MN HF745

Municipalities may establish street improvement districts by ordinance and apportion street improvement fees to developed parcels within the district to pay for street improvements and maintenance.

"Improvements" include construction, reconstruction, paving, curbs, gutters, bridges, drainage, sidewalks, traffic signals, street lighting, trails, and fixed transit infrastructure, but exclude transit vehicles and operating costs.

Before establishing a district or authorizing fees, a municipality must adopt a street improvement plan identifying the district location and estimating improvement costs over a 5-20 year collection period, with public notice and hearing required at least 30 days in advance.

Street improvement fees must be collected uniformly across developed parcels within each real estate classification, placed in a separate account, and used only for projects in the district identified in the plan; collection cannot exceed 20 years.

Municipalities cannot impose fees on undeveloped parcels until at least three years after street completion or structure occupancy, and unpaid fees after October 15 may be certified to the county auditor as a special assessment.