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Minn. Stat. §§ 216C.435- .436.Minn. <br />Stat. § 429.021, subd. 1. <br />Contact the Minnesota Department <br />of Employment and Economic <br />Development 651- 259 -7114. <br />Minn. Stat. §§ 216C.435 -.436. <br />Special Assessments, House <br />Research Information Brief, Sept. <br />2008. <br />Minn. Stat. §§ 428A.01 - 428A.101. <br />Minn. Stat. § 428A.02. <br />Minn. Stat. § 428A.08. <br />Minn. Stat. § 428A.02, subd. 2. <br />Minn. Stat. § 428A.03, subd. 1. <br />HANDBOOK FOR MINNESOTA CITIES <br />CHAPTER 25 <br />Cities may encourage energy improvements on private property. Residents <br />may use the Voluntary Energy Improvements Financing Program to make <br />energy improvements to their qualifying real property in the city. If a city <br />chooses to institute this program, the city issues revenue bonds to procure <br />funds that residents then use. In addition, the law allows economic <br />development authorities (EDAs) and housing redevelopment authorities <br />(HRAs) to do this with city approval. Cities secure repayment of the bonds <br />with a lien against the qualifying real property, and owners repay the <br />borrowed money as a special assessment added to their property taxes. At <br />the time of publication some questions exist regarding this program and the <br />priority of liens created by it. <br />The special benefits test limits how much an area of a city pays for local <br />improvements through special assessments. The measure of the benefit is <br />the increase in the market value of the land because of the improvement. <br />Under the special benefit test, special assessments are presumptively valid <br />if the land receives a special benefit from the improvement, the assessment <br />does not exceed the special benefit measured by the increase in market <br />value due to the improvement, and the assessment is uniform as applied to <br />the same class of property in the assessed area. <br />To ensure full protection for property owners, state law and courts applying <br />Chapter 429 insist on strict compliance with complex procedural <br />requirements. Because these requirements have legal implications, city <br />councils should have the city attorney guide assessment proceedings. <br />B. Special service districts <br />Another way to fund local improvements in business areas of a city is by <br />use of special service districts (SSDs). An SSD is any defined area in a city <br />where the city delivers special services for which the city imposes and <br />collects special charges. Only land zoned for business purposes <br />(commercial, industrial, land for public utility purposes, or vacant land <br />similarly zoned) is subject to the special charges. <br />Landowners, not the city, initiate establishment of an SSD. Twenty -five <br />percent or more of the owners of the land area of property subject to service <br />charges and owners of 25 percent or more of the net tax capacity of <br />property subject to the district must file a petition with the city clerk, <br />calling for a public hearing. The city council may decide to establish the <br />SSD based on the petition, but is not required to do so. Before the <br />imposition of service charges in a district, for each calendar year, a hearing <br />must be held according to law and notice must be given and must be mailed <br />to any owner, individual, or business organization subject to a service <br />charge. <br />This chapter last revised 12/1/2012 <br />25:13 <br />