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available to local entities. Use of Special <br />Service Districts in mixed -use development <br />is one tool that could be available for this <br />purpose. <br />Response: The Legislature should give <br />cities permanent authority to create HIAs <br />and SSDs. The League of Minnesota <br />Cities also supports the potential use of <br />SSDs for mixed -use districts that include <br />residential and commerciaUindustrial <br />properties. The law should be reviewed <br />to determine to what extent mixed -use <br />properties can and should contribute to a <br />Special Service District from which they <br />will benefit. The League would support <br />legislation that expands SSDs to include <br />mixed use development to the extent it <br />balances the benefits and obligations of <br />residential properties within the district. <br />If the Legislature grants multi - <br />jurisdictional entities the authority to <br />create HIAs, creation of an HIA must <br />require local approval. <br />FF-24. Tax -Forfeited Properties <br />and Local Special Assessments <br />Issue: Special assessments are a charge, <br />authorized by the Legislature and state law, <br />imposed on properties for a particular <br />improvement that benefits those selected <br />properties. Cities follow complex, time- <br />consuming statutory special assessment <br />procedures to specially assess the <br />appropriate amount of the local <br />infrastructure improvements to those <br />properties. <br />If a property with validly attached special <br />assessments goes into tax -forfeiture, the <br />county auditor cancels all of the local <br />special assessments due and remaining <br />unpaid on each parcel, which is authorized <br />in Minn. Stat. § 282.07. Therefore, the city <br />loses the funds previously budgeted and <br />planned for to pay for the local <br />improvements. To underline this point, the <br />funds have already been expended and if not <br />collected, result in losses to the city. <br />When tax -forfeited land returns to private <br />ownership, and the parcel benefitted from an <br />improvement for which the city canceled <br />special assessments because of the <br />forfeiture, the city may assess or reassess the <br />parcel. But cities must go through the same <br />cumbersome notice and hearing procedures <br />in order to re -attach the assessments. <br />Response: The Legislature should remove <br />cancellation of local special assessments <br />from state law, allowing cities to receive <br />the funding validly assessed and counted <br />on to fund local infrastructure <br />improvements. <br />FF-25. Distribution of Proceeds <br />from the Sale of Tax -Forfeit <br />Property <br />Issue: When properties go into tax forfeiture <br />all levels of government lose tax revenue <br />that would otherwise support the services <br />they provide. It is always in the best interest <br />of taxpayers to return these properties to the <br />tax rolls as quickly as possible. <br />Although the tax forfeiture process is <br />controlled by the county, and counties have <br />a legitimate need to be reimbursed for <br />reasonable administrative costs, the city <br />often has more at stake financially in terms <br />of costs fronted to facilitate development <br />(e.g., assessments for public infrastructure <br />and unpaid development or utility fees). <br />While the tax forfeit procedure provides a <br />process for the repayment of special <br />assessments, it does not require the <br />repayment of unpaid utility charges or <br />unpaid building and development fees. <br />Further, due to large assessments that some <br />cities are left with, it may not be practical to <br />League of Minnesota Cities <br />2015 City Policies Page 106 <br />