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Minnesota Legislature

Office of the Revisor of Statutes

HF 1095

as introduced - 91st Legislature (2019 - 2020) Posted on 04/26/2019 03:43pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to cities; establishing procedure for 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.

new text begin [435.39] MUNICIPAL STREET IMPROVEMENT DISTRICTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Governing body" means the city council of a municipality.
new text end

new text begin (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; and 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 transitways; or operating assistance for transitways.
new text end

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

new text begin (e) "Municipal street" means a street, alley, or public way in which the municipality is
the road authority.
new text end

new text begin (f) "Municipality" means a home rule charter or statutory city.
new text end

new text begin (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.
new text end

new text begin (h) "Unimproved parcel" means a parcel of land that is not improved by construction of
an authorized structure or contains a structure that has not previously been occupied, and
abuts an:
new text end

new text begin (1) unimproved municipal street and that is not served by municipal sewer or water
utilities; or
new text end

new text begin (2) improved municipal street and served by municipal sewer or water utilities.
new text end

new text begin Subd. 2. new text end

new text begin Authorization. new text end

new text begin To pay for street improvements and maintenance, a municipality
may, by ordinance, impose a street improvement fee. The fee amount must be just and
equitable. The ordinance must not be adopted until after public notice is provided and a
public hearing is held pursuant to subdivision 5.
new text end

new text begin Subd. 3. new text end

new text begin Improvement fee. new text end

new text begin Except as provided in subdivision 10, a municipality must
apportion 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.
new text end

new text begin Subd. 4. new text end

new text begin Uniformity. new text end

new text begin (a) All or part of the 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:
new text end

new text begin (1) estimated market value;
new text end

new text begin (2) tax capacity;
new text end

new text begin (3) front footage;
new text end

new text begin (4) land or building area; or
new text end

new text begin (5) some combination of clauses (1) to (4).
new text end

new text begin (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 selected in
paragraph (a), clauses (1) to (5).
new text end

new text begin Subd. 5. new text end

new text begin Adoption of plan; notice and hearing. new text end

new text begin (a) 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.
new text end

new text begin (b) 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 must be posted in a public place for at
least 30 days before the hearing. The notice shall include the time and place of the hearing,
a map showing the boundaries of the proposed district, and a statement that all persons
owning property in the proposed district that would be subject to a service charge will be
given the opportunity to be heard at the hearing.
new text end

new text begin (c) 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.
new text end

new text begin Subd. 6. new text end

new text begin Use of fees. new text end

new text begin 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.
new text end

new text begin Subd. 7. new text end

new text begin Collection; up to 20 years. new text end

new text begin (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 no more than 20 years.
new text end

new text begin (b) As of October 15 of each year, fees that 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.
new text end

new text begin Subd. 8. new text end

new text begin Not exclusive means of financing improvements. new text end

new text begin The use of the municipal
street improvement fee by a municipality does not restrict the municipality from imposing
other measures authorized by statute or by home rule charter 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.
new text end

new text begin Subd. 9. new text end

new text begin Unimproved parcels; fees. new text end

new text begin 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 the date of substantial completion of the paving of the previous
unimproved municipal street, or the date which a structure is built and first occupied pursuant
to a certificate of occupancy, whichever is later.
new text end

new text begin Subd. 10. new text end

new text begin Institutions of public charity. new text end

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

new text begin Subd. 11. new text end

new text begin Appeal to district court. new text end

new text begin Within 30 days after adoption of a street improvement
fee, any affected landowner may appeal to the district court by serving a notice upon the
mayor or clerk of the municipality. The notice shall be filed with the court administrator of
the district court within ten days after its service. The appeal shall be placed upon the
calendar of the next general term commencing more than five days after the date of serving
the notice and shall be tried as other appeals in such cases. The court shall either affirm the
street improvement fee or set it aside and order a reassessment as provided in subdivision
3. All objections to the street improvement fee shall be deemed waived unless presented on
appeal. This section provides the exclusive method of appeal from a street improvement
fee issued under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end