1fCITYOF
~,ity Center Drive, PO Box 147
anhassen, Minnesota 55317
Phone 612.937.1900
;eneral Fax 612.93Z5739
;ineering ?ax 612.93Z9152
'lic Safe~v lax 61Z934.2524
www. ci. chanhassen, mn. us
MEMORANDUM
TO: Mayor
City Council
FROM: Scott A. Botcher, City Manager~~
DATE: September 21, 1999
SUB J: Declination of Offer to Purchase Tax Forfeited Property
Attached please find a state required offer made by the county to the city to
consider the purchase of tax forfeited property located within our community.
This property is located in the Carver Beach neighborhood. I have shared this
information with all department heads and none of them have indicated that it
would be in the city's interest to purchase this propertY.
That being said, I would request that the council, as a part of the consent agenda,
decline the offer to purchase this tax forfeited property.
Thank you.
g:\userXscottb\tax forfeited lands.doc
.ity Ofi Chanhassen, A ~owin~, community with c{ean {akes, qua[in, schools, a charminz downtown, thriving businesses, and beautiful oarks. A ereat o/ace to live, work, and o/ay.
CARVER
COUNTY
Office of County Auditor
Carver County Government Center
Administration Building
600 East Fourth Street
Chaska, Minnesota 55318-2184
Phone (612) 361-1910
(612) 446-1722
Fax (612) 361-1919
August 12, 1999
Mark Lundgren
County Auditor
City of Chanhassen
Scott Botcher
690 City Center Dr
PO Box 147
Chanhassen, MN 55317-0147
Dear Scott Botcher,
Enclosed is a listing of conservation and non-conservation land located in your city/township.
The parcels described in the listing have been forfeited to the State of Minnesota for non-
payment of property taxes.
As required under MS 282.01, we request that you approve the parcel(s) for public auction or
auction to adjacent owners or request a conveyance to your city/township for public use. These
parcels are also being sent to the Department of Natural Resources for approval of sale.
We require a certified copy of the City Council/Township Board Resolution authorizing
any action taken. [f you request that a parcel be conveyed to your city/township, you must
also complete the enclosed form "Application by a Governmental Subdivision for Conveyance
of Tax-Forfeited Land" and mail it to this office. One application must be filled out for each
parcel you are requesting. Hake copies of the enclosed form as necessary. Your application will
be subject to the approval by the Department of Natural Resources of these parcels for sale.
Also, please return the original CERTWZCATE OF COUNTY BOARD OF FORFE]TED LANDS to my
office after your city/township boards have signed the documents along with $1.65 deed tax,
$5.00 ag conservation fee, and $19.50 recording fee for each parcel of land you wish to retain.
Only new special assessments that were levied after the forfeiture need be certified to this
office. The remaining balance of any assessments levied before the forfeiture will be picked up
automatically.
Please be advised that if the City Council/Township Board fails to respond within
ninety {90) days of the date of this letter, the sale will be deemed to be approved.
If you have any questions, please feel free to contact me at (612) 361-1905.
Sincerely, ~_.~,
Hark Lundgren '
Carver County Auditor
\\CARVERNT0\SMITCHEL\Word\Tax Forfeit\CityTwp Sale Approval .doc
Affirmativc AclionTEqual Opportanity Employer
Printed on 10% Post-Consunter Recycled Paper
· Note: If the governmental subdivision has purchased the tax-forfeited property, Form PT
Form 80 should be used as the application for a state deed. If the tax-forfeited
property has been purchased, it is not subject to the rule of reversion. The
application PT Form 962 should only be used if the governmental subdivision is
not purchasing the tax-forfeited property involved, and is only seeking to have it
conveyed for an authorized public use, subject to the rule of reversion.
Front Side of Form
Name of County: Enter the name of the county where the tax-forfeited property is located in the
space provided under the note on the PT Form 962.
Name of Governmental Subdivision (Applicant): Enter the name of the governmental
subdivision (county, school district, city, town, or special taxing district) that is applying for
conveyance of the tax-forfeited land for an authorized public use on the line provided for this
name. Examples of special taxing districts include the Metropolitan Council, MCDA, housing
and redevelopment authorities (HRA's), economic development authorities (EDA's), port
authorities, regional development conunissions (RDC's), hospital districts, and watershed
districts.
Mailing Address: Enter the mailing address of the governmental subdivision (applicant) on the
line provided for this address. This should be the address used for the regular deliver5, of U.S.
mail.
Date of Forfeiture: On the line provided, enter the date that the requested property was
forfeited to the state. Enter the month, day, and year. This information should be available from
the county auditor's office.
Legal Description: In the box provided, enter the complete legal description of the requested
tax-forfeited property.
Intended Authorized Public Use: In the space provided, de§cribe the intended authorized
public use to be made of the tax-forfeited property. You must be specific. If more room is
needed, use attachments. The following definitions and examples are provided to assist you in
preparing your description. The intended authorized public use must meet both of the definitions
in order to qualify for a use deed.
Definition #1: Purpose Authorized by Statute. Law. or Ci.ty Charter
The public purpose must be authorized by statute, special law, or city charter. For example, a
school district may want to acquire a parcel of tax-forfeited land by use deed for the purpose of
excavating sand and gravel for sale. This request should be denied because there is no legal
authorization for a school district to benefit financially from the excavation of sand and gravel.
On the other hand, a county may want to acquire the same parcel by use deed for the purpose of
using the sand and gravel for county road construction and maintenance. This request could be
approved because a county is authorized to acquire property for this purpose.
Definition #2; Parcel Must Be Available to the General Public
The intended use of the property must be one which allows the general public to use the parcel of
tax-forfeited land. If only a select group of people would have access to the parcel, the request
for a use deed should be denied. For example, a city may want to acquire a parcel of tax-forfeited
land by use deed to build a parking lot next to the city's municipal garage. The parking lot would
be used exclusively by city employees. The proposed use would qualify under definition #1
because a city is authorized to acquire property for an employee parking lot. However, the city's
request for a use deed would have to be denied because the parking lot would not be available to
the general public. It fails under definition #2. If the city wanted the land for an employee
parking lot, it would have to purchase the property. On the other hand, if the city's intended use
for the parcel of tax-forfeited land was for a municipal parking lot available to the general public,'
its request for a use deed could be approved. In this case, both definitions #1 and #2 would be
- satisfied.
Examples of authorized public uses which have been approved by the Department of
Revenue in the past are: (1) parks and recreation areas; (2) municipal parking lots; (3) roads,
streets, and highxvays; (4) drainage areas; (5) walking and biking trails; and (6) fire stations
and town halls.
· "Open space" is not an acceptable authorized public use by itself.
The general rule is ,one application for one parcel for .one authorized public use. An
exception is made for two or more contiguous parcels on one application for one authorized
public use. A use deed will not be issued for a parcel for two or more unrelated public uses.
If the authorized public use is by special law or by city charter rather than by statute, this
should be documented. If a special law enacted by the Minnesota legislature directs the
conveyance of a specific parcel of tax-forfeited land to the governmental subdivision, the
year, chapter, article, section, and clause (as applicable) for this special law should be listed.
A copy of the law with the specific conditions and requirements for the conveyance
highlighted should be attached. If the authorized public use is by city charter, attach a copy of
the relevant city charter provision.
Each application must include the specific language for any easement or other restriction that
must be listed on the state deed. The language for a conservation easement must be worked out
with the Department of Natural Resources (DNR.).
A governmental subdivision may retain title to a parcel of tax-forfeited land by use deed as long
as the parcel continues to be used for the authorized public use listed in the use deed. If the parcel
is not put to its intended use, or if the use changes, the parcel must be reconveyed to the state
(using a PT Form 975 for a total conveyance or a PT Form 976 for a partial conveyance), unless
the governmental subdivision completes and files a PT Form 961 -- Application for Approval of
a New Authorized Public Use of Tax-Forfeited Lands. This rule is known as the "Rule of
Reversion."
There are two exceptions to the Rule of Reversion. They are outlined below.
Economic Development and Redevelopment under Minnesota Statutes Chapter 469
Housing and redevelopment authorities (HRA's), economic development authorities (EDA's),
port authorities, and cities that document an economic development or redevelopment project
under M.S. Chapter 469 may be issued a use deed which grants them an exemption from the
Rule of Reversion if the parcel is reconveyed to another party as part of the project. To qualify
for the exemption, a certificate of termination of reversion must be filed with the county
recorder's office or the registrar of titles as soon as the parcel has been conveyed. ~
Economic Redevelopment in Targeted Neighborhoods
An HRA, an EDA, a port authority, or a city may acquire a parcel of tax-forfeited land located in
a targeted neighborhood as defined by M.S. 469.201, Subd. 10 for the redevelopment of the land
as productive taxable property. The use deed that would be issued would contain the Rule of
Reversion clause. However, the Rule of Reversion clause could be negated by the filing of a
certificate of termination of reversion with the county recorder's office or the registrar of titles
office as soon as the parcel has been conveyed to a third party who would be subject to property
taxes. If your governmental subdivision intends to use the tax-forfeited land for economic
redevelopment in a targeted neighborhood, this must be documented on the application form.
Need for the Property: In the space provided, state the need for this particular tax-forfeited
property. Be specific. For example, why this property instead of some other property? W[,~at
needs will be satisfied or what problems eliminated or reduced by the conveyance of this
property to your governmental subdivision? Are these needs already being met or can they be
met without acquiring this property?
Correction of a Previously Issued Use Deed: If the application is to correct the governmental
subdivision's name and or legal description shown on a previously issued use deed, the
appropriate box or boxes should be checked to indicate this intent. The state deed number for the
original use deed should also be entered on the line provided for this purpose. If the original use
deed has been recorded, you should supply the recording information by typing it on the form or
attaching this information to the form. If the original use deed has not been recorded, the original
use deed should be returned to: Minnesota Department of Revenue, Property Tax Division, Mail
Station 3340, St. Paul, Minnesota 55146-3340.
Disclosure of Location of Wells: State law (M.S. 1031.235) requires the disclosure of wells on
tax-'forfeited land being conveyed. The face of the use deed will indicate whether or not them are
wells on the property. It is the county auditor's (or land commissioner's) responsibility to check
the appropriate box on the application form indicating whether: (a) there are one or more wells
on this property; or (b) there are no wells on this property.
Note: A Wetland Certification Form must be completed and attached to each application
form, including application forms for corrective use deeds. This is needed by the
Department of Revenue to determine whether or not a restrictive covenant must be
inserted in the use deed. This form will be taken care of by the count3' auditor (or land
commissioner).
Back Side of Form
The authorized representative of the governmental subdivision (applicant) must sign the PT
Form 962 at the top of the back side of the form, and have the signature notarized.
The application form must then be presented to the county board for its review and
recommendation. An authorized representative of the county board must sign for the board.
The next step is for the county auditor (or land commissioner, if the county has a land
commissioner) to certify that all of the steps required by statute to prepare a parcel of tax-
forfeited land~ for c.onveyance for an authorized pu.blic use have been taken care of.
Finall~, th~ use deed application form must be sent to the Commissioner of Revenue for review,
and for approval or denial. The Commissioner's decision is final.
The following persons in the Property Tax Division of the Department of Revenue are available
to provide assistance in the completion of the PT Form 962:
General Procedures and Requirements ..................... Bob Lerfald ...... (612) 296-5139
Forms and Forms Completion ................................. Scott Johnson ....(612) 296-0394
Revised (10/11/96)
4
PT Form 962 (Revised I0/11/96) Minnesota Department of Revenue
Staple All Correspondence
Application by a Governmental Subdivision for Conveyance of
Tax-Forfeited Lands for an Authorized Public Use
(Minnesota Statutes, Section 282.01, Subdivisions la through lc)
(Notc: If the governmental subdioision has purchased thc property, usc PT Form 80)
In Carver
Name of governmental subdivision (applicant):
Mailing address of applicant:
Date requested property was forfeited to the State:
(month)
(day) (year)
Legal description of property (include the name of the city/town in which the property is located):
Describe the intended public use to be made of the property (be specific, including statute or special law
references, if relevant):
State the need for the property (be specific, e.g., why this property instead of some other property?):
Please check the appropriate boxes below:
[] correcting governmental subd. name
and/or
[--] legal description
original deed no.
(If recorded, please supply recording information.
lfnot recorded, please return the original state deed.)
A Wetland Certification Form Must Be Attached To This Application
Return application to: MN Department of Revenue · Property Tax Division · Mail Station 3340 · St. Paul, MN 55146-3340
[~ There are one or more wells on this property
[~] There are no wells on this properly
STATE OF MINNESOTA )
) SS.
County of )
being first duly sworn, deposes and says that he/she is the
authorized representative of the applicant named herein, that he/she has read said application and knows the
contents thereof, and that the matters stated therein are true and correct.
Name Title
Subscribed and sworn to before me this
day of ,19
Notary Public,
My commission expires
County, Minn.
RECOMMENDATION OF COUNTY BOARD UPON APPLICATION
The County Board of C~rlfer County, Minnesota, has reviewed the application
of dated ., 19 , for the
conveyance for an authorized public use of certain tax-forfeited land described therein. The county board
recommends that this application be: rejected __ granted __
Signature (for the County Board)
· Date
CERTIFICATION OF COUNTY AUDITOR OR LAND COMMISSIONER
I have taken the necessary steps required by Minnesota Statutes to prepare the herein described tax-forfeited
land for conveyance for an authorized public use.
Signature of County Auditor or Land Commissioner Date
OFFICE OF THE COMMISSIONER OF REVENUE
St. Paul, Minn.,
Upon due consideration of this application, it is ordered that it is hereby:
rejected __
.,19
granted
By
Commissioner of Revenue
CERTIFICATE OF COUNTY BOARD OF CLASSIFICATION OF FORFEITED
LANDS AS PROVIDED BY CHAPTER 386, LAWS 1935
AS AMENDED.
To the Board of the City, of Chanhassen.
We, the members of the County Board of the County of CARVER, Minnesota, do hereby certify that
the parcels of land hereinafter listed are all of the lands which have been classified by us as
conservation/non-conservationLands, from the list of lands forfeited to the State of Minnesota for non-
payment of taxes for the year or years 1993 as provided by Minnesota Statutes 1945, Section
282.01 as amended.
AppraisedValue of Conservation/
PID#/Legal Description Land Non-Conversation
PID# 25-1600340
Lots 501 & 502, Carver Beach $1,000 Non-Conservation
In witness whereofwe have hereunto subscribed our names this/O ~ day of ~ uL6~','~ ,lg_~
John Siegfried, Chair ~_G
James Ische
Ursula Dimler
Harlan Dobra~
Attest: Mark Lundgren
Cawer County Auditor
The foregoing classification and sale is hereby approved on
Bythe Board of the City of Chanhassen.
Filed this ~ day of ,19
Mark Lundgren, Carver County Auditor
By:
Deputy
Darfted by:
Carver County Auditor's Office. Government Center - Administration Building, 600 East 4~ Street, Chaska, MN 55318-2184