1c. Trassfer of Rural Service District ParcelsCITY OF �
�HaNHASSEN
i
u
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Mayor and City Council
FROM: Don Ashworth, City Manager
DATE: July 24, 1995
SUBJ: Rural Service District Parcels
BACKGROUND
As a part of the merger of the township and city in 1967, the city council promised the
farming community that a "rural service district" would be created so as to ensure that the
farming community would not have to pay taxes at the same level as the urbanized area. The
council kept that promise and our rural service district has existed since that time. As this
area has changed from rural to urban, most of those parcels have been deleted from the rural
service district. After we complete this year's deletions, there will only be a handful of
parcels left in the rural service district.
SUMMARY OF STATE LAW
The rural service district shall include only such unplatted lands as in the judgement of the
governing body are rural in character and not developed for commercial, industrial, or urban
residential purposes, and for those reasons are not benefited to the same degree as other lands
by municipal services financed by general taxation. Whenever a parcel of land which is
included in the rural service district is platted, in whole or in part, and whenever an
application is made for a permit for the construction of a commercial, industrial, or urban
residential development, or basic urban services such as sewer, water, or street improvements
are extended to any such lot or portion, then the governing body shall make and enter an
order transferring such parcel from the rural service district to the urban service district.
RECOMMENDATION
The attached letter to the county auditor outlines those parcels that no longer qualify under
Minnesota Statute for inclusion in the rural service district. It is recommended that the City
Council confirm the letter as sent to the county auditor's office. Additionally, I would
recommend that the city attorney's office be instructed to modify the existing "rural service
district ordinance" so as to conform to modifications made in state statute and to conform
with current practices, i.e. a 90% assessment rate has existed for at least the last five years.
MEMORANDUM
CITY OF
�
HANHasssN
Office of County Auditor
Attn: Mark Lundgren
Carver County Courthouse
600 East 4th Street, Box 1
Chaska, MN 55318 -2184
Dear Mr. Lundgren:
690 COULTER DRIVE 0 P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
Please be advised that the following parcels do not meet state statute requirements for
inclusion in our rural service district:
Taxpayer Name
Parcel # Reason
0004957 Greenery Company/Don Mezzenga 25.0032800 Nursery
0023958
Keith T. & Diane N. Harstad
25.0052000
Platted
0007032
J P's Links Inc
25.0101800
Commercial Driving Range
0005197
Milton R. A. Bathke
25.0136020
Combined abutting property
0021086
Heritage Development of MN Inc
25.0150310
Partially platted
0005268
Earl J. Holasek
25.0210100
Nursery
0005304
Lawrence C. & Elizabeth Klein
25.0242900
Nursery
0018789
Patrick Blood & Nancy Lee
25.0360600
Commercial storage
0017023
Edward M. & Mary K. Ryan
25.0034810
Trunk area assessment/
Preliminary plat
0018784
E. Jerome & Linda Carlson
25.0035200
Trunk area assessment
0005091
Michael J. Gorra
25.0100900
Trunk area assessment
0001917
Conway T. Lars
25.0101210
Preliminary plat
0008281
David A. and Anga McBryde
25.0101500
Proposing plat
Stockdale
0005208
Estate of Martin J Ward
25.0134500
Pending development
0009747
Jasper Development Corp.
25.0140200
PUD
0019919
Hi -Way 5 Partnership
25.0150300
Chanhassen Corp. Center
0017261
Bluff Creek Partners
25.0151100
Chanhassen Corp. Center
0019919
Hi -Way 5 Partnership
25.0151110
Chanhassen Corp. Center
July 31, 1995
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Mr. Mark Lundgren
July 31, 1995
Page 2
0009747 Jasper Development Corp. 25.0231700 Lake Susan Townhouses
0005308 Robert & Doris Rogers 25.0240400 Preliminary plat
0001913 James F. & Patricia M Dolejsi 25.0242800 Preliminary plat
0005345 Prince R. Nelson 25.6900010 Trunk area assessment
The above list will be presented to the Chanhassen City Council on August 14 for
confirmation. Hopefully, no corrections will be found.
Should you have any questions, please feel free to contact me.
