Bill > SF2196

This bill authorizes Minnesota municipalities to impose a street impact fee on new subdivisions, which is a charge based on the development's potential impact on local transportation infrastructure. Specifically, the bill allows cities to charge fees calculated by factors like net buildable acreage or the development's effect on the municipal transportation system. The collected fees must be placed in a special fund and can only be used for transportation-related expenses such as street construction, maintenance, and improvement. Municipalities are granted the power to deny subdivision approvals if the existing transportation system is deemed inadequate. The bill also includes provisions ensuring that the fees have a fair and proportional relationship to the actual infrastructure needs created by the development. Additionally, the legislation provides protections for developers by allowing them to dispute fees through an appeals process and permitting subdivision applications to proceed while fee challenges are pending, provided the disputed amount is placed in escrow. Resubdivided properties that do not increase the number of lots will be exempt from additional fees, and any resubdivision increasing lot count will only incur fees on the net increase in lots.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2196&ssn=0&y=2025