HF 1020

as introduced - 89th Legislature (2015 - 2016) Posted on 03/10/2015 08:42am

A bill for an act
relating to local government; creating municipal street improvement districts;
proposing coding for new law in Minnesota Statutes, chapter 435.

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

Section 1.

[435.39] MUNICIPAL STREET IMPROVEMENT DISTRICTS.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms
have the meanings given in this subdivision.

(b) "Governing body" means the city council of a municipality.

(c) "Improvements" means construction, reconstruction, and facility upgrades
involving right-of-way acquisition; paving; curbs and gutters; bridges and culverts and
their repair; milling; overlaying; drainage and storm sewers; excavation; base work;
subgrade corrections; street lighting; traffic signals; signage; sidewalks; pavement
markings; boulevard and easement restoration; impact mitigation; connection and
reconnection of utilities; turn lanes; medians; street and alley returns; retaining walls;
fences; lane additions; or fixed transit infrastructure, trails, or pathways. "Fixed transit
infrastructure" does not include commuter rail rolling stock, light rail vehicles, or
transit way buses; capital costs for park-and-ride facilities; feasibility studies, planning,
alternative analyses, environmental studies, engineering, or construction of transit ways;
or operating assistance for transit ways.

(d) "Maintenance" means striping, seal coating, crack sealing, pavement repair,
sidewalk maintenance, signal maintenance, street light maintenance, and signage.

(e) "Municipal street" means a street, alley, or public way for which the municipality
is the road authority with powers conferred by section 429.021.

(f) "Municipality" means a home rule charter or statutory city.

(g) "Street improvement district" means a geographic area designated by a
municipality and located within the municipality within which street improvements and
maintenance may be undertaken and financed according to this section.

(h) "Unimproved parcel" means a parcel of land that:

(1) abuts an unimproved municipal street and that is not served by municipal sewer
or water utilities; or

(2) abuts an improved municipal street, is served by municipal sewer or water
utilities, and that:

(i) is not improved by construction of an authorized structure; or

(ii) contains a structure that has not previously been occupied.

Subd. 2.

Authorization.

Notwithstanding any other law to the contrary, a
municipality may establish by ordinance municipal street improvement districts and may
defray all or part of the total costs of municipal street improvements and maintenance by
apportioning street improvement fees to all of the developed parcels located in the district.
A street improvement district must not include any property already located in another
street improvement district.

Subd. 3.

Uniformity.

(a) The total costs of municipal street improvements and
maintenance must be apportioned to all developed parcels or developed tracts of land
located in the established street improvement district on a uniform basis within each
classification of real estate. Apportionment must be made on the basis of one of the
following:

(1) estimated market value;

(2) tax capacity;

(3) front footage;

(4) land or building area; or

(5) any combination of clauses (1) to (4).

(b) Rates must not be apportioned in such a way that the rate borne by any
classification of property is more than twice the rate that would be borne by that
classification if rates were apportioned uniformly to all classifications of property under
the method or methods selected under paragraph (a).

Subd. 4.

Adoption of plan.

Before establishing a municipal street improvement
district or authorizing a street improvement fee, a municipality must propose and adopt a
street improvement plan that identifies the location of the municipal street improvement
district and identifies and estimates the costs of the proposed improvements during the
proposed period of collection of municipal street improvement fees, which must be for a
period of at least five years and no more than 20 years. Notice of a public hearing on the
proposed plan must be given by mail to all affected landowners at least 30 days before
the hearing and posted for at least 30 days before the hearing. At the public hearing, the
governing body must present the plan and all affected landowners in attendance must have
the opportunity to comment before the governing body considers adoption of the plan.

Subd. 5.

Use of fees.

Revenues from street improvement fees must be placed in
a separate account and used only for projects located within the district and identified
in the municipal street improvement plan.

Subd. 6.

Collection; up to 20 years.

(a) An ordinance adopted under this section
must provide for billing and payment of the fee on a monthly, quarterly, or other basis
as directed by the governing body. The governing body may collect municipal street
improvement fees within a street improvement district for up to 20 years, and shall not
collect municipal street improvement fees within a street improvement district for longer
than 20 years.

(b) Fees that, as of October 15 of each year, have remained unpaid for at least 30
days may be certified to the county auditor for collection as a special assessment payable
in the following calendar year against the affected property.

Subd. 7.

Improvement fee.

A municipality may impose a municipal street
improvement fee by ordinance. The ordinance must not be voted on or adopted until after
public notice is provided and a public hearing is held in the same manner as provided in
subdivision 4.

Subd. 8.

Not exclusive means of financing improvements.

The use of the
municipal street improvement fee by a municipality does not restrict the municipality from
imposing other measures to pay the costs of local street improvements or maintenance,
except that a municipality must not impose special assessments for projects funded with
street improvement fees.

Subd. 9.

Unimproved parcels; fees.

A municipality may not impose a street
improvement fee on any unimproved parcel located within an established street
improvement district until at least three years after either the date of substantial completion
of the paving of the previous unimproved municipal street or the date on which a structure
is built and first occupied pursuant to a certificate of occupancy, whichever is later.

Subd. 10.

Institutions of public charity.

A municipality may not impose a street
improvement fee on any parcel owned by an institution of public charity, as defined by
section 272.02, subdivision 7.

EFFECTIVE DATE.

This section is effective July 1, 2015.