CR 06-122 Approve Property for Tax Forfeited Land Sale
November 1,2006
Council Report 2006-122
APPROVE PROPERTY FOR TAX FORFEITED LAND SALE
Pro Dosed Action
Staff recommends adoption of the following: Move to adopt Resolution No. 2006-071 approving delinquent parcel
for tax forfeited land sale.
Approval of this resolution will direct the county to include the parcel specified in the resolution in the next scheduled
County tax forfeited land sale.
Overview
We have been notified by Hennepin County that property located at 45 7th Ave N will be put up for public auction as
part of the tax forfeited land sale. This property has delinquent taxes going back six years and therefore is now
subject to the tax forfeiture laws.
In preparation for the tax forfeiture land sale the council needs to approve the non-conservation designation of this
property and formally recommend approval of the property for public auction.
In discussions with staff we as a city do not have a public purpose need for this property so therefore staff
recommendation is to approve the classification of the property and approve the property for public auction. It is our
goal to see the property returned to a productive tax status.
Primary Issues to Consider
Sale of this property at the tax forfeited land sale would return this property to productive tax status.
Purchase of this property by the city would place the property in tax-exempt status.
Staff Recommendation
Staff is recommending approval of the resolution.
SUDDortin!! Information
Resolution
. Correspondence from Hennepin County
~~
Christine M. Harkess, CPA, CGFM
Finance Director
.
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 2006-071
RESOLUTION APPROVING DELINQUENT PARCELS FOR
TAX FORFEITED LAND SALE
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF HOPKINS, MINNESOTA,
WHEREAS property locate at 45 7th Ave S having a legal description of Lot 033, Block 002
West Minneapolis, Pill #24-117-22-43-0046 has been delinquent on property taxes for six years;
WHEREAS the above listed property is scheduled for public auction at a tax forfeited land sale
by Hennepin County;
WHEREAS the land is classified as non-conservation
WHEREAS unpaid special assessments totaling $2,172.46 remain on the property as of
September 25, 2006;
NOW THEREFORE BE IT RESOLVED that the Hopkins City Council does hereby approve the
classification of the above listed property as non-conservation and further approves the property for
public auction at the Hennepin County tax forfeited land sale;
BE IT FURTHER RESOLVED that the City Clerk is hereby ordered and directed to transmit a certified copy of
this resolution to the County Auditor of Hennepin County, Minnesota.
Adopted by the City Council of the City of Hopkins this 2nd day of November 2006.
By
Eugene Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk
Hennepin County Taxpayer Services Department
A-600 Hennepin County Government Center
Minneapolis, Minnesota 55487-0060
September 25, 2006
BY CERTIFIED MAIL. RETURN RECEIPT REQUESTED
TERRY OBERMAIER CITY CLERK
CITY OF HOPKINS
1010 FIRST STREET SOUTH
HOPKINS MN 55343
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RE: Conservation/Non-Conservation Classification List # 1386 C/NC
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The lands as described on Conservation/Non-Conservation Classification List # 1386 C/NC, were classified as either
conservation lands or non-conservation lands, as is appropriate, by the County Auditor's Administrative Review Board.
Enclosed is a copy of County Auditor's Directive No. 2006-31 providing for the classification of the lands, under
authority granted in accordance to Minnesota Statute 282.135 by the Board of Hennepin County Commissioners.
As required under M.S. 282.01, the department requests that your city officials review Conservation/Non-Conservation
List # 1386 C/NC. When municipal review has been completed, the department will require a certified copy of a
municipal resolution that resolves and approves parcels for public auction, for auction to adjacent owners, or requests
public use conveyance or nonpublic sale to your city. See enclosed Exhibit A, an outline for suggested points that
should be covered in your municipal resolution.
Please be advised that the sale of the lands shall be deemed to be approved pursuant to M.S. 282.01 , Subd. 1 ,
if the city council fails to respond to this classification notice within sixty (60) days of receipt of certified mail .
The deadline for responding will be November 27, 2006.
Please contact Terry Schuhler, Property Tax Services unit leader, at (612)596-6527(voice mail), should you need
further assistance or clarification.
Sincerely,
Jill L. Alverson, Director
Taxpayer Services Department
Jeffrey L. Strand, Supervisor
Tax-Forfeit and Property Revenue Section
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EXHIBIT A
Outline of Suggested Points to Cover in a Governmental Subdivision
Resolution for Tax-Forfeited Lands
· Municipal officials should approve the classification as Conservation and/or Non-Conservation land.
