| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to local government; authorizing municipalities to charge a street impact |
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| 3 | 3 | | 1.3 fee; amending Minnesota Statutes 2024, section 462.358, by adding subdivisions. |
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| 4 | 4 | | 1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 5 | 5 | | 1.5 Section 1. Minnesota Statutes 2024, section 462.358, is amended by adding a subdivision |
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| 6 | 6 | | 1.6to read: |
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| 7 | 7 | | 1.7 Subd. 12.Street impact fee.(a) In addition to all other existing authority of a |
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| 8 | 8 | | 1.8municipality, a municipality may impose a fee set by ordinance on an applicant based on |
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| 9 | 9 | | 1.9the net buildable acreage of the subdivision, the subdivision's impact on the municipality's |
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| 10 | 10 | | 1.10transportation system, or the municipality's transportation plan. |
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| 11 | 11 | | 1.11 (b) The municipality must place any cash payments received in a special fund which |
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| 12 | 12 | | 1.12may be used only for costs related to the municipality's approved transportation plan, |
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| 13 | 13 | | 1.13including the acquisition and construction, maintenance, or improvement of streets, roads, |
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| 14 | 14 | | 1.14intersections, and related transportation infrastructure. |
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| 15 | 15 | | 1.15 (c) In addition to any other authority, the municipality may deny the approval of a |
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| 16 | 16 | | 1.16subdivision based solely on an inadequate transportation system within the municipality. |
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| 17 | 17 | | 1.17 (d) Previously subdivided property, from which the municipality has received a street |
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| 18 | 18 | | 1.18impact fee, that is resubdivided with the same number of lots is exempt from street impact |
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| 19 | 19 | | 1.19fee requirements. If, as a result of resubdividing the property, the number of lots is increased, |
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| 20 | 20 | | 1.20the street impact fee applies only to the net increase of lots. |
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| 21 | 21 | | 1Section 1. |
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| 22 | 22 | | 25-04118 as introduced02/26/25 REVISOR MS/LJ |
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| 23 | 23 | | SENATE |
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| 24 | 24 | | STATE OF MINNESOTA |
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| 25 | 25 | | S.F. No. 2196NINETY-FOURTH SESSION |
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| 26 | 26 | | (SENATE AUTHORS: JOHNSON STEWART) |
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| 27 | 27 | | OFFICIAL STATUSD-PGDATE |
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| 28 | 28 | | Introduction and first reading03/06/2025 |
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| 29 | 29 | | Referred to State and Local Government 2.1 Sec. 2. Minnesota Statutes 2024, section 462.358, is amended by adding a subdivision to |
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| 30 | 30 | | 2.2read: |
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| 31 | 31 | | 2.3 Subd. 13.Street impact fee nexus.(a) There must be an essential nexus between the |
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| 32 | 32 | | 2.4fee imposed under subdivision 12 and the municipal purpose for the fee. The fee must bear |
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| 33 | 33 | | 2.5a rough proportionality to the need created by the proposed subdivision or development. |
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| 34 | 34 | | 2.6 (b) If a municipality is given written notice of a dispute over a proposed fee before the |
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| 35 | 35 | | 2.7municipality's final decision on an application, a municipality must not condition the approval |
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| 36 | 36 | | 2.8of any proposed subdivision or development on an agreement to waive the right to challenge |
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| 37 | 37 | | 2.9the validity of a fee. |
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| 38 | 38 | | 2.10 (c) An application may proceed as if the fee had been paid, pending a decision on the |
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| 39 | 39 | | 2.11appeal of a dispute over a proposed fee, if: (1) the person aggrieved by the fee puts the |
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| 40 | 40 | | 2.12municipality on written notice of a dispute over a proposed fee; (2) prior to the municipality's |
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| 41 | 41 | | 2.13final decision on the application, the fee is deposited in escrow; and (3) the person aggrieved |
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| 42 | 42 | | 2.14by the fee appeals under section 462.361 within 60 days of the approval of the application. |
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| 43 | 43 | | 2.15If an appeal is not filed by the deadline or the person aggrieved by the fee does not prevail |
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| 44 | 44 | | 2.16on the appeal, the funds paid into escrow must be transferred to the municipality. |
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| 45 | 45 | | 2Sec. 2. |
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| 46 | 46 | | 25-04118 as introduced02/26/25 REVISOR MS/LJ |
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