Item Description:
title
Delegation of authority to acquire tax-forfeited land through public auction
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Resolution:
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BE IT RESOLVED, that the Executive Director or their designee be delegated authority to acquire tax-forfeited land being sold through public auction by the Hennepin County Auditor; and
BE IT FURTHER RESOLVED, that this delegation includes, but is not limited to, the authority to bid on tax-forfeited land being sold through public auction, to make payment for winning bids and applicable transfer fees and related costs, to execute deeds and other agreements related to the conveyance of property, and any other acts that may be reasonably necessary to acquire tax-forfeited land through public action; and
BE IT FURTHER RESOLVED, that this delegation shall apply only to the acquisition of tax-forfeited land located in Hennepin County that has been identified for use by a program, project, or initiative for which the funding has been approved by the Hennepin County Regional Railroad Authority Board and where such funding will be sufficient for the acquisition; and
BE IT FURTHER RESOLVED, that this delegation is effective beginning January 1, 2025.
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Background:
Recent state legislation has resulted in changes to the property tax forfeiture process in Minnesota. Under prior law, counties had several options for disposition of tax-forfeited property, including sale at auction, sale through a private broker, or conveyance to other public entities. As a result of the recent legislative changes, properties that become tax-forfeited in 2024 or in subsequent years must first be offered for sale at a public auction. As a result, public entities, including the Hennepin County Regional Railroad Authority (“HCRRA”), must participate in tax forfeiture auctions in order to acquire property being sold through the tax-forfeiture process if they want to secure these properties. Authority to administer public auctions of tax-forfeited land pursuant to the new state law was delegated to the County Auditor by Hennepin County Resolution 24-0359.
HCRRA has authority to acquire real estate (Minn. Stat. § 398A.04, subd. 1(2)). Under HCRRA’s bylaws the Executive Director is “responsible for performing such powers and duties as [HCRRA] delegates.” (Bylaws, Art. II, § 9.) Delegation of authority to acquire tax-forfeited land through public auction will allow HCRRA to acquire tax-forfeited land in compliance with the new state law. Delegation will allow HCRRA to continue to acquire tax-forfeited properties as appropriate to “provide for the preservation and improvement of local rail service for agriculture, industry, or passenger traffic” and other HCRRA purposes. Minn. Stat. § 398A.02. All property acquired and agreements executed under this proposed delegation of authority will be reported to the HCRRA Board on a quarterly basis.
Impact/Outcomes:
This request will allow HCRRA to acquire tax-forfeited land through public auction in compliance with recent changes to state legislation.
recommendation
Recommendation from County Administrator: Recommend Approval