DEPARTMENT: Physical Development Administration
FILE TYPE: Regular Information
TITLE
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Update On Excess Property Disposition Process
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RESOLUTION
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Information only; no action requested.
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BACKGROUND
The County owns many properties, and some may no longer be vital for the County’s operational goals. As staff looks at potential options for these properties, it is important to provide the Board with a framework for how dispositions and upcoming Board requests will be handled in the future.
Dakota County has previously acquired property, often in association with transportation or other capital projects even though only portions of the property were needed to complete the project for providing design/construction options or for financial considerations. These unused portions or “excess” properties may or may not serve a current or future public purpose.
Staff propose to inventory potential excess properties and bring them through an internal vetting process to determine which parcels could be sold and put back on the tax roll. Internal vetting will include research to determine why the property was acquired by the County and what funding source was used, as well as communication with department heads and the Plat Commission to confirm there is no current or future need for the County to continue to own the property.
Beyond internal coordination, staff will also reach out to external partners like the Community Development Agency (CDA), the Soil and Water Conservation District (SWCD), and the local jurisdiction where the property is located to confirm there is not another public need for the property beyond the County’s purview.
Once vetting is completed and it is confirmed that the property is no longer serving a public purpose, staff will determine the minimum bid for the land auction. The minimum bid can be determined a variety of ways depending on the potential value of the property. For minor remnants that serve little economic need, the Real Estate Office can provide a comparative market analysis to set a minimum bid. For larger parcels with more value, it may be in the County’s best interest to pursue a formal appraisal to understand the potential value an auction would bring. For valuable properties with potential to exceed $500,000, working with commercial land brokers could produce better advertising and generate more interest from perspective buyers. Staff will bring forward recommended actions to the County Board on a parcel by parcel basis.
Once a proposed minimum bid is determined, staff will come to the County Board seeking authorization to sell the property via auction with the minimum bid requirement. The County Board may recess to a Closed Session to review confidential or protected nonpublic appraisal data or determine the asking price for the property. If the Board provides authorization, staff will work with external agencies on purchase agreements or if it’s going to bid, a public notice will be published in the local paper advertising the time and place of the land auction.
The location of the deposit of proceeds from any given sale depend on what funding source was used when the County first acquired the property. If Transportation funds were used, the proceeds would go back to Transportation’s general fund. If state bonding funds were used, the proceeds would go back to the Minnesota Management and Budget. The funding source will be identified and explained with any request to the Board so there is an understanding of where any proceeds will end up if a sale were to occur.
This approach to excess land disposition will allow the County to sell off excess property to help refill funding gaps and put properties back on the tax roll. Only owning property that is needed to complete the County’s goals will create a more efficient and manageable portfolio.
RECOMMENDATION
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Information only; no action requested.
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FINANCIAL AND STAFFING IMPACTS
None. When future requests for authorization to sell excess property come through, the original funding source will be identified, and Finance will confirm where the proceeds will be deposited.
PREVIOUS BOARD ACTION
21-388; 07/20/21
ATTACHMENTS
Attachment: Excess Property Evaluation and Disposition Process
Attachment: Map of County Owned Parcels
Attachment: Presentation Slides
CONTACT
Department Director: Erin Stwora
Author: Eddie Buell