MN SF1889

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

Cash payments 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 was charged a street impact fee is exempt from the fee if resubdivided with the same number of lots; if the number of lots increases, the fee applies only to the net increase in lots.

Street impact fees 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.

Municipalities cannot condition approval on waiving the right to challenge fee validity, and applicants may proceed with applications while disputing proposed fees if they deposit the fee in escrow and appeal within 60 days.