Sponsor: Property Tax, Records & Election Services
Title
title
Public Online Auction of 64 Tax-Forfeited Properties Utilizing MNBid
end
Recommendation
recommendation
1. Authorize the County Manager to hold a public online auction of 64 properties, according to the terms and conditions set forth in the Notice of Sale, Exhibit A.
2. Approve the appraised value of each parcel as listed on the Auction List, Exhibit B.
3. Certify that all parcels of land have been viewed and none of the parcels physically pertain to the provisions of Minnesota Statutes, sections 85.012, 92.461, 282.01, subdivision 8, and 282.018.
4. Authorize the County Manager to remove any parcel prior to auction where insufficient time exists for board approval of the removal from the auction and to bring it back to the board for ratification of the removal.
end
Background and Rationale
body
The Productive Properties (“PRP”) section of the department of Property Tax, Records and Election Services (PTRES) will hold a public online auction of 64 tax-forfeited properties consistent with Minnesota Statutes, section 282.01, subdivision 1. The 64 properties consist of 16 properties improved with structures, and 48 vacant lots. The public sale will be held via online auction and conducted by the Minnesota Department of Administration, Fleet & Surplus Division, using their MNBid website. The auction will open for bids on October 21, 2024 at 10:00 a.m. and will close on November 22, 2024 at 10:00 a.m.
PRP has prepared a Notice of Sale, as Exhibit “A,” stating the terms and conditions governing the public auction, and an Auction List, as Exhibit “B,” containing the list of properties for sale and general information pertaining to each property being offered for sale. See link to maps: <https://www.ramseycounty.us/sites/default/files/Property/Maps_0.pdf>
If, for any reason, it is necessary to remove a parcel from the auction list, once it has been approved by the board, and there is insufficient time to obtain board approval prior to the auction, the County Manager will authorize removal of the parcel from the auction and bring it back to the board for ratification.
This public sale is guided by Section 10. Laws 2024, Chapter 113, section 1, subdivision 2, as amended. Some key Terms and Conditions are as follows:
1) The sale will be for no less than its appraised value and sold to the highest bidder;
2) The sale will be for cash only and not on contract-for-deed terms; and
3) If the property is a residential property with four or fewer residential units or a property that is unimproved with a structure, a person purchasing the property must intend to own and occupy the property as a residence or intend to use the property for a noncommercial personal use.
Any remaining unsold parcels will be offered for sale the next business day following the public auction at the PRP office, for their respective appraised value on a first-come-first-served basis.
end
County Goals (Check those advanced by Action)
☒ Well-being ☐ Prosperity ☐ Opportunity ☐ Accountability
Racial Equity Impact
The tax forfeited land process is guided by statute and includes required steps be taken to be compliant within the law. This process includes an equity component that allows all individuals access to tax forfeited land. This is especially important because the majority of parcels up for auction are in densely populated and urban areas. Conducting an online auction reduces barriers for individuals and create equitable access for anyone interested in purchasing parcels through the online auction process. It also puts parcels back on the tax rolls, making them productive once again and potentially easing the tax burden on residents living in those communities.
Community Participation Level and Impact
Visibility and transparency are incredibly important to the team and that is why Productive Properties (formerly Tax Forfeited Land) will use multiple channels of communication to engage with the community. The community will be notified of online auctions by board action; publication in the official newspaper for Ramsey County legal notices; publication on the county’s website at ramseycounty.us/productiveproperties; via mailed notice letters to adjacent landowners for each auction property; and through the GovDelivery email subscription service.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
Ramsey County will have a different process managing tax forfeited land revenue from sales than previous years. Due to new laws impacting tax forfeited land, the county is required to manage its surplus of funds from the sale of parcels, forfeiting between January 1, 2016 - December 31, 2024, as follows:
• The county will remit 75% of the online auction proceeds to the commissioner of management and budget until June 30, 2027 with the remaining being retained.
• From July 1, 2027 to June 30, 2029, the county will remit 85% of the proceeds from the online auction sales and the remaining will be retained.
Last Previous Action
None.
Attachments
1. Notice of Sale of Tax-Forfeited Land, Exhibit A
2. Ramsey County Tax-Forfeited Land Auction List, Exhibit B
3. Maps <https://www.ramseycounty.us/sites/default/files/Property/Maps_0.pdf>