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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 supports the authority for cities to <br />work with their business communities to <br />establish SSDs and opposes efforts to <br />restrict general authority of the tool. <br />The League also supports the potential <br />use of SSDs for mixed -use districts that <br />include residential and <br />commercial/industrial properties. The <br />law should be reviewed to determine to <br />what extent mixed -use properties can and <br />should contribute to a Special Service <br />District from which they will benefit. The <br />League would support legislation that <br />expands SSDs to include mixed -use <br />development to the extent it balances the <br />benefits and obligations of residential <br />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-28. 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 />146 <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-29. 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 />