Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

SF 2537

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 11:36pm

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4 1.5 1.6
1.7 1.8 1.9 1.10 1.11 1.12
1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31
3.32 3.33 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30
4.31 4.32 4.33 4.34 4.35 5.1 5.2 5.3 5.4
5.5 5.6 5.7 5.8
5.9 5.10 5.11

A bill for an act
relating to transportation; creating pilot program to authorize establishment and
evaluate use of transportation improvement districts by certain local governments
for specified projects; establishing Transportation Improvement District Project
Selection Council; requiring report.

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

Section 1. new text beginTRANSPORTATION IMPROVEMENT DISTRICT PILOT
PROGRAM.
new text end

new text begin The commissioner of transportation shall conduct a transportation improvement
district pilot program to select projects within the metropolitan area to be funded by
a transportation improvement fee, to support and evaluate the use of the transportation
improvement district by local governments, and to report to the legislature.
new text end

Sec. 2. new text beginTRANSPORTATION UTILITY FEE PILOT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (a) "Facility upgrade" means the installation or improvement of a traffic signal,
turn lane, median, street approach, alley, right-of-way, sidewalk, or retaining wall; the
installation of a fence; or the addition of a traffic lane.
new text end

new text begin (b) "Commissioner" means the commissioner of transportation.
new text end

new text begin (c) "Governing body" means the body elected to govern a municipality.
new text end

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

new text begin (e) "Metropolitan area" means the counties of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, and Washington.
new text end

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

new text begin (g) "Reconstruction" means paving, grading, curbs or gutters, bridge repair, overlays,
drainage work, base work, subgrade corrections, and boulevard restoration.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin A municipality in the metropolitan area may apply to
participate in the transportation improvement district pilot program. The application must
state all information reasonably requested by the commissioner; describe the planned
construction, facility upgrade, reconstruction, or maintenance project described in the
master plan; state the estimated cost of the improvement; and identify the transportation
improvement district against which a fee is proposed to be assessed.
new text end

new text begin Subd. 3. new text end

new text begin Procedure for adoption. new text end

new text begin A municipality that has been selected for
participation in the pilot program by the selection committee may create the transportation
improvement district by ordinance adopted by a two-thirds vote of its governing body. The
resolution must not be voted on or adopted and the municipality may not contract for any
improvement until after a public hearing has been held on the question. A notice of the
time, place, and purpose of the hearing, including the general nature of the improvement,
its estimated costs, and the area against which a fee is proposed to be assessed, must be
published at least once in each week for two successive weeks in the official newspaper
of the municipality, or in a newspaper of general content and circulation within the
municipality, and the last notice must be published at least seven days before the hearing.
The municipality must file the adopted ordinance of record with the county recorder, and
the municipality must provide a copy to the county auditor.
new text end

new text begin Subd. 4. new text end

new text begin Collection. new text end

new text begin The ordinance adopted under this section must provide for
the billing and payment of a fee on a monthly, quarterly, or other basis as directed by the
governing body. Fees that, as of October 15 each calendar year, have remained unpaid
for at least 30 days must 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. 5. new text end

new text begin Master plan requirement. new text end

new text begin A municipality may not create a transportation
improvement district or impose the fee provided in this section unless it has prepared
and adopted a master plan that includes information on the proposed construction,
reconstruction, facility upgrade, and maintenance for the following five years. A capital
improvement plan, public facility plan, or comparable information qualifies as a master
plan. The master plan must include information on the proposed funding sources for
all projects required to be included in the plan. The master plan must be adopted by
resolution of the governing body following a hearing and publication of notice of the
hearing, as provided in subdivision 3.
new text end

new text begin Subd. 6. new text end

new text begin Use of proceeds. new text end

new text begin Revenues from the fee authorized in this section may only
be used for specific projects listed in the master plan and described in the pilot program
application and are limited to projected costs of the needs approved in the master plan and
described in the published notice before the required public hearing. The municipality
may not accumulate revenues from the fee beyond the estimated costs for construction,
reconstruction, facility upgrades, and maintenance that are described in the master plan.
new text end

