Item Description:
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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 County Administrator 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 county program, project, or initiative for which the funding has been approved by the County 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 county, 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 Resolution 24-0359.
The county has authority to acquire real estate (Minn. Stat. § 373.01). The County Administrator may perform duties delegated to the office of the administrator by the board (Minn. Stat. § 383B.101). Delegation of authority to acquire tax-forfeited land through public auction will allow the county to acquire tax-forfeited land in compliance with the new state law. Delegation will allow the county to continue to acquire tax-forfeited properties that are good candidates for rehabilitation, redevelopment, climate resiliency projects, other county purposes. All property acquired and agreements executed under this proposed delegation of authority will be reported to the County Board on a quarterly basis.
Impact/Outcomes:
This request will allow Hennepin County to acquire tax-forfeited land through public auction in compliance with recent changes to state legislation.
recommendation
Recommendation from County Administrator: Recommend Approval