Sincerely,
X� (:: '
Don Ashworth
City Manager
Enclosure: County Auditor's letter of 6/26/95
Office of
County Auditor
• Carver County Courthouse
600 East 4th Street, Box 1
Chaska, Minnesota 55318 -2184
CARVER Phone: 361 -1910
COUNTY 442 -4468
446 -1722
Fax: 361 -1025, 361 -1581
TO: City of Chanhassen
FROM. • Mark Lundgren
DATE. • June 26, 1995
RE. • Payable 1996 Rural Service Districts
Mark Lundgren
County Auditor
Laurie Engelen
Deputy County Auditor
J [ ; x':55
CITY U:
Please be advised that we will be using the following benefit percentage for Payable
1996 truth -in- taxation and final rate calculations on your rural service districts.
Payable 1996 Rural Service District benefit percentage: 90
Enclosed is a listing of parcels now taxed in your rural service district. Please review
this list and notify me of parcels to be added/deleted.
As you are aware, these districts are governed by M.S. 272.67 and in accordance with
your resolution on file in my office.
Please sign below and return this memo along with any changes no later than July 28
if you are in agreement with the percentage and parcels to be included in this district.
Also please note If a rural service districts has been discontinued.
If you have any questions, please contact Laurie Engelen at 361 -1907. Thank you in
advance for your cooperation.
- 71 S1
City Ada inistrat WC/erk
Date
Af umatirc Actio&Egttctl Opportunity Employer
Printed on 107c Post- Consumer Recycled Paper
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272.9 TAXATION, GENERAL PROVISIONS
1064 j
(b) Any and all penalties lawfully imposed pursuant to a'taxiing statute. = ' =•
(c) Interest charges lawfully added to the tax liability which constitutes the subject
of the action. general of this state
Subd. 3. Collection of taxes by attorney general. The attorney
is empowered to bring action in the courts of other states to collect taxes legally due
this state.
History: 1949 c 145 s 1 -3 =
R Baled 1979 c 303 art 2 s 381
272.59
272.61
L ep
[Repealed, 1984 c 593 s 461
272,62
[Repealed,
1984 c 593,s 461
272.63
[Repealed,
1984 c 593 s 461
272.64
[Repealed,
1988 c 719 art 5 s 81]
780 ii
272.65 [Repealed, 1971 c s
272.66 [Repealed, 1984 c 593 s 46]
272.67 DIVISION OF LAND IN CITIES INTO RURAL AND URBAN DIS-
TRICTS.
Subdivision 1. Any city however organized, except in those counties situated in a
metropolitan area as defined in Minnesota Statutes 1961, Section 47 3.02, Subdivision
5, which contain cities of the first class, may by ordinance adopted in the manner pro-
vided in this section divide its area into an urban service district and a rural service
district, constituting separate taxing districts for the purpose of all municipal property
taxes except those levied for the payment of bonds and judgments and interest thereon.
In proceedings for annexation, incorporation, or consolidation being co a d munc purs -
ant to chapter 414, the Minnesota municipal board may by order
into an urban service district and a rural service district, such districts e designated
T
by the board in accordance with the criteria set out in subdivision 2. Thereafter, said
urban service district and rural service district may be changed in the same manner that
an ordinance or amendment is changed in accordance with this section. as in the
Subd. 2. The rural service body at he t me of the adopt on of the ordi an e lands
judgment the governing Y
are rural
in character, and are not developed for commercial, i ndustria l, or urban resld
purposes, and for these reasons are not benefited to the same degree as other lands by
municipal services financed by general taxation. The rural service district may include
lands which are not contiguous to one another. The ordinance may designate lands out-
side the city which, if annexed, shall be included within the rural service district. The
urban service district shall include all lands within the boundaries of the city which are
not included in the rural service district. The ordinance shall determine the app
mate ratio which in the judgment of the governing body exists between the benefits
x supported municipal service to parcels of land of like market value,
resulting from ta ice district and in the urban service
situated in the he ordinan a this benefit ratio may be changed, and lands may be added
amend o
to or removed from the rural service district; but no amendment shall be required to
remove lands by the procedure provided in subdivision 5.
