Purpose of the Bill

The purpose of the bill is to allow municipalities in Minnesota to charge a street impact fee. This fee will be used to manage the effects of new developments on local transportation systems. The bill aims to provide municipalities with a mechanism to collect funds for transportation improvements that are needed due to the impact of new subdivisions and developments.

Main Provisions

• Street Impact Fee Authorization: Municipalities are permitted to impose a fee on development applicants. This fee is based on factors such as the net buildable acreage of a new subdivision and its impact on the city’s transportation system.

• Use of Funds: Money collected through these fees is to be kept in a special fund. This fund can only be used for transportation-related purposes, such as acquiring, constructing, maintaining, or improving roads and transportation infrastructure.

• Approval Power: Municipalities can deny subdivision approval if they determine the transportation system is inadequate to support the development.

• Fee Exemptions: Properties that have already been assessed a street impact fee and are resubdivided with the same number of lots are exempt from further fees. If the number of lots increases, the fee is only applied to the net increase.

Significant Changes to Existing Law

The bill amends Minnesota Statutes section 462.358 by adding provisions that specifically address the collection and management of street impact fees by municipalities. This represents a new authority for local governments to fund transportation improvements directly tied to new property developments.

Relevant Terms

street impact fee, transportation infrastructure, subdivisions, municipality powers, development impact, transportation plan, escrow, dispute resolution