The parcels should be formally recommended for public auction approval, for adjacent owner auction approval if
Minnesota Statutes, section 282.01, Subd. 7a for unbuildable vacant lots is applicable, or for requesting a
conveyance for an authorized public use to your governmental subdivision, or for requesting a nonpublic sale to your
governmental subdivision.
· Upon receipt of a written application from a city or a governmental subdivision within 60 days of the classification by
the county, a parcel may be withheld from auction for a time period not to exceed six months, in accordance with
Minnesota Statues, section 282.01, Subd. 1. A city or governmental subdivision must pay maintenance costs incurred
by the county during the six-month period during which the land is withheld from auction, provided the property is
not offered for public sale after the end of the six-month period. The written application should be in the form of a
municipal resolution requesting acquisition and the reason for the six-month hold.
· In accordance with M.S. 282.01, Subd. lb, procedures on targeted neighborhood lands were made uniform and
consistent throughout the state. Effective for deeds issued on or after August 1, 2001 the recommendation of the
County Board is required for applications for conveyance of targeted neighborhood tax-forfeited lands to be acquired
for redevelopment as productive taxable property. Further, deeds of conveyance issued under paragraph (a) of
Minnesota Statutes, section 282.01, Subd. lb. are not conditioned on continued use of the property as stated in the
application.
· Each parcel should be verified as to the amount and type of special assessments shown as certified to the county
before forfeiture. These special assessments were canceled at forfeiture by operation of law. A percentage of the
amount of the cancelled special assessments will be paid from any tax-forfeited land sales proceeds. Should any
portion remain unpaid municipalities have the ability to reassess the unpaid balance against the property, as provided
by Minnesota Statutes, section 429.071. However, please keep in mind that the tax-forfeiture process serves as a
"cleansing" process to effectuate return of properties to productive taxpaying status.
· The amount and type of special assessments levied after the forfeiture should be certified to this office. These "new
certified" special assessments are added to the minimum bid appraised value used in the auction. The "new certified"
special assessments are to be paid from any tax-forfeited land sales proceeds.
· Each parcel should be reviewed for special status, such as public waterfront, wetland, peat lands and marketable
timber resource issues, or any potential public nuisance or special zoning conditions or restrictions. The statutory
citations are shown in County Auditor's Directive No. 2006-31, a copy of which is enclosed. Any information
supplied by the municipalities may be helpful in the successful disposition of the lands.
We ask your assistance in determining if any parcels on List # 1386 CINC have wells. If any of the parcels on the list have wells,
please request a Minnesota Department of Health Well Disclosure Certificate from this department. As noted above, please
provide available information about parcels such as zoning, known soil conditions, known environmental contamination, or special
municipal restrictions. Such information may assist the county in managing and marketing the properties in order to facilitate its
return to a tax productive status.
If you request conveyance to your governmental subdivision, please submit a properly completed form PT962.RAR, titled,
"Application by a Governmental Subdivision for Conveyance of Tax Forfeited Lands for an Authorized Public Use" for each parcel
requested. Minnesota Department of Revenue requires form PT962.RAR. It must be executed and notarized by authorized persons
and the document should be on legal size paper. Please call Property Tax Services Unit at (612) 348-3734 if you need more blank
forms, or it is located on the Department of Revenue web site at the following address:
http://www.taxes.state.mn.us/proptax/propinfo/stdeed/statedeed htm .
Conveyance to a governmental subdivision for a public pUlpose is subject to the recommendation of the County Board. The
Hennepin County Board's Tax-Forfeited Land Policy, Resolution No. 82-8-612, requires that a specific public purpose be
identified in the request. A copy of the resolution is enclosed. In our experience, the Minnesota Department of Revenue
discourages use of the generic phrase "public purposes" on the requests for state deeds. Rather, the specific public purpose that has
been identified for the lands should be stated on the municipal application. "Open Space" alone is not acceptable to the Department
of Revenue.
Tenants
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Legal
lliscriotiQ!1
-~- ~. ------- ~-- -
24_117-22-43-0046 No FEDERAL NATL MTGE 61,000 149,000 2,172.46 Vacant, Boarded, Fire
ASSOC Damaged Single
Family
45 7TH AVE S 05/01/96 88,000
Non_Conservation 08/17/06 \ LOT 033 BLOCK 002 "WEST
MINNEAPOLIS"
1386 conservationtNon-Conservation List
- - - --=--
Previous owner Special
Date of Judgment Land Value Market Assessments
Date of E orfeiture fu!i1dinl!. V a1~ ~ ~fore F orfeitu~
(as of 09/25/06)
(30) City of Hopkins
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Target
Area
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Property ID Number
Property Address
p'roue: Tvoe C~C