Subd. 3. Every ordinance and amendment introduced under subdivision 2, before
final adoption, shall o f be published in the o
a hearing thereon which hall be held by the governing body not
the time and place which may be adjourned from
less than 30 days after the publication. At the hearing,
time to time by public announcement to those present, the governing body shall give
reasonable hearing a made by or on behalf of any es dent or taxpayer of the city or
nance or amend sented orally
of any outside communication Ilon to the munic clerk. Objections e may be addressed to
or by written
the establishment or extension of the rural service district as a whole, or to the inclusion
{� J%
1064
1065 TAXATION, GENERAL PROVISIONS 272.67
}
or exclusion of any specified lands, or to the benefit ratio proposed to be established
;e subject
by the ordinance. They may be based on the character of the lands included or excluded
or on the relative nature and extent of tax supported municipal service and benefit to
1
this state
-,
lands of rural and urban character. ; ;_ ,. e ,:-
;.'!
gally due
Subd. 4. At or after the hearing the governing body shall modify the' ordinance in
any respect and to any extent which it considers equitable, and shall cause'it to be pub-
lished in the form in which it is finally adopted, and a copy mailed to each person enti-
i'
a
tled to ear at the hearing who has requested a co at the hearing orb
PP 8 q PY 8 Y written
notice to the clerk. Within 30 days after the publication of the ordinance or amend-
ment, any person entitled to appear at the hearing may appeal to the district court by
serving a notice upon the clerk of the city, stating the grounds for such appeal, specify-
ing the provisions of the ordinance or amendment which are claimed to be unreason-
able, and alleging the facts on the basis of which such claim is made. The notice shall
be filed with the court administrator of the district court within ten days after its ser-
vice. It may be filed by the appellant not only for the appellant but `also on behalf of
all others of the class to which the appellant belongs, as described in the ' notice of
appeal. The clerk of the city shall furnish the appellant certified copies of all proceed -
1,N DIS-
ings and records in the clerk's custody which are reasonably required to present the
I l.;+
appeal. The appeal shall be placed upon the calendar of the next general term comment -.
ated in a
ing more than ten days after the date of serving the notice and shall be tried in actor-
j
)division
dance with the provisions of the district court rules of civil procedure. If the appellant
i' i
finer pro-
does not prevail upon the appeal, the costs incurred shall be taxed by the court and judg-
j •, :1:::
it service
ment entered therefor. All objections to the ordinance or amendment shall be deemed
�. s..
property
waived unless presented on such appeal; except that any person having any estate, right,
thereon.
title or interest or en upon an
it t i li P y parcel of land, who claims that any provision of
A pursu-
the ordinance is unreasonable and that, by reason of such provision, any tax upon such
licipality
parcel exceeds the amount which would be taxable thereon but for such provision, may
;signaaid
have the validity of the claim determined by the district court in the manner provided'
fter, said
in chapter 278, if the claimant alleges and proves to the satisfaction of the court that
�E
nner that
the claimant had no actual notice of the hearing held thereon pursuant to this section,
and the claimant's rights were not adequately protected as a member of any class of per-
sons for whom an appeal was taken pursuant to this section. . _
are rural
Subd.• 5. Whenever any parcel of land, owned by one person 'or by two or more
r ..
sidential
persons jointl
P j y or in common at the time os inclusion in the rural service district,
is
lands by
CC vlaU d, in w enev hole o r in part, and wh annlinatinn ;� m�a F = ..o..Y. ar lle
i include
construction of a commercial, in dustrial or nrhan rPCirlPntial devPln�mPn� nr impro
'
rods out -
ment to be situated on such parcel or any part thereof, the board or officer approving
r. .
rict. The
such plat or building permit shall report this to the governing body, which shall make
Which are
and enter an order transferring such parcel from the rural service district to the - urban
;
approxi-
service district. .
.. _ .. _
benefits
Subd. 6. A certified copy of every ordinance, amendment; and order adopted or
et value,
entered under this section shall be filed with the county auditor before it becomes effec=
ively. By
tive. For the purposes of taxation, if the ordinance, amendment, or order is certified
x
)e added
on or before August 1 of a levy year, it may be implemented that same levy year. If the
dk
luired to
ordinance, amendment, or order is certified after August 1 of a levy year, it may not
be implemented following
C
until the levy year. The amount of taxes levied each year by
1
2, before
lotice
each city shall be certified to the county auditor in the manner now or hereafter pro-
vided by law. Taxes levied for
of
payment of bonds and judgments and interest thereon��
)ody not
shall continue to be spread upon all taxable property within the boundaries of the city
a
.ed from
in proportion to the net tax capacity thereof. The remaining amount of the taxes levied
hall give
each year shall be allocated by the county auditor to the urban service district and the
he ordi-
rural service district in amounts proportionate to the current benefit ratio times the cur-
e city or
rent ratio between the market values of all taxable property within the urban service
;d orally
district and all taxable property within the rural service district. Within each district,
[.
