The Importance of Tax Forfeited Land
By Nancy Nelson, DPPA member
What's all the fuss about tax forfeited land? What exactly IS
tax forfeited land? Why should the DPPA care? After following this
murky and confusing issue for several months, here is what I think I
understand about it.
When taxes are not paid on privately-owned land, ownership
reverts to the State of Minnesota. Tax forfeited parcels are managed
by the County Board, which, according to Chapter 282 of the Minnesota
Statutes, must classify each parcel as 'nonconservation' or
'conservation.' 'Nonconservation' lands can be sold at public auction
while 'conservation' lands are withheld from sale. The statute does
not specify how long land can remain in conservation.
For many years, Duluth has maintained thousands of acres of
undeveloped tax forfeited land in conservation. Much of the land in
Duluth's greenbelt is tax forfeited land, including portions of some
parks (e.g., the upper portions of Lester Park). The city also uses
this system to acquire land for public purposes such as stormwater
management or road construction as well as to assemble larger land
packages for possible development projects.
But for the last few years, the St. Louis County Board has taken
the position that land cannot be kept in conservation for any length
of time. The County Attorney's current interpretation of the state
statute indicates that if the City wishes to hold on to tax forfeited
parcels, the City must act within 6 months to permanently acquire the
land. If the City does not act in that time period the land will be
sold.
This is a new interpretation of the statute, and not everyone
agrees with it. Other attorneys have interpreted the statute to
indicate that the County's classification, reclassification, and sale
of land must be approved by the City. But in the meantime, the
Planning Department is moving forward on a review of all tax forfeited
parcels within Duluth. This review begins with an evaluation by
representatives of various city departments to determine whether the
parcels should be preserved as open space, maintained for some other
public purpose, or sold for development. After this committee reviews
the parcels, their recommendations are shared at a public open house,
then passed along to the Planning Commission and the respective
neighborhood districts. This review is already underway for
neighborhood districts 7, 8, and 9.
Former city planner Jerry Kimball, along with several DPPA
members, met recently with city staff, county staff, and Mayor Bergson
to question the rationale behind this process. Following that meeting,
City Attorney Bryan Brown issued a memo that supports the City's role
in approving the classification of tax forfeited lands.
While a thorough review of tax forfeited parcels may be needed,
there are numerous reasons why the timing of the review is
inappropriate. The City is currently searching for a new Director of
Planning, the Planning Department does not have the resources for such
a massive project, and decisions about the future of the tax forfeited
land should be part of the comprehensive planning process. If the City
follows the current time schedule, the review process will be
completed by the end of 2004, long before a comprehensive plan is
ready. Without a comprehensive plan, these decisions will be made
without the context of a citywide vision.
The DPPA urges the City to challenge the County's
interpretation of the statute that governs the sale of tax forfeited
land. It is important that the City exercises its legal authority to
object to the County's reclassification of land. Allowing the
County to drive this process is endangering the purpose and long term
value of the tax forfeited land conservation system.
These articles are retained on
the web for historical interest and do not necessarily reflect the
views or goals of DPPA today.
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