On November 1, 2011 the St. Louis County Board authorized the Land and Minerals Department to appraise and offer for sale into private ownership all of the county's 278 shoreland leases (County Board Resolution No. 559, November 1, 2011
). The current leaseholder has the first right to purchase the land at market value or to continue the annual lease (not to exceed the lifetime of the leaseholder). If the current leaseholder does not wish to purchase or continue the lease the land will be sold at public auction, with the value of any improvements paid to the leaseholder.
The Minnesota Legislature has authorized this sale in the 2012 Minnesota Session Laws, Chapter 236
, Section 28.
Shoreland Lease Plats
Survey contracts have been awarded, and the starting date of this project was April 1, 2013. For additional information and a list of the surveyors that will be completing surveys on each lake, please see our Spring, 2013 Shoreland Lease Newsletter.
The preliminary survey work has been completed, which includes all required corner certificates and preliminary plats to be submitted to the County by April 11, 2014.
Appraisal contracts have been awarded, and the starting date of this project was May 1, 2014. For additional information and a list of appraisers that will be completing appraisals on each lake, please see our Spring, 2014 Shoreland Lease Newsletter.
Appraisals are required to be completed in their entirety and submitted to the County by December 15, 2014. For more information and some frequently asked questions, please see our December 2014 Shoreland Lease Newsletter.
The Department is in the process of recording the surveys as they are completed and approved by the County Surveyor. Sale of lease lots cannot occur until there is a recorded lot. Additionally, the Department is imposing easements where applicable, which must also be recorded before sale of a lot can occur.
Appraisals will go out by lake as they become available. Appraised values and purchase agreements will be presented by mail from Hanft Fride Law Firm. We do not know when your lake will go out.
Frequently Asked Questions:
1) If the lease goes to auction, what is the starting minimum bid?
The appraised cost of the land is the starting bid price. The land is the only portion being bid. Payment for improvements must be made within 15 days of the auction sale by the winning bidder.
2) If the lease doesn’t sell at auction, what happens?
If the lease has been on one auction, and does not sell, the lease may go on an available listing for over-the-counter sale.
3) If the lease doesn’t sell over-the-counter?
If the lease doesn’t sell , it may be offered at an upcoming Land Sale auction. We do not have a timeframe established yet for auction dates.
4) What happens if I relinquish, and the property/improvements don’t sell on the first auction? Insurance, maintenance, etc.
Continuance of insurance on the structures is at lessee discretion, as it is now. Lessee will be allowed to perform maintenance upon prior knowledge and authorization of Land and Minerals Department.
5) What is the cost of the lease fee if they continue to lease?
The updated lease fee would be:
The current lease fee rate (2014 lease fee adjusted by the 2015 Consumer Price Index) added to the estimated tax on the land.
6) Are the property taxes based on the assessed value or the fair market value?
The assessed value is calculated by the County Assessor’s office to determine the tax rate.
7) If I change my mind and decide not to purchase after 90 days, do I get my earnest money back?
No. Unless there is an extenuating circumstance asked for in writing and approved by the County, such as an unfavorable septic determination, which cannot be determined at time earnest money is required.
8) What if I disagree with the appraised value of the land?
The Appraisers meet the minimal appraisal standards established by the federal Farmers Home Administration or the federal Veterans Administration, and are licensed under Minnesota Statutes, section 82B.03, as required by the shoreland lease legislation. The legislation does not contemplate a challenge to the land appraisal, and does not allow for a second appraisal. We have to assume that the appraisers are meeting appraisal standards and are conducting their appraisals appropriately.
As more information becomes available it will be posted to this page.