1.1 A bill for an act
1.2 relating to local government; revising requirements related to municipal dedication
1.3 fees; amending Minnesota Statutes 2024, section 462.358, subdivision 2b.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2024, section 462.358, subdivision 2b, is amended to read:
1.6 Subd. 2b.Dedication.(a) The regulations may require that a reasonable portion of the
1.7buildable land, as defined by municipal ordinance, of any proposed subdivision be dedicated
1.8to the public or preserved for public use as streets, roads, sidewalks, sewers, electric, gas,
1.9and water facilities, stormwater drainage and holding areas or ponds and similar utilities
1.10and improvements, parks, recreational facilities as defined in section 471.191, playgrounds,
1.11trails, wetlands, or open space. The requirement must be imposed by ordinance or under
1.12the procedures established in section 462.353, subdivision 4a.
1.13 (b) If a municipality adopts the ordinance or proceeds under section 462.353, subdivision
1.144a, as required by paragraph (a), the municipality must adopt a capital improvement budget
1.15and have a parks and open space plan or have a parks, trails, and open space component in
1.16its comprehensive plan subject to the terms and conditions in this paragraph and paragraphs
1.17(c) to (i).
1.18 (c) The municipality may choose to accept a cash fee as set by ordinance from the
1.19applicant for some or all of the new lots created in the subdivision, based on the average
1.20fair market value of the unplatted land for which park fees have not already been paid that
1.21is, no later than at the time of final approval or under the city's adopted comprehensive plan,
1.22to be served by municipal sanitary sewer and water service or community septic and private
1.23well as authorized by state law. For purposes of redevelopment on developed land, the
1Section 1.
25-01548 as introduced12/20/24 REVISOR MS/CH
SENATE
STATE OF MINNESOTA
S.F. No. 223NINETY-FOURTH SESSION
(SENATE AUTHORS: DRAHEIM)
OFFICIAL STATUSD-PGDATE
Introduction and first reading01/16/2025
Referred to State and Local Government 2.1municipality may choose to accept a cash fee based on fair market value of the land no later
2.2than the time of final approval. "Fair market value" means the value of the land as determined
2.3by the municipality annually based on tax valuation or other relevant data. If the
2.4municipality's calculation of valuation is objected to by the applicant, then the value shall
2.5be as negotiated between the municipality and the applicant, or based on the market value
2.6as determined by the municipality based on an independent appraisal of land in a same or
2.7similar land use category.
2.8 (d) In establishing the portion to be dedicated or preserved or the cash fee, the regulations
2.9shall give due consideration to the open space, recreational, or common areas and facilities
2.10open to the public that the applicant proposes to reserve for the subdivision.
2.11 (e) The municipality must reasonably determine that it will need to acquire that portion
2.12of land for the purposes stated in this subdivision as a result of approval of the subdivision.
2.13 (f) Cash payments received must be placed by the municipality in a special fund to be
2.14used only for the purposes for which the money was obtained. The municipality must
2.15maintain records detailing the purposes for which the money was obtained and the manner
2.16in which the municipality spent the money to further those purposes. The municipality must
2.17make the records readily available to the public upon request.
2.18 (g) Cash payments received must be used only for the acquisition and development or
2.19improvement of parks, recreational facilities, playgrounds, trails, wetlands, or open space
2.20based on the approved park systems plan. Cash payments must not be used for ongoing
2.21operation or maintenance of parks, recreational facilities, playgrounds, trails, wetlands, or
2.22open space. The municipality must maintain records demonstrating the manner in which
2.23the municipality used each cash payment. The municipality must make the records readily
2.24available to the public upon request.
2.25 (h) The municipality must not deny the approval of a subdivision based solely on an
2.26inadequate supply of parks, open spaces, trails, or recreational facilities within the
2.27municipality.
2.28 (i) Previously subdivided property from which a park dedication has been received,
2.29being resubdivided with the same number of lots, is exempt from park dedication
2.30requirements. If, as a result of resubdividing the property, the number of lots is increased,
2.31then the park dedication or per-lot cash fee must apply only to the net increase of lots.
2.32 (j) The municipality may accept a combination of buildable land and cash fees to satisfy
2.33the municipality's dedication requirements set by ordinance pursuant to this subdivision or
2.34the procedures established in section 462.353, subdivision 4a. The municipality may require
2Section 1.
25-01548 as introduced12/20/24 REVISOR MS/CH 3.1buildable land, cash fees, or a combination of both, to be dedicated for the purposes described
3.2in paragraph (a). The total value of this dedication must not exceed ten percent of the fair
3.3market value of the proposed subdivision. Land in the proposed subdivision that is not
3.4buildable may be dedicated, and the value of that land is not factored into the ten percent
3.5limit on the total value of the dedication. Land in the proposed subdivision that is dedicated
3.6because of its current or potential use for regional trails applies to the ten percent limit on
3.7the total value of the dedication unless the land is already dedicated for street, road, or
3.8right-of-way purposes.
3.9 (k) The municipality must not require a dedication of land for streets, roads, or
3.10right-of-way to a width that exceeds the minimum engineering standards for urban roadways,
3.11as adopted in administrative rules by the commissioner of transportation for the municipal
3.12state-aid street system, as provided under sections 162.09, subdivision 1, and 162.155.
3.13 (l) A dedication of land for a street that is not a collector or arterial street must not exceed
3.14the amount of land required to construct the street with a curb-to-curb width of 32 feet and
3.15associated utilities and sidewalks, if sidewalks are included in the plan for the proposed
3.16subdivision. The municipality must apply guidance established by national traffic engineering
3.17organizations when designing these streets.
3Section 1.
25-01548 as introduced12/20/24 REVISOR MS/CH