue to levy on the annexed area for that levy 
 year, and the municipality may not levy on the annexed area 
 until the following levy year. 

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

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

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

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

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

    (2) if the county and township do not agree to such 
 extraterritorial zoning and subdivision regulation by the 
 municipality, zoning and subdivision regulation within the 
 orderly annexation area shall be controlled by a three-member 
 committee with one member appointed from each of the municipal, 
 town, and county governing bodies.  

    (e) The committee under paragraph (d), clause (2), shall: 

    (1) serve as the "governing body" and "board of appeals and 
 adjustments," for purposes of sections 462.357 and 462.358, 
 within the orderly annexation area; and 

    (2) have all of the powers contained in sections 462.351 to 
 462.364, and the authority to adopt and enforce the Uniform Fire 
 Code promulgated pursuant to section 299F.011. 

    Subd. 6.    Validity, effect of orderly annexation 
 agreement.  An orderly annexation agreement is a binding 
 contract upon all parties to the agreement and is enforceable in 
 the district court in the county in which the unincorporated 
 property in question is located.  The provisions of an orderly 
 annexation agreement are not preempted by any provision of this 
 chapter unless the agreement specifically provides so.  If an 
 orderly annexation agreement provides the exclusive procedures 
 by which the unincorporated property identified in the agreement 
 may be annexed to the municipality, the municipality shall not 
 annex that property by any other procedure. 

    HIST: 1978 c 705 s 14; 1Sp1981 c 4 art 1 s 171,172; 1982 c 424 
 s 116; 1983 c 18 s 1; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 
 20; 1Sp1989 c 1 art 2 s 11; 1991 c 291 art 12 s 23; 1992 c 556 s 
 4; 1994 c 511 s 3; 1996 c 303 s 10-12; 1997 c 202 art 5 s 2; 
 2002 c 223 s 7; 2002 c 236 s 1