Pass-through Acquisitions Procedures

This procedure explains how the City handles a pass-through sale for a redevelopment project.

Governing policy: Acquisition Policy

Department: Community Planning & Economic Development (CPED)

Last revised: October 4, 2004

CPED pass-through acquisitions 1

  1. Redeveloper approaches CPED to act as a conduit to obtain land owned by another unit of government or public entity (“Seller”). Note: MnDOT is required to offer excess right of way to predecessors in interest first unless a municipality requests the land to be conveyed to them.  Hennepin County is required by State Statute to offer forfeited parcels to the local municipality prior to any public offering.  In both cases CPED qualifies for this consideration and may act in this capacity as a conduit in the sale to the Redeveloper.
  2. Seller (e.g. MnDOT or Hennepin County) establishes the purchase price. If Seller requests that the City obtain an appraisal, survey or environmental report to facilitate sale, follow Seller’s instructions and deduct cost from what is paid to Seller.
  3. Project Coordinator contacts Public Works Right of Way to review for access, utility, easement and other issues (not needed for tax forfeited property). Public Works Right of Way shall have ten (10) business days to review and either approve or identify that additional review is needed.  If, within ten (10) business days, Public Works does not respond with a specific description of the additional review that is needed, CPED will deem the transaction approved and proceed with process.
  4. Project Coordinator contacts Community Planner to review relevant plans and policy impacting the site and present the proposed sale to the City Planning Commission for review, unless property is in a Redevelopment Project Area or transaction is waived through Minnesota Statutes Section 462.356 Subd 2.
  5. Redeveloper submits an offer to purchase to CPED.
  6. CPED Staff Appraiser reviews the value information as well as the proposed reuse of the property and concurs in the fair reuse value. Use the linked form: Request for Reuse Value Opinion
  7. Project Coordinator prepares a Director’s Report recommending a Pass-Through Conduit Sale of the property to the Redeveloper per Section 2(c) of the CPED Disposition Procedures – Redevelopment Property.
  8. Pending Director’s approval, PC sends letter to MnDOT or Hennepin County stating that the City intends to pursue acquisition of the site. PC may request a letter from MnDOT granting the City the “option” to purchase the land.
  9. Project Coordinator prepares a City Council report requesting authorization to grant Exclusive Development Rights to the Redeveloper for a period of time and/or to simultaneously purchase and sell the subject parcel for the development as proposed by the redeveloper at the established price plus an administrative fee of up to 10% for CPED.
  10. Pending City Council approval, Project Coordinator proceeds with steps 3(e) through 7 in the CPED Disposition Procedures – Redevelopment Property.

1. If the City is acquiring the property from another unit of government or public entity for its own operational or development purposes/ objectives and not in a pass-through situation (i.e. Redeveloper has not been identified), follow the standard acquisition/ disposition processes, as modified by Hennepin County Memorandum of Understanding or MnDOT requirements if applicable. ↩