MN HF527

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

Collected 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 with 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.

If a fee dispute is noticed before final municipal decision, the applicant may proceed as if the fee was paid by depositing it in escrow and appealing within 60 days of approval.