essed to
the amount so allocated shall be spread upon all taxable property in proportion to the
r
aclusion
net tax capacity thereof.
t;
5 f -
$i, = f
a �: i
272.67 TAXATION, GENERAL PROVISIONS 1066
' 7.-.This section does not affect the classification of individual parcels of land
for purposes of taxation under the provisions of section 271.13. No law or charter.limit-'
ing the incurring of indebtedness or the levy of taxes by any city by reference'io its pop-
- ulation or the net tax capacity of taxable property therein is amended by this section
in its application to any city whose area is divided into urban and rural service districts.
wm - = i Subd. 8. Notwithstanding the provisions of subdivisions 2 and 5, a rural service
district established by any city may include platted parcels of land which the governing
body determines to be rural in character and not developed for urban residential, com-
1 ' i'
_ ° j mercial, or industrial purposes. Whenever any lot or portion of a platted parcel which
is included in the rural service district is developed for commercial, industrial or urban
{t. residential purposes, or basic urban services such as sewer, water, or street improve-
ments are extended to any such lot or portion, the governing body, shall transfer the
• _ G. ( , entire platted paceT'to the urban service district. The governing body of such city shall
annually review the tax ratio applicable; to such platted parcels as determined under
_ 'y' fi 4 tit subdivision 2, and shall annually review the status of all such platted parcels to deter-
= i 9 f / mine whether such parcels continue to qualify for inclusion in the rural service district.
History: 1965 c 712 s 1; 1971 c 569 s 1; 1971 c.778 s 1; 1973 c 123 art 5s' 7; 1975
c 271 s 6, 1975 c 339 s 8; 1986 c 444; 1 Sp1986 c 3 art I s 82; 1988 c .719 art 5 s 84, 1989
c 329 art 13 s 20,- 1991 c 291 art 12s 7
i ' 272.68 PAYMENT OF TAXES AND ASSESSMENTS ON PROPERTY
1 ' ACQUIRED BY THE STATE.
I Subdivision 1. When the state or a political subdivision of the state, except the
' state transportation department, acquires a fee interest in property before forfeiture,
by any means, provision must be made to pay all taxes, including all unpaid special
- e assessments and future installments thereof, unpaid on the property at the date of
acquisition. For the purpose of this section, the date of acquisition shall be the date on
i which the acquiring authority shall be entitled under law to take possession of the prop-
- k; erty except in cases of condemnation, the date of acquisition shall be the date of the
filing of the petition in condemnation. Taxes which become a lien on such property
after the date of acquisition and before the condemning authority is by law entitled to
actually take possession thereof shall, if paid by the owner, be added to the award, and
if not so paid, shall be paid by the condemning authority. Taxes lawfully levied shall
—� not be abated. This subdivision shall not be construed to require the payment of
accrued taxes and unpaid assessments on the acquired property which exceed the fair
market value thereof. The'state or a subdivision acquiring property may make provi-
sions for the apportionment of the taxes and unpaid assessments if less than a complete
parcel is acquired.
If such accrued taxes and unpaid assessments are not paid as hereinabove required,
then the county auditor of the county in which the acquired property is located shall
notify the commissioner of finance of the pertinent facts, and the commissioner of
finance, shall divert an amount, equal to such accrued taxes and unpaid assessments
from any funds which are thereafter to be distributed by the commissioner of finance
or the state treasurer to the acquiring authority, and shall pay over such diverted funds
to the county treasurer of the county in which the acquired property, is.located in pay-
ment of such accrued taxes and unpaid assessments.
Subd. 2. Property otherwise taxable, which is acquired by subdivisions of govern-
ment shall remain taxable until the acquiring authority is by law or by the terms of a
purchase agreement entitled to actually take possession thereof_
Subd. 3. If the acquiring authority permits a person to occupy the property after
the acquiring authority has become entitled to actual possession, the authority shall
charge a reasonable rental therefor and shall pay to the county treasurer to be distrib-
uted in the same manner as property taxes .30 percent of the rental received, or such
percentage as may be otherwise provided by law.
Subd. 4. When the political subdivision is a housing and redevelopment authority
which has obtained the right to take possession of a property in.a redevelopment project