HF 3477

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to local government; establishing timelines for municipal action on
release of letters of credit; amending Minnesota Statutes 2004, section 462.358, subdivision 2a.

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

Section 1.

Minnesota Statutes 2004, section 462.358, subdivision 2a, is amended to
read:

Subd. 2a.

Terms of regulations.

The standards and requirements in the regulations
may address without limitation: the size, location, grading, and improvement of lots,
structures, public areas, streets, roads, trails, walkways, curbs and gutters, water supply,
storm drainage, lighting, sewers, electricity, gas, and other utilities; the planning and
design of sites; access to solar energy; and the protection and conservation of flood
plains, shore lands, soils, water, vegetation, energy, air quality, and geologic and
ecologic features. The regulations shall require that subdivisions be consistent with
the municipality's official map if one exists and its zoning ordinance, and may require
consistency with other official controls and the comprehensive plan. The regulations may
prohibit certain classes or kinds of subdivisions in areas where prohibition is consistent
with the comprehensive plan and the purposes of this section, particularly the preservation
of agricultural lands. The regulations may prohibit, restrict or control development for
the purpose of protecting and assuring access to direct sunlight for solar energy systems.
The regulations may prohibit the issuance of permits or approvals for any tracts, lots, or
parcels for which required subdivision approval has not been obtained.

The regulations may permit the municipality to condition its approval on the
construction and installation of sewers, streets, electric, gas, drainage, and water
facilities, and similar utilities and improvements or, in lieu thereof, on the receipt by the
municipality of a cash deposit, certified check, irrevocable letter of credit, deleted text begin or deleted text end bond new text begin , or
other financial security new text end in an amount and with surety and conditions sufficient to assure the
municipality that the utilities and improvements will be constructed or installed according
to the specifications of the municipality. Sections 471.345 and 574.26 do not apply to
improvements made by a subdivider or a subdivider's contractor.

new text begin A municipality may require that an applicant establish an escrow account or other
financial security for the purpose of reimbursing the municipality for direct costs relating
to professional services provided during the review, approval and inspection of the project.
A municipality may only charge the applicant a rate equal to the value of the service to
the municipality. Services provided by municipal staff or contract professionals must
be billed at an established rate.
new text end

new text begin When the applicant vouches, by certified letter to the municipality, that the
conditions required by the municipality for approval under this subdivision have been
satisfied, the municipality has 30 days to release and return to the applicant any and all
financial securities tied to the requirements. If the municipality fails to release and return
the letters of credit within the 30-day period, any interest accrued will be paid to the
applicant. If the municipality determines that the conditions required for approval under
this subdivision have not been satisfied, the municipality must send written notice within
seven business days upon receipt of the certified letter indicating to the applicant which
specific conditions have not been met. The municipality shall require a maintenance
or performance bond from any subcontractor that has not yet completed all remaining
requirements of the municipality.
new text end

The regulations may permit the municipality to condition its approval on compliance
with other requirements reasonably related to the provisions of the regulations and to
execute development contracts embodying the terms and conditions of approval. The
municipality may enforce such agreements and conditions by appropriate legal and
equitable remedies.