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EAGUE OF <br />MINNESOTA <br />CITIES <br />CONNECTING & INNOVATING <br />SINCE 1913 <br />DEVELOPMENT FEES AND CITIES Q&A <br />CITIES WORK WITH DEVELOPERS TO ENSURE NEW DEVELOPMENTS AND IMPROVEMENTS ARE SAFE AND <br />CONSISTENT WITH COMMUNITY GOALS. <br />Published January 2019 <br />Question: Why are developers required to work with cities? <br />Answer: When developers approach cities to subdivide land (make smaller parcels out of a larger tract), <br />developers must follow the land use rules (the city's zoning laws and "subdivision ordinance") established <br />by the city for the benefit of its residents. Cities work with developers to ensure improvements like new <br />streets, sidewalks, trails, sewer, water lines, and stormwater systems are safe and in good working <br />condition, and the project is consistent with the standards of existing properties. <br />Question: What do fees pay for? <br />Answer: Development fees cover the city's costs related to the review, approval, and inspection of the <br />development. City review of a proposed subdivision application may involve significant staff time as well <br />as the services of planners, attorneys, engineers, and other professionals who are often contract <br />consultants. Cities are authorized in state law to seek reimbursement for these costs. <br />Question: How do residents benefit? What's in it for them? <br />Answer: The review and inspection are completed to protect residents and property owners. For example, <br />future residents of the development can be confident that the grading of lots and design of the <br />stormwater system will work together to prevent flooding in an extreme rain event that could occur after <br />a developer has completed the structure and sold the property. In addition, the city (i.e. taxpayers) "own" <br />improvements to things like streets and sewers, and benefit from the work being done correctly. <br />This process also ensures that the development meets the city's health, safety, and welfare standards, <br />which are described in city ordinances. Common charges include sanitary sewer and water hook-up and <br />access charges, which provide for services like plumbing and clean drinking water. In addition, cities have <br />authority to require developers to dedicate a reasonable portion of land within the development to public <br />use for such resident needs as streets, utilities, and park areas. <br />Question: How would a city pay for these projects without developer fees? <br />Answer: Cities could choose to incorporate the development -related costs into their budget, which could <br />be done by increasing property taxes for existing property owners. Cities could also choose to do the <br />improvements themselves and recoup the costs through special assessments from the new property <br />owners. Or cities could choose to not finance the development costs, which would halt the development. <br />145 UNIVERSITY AVE. WEST <br />ST. PAUL, MN 55103-2044 <br />PHONE: (651) 281-1200 FAX: (651) 281-1299 <br />TOLL FREE: (800) 925-1122 WEB: WWWLMC.ORG <br />