HF 321

2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 02/26/2013 09:32am

A bill for an act
relating to local government; defining fair market value for purposes of certain
development fees; changing the city of Minneapolis and the Minneapolis Park
and Recreation Board joint dedication fee; amending Minnesota Statutes 2012,
section 462.358, subdivision 2b; Laws 2006, chapter 269, section 2, as amended.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 462.358, subdivision 2b, is amended to read:

Subd. 2b.

Dedication.

(a) The regulations may require that a reasonable portion of
the buildable land, as defined by municipal ordinance, of any proposed subdivision be
dedicated to the public or preserved for public use as streets, roads, sewers, electric,
gas, and water facilities, storm water drainage and holding areas or ponds and similar
utilities and improvements, parks, recreational facilities as defined in section 471.191,
playgrounds, trails, wetlands, or open space. The requirement must be imposed by
ordinance or under the procedures established in section 462.353, subdivision 4a.

(b) If a municipality adopts the ordinance or proceeds under section 462.353,
subdivision 4a, as required by paragraph (a), the municipality must adopt a capital
improvement budget and have a parks and open space plan or have a parks, trails, and
open space component in its comprehensive plan subject to the terms and conditions in
this paragraph and paragraphs (c) to (i).

(c) The municipality may choose to accept a cash fee as set by ordinance from the
applicant for some or all of the new lots created in the subdivision, based on the average
fair market value of the unplatted land for which park fees have not already been paid that
is, no later than at the time of final approval or under the city's adopted comprehensive
plan, to be served by municipal sanitary sewer and water service or community septic and
private well as authorized by state law. For purposes of redevelopment on developed
land, the municipality may choose to accept a cash fee based on fair market value of the
land no later than the time of final approval. new text begin "Fair market value" means the value of the
land as determined by the municipality annually based on tax valuation or other relevant
data. If the municipality's calculation of valuation is objected to by the applicant, then
the value shall be as negotiated between the municipality and the applicant, or based on
the market value as determined by the municipality based on an independent appraisal of
land in a same or similar land use category.
new text end

(d) In establishing the portion to be dedicated or preserved or the cash fee, the
regulations shall give due consideration to the open space, recreational, or common areas
and facilities open to the public that the applicant proposes to reserve for the subdivision.

(e) The municipality must reasonably determine that it will need to acquire that
portion of land for the purposes stated in this subdivision as a result of approval of the
subdivision.

(f) Cash payments received must be placed by the municipality in a special fund to
be used only for the purposes for which the money was obtained.

(g) Cash payments received must be used only for the acquisition and development
or improvement of parks, recreational facilities, playgrounds, trails, wetlands, or open
space based on the approved park systems plan. Cash payments must not be used for
ongoing operation or maintenance of parks, recreational facilities, playgrounds, trails,
wetlands, or open space.

(h) The municipality must not deny the approval of a subdivision based solely on
an inadequate supply of parks, open spaces, trails, or recreational facilities within the
municipality.

(i) Previously subdivided property from which a park dedication has been received,
being resubdivided with the same number of lots, is exempt from park dedication
requirements. If, as a result of resubdividing the property, the number of lots is increased,
then the park dedication or per-lot cash fee must apply only to the net increase of lots.

Sec. 2.

Laws 2006, chapter 269, section 2, as amended by Laws 2008, chapter 331,
section 11, and Laws 2008, chapter 366, article 17, section 5, is amended to read:

Sec. 2. DEDICATION FEE.

The Minneapolis Park and Recreation Board and the Minneapolis City Council may
jointly deleted text begin exercise the powers conferred under Minnesota Statutes, section 462.358, with
respect to requiring deleted text end new text begin require new text end that a reasonable portion of land be dedicated to the public or
deleted text begin imposing deleted text end new text begin impose new text end a dedication fee deleted text begin on deleted text end new text begin in conjunction with the construction permit required
for new text end new housing units and new commercial and industrial development in the city,
wherever located, for public parks, playgrounds, recreational facilities, wetlands, trails, or
open space. The dedication of land or dedication fee must be imposed by an ordinance
jointly enacted by the park board and the city council. new text begin The cash fee may be set at a flat fee
rate per net new residential unit. new text end The ordinance may exclude senior housing and affordable
housing from paying the fee or the dedication of land. new text begin The ordinance must exclude from
paying the fee or making a dedication of land housing owned or constructed by a business
eligible for designation as a targeted group business under Minnesota Statutes, section
16C.16, subdivision 5, or as a veteran-owned small business under Minnesota Statutes,
section 16C.16, subdivision 6a. new text end The provisions of Minnesota Statutes, section 462.358,
subdivisions 2b, paragraph (b), and 2c, apply to the deleted text begin imposition, deleted text end application deleted text begin , deleted text end and use of the
dedication of land or the dedication fee. new text begin Park land acquired or developed with fees paid
under this section must not be within 1500 feet of the residence of a person designated as a
risk level III predatory offender under Minnesota Statutes, section 244.052, subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the Minneapolis City
Council and the Minneapolis Park and Recreation Board and their chief clerical officers
timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions
2 and 3, and applies to joint dedication fee ordinances adopted or amended by the city of
Minneapolis and the Minneapolis Park and Recreation Board before, on, or after that date.
new text end