1.1 A bill for an act
1.2 relating to local government; authorizing municipalities to charge a street impact
1.3 fee; amending Minnesota Statutes 2024, section 462.358, by adding subdivisions.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2024, section 462.358, is amended by adding a subdivision
1.6to read:
1.7 Subd. 12.Street impact fee.(a) In addition to all other existing authority of a
1.8municipality, a municipality may impose a fee set by ordinance on an applicant based on
1.9the net buildable acreage of the subdivision, the subdivision's impact on the municipality's
1.10transportation system, or the municipality's transportation plan.
1.11 (b) The municipality must place any cash payments received in a special fund which
1.12may be used only for costs related to the municipality's approved transportation plan,
1.13including the acquisition and construction, maintenance, or improvement of streets, roads,
1.14intersections, and related transportation infrastructure.
1.15 (c) In addition to any other authority, the municipality may deny the approval of a
1.16subdivision based solely on an inadequate transportation system within the municipality.
1.17 (d) Previously subdivided property, from which the municipality has received a street
1.18impact fee, that is resubdivided with the same number of lots is exempt from street impact
1.19fee requirements. If, as a result of resubdividing the property, the number of lots is increased,
1.20the street impact fee applies only to the net increase of lots.
1Section 1.
REVISOR MS/LJ 25-0411802/26/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2029
NINETY-FOURTH SESSION
Authored by Hanson, J.; Bakeberg and Klevorn03/10/2025
The bill was read for the first time and referred to the Committee on Elections Finance and Government Operations 2.1 Sec. 2. Minnesota Statutes 2024, section 462.358, is amended by adding a subdivision to
2.2read:
2.3 Subd. 13.Street impact fee nexus.(a) There must be an essential nexus between the
2.4fee imposed under subdivision 12 and the municipal purpose for the fee. The fee must bear
2.5a rough proportionality to the need created by the proposed subdivision or development.
2.6 (b) If a municipality is given written notice of a dispute over a proposed fee before the
2.7municipality's final decision on an application, a municipality must not condition the approval
2.8of any proposed subdivision or development on an agreement to waive the right to challenge
2.9the validity of a fee.
2.10 (c) An application may proceed as if the fee had been paid, pending a decision on the
2.11appeal of a dispute over a proposed fee, if: (1) the person aggrieved by the fee puts the
2.12municipality on written notice of a dispute over a proposed fee; (2) prior to the municipality's
2.13final decision on the application, the fee is deposited in escrow; and (3) the person aggrieved
2.14by the fee appeals under section 462.361 within 60 days of the approval of the application.
2.15If an appeal is not filed by the deadline or the person aggrieved by the fee does not prevail
2.16on the appeal, the funds paid into escrow must be transferred to the municipality.
2Sec. 2.
REVISOR MS/LJ 25-0411802/26/25