This bill amends Minnesota Statutes 2024, section 462.358, to authorize municipalities to impose a street impact fee on applicants for subdivision approvals. The new provisions allow municipalities to set fees based on factors such as the net buildable acreage of the subdivision and its impact on the local transportation system. The funds collected from these fees must be placed in a special fund dedicated to costs associated with the municipality's approved transportation plan, including the construction and maintenance of streets and related infrastructure. Additionally, municipalities are granted the authority to deny subdivision approvals if the transportation system is deemed inadequate.

The bill also establishes guidelines for the imposition of the street impact fee, ensuring that there is a clear connection between the fee and the municipal purpose it serves, as well as a proportional relationship to the needs created by the proposed development. It includes provisions to protect applicants by preventing municipalities from requiring waivers of the right to challenge the fee's validity and allows applications to proceed as if the fee had been paid while disputes are resolved, provided certain conditions are met.

Statutes affected:
Introduction: 462.358