A. Recording of Benefits A. Recording of Benefits

A. Recording of Benefits

Once the contract for the construction of a drainage project is awarded, the auditor of an affected county, or the watershed district secretary, proceed with the recording of benefits at the county recorder’s office.

First, the auditor or the watershed district secretary must make a statement showing the total cost of the drainage project with the estimated cost of all items required to complete the work.¹⁵⁴ The costs are then prorated to each tract of property affected in direct proportion to the benefits.¹⁵⁵ Damages awarded to a tract are subtracted from the costs.¹⁵⁶

The liability (cost less damages) for each tract of property must be documented in tabular form in a drainage lien statement.¹⁵⁷ The drainage lien statement must contain the following:

1. The names of the property owners, corporate entities, or political subdivisions of the county benefited or damaged by the construction of the drainage project in the viewers’ report as approved by the final order for establishment;
   
2. The description of the property in the viewers’ report, and the total number of acres in each tract according to the county tax lists;
   
3. The number of acres benefited or damaged in each tract shown in the viewers’ report;
   
4. The amount of benefits and damages to each tract of property as stated in the viewers’ report and confirmed by the final order that established the drainage project unless the order is appealed and a different amount is set; and
   
5. The amount each tract of property will be liable for and must pay to the county for the establishment and construction of the drainage project.¹⁵⁸
   

The amount of liability for a tract on the drainage lien statement may not exceed the benefits determined in the proceedings that accrue to the tract.¹⁵⁹ The drainage lien statement must be certified by the auditor or watershed district secretary and recorded against each tract by the county recorder where the tract is located.¹⁶⁰

Supplemental drainage lien statements may be recorded in the same manner to cover any items of costs omitted from the original drainage lien statement; however, the total amount of the original lien statement and the supplemental drainage lien statement may not exceed the project benefits.¹⁶¹ A sample Drainage Lien Statement is found in: Template A.

FOOTNOTES

¹⁵⁴ Minn. Stat. § 103E.601, subd. 1 (2015).
¹⁵⁵ Minn. Stat. § 103E.601, subd. 1 (2015).
¹⁵⁶ Minn. Stat. § 103E.601, subd. 1 (2015).
¹⁵⁷ See Minn. Stat. § 103E.601, subd. 2 (2015).
¹⁵⁸ Minn. Stat. § 103E.601, subd. 2(1)-(5) (2015).
¹⁵⁹ Minn. Stat. § 103E.601, subd. 1 (2015).
¹⁶⁰ Minn. Stat. § 103E.601, subd. 4 (2015).
¹⁶¹ Minn. Stat. § 103E.601, subd. 3 (2015).