Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2366 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to local government; authorizing a municipality to establish a street
3	3	1.3 improvement district; proposing coding for new law in Minnesota Statutes, chapter
4	4	1.4 435.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. [435.39] MUNICIPAL STREET IMPROVEMENT DISTRICTS.
7	7	1.7 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
8	8	1.8the meanings given.
9	9	1.9 (b) "Governing body" means the city council of a municipality.
10	10	1.10 (c) "Improvements" means construction, reconstruction, and facility upgrades involving:
11	11	1.11right-of-way acquisition; paving; curbs and gutters; bridges and culverts and their repair;
12	12	1.12milling; overlaying; drainage and storm sewers; excavation; base work; subgrade corrections;
13	13	1.13street lighting; traffic signals; signage; sidewalks; pavement markings; boulevard and
14	14	1.14easement restoration; impact mitigation; connection and reconnection of utilities; turn lanes;
15	15	1.15medians; street and alley returns; retaining walls; fences; lane additions; and fixed transit
16	16	1.16infrastructure, trails, or pathways. Fixed transit infrastructure does not include commuter
17	17	1.17rail rolling stock, light rail vehicles, or transit way buses; capital costs for park-and-ride
18	18	1.18facilities; feasibility studies, planning, alternative analyses, environmental studies,
19	19	1.19engineering, or construction of transitways; or operating assistance for transitways.
20	20	1.20 (d) "Maintenance" means striping, seal coating, crack sealing, pavement repair, sidewalk
21	21	1.21maintenance, signal maintenance, street light maintenance, and signage.
22	22	1Section 1.
23	23	25-04110 as introduced03/03/25 REVISOR MS/BM
24	24	SENATE
25	25	STATE OF MINNESOTA
26	26	S.F. No. 2366NINETY-FOURTH SESSION
27	27	(SENATE AUTHORS: JOHNSON STEWART)
28	28	OFFICIAL STATUSD-PGDATE
29	29	Introduction and first reading03/10/2025
30	30	Referred to State and Local Government 2.1 (e) "Municipal street" means a street, alley, or public way in which the municipality is
31	31	2.2the road authority.
32	32	2.3 (f) "Municipality" means a home rule charter or statutory city.
33	33	2.4 (g) "Street improvement district" means a geographic area designated by a municipality
34	34	2.5and located within the municipality within which a municipality may undertake and finance
35	35	2.6street improvements and maintenance according to this section.
36	36	2.7 (h) "Unimproved parcel" means a parcel of land that is not improved by construction of
37	37	2.8an authorized structure or contains a structure that has not previously been occupied, and
38	38	2.9abuts an:
39	39	2.10 (1) unimproved municipal street and that is not served by municipal sewer or water
40	40	2.11utilities; or
41	41	2.12 (2) improved municipal street and served by municipal sewer or water utilities.
42	42	2.13 Subd. 2.Authorization.To pay for street improvements and maintenance, a municipality
43	43	2.14may, by ordinance, impose a street improvement fee. The fee amount must be just and
44	44	2.15equitable. The municipality must adopt the ordinance after providing public notice and
45	45	2.16holding a public hearing pursuant to subdivision 5.
46	46	2.17 Subd. 3.Street improvement fee.Except as provided in subdivision 10, a municipality
47	47	2.18must apportion street improvement fees to all developed parcels located in the district. A
48	48	2.19street improvement district must not include any property already located in another street
49	49	2.20improvement district.
50	50	2.21 Subd. 4.Apportionment.All or part of the costs of municipal street improvements and
51	51	2.22maintenance must be apportioned to all developed parcels or developed tracts of land located
52	52	2.23in the established street improvement district on the basis of each developed parcel's or
53	53	2.24tract's relative share of the vehicular trips to and from all developed parcels and tracts in
54	54	2.25the street improvement district during the preceding calendar quarter, as estimated from a
55	55	2.26representative sample of actual trip data compiled from a source which has been certified
56	56	2.27as suitable for this purpose by the commissioner of transportation.
57	57	2.28 Subd. 5.Adoption of plan; notice and hearing.(a) Before establishing a municipal
58	58	2.29street improvement district or authorizing a street improvement fee, a municipality must
59	59	2.30propose and adopt a street improvement plan that identifies the location of the municipal
60	60	2.31street improvement district and identifies and estimates the costs of the proposed
61	61	2.32improvements during the proposed period of collection of municipal street improvement
62	62	2.33fees, which must be for a period of at least five years and no more than 20 years.
63	63	2Section 1.
64	64	25-04110 as introduced03/03/25 REVISOR MS/BM 3.1 (b) A municipality must provide notice of a public hearing on the proposed plan by mail
65	65	3.2to all affected landowners at least 30 days before the hearing and must post the notice in a
66	66	3.3public place for at least 30 days before the hearing. The notice shall include the time and
67	67	3.4place of the hearing, a map showing the boundaries of the proposed district, and a statement
68	68	3.5that all persons owning property in the proposed district that would be subject to a service
69	69	3.6charge will be given the opportunity to be heard at the hearing.
70	70	3.7 (c) At the public hearing, the governing body must present the plan and all affected
71	71	3.8landowners in attendance must have the opportunity to comment before the governing body
72	72	3.9considers adoption of the plan.
73	73	3.10 Subd. 6.Use of fees.A municipality must place revenues from street improvement fees
74	74	3.11in a separate account and must use the revenues for projects located within the district and
75	75	3.12identified in the municipal street improvement plan.
76	76	3.13 Subd. 7.Collection; up to 20 years.(a) An ordinance adopted under this section must
77	77	3.14provide for billing and payment of the fee on a monthly, quarterly, or other basis as directed
78	78	3.15by the governing body. The governing body may collect municipal street improvement fees
79	79	3.16within a street improvement district for no more than 20 years.
80	80	3.17 (b) As of October 15 of each year, a municipality may certify fees that remain unpaid
81	81	3.18for at least 30 days to the county auditor for collection as a special assessment payable in
82	82	3.19the following calendar year against the affected property.
83	83	3.20 Subd. 8.Not exclusive means of financing improvements.The use of the municipal
84	84	3.21street improvement fee by a municipality does not restrict the municipality from imposing
85	85	3.22other measures authorized by statute or by home rule charter to pay the costs of local street
86	86	3.23improvements or maintenance, except that a municipality must not impose special
87	87	3.24assessments for projects funded with street improvement fees.
88	88	3.25 Subd. 9.Unimproved parcels; fees.A municipality may not impose a street improvement
89	89	3.26fee on any unimproved parcel located within an established street improvement district until
90	90	3.27at least three years after the date of substantial completion of the paving of the previous
91	91	3.28unimproved municipal street, or the date which a structure is built and first occupied pursuant
92	92	3.29to a certificate of occupancy, whichever is later.
93	93	3.30 Subd. 10.Institutions of public charity.A municipality may not impose a street
94	94	3.31improvement fee on any parcel owned by an institution of purely public charity as defined
95	95	3.32in section 272.02, subdivision 7.
96	96	3Section 1.
97	97	25-04110 as introduced03/03/25 REVISOR MS/BM 4.1 Subd. 11.Appeal to district court.Within 30 days after adoption of a street improvement
98	98	4.2fee, any affected landowner may appeal to the district court by serving a notice upon the
99	99	4.3mayor or clerk of the municipality. The notice shall be filed with the court administrator of
100	100	4.4the district court within ten days after its service. The appeal shall be placed upon the
101	101	4.5calendar of the next general term commencing more than five days after the date of serving
102	102	4.6the notice and shall be tried as other appeals in such cases. The court shall either affirm the
103	103	4.7street improvement fee or set it aside and order a reapportionment as provided under
104	104	4.8subdivisions 3 and 4. All objections to the street improvement fee shall be deemed waived
105	105	4.9unless presented on appeal. This section provides the exclusive method of appeal from a
106	106	4.10street improvement fee issued under this section.
107	107	4.11 EFFECTIVE DATE.This section is effective July 1, 2025.
108	108	4Section 1.
109	109	25-04110 as introduced03/03/25 REVISOR MS/BM