Orderly annexation agreements limited to ten years, supremacy of orderly annexation agreements clarified to attempts to annex by nonparties, and grounds for annexation by ordinance narrowed.

A bill for an act

relating to local government; limiting orderly annexation agreements to ten years;

clarifying supremacy of orderly annexation agreements to attempts to annex by

nonparties; narrowing grounds for annexation by ordinance; amending Minnesota

Statutes 2024, sections 414.0325, subdivision 6; 414.033, subdivision 2; repealing

Minnesota Statutes 2024, section 414.033, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 414.0325, subdivision 6, is amended to read:

Subd. 6.

Validity, effect of orderly annexation agreement.

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(a)
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An orderly annexation

agreement is a binding contract upon all parties to the agreement and is enforceable in the

district court in the county in which the unincorporated property in question is located.
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Agreements entered into on or after August 1, 2027, must terminate no less than ten years

after the date of execution.
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The provisions of an orderly annexation agreement are not

preempted by any provision of this chapter unless the agreement specifically provides so.

If an orderly annexation agreement provides the exclusive procedures by which the

unincorporated property identified in the agreement may be annexed to the municipality,

the municipality
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shall
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must
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not annex that property by any other procedure.

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(b) A nonparty to an orderly annexation agreement must not annex a designated area

subject to the orderly annexation agreement, whether by petition, ordinance, or other filing.

An ordinance adopted by a nonparty municipality seeking to annex property subject to an

orderly annexation agreement is void and unenforceable.

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Sec. 2.

Minnesota Statutes 2024, section 414.033, subdivision 2, is amended to read:

Subd. 2.

Conditions.

A municipal council may by ordinance declare land annexed to

the municipality and any such land is deemed to be urban or suburban in character or about

to become so if:

(1) the land is owned by the municipality;
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or
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(2) the land is completely surrounded by land within the municipal limits;

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(3)
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(2)
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the land abuts the municipality and the area to be annexed is 120 acres or less,

and the area to be annexed is not presently served by public wastewater facilities or public

wastewater facilities are not otherwise available, and the municipality receives a petition

for annexation from all the property owners of the land. Except as provided for by an orderly

annexation agreement, this clause may not be used to annex any property contiguous to any

property either simultaneously proposed to be or previously annexed under this clause within

the preceding 12 months if the property is or has been owned at any point during that period

by the same owners and annexation would cumulatively exceed 120 acres
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; or
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.
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(4) the land has been approved after August 1, 1995, by a preliminary plat or final plat

for subdivision to provide residential lots that average 21,780 square feet or less in area and

the land is located within two miles of the municipal limits.

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Sec. 3.
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REPEALER.
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Minnesota Statutes 2024, section 414.033, subdivision 3,

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is repealed.

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APPENDIX

Repealed Minnesota Statutes: 26-07913

414.033 ANNEXATION BY ORDINANCE.

Subd. 3.

60 percent bordered and 40 acres or less.

If the perimeter of the area to be annexed by a municipality is 60 percent or more bordered by the municipality and if the area to be annexed is 40 acres or less, the municipality shall serve notice of intent to annex upon the town board and the chief administrative law judge, unless the area is appropriate for annexation by ordinance under subdivision 2, clause (3). The town board shall have 90 days from the date of service to serve objections with the chief administrative law judge. If no objections are forthcoming within the said 90-day period, such land may be annexed by ordinance. If objections are filed with the chief administrative law judge, the chief administrative law judge shall conduct hearings and issue an order as in the case of annexations under section
414.031
, subdivisions 3 and 4.