A. Purpose; Statute Authority: In light of the peculiar nature and problems presented by the closure or conversion of manufactured home parks, the city council finds that the public health, safety and general welfare will be promoted by requiring compensation to displaced residents of such parks. The purpose of this section is to require park owners to pay displaced residents reasonable relocation costs and purchasers of manufactured home parks to pay additional compensation, pursuant to the authority granted under Minnesota statutes section 327C.095.
B. Definitions: The following words and terms, when used in this section, have the following meanings unless the context clearly indicates otherwise:
APPURTENANCE: The visible, functional or ornamental objects accessory to and part of a building.
CLOSURE STATEMENT: A statement prepared by the park owner clearly stating the park is closing, addressing the availability, location and potential costs of adequate replacement rental lots within a twenty five (25) mile radius of the park that is closing and the probable relocation costs of the manufactured homes located in the park to other parks within the twenty five (25) mile radius. The statement must also comply with all state law requirements for such a statement under Minnesota statutes sections 327C.01 and 327C.095.
DISPLACED RESIDENT: The owner of an owner occupied manufactured home who rents a lot in a manufactured home park as of the date the park owner submits a closure statement to the planning commission and the city council.
LOT: An area within a manufactured home park designed and used for the accommodation of a manufactured home.
MANUFACTURED HOME: A structure, not affixed to or part of real estate, transportable in one or more sections, which, in the traveling mode, is eight feet (8') or more in width or forty feet (40') or more in length, or, when erected on site, is three hundred twenty (320) or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air conditioning, and electrical system contained therein.
MANUFACTURED HOME PARK OR PARK: Any site, lot, field or tract of land upon which two (2) or more occupied manufactured homes are located, either free of charge or for compensation, and includes any building, structure, tent, vehicle or enclosure used or intended for use as part of the equipment of the manufactured home park. This definition does not include facilities which are only open during three (3) or fewer seasons of the year.
PARK OWNER: The owner of a manufactured home park and any persons acting on behalf of the owner in the operation or management of a park.
PARK PURCHASER: The person buying the manufactured home park from the park owner. In the event that the park owner intends to retain ownership and convert or redevelop the park for a different use, all references to the park purchaser refer to the park owner.
PERSON: Any individual, corporation, firm, partnership, incorporated or unincorporated association or any other legal or commercial entity.
C. Notice Of Closing: If a manufactured home park is to be closed, converted in whole or part to another use, or terminated as a use of the property, the park owner shall, at least nine (9) months prior to the closure, conversion to another use or termination of use, provide a copy of the closure statement to a resident of each manufactured home who is at least eighteen (18) years of age and to the planning commission and city council.
1. Scheduling And Notice: The city council shall schedule a public hearing after the planning commission and city council have received the closure statement. This hearing shall not take place until forty five (45) days after the park owner has provided the city council and planning commission with written notice of the park closing. The city shall mail a notice at least ten (10) days prior to the public hearing to a resident of each manufactured home in the park stating the time, place and purpose of the hearing. The park owner shall provide the city with a list of the names and addresses of at least one resident of each manufactured home in the park at the time the closure statement is submitted to the city council and planning commission. Prior to the public hearing, the planning commission shall review the closure statement and provide a preliminary evaluation of the impact of the park closing on displaced residents to the city council.
2. Public Hearing: A public hearing shall be held before the city council for the purpose of reviewing the closure statement and evaluating what impact the park closing may have on the displaced residents and the park owner. The city council shall determine the adequacy of the closure statement and direct that payments be made pursuant to this section.
E. Displaced Resident Statement: Within ninety (90) days of receipt of a closure notice, displaced residents shall provide the park owner with a written statement of relocation costs, or in the alternative, a written statement that the displaced resident cannot or chooses not to relocate the manufactured home to another manufactured home park within a twenty five (25) mile radius. The written statement shall state whether the displaced resident is electing to proceed and receive relocation costs or additional compensation under subsection F1, F2, F3, F4 or F5 of this section.
F. Payment Of Relocation Costs And Additional Compensation:
1. Displaced Resident Can Relocate And Relocates To Another Manufactured Home Park Within A Twenty Five Mile Radius:
a. This subsection F1 applies to manufactured homes that can be relocated to another manufactured home park within a twenty five (25) mile radius of the park that is closing, where the displaced resident chooses to relocate the manufactured home to another park within that radius.
b. After service of the closure statement by the park owner and upon submittal by the displaced resident of a contract or other verification of relocation expenses, the park owner shall pay the reasonable costs of actually relocating the manufactured home to another manufactured home park located within a twenty five (25) mile radius of the park that is being closed, converted to another use, or ceasing operation.
c. The park owner shall make payment under this subsection F1 directly to the person performing the relocation services after performance thereof, or, upon submission of adequate written evidence of payment of any of the permissible reasonable relocation expenses listed below by the displaced resident, shall reimburse the displaced resident for such costs. If the park owner chooses to relocate the manufactured home rather than pay for the relocation costs as shown by the estimate provided by the displaced resident, the park owner must move the manufactured home, at his own expense, and must pay for all of the other applicable reasonable relocation expenses listed in subsection F1d of this section.
d. Reasonable relocation costs shall include:
(1) Preparation For Move: Reasonable costs incurred to prepare the eligible manufactured home for transportation to another site. This category includes: crane services; wheel, tire, tongue apparatus, hitch and axel rental, if needed, together with the cost of attachment and detachment thereof, and the cost of repairs or modifications that are required in order to take down, move and set up the manufactured home.
(2) Transportation To Another Site: Reasonable costs incurred to transport the eligible manufactured home and any attached appurtenances, such as porches, decks, skirting and awnings, which were not acquired after notice of closure or conversion of the park, to another manufactured home park within a twenty five (25) mile radius. This category also includes the cost of insuring the manufactured home while the manufactured home is in the process of being relocated, and the cost of obtaining moving permits, provided that the park owner shall not be required to pay delinquent taxes on a manufactured home if necessary in order to obtain a moving permit.
(3) Additional Costs: The actual expenses incurred in moving the displaced resident's manufactured home and personal property that are separate and distinct from the manufactured home and its appurtenances, including the reasonable cost of disassembling, moving and reassembling any attached appurtenances, such as porches, decks, skirting and awnings, which were acquired prior to the park owner's provision to the displaced resident of the closure notice, as well as utility hookup charges.
e. Reasonable relocation costs shall not include the following:
(1) The cost of upgrading the electrical or plumbing systems in the manufactured home to comply with hookup requirements in the new manufactured home park.
(2) The cost of any repairs or modifications to the manufactured home needed to bring the manufactured home into compliance with the state and federal manufactured home building standards for the year in which the manufactured home was constructed.
(3) The cost of any repairs or modifications to the manufactured home or appurtenances needed to bring the manufactured home or appurtenances into compliance with the rules and regulations of the manufactured home park to which the manufactured home is being relocated, if those rules and regulations are no more stringent than the rules of the park in which the manufactured home is located, and the resident was notified of the noncompliance with the rules and regulations of the park in which it is located within sixty (60) days prior to delivery of the closure statement.
f. A displaced resident compensated under this subsection F1 shall retain title to the manufactured home and shall be responsible for its prompt removal from the manufactured home park.
g. All rent due and owing the park owner, and all property taxes for the current and prior years, shall be paid by the displaced resident prior to removing the manufactured home from the park.
h. No displaced resident who receives any benefits under this subsection F1 is entitled to benefits under any other provision of this subsection.
i. If the relocation costs required by this subsection F1 exceed the fair market value of the manufactured home and allowed appurtenances being moved, the reasonable relocation costs to be paid to the displaced resident shall be the fair market value of the manufactured home and allowed appurtenances and not the actual relocation costs. The displaced resident may elect to receive the fair market value of the manufactured home and appurtenances and tender title to the manufactured home, free and clear of all liens and encumbrances, to the park owner, or may instead receive the fair market value for the manufactured home, retain title to the manufactured home, and must promptly relocate the manufactured home and appurtenances at the displaced resident's sole expense.
2. Displaced Resident Can Relocate Within A Twenty Five Mile Radius But Chooses To Relocate To Another Park Outside A Twenty Five Mile Radius:
a. If a displaced resident can relocate the manufactured home to another manufactured home park within a twenty five (25) mile radius of the park which is being closed but chooses instead to relocate the manufactured home to a manufactured home park outside the twenty five (25) mile radius, the displaced resident shall receive an award of relocation costs equal to the average relocation costs awarded to other residents in the park who relocated within the twenty five (25) mile radius.
b. A displaced resident compensated under this subsection F2 shall retain title to the manufactured home and shall be responsible for its prompt removal from the manufactured home park.
c. All rent due and owing the park owner, and all property taxes for the current and prior years, shall be paid by the displaced resident prior to removing the manufactured home from the park.
d. No displaced resident who receives any benefits under this subsection F2 is entitled to benefits under any other provision of this subsection.
3. Displaced Resident Can Relocate To Another Park Within A Twenty Five Mile Radius But Chooses To Tender Title To The Manufactured Home:
a. If a displaced resident can relocate the manufactured home to another manufactured home park within a twenty five (25) mile radius of the park which is being closed, but instead of relocating, the displaced resident tenders title to the manufactured home to the park purchaser, the displaced resident shall receive additional compensation paid by the park purchaser in order to mitigate the adverse financial impact of the park closing.
b. The additional compensation shall be in an amount equal to the greater of the tax assessed value of the manufactured home for the year in which the park is scheduled to close or the estimated market value of the manufactured home as determined by an independent appraiser experienced in manufactured home appraisal who has been approved by the city administrator. The park purchaser shall pay for the appraisal.
c. Title to the manufactured home shall be tendered to the park purchaser, free and clear of all liens and encumbrances, no later than ninety (90) days prior to the earlier of the closing of the park or its conversion to another use.
d. The park purchaser shall pay compensation due under this subsection F3 into an escrow account for distribution upon transfer of title to the manufactured home. Such compensation shall be paid out of the escrow account to the displaced resident no later than three (3) business days after the displaced resident has executed the transfer of title to the manufactured home, free and clear of all liens and encumbrances, to the park purchaser under the terms of this subsection F3.
e. All rent due and owing the park owner, and all property taxes for the current and prior years, shall be paid by the displaced resident prior to the tendering of title to the manufactured home.
f. No displaced resident who receives any compensation under this subsection F3 is entitled to benefits or compensation under any other provision of this subsection.
4. Displaced Resident Cannot Relocate To Another Park Within A Twenty Five Mile Radius And Chooses Not To Tender Title To The Manufactured Home:
a. If a displaced resident cannot relocate the manufactured home to another manufactured home park within a twenty five (25) mile radius of the park which is being closed, and chooses to relocate the manufactured home outside of the twenty five (25) mile radius, the displaced resident shall receive an award of relocation costs equal to the average relocation costs awarded to other residents in the park who relocated within the twenty five (25) mile radius.
b. A displaced resident compensated under this subsection F4 shall retain title to the manufactured home and shall be responsible for its prompt removal from the manufactured home park.
c. All rent due and owing the park owner, and all property taxes for the current and prior years, shall be paid by the displaced resident prior to removing the manufactured home from the park.
d. No displaced resident who receives any benefits under this subsection F4 is entitled to benefits under any other provision of this subsection.
5. Displaced Resident Cannot Relocate To Another Park Within A Twenty Five Mile Radius And Tenders Title To The Manufactured Home:
a. If a displaced resident cannot relocate the manufactured home to another manufactured home park within a twenty five (25) mile radius of the park which is being closed, and the displaced resident tenders title to the manufactured home to the park purchaser, the displaced resident shall receive additional compensation paid by the park purchaser in order to mitigate the adverse financial impact of the park closing.
b. The additional compensation shall be in an amount equal to the greater of the tax assessed value of the manufactured home for the year in which the park is scheduled to close or the estimated market value of the manufactured home as determined by an independent appraiser experienced in manufactured home appraisal who has been approved by the city administrator. The park purchaser shall pay for the appraisal.
c. Title to the manufactured home shall be tendered to the park purchaser, free and clear of all liens and encumbrances, no later than ninety (90) days prior to the earlier of the closing of the park or its conversion to another use.
d. The park purchaser shall pay compensation due under this subsection F5 into an escrow account for distribution upon transfer of title to the manufactured home. Such compensation shall be paid out of the escrow account to the displaced resident no later than three (3) business days after the displaced resident has executed the transfer of title to the manufactured home, free and clear of all liens and encumbrances, to the park purchaser under the terms of this subsection F5.
e. All rent due and owing the park owner, and all property taxes for the current and prior years, shall be paid by the displaced resident prior to the tendering of title to the manufactured home.
f. No displaced resident who receives any compensation under this subsection F5 is entitled to benefits or compensation under any other provision of this subsection.
G. Limitation Of Relocation Costs:
1. The total amount of relocation costs to be paid by the park owner to displaced residents under subsections F1, F2 and F4 of this section shall not exceed the greater of twenty five percent (25%) of the total purchase price of the park or twenty five percent (25%) of the county assessor's estimated market value of the manufactured home park as determined by the county assessor for the year in which the park is scheduled to close. The total purchase price of the park includes all consideration received by the park owner including, but not limited to, cash, buyer's forgiveness of seller's indebtedness, liens, mortgages or other encumbrances paid by buyer on seller's behalf, and special assessments paid by the buyer.
2. In the event the relocation costs required under subsections F1, F2 and F4 of this section exceed the limitation on the park owner's responsibility for relocation costs, each displaced resident entitled to an award of relocation costs under subsection F1, F2 or F4 of this section shall be entitled to a percentage of the total amount of relocation costs such displaced resident would otherwise be entitled to receive. Each displaced resident's award of relocation costs shall be computed by multiplying the total amount of relocation costs such displaced resident would otherwise be entitled to receive by a fraction, where the numerator is the total amount available to pay for all eligible relocation costs and the denominator is the total amount of all eligible relocation costs. (Ord. 1146, 3-26-2007)
H. Fees: At the time the closure statement is submitted to the city council and the planning commission, the park owner shall pay the city a fee as established by resolution of the city council for city processing of the closure statement and administration of the terms of this section. (Ord. 1146, 3-26-2007; amd. 2008 Code)
1. Violation of any provision of this section shall be a misdemeanor.
2. Any provision of this section may be enforced by injunction or any other appropriate civil remedy.
3. The city shall not issue a building permit in conjunction with the reuse of the manufactured home park property unless the park owner has paid the required reasonable relocation costs and the park purchaser has paid the required additional compensation in accordance with the requirements of this section and has provided written proof of such payments to the city council. Approval of any application for rezoning, platting, conditional use permits, planned unit development or a variance in conjunction with the park closing or conversion shall be conditioned on compliance with the requirements of this section. (Ord. 1146, 3-26-2007)