C. Allocation of Benefits for Parcel Splits and Transfers C. Allocation of Benefits for Parcel Splits and Transfers

C. Allocation of Benefits for Parcel Splits and Transfers

When a contract to construct the drainage system is awarded, the auditor or watershed district secretary makes a statement showing the total cost of the project prorated to each tract of property affected in direct proportion to the benefits.¹⁶⁹ The auditor or watershed district secretary then creates a tabular lien statement and records it against all tracts of property affected by the drainage system.¹⁷⁰ The drainage lien burdens the entire tract or property listed.

Occasionally, a person may want to apportion a lien recorded against property for the purpose of splitting the parcel and transferring it to another owner. Or, if an owner of property subject to a drainage lien wants to plat the property, the apportionment of the drainage lien proceedings must be complete before the plat can legally be recorded.¹⁷¹

If payments of principal and interest on a property are not in default, a person who holds an interest in that property may petition the drainage authority to apportion to the drainage lien among specified portions of the tract.¹⁷² A sample Petition to Apportion Drainage System Lien is found in Template E.

After the petition is filed, the drainage authority, by order, sets a time and location for a public hearing on the petition. A sample Order Setting a Time and Location for a Public Hearing on Petition to Apportion Drainage System Lien is found in Template F. A sample Notice of Public Hearing on Petition to Apportion Drainage System Lien is found in Template G. Notice for this hearing must be given by personal service at least 10 days before the hearing to the auditor, the occupants of the tract, and all parties having an interest in the tract as shown by the records in the county recorder’s office.¹⁷³ This is the only procedure under the drainage code that requires notice of the hearing to be delivered by personal service.¹⁷⁴ Personal service is to be accomplished in the same manner as required for service of a summons in a civil action in district court.¹⁷⁵ The method of personal service varies depending on whether notice is being delivered to an individual, a partnership or association, a corporation, the state, or upon a municipal or other public corporation.¹⁷⁶ For a full description on how to accomplish personal service, see Rule 4.03 of the Minnesota Rules of Civil Procedure. If personal service cannot be achieved, notice may be given by publication.¹⁷⁷ All costs of providing notice must be paid by the petitioner.¹⁷⁸

At the hearing, the drainage authority shall hear all related evidence and, if warranted, apportion the lien by order.¹⁷⁹ A certified copy of the order must be recorded in the county recorder’s office and filed with the auditor or watershed district secretary.¹⁸⁰

A sample order approving the petition to apportion a drainage lien is found in Template H.

FOOTNOTES

¹⁶⁹ See Minn. Stat. § 103E.601, subd. 1 (2015).
¹⁷⁰ See Minn. Stat. § 103E.601, subds. 2 & 4 (2015).
¹⁷¹ Minn. Stat. § 103E.625 (2015).
¹⁷² Minn. Stat. § 103E.631, subd. 1 (2015).
¹⁷³ Minn. Stat. § 103E.631, subd. 2 (2015).
¹⁷⁴ Note that Minn. Stat. § 103E.041 permits personal notice to be used in replace of any other notice required by the public drainage code if it is given at least ten days before the hearing. The notice is required to be served in the manner provided for the service of summons in a civil action in district court. Minn. Stat. § 103E.041 (2015).
¹⁷⁵ See Minn. Stat. § 103E.041 (2015).
¹⁷⁶ See Minn. R. Civ. P. 4.03.
¹⁷⁷ Minn. Stat. § 103E.631, subd. 2 (2015).
¹⁷⁸ Minn. Stat. § 103E.631, subd. 2 (2015).
¹⁷⁹ Minn. Stat. § 103E.631, subd. 3 (2015).
¹⁸⁰ Minn. Stat. § 103E.631, subd. 3 (2015).