new text begin Subd. 7. new text end

new text begin Calculation of fee. new text end

new text begin The fee imposed must be calculated based on the
relationship of the revenues the municipality proposes to generate and the relative benefit,
as determined by the municipality, that will accrue to each category of land use from the
projects to be financed. The amount of revenue the municipality proposes to generate must
be that amount reasonable and necessary to complete the proposed improvement. The fee
may be imposed only against property that will benefit by the improvement, whether or
not the property abuts the improvement.
new text end

new text begin Subd. 8. new text end

new text begin Appeals. new text end

new text begin A property owner may administratively appeal the amount of
the fee to the governing body within 60 days after notice of the amount of fee due has
been mailed to the property owner. The appeal must be in writing, signed, and dated by
the property owner, and must state the reasons why the amount of the fee is incorrect.
The appeal may state reasons why the fee imposed by the municipality generates funds
in excess of the amount reasonable and necessary for the improvement described in the
published notice, or why the property against which the fee is imposed does not benefit
from the proposed improvement. The decision of the governing body may be appealed to
the Tax Court in the same manner as appeals of determinations regarding property tax
matters provided for in chapter 271. If the governing body does not make a decision
within six months after the filing of an administrative appeal, the property owner may elect
to appeal to the Tax Court. The appeal procedures in this subdivision are in lieu of any
appeal procedures relating to special assessments provided for in chapter 429.
new text end

new text begin Subd. 9. new text end

new text begin Special assessments; bonds; property tax levies. new text end

new text begin The creation of a
transportation improvement district and use of associated fees by a municipality does
not restrict the municipality from imposing special assessments, issuing bond debt, or
levying property taxes to pay the costs of local street reconstruction, facility upgrades, or
maintenance.
new text end

Sec. 3. new text beginTRANSPORTATION IMPROVEMENT DISTRICT PROJECT
SELECTION COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment of council. new text end

new text begin A Transportation Improvement District
Project Selection Council is established to select, evaluate, and support local government
projects funded by a transportation improvement district fee.
new text end

new text begin Subd. 2. new text end

new text begin Duties of council. new text end

new text begin In order to accomplish these purposes, the council shall:
new text end

new text begin (1) review applications for participation from local governments in the metropolitan
area;
new text end

new text begin (2) select for participation in the pilot program a maximum of ten projects in the
metropolitan area, no more than three of which may be located in the same county;
new text end

new text begin (3) determine that the establishment of the transportation improvement district to
fund designated projects would serve the interest of the affected property owners, as well
as the local government and region it serves; and
new text end

new text begin (4) determine the suitability of the project for funding by collection of a
transportation improvement district fee.
new text end

new text begin Subd. 3. new text end

new text begin Membership. new text end

new text begin (a) The council is composed of the following members:
new text end

new text begin (1) one county commissioner from the metropolitan area, selected by the Association
of Minnesota Counties;
new text end

new text begin (2) one elected representative from a home rule charter or statutory city in the
metropolitan area, selected by the League of Minnesota Cities;
new text end

new text begin (3) the chair of the Metropolitan Council Transportation Committee or a designee;
new text end

new text begin (4) the commissioner of transportation or a designee from the Minnesota Department
of Transportation Division of State Aid for Local Transportation;
new text end

new text begin (5) two representatives of the business community in the metropolitan area selected
by the Minnesota Chamber of Commerce; and
new text end

new text begin (6) one realtor based in the metropolitan area, selected by the Minnesota Board of
Realtors.
new text end

new text begin (b) All appointments required by paragraph (a) must be completed by August
1, 2010.
new text end

new text begin (c) The commissioner of transportation or the commissioner's designee shall
convene the first meeting of the council within two weeks after the members have been
appointed to the council and shall serve as chair of the council.
new text end

Sec. 4. new text beginREPORT TO LEGISLATURE.
new text end

new text begin By October 1 of each odd-numbered year, and upon completion of all projects
performed under the pilot program, the commissioner shall submit a report to the chairs of
the legislative committees with jurisdiction over transportation budget and policy and to
the legislature. The report must summarize the transportation improvement district project
selection process, including the number of applications considered; projects undertