2016.09.19 CC Packet - Laserfiche WebLink

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(3) by paying LESS THAN MARKET VALUE Correcting Blight and Creatine Affordable Housing, Non -conservation tax -forfeited lands may be sold by the county board to an organized or incorporated governmental subdivision of the state or state agency for less than their market value if: 1. The county board determines that a sale at a reduced price is in the public interest because a reduced price is necessary to provide an incentive to correct the blighted conditions that make the lands undesirable on the open market, or the reduced price will lead to the development of affordable housing; AND 2. The governmental subdivision has documented its specific plans for correcting the blighted conditions or developing affordable housing, and the specific law or laws that empower it to acquire real property in furtherance of the plans. (M.S. 282.01, Subd. la, para. (d)) The Department of Revenue has not defined what a "specific plan" is or is not. The county is therefore given some discretion as to what is specific enough, reliable enough, or extensive enough to meet this requirement. The Department of Revenue does not need a copy of the plan and it will not directly officiate whether it meets the "specific pian" threshold. However, the plan does need to be in written form and describe with some specificity the intentions for the use of the land. Perceived abuses may cause the Department to consider proposing law changes with more specific requirements. The intent behind M.S. 282.01, Subd. la, para. (d) is to avoid general economic development land speculation. A discounted price for the land is earned by the public good associated with blight removal or affordable housing. Citing generic pursuits within the entirety of the Housing and Redevelopment Authority statutes is not sufficient to qualify for the discounted price for the sale of land. A county that suspects economic development land speculation is a motivating factor for the application by the governmental subdivision should not approve the sale. The county must recite the specific statute or law that empowers the local unit to acquire the property. The Department of Revenue may provide some direct oversight in this area to ensure that there is authority since the deed and the act of acquisition are immediately relevant. If the laws outlined above are complied with for a tax -forfeited land sale at less than market value, the commissioner of revenue must convey the property on behalf of the state by quit claim deed. If the sale is to a state agency, the commissioner must issue a conveyance document that releases the property from the trust in favor of the taxing districts. (M.S.282.01, Subd.1a, para. (d))