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Message Page t of 1 <br /> <br />Amy Geisler <br /> <br />Subject: FW: Development Fees <br /> <br />..... Original Message ..... <br /> <br />Dear Ms. Geisler: <br /> <br />It is my understanding that true "impact" fees, i.e. a charge paid by the developer to offset increased city costs <br />elsewhere as a result of the development - classically creating or enlarging arterial or access streets to the <br />development, are not permitted under Minnesota law. <br /> <br />The only fees of which I am aware that can be passed to developers are those found in M.S. chapter 462. <br /> <br />M.S. 462.353, Subd. 4 allows the cities to charge fees "...sufficient to defray the costs incurred by it in reviewing, <br />investigating, and administering an application for an amendment to an official control.:..or an application for a <br />permit or other approval required under an official control..." There are some other restrictions around the setting <br />and use of these fees that the planning commission should probably also review - here is a link to that statute: <br />http://www.revisor, leq. state, mn. us/stats/462/353, html <br /> <br />M.S 462.358 Subd 2a, paragraph 2 - can require the installation of "...sewers, streets, electric, gas, drainage, <br />and water facilities, and similar utilities and improvements...", or in place of that to provide monetary guarantees <br />these things will be installed. Also, Subd. 2b - allows the city to require the dedication of parkland or a fee in lieu <br />of land. The city must be careful that there is some kind of nexus between the requirement and the need <br />according to recent court decisions. Here is a link to that statute: <br />http://www, revisor, leg: state.mn.us/stats/462/358.html <br /> <br />These fees and requirements would be set out in ci'ty resolutions and ordinances that the planning commission <br />should review. <br /> <br />I hope this is helpful. It is intended to be general information on this topic, not legal advice, and should not be <br />used as a substitute for competent legal guidance. The City should consult the city attorney for advice <br />concerning specific situations. <br /> <br />If I can be of other assistance please contact me. <br /> <br />Jeannette Bach, Research Manager <br />League of Minnesota Cities <br />800-925-1122 <br />651-281-1223 <br />jbach@lmnc.org <br /> <br />This email has been scanned by the MessageLabs Email Security System. <br />For more information please visit http://www.messagelabs.com/email <br /> <br />62 <br /> 6/25/2004 <br /> <br /> <br />