The bill amends Minnesota Statutes 2024, section 462.358, to authorize municipalities to impose a street impact fee on applicants for subdivision approvals. This fee, determined by ordinance, is based on factors such as the net buildable acreage of the subdivision and its impact on the municipality's transportation system. The bill establishes that any cash payments received 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 transportation infrastructure. Additionally, municipalities are granted the authority to deny subdivision approvals if the transportation system is deemed inadequate.

Furthermore, the bill introduces provisions to ensure that there is a clear connection between the street impact fee and the municipal purpose it serves, requiring that the fee be proportional to the needs created by the proposed development. It also stipulates that if a dispute arises regarding the fee, municipalities cannot condition approval of the subdivision on waiving the right to challenge the fee's validity. An applicant may proceed with their application as if the fee has been paid while a dispute is being resolved, provided certain conditions are met, including depositing the fee in escrow and appealing the fee within a specified timeframe.

Statutes affected:
Introduction: 462.358