MN HF2296

Municipalities may impose a street impact fee on subdivision applicants based on net buildable acreage, transportation system impact, or the municipality's transportation plan.

Fees collected must be placed in a special fund used only for acquisition, construction, maintenance, or improvement of streets, roads, intersections, and related transportation infrastructure consistent with the municipality's approved transportation plan.

Municipalities may deny subdivision approval solely based on an inadequate transportation system within the municipality.

Previously subdivided property that is resubdivided with the same number of lots is exempt from the fee; if the number of lots increases, the fee applies only to the net increase.

Street impact fees must have an essential nexus to the municipal purpose and bear rough proportionality to the need created by the proposed subdivision or development.

Municipalities cannot condition approval on waiving the right to challenge fee validity, and applicants may proceed with escrow deposits pending appeal while preserving their right to challenge the fee.