MN HF326

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

Revenue from street impact fees must be placed in a special fund used only for costs related to the municipality's approved transportation plan, including acquisition, construction, maintenance, or improvement of streets, roads, intersections, and related transportation infrastructure.

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

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

The fee must have an essential nexus between the fee and municipal purpose, and bear rough proportionality to the need created by the proposed subdivision or development.

Applicants may proceed with their application as if the fee was paid while disputing the fee validity, provided they deposit the fee in escrow and appeal within 60 days; funds transfer to the municipality if the appeal is not filed or the applicant does not prevail.