1.1                          A bill for an act 
  1.2             relating to state lands; authorizing private or public 
  1.3             sale of tax-forfeited lands bordering public waters in 
  1.4             Itasca county. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [SALE OF TAX-FORFEITED LANDS; ITASCA COUNTY.] 
  1.7      Subdivision 1.  [SALE AUTHORIZED.] Notwithstanding 
  1.8   Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, 
  1.9   and the public sale provisions of Minnesota Statutes, chapter 
  1.10  282, Itasca county may in its sole discretion sell tax-forfeited 
  1.11  lands bordering public waters that are currently leased for 
  1.12  recreational purposes under Minnesota Statutes, section 282.04.  
  1.13  Itasca county may also sell other tax-forfeited lands that are 
  1.14  not necessary for public access to water and that have been 
  1.15  included in the plats of tax-forfeited lands authorized for sale 
  1.16  under this section or such adjacent tax-forfeited lands 
  1.17  necessary for roadway access and the creation of conforming lot 
  1.18  sizes. 
  1.19     Subd. 2.  [METHOD OF SALE.] (a) The leaseholder of a leased 
  1.20  parcel may at private sale purchase the leased parcel and any 
  1.21  other lands allocated to the parcel by the county under 
  1.22  subdivision 5 that is offered for sale under this section.  The 
  1.23  purchase price shall be the appraised value of the land 
  1.24  exclusive of improvements thereon.  To purchase a parcel, a 
  1.25  leaseholder must tender to the county in cash an amount equal to 
  2.1   the appraised value of the land within 180 days from the date of 
  2.2   mailing or service of notice of appraised value upon the 
  2.3   leaseholder by the county.  The 180-day period shall run from 
  2.4   the date of mailing of a copy of the appraisal to the 
  2.5   leaseholder at the address shown upon the most recent lease 
  2.6   agreement between the parties, exclusive of the date of mailing 
  2.7   or service.  The county may at its option use any alternative 
  2.8   method of notice as set forth in the Minnesota Rules of Civil 
  2.9   Procedure for the service of a summons and complaint.  
  2.10     (b) In the event the leaseholder does not purchase the 
  2.11  parcel so offered, the county may in its sole discretion offer 
  2.12  the lands for sale at public auction in accordance with the 
  2.13  provisions of Minnesota Statutes, section 282.01, subdivision 
  2.14  3.  If a person other than the leaseholder purchases the parcel, 
  2.15  the purchaser must make payment in full to the leaseholder in 
  2.16  the manner provided in Minnesota Statutes, section 92.06, 
  2.17  subdivision 4, for the value of any improvements as determined 
  2.18  under subdivision 3.  
  2.19     (c) Failure of a purchaser to comply with the terms of 
  2.20  payment voids the sale and the property may be reoffered for 
  2.21  sale.  
  2.22     Subd. 3.  [APPRAISAL.] (a) An appraisal shall be made in 
  2.23  accordance with Minnesota Statutes, section 282.01, subdivision 
  2.24  3, except as modified by this subdivision.  Improvements that 
  2.25  are owned by the lessee shall be appraised separately.  
  2.26     (b) An appraiser shall be selected by the county.  The 
  2.27  appraiser selected shall meet the minimal appraisal standards 
  2.28  established by the federal Farmers Home Administration or the 
  2.29  federal Veterans Administration, be licensed under Minnesota 
  2.30  Statutes, section 82B.03, and be approved by the department of 
  2.31  natural resources to appraise the property to be sold. 
  2.32     (c) The costs of appraisal shall be allocated by the county 
  2.33  to the lots offered for sale and the successful purchaser on 
  2.34  each lot shall reimburse the county for the appraisal costs 
  2.35  allocated to the lot purchased.  If no one purchases a lot, the 
  2.36  county is responsible for the appraisal cost.  
  3.1      (d) If a leaseholder disagrees with the appraised value of 
  3.2   the land or leasehold improvements, the leaseholder may select 
  3.3   an appraiser that meets the qualifications set forth herein to 
  3.4   reappraise the land and improvements.  The leaseholder must give 
  3.5   notice of its intent to object to the appraised value of the 
  3.6   land and buildings within ten days of the date of the mailing or 
  3.7   service of notice under subdivision 2, paragraph (a).  The 
  3.8   reappraisal must be delivered by the leaseholder to the county 
  3.9   auditor within 60 days of the date of mailing or service of 
  3.10  notice of appraised value under subdivision 2, paragraph (a), or 
  3.11  the initial appraisal shall be conclusive.  The leaseholder is 
  3.12  responsible for the costs of this reappraisal.  If the parcel is 
  3.13  reappraised within the time set forth herein and the county and 
  3.14  the leaseholder fail to agree on the value of the land and 
  3.15  improvements within 30 days of the date of delivery of the 
  3.16  reappraisal, each of the appraisers shall agree upon the 
  3.17  selection of a third appraiser to conduct a third appraisal that 
  3.18  shall be conclusive as to the value of the land and 
  3.19  improvements.  The cost of this appraisal shall be paid equally 
  3.20  by the county and the leaseholder. 
  3.21     Subd. 4.  [SURVEY.] (a) Itasca county shall cause to be 
  3.22  surveyed according to Minnesota Statutes, chapter 505, and the 
  3.23  Itasca county platting and subdivision ordinance, each lot prior 
  3.24  to offering it for sale.  
  3.25     (b) The costs of survey shall be allocated by the county to 
  3.26  the lots offered for sale and the successful purchaser on each 
  3.27  lot shall reimburse the county for the survey costs allocated to 
  3.28  the lot purchased.  If no one purchases the lot, the county is 
  3.29  responsible for the survey costs.  All surveying must be 
  3.30  conducted by a licensed surveyor.  
  3.31     Subd. 5.  [ADDING LANDS; ZONING CONFORMANCE.] Any lands to 
  3.32  be sold under this section shall for zoning purposes be 
  3.33  considered lots of record.  Whenever possible, Itasca county may 
  3.34  add tax-forfeited land to the lots offered for sale to permit 
  3.35  conformance with zoning requirements.  The added lands must be 
  3.36  included in the appraised value of the lot.  
  4.1      Subd. 6.  [ROADWAYS.] Itasca county shall have the 
  4.2   authority to designate whether roads within minor subdivisions 
  4.3   under the county platting and subdivision ordinance are public 
  4.4   or private.  
  4.5      Subd. 7.  [DEPOSIT OF PROCEEDS; ENVIRONMENTAL TRUST FUND.] 
  4.6   The proceeds from the sale of the land under this section must 
  4.7   be deposited in an Itasca county environmental trust fund, 
  4.8   established under Laws 1998, chapter 389, article 16, section 
  4.9   31, subdivision 4. 
  4.10     Subd. 8.  [SUNSET.] This section expires five years after 
  4.11  the day of final enactment.