9.6 SR 02-16-2021 - Laserfiche WebLink

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LE42. Infrastructure Fees Issue: New development and the resulting growth create an increased demand for public infrastructure and other public facilities. Severe constraints on local fiscal resources and dramatic forecasts for population growth have prompted cities to reconsider ways to pay for the inevitable costs associated with new development. Traditional financing methods tend to subsidize new development at the expense of the existing community, discourage sound land -use planning, place inefficient pressures on public facilities, and allow under -utilization of existing infrastructure. Consequently, local communities are exploring methods to ensure new development pays its fair share of the true costs of growth. In Harstad v. City of Woodbury, 916 N.W.2d 540 (Minn. 2018), the Minnesota Supreme Court recently clarified that state statute does not provide the authority for cities to impose infrastructure fees to fund future road improvements when approving subdivision applications under Minn. Stat. § 462.358, subd. 2a. Given the existing authorization to impose fees on new development of other infrastructure, such as water, sanitary and storm sewer, and for park purposes, it is reasonable to extend the concept to additional public infrastructure and facilities improvement also necessitated by new development. Response: The Legislature should authorize local units of government to - impose infrastructure fees so new development pays its fair share of the off - site, as well as the on -site, costs of public infrastructure and other public facilities needed to adequately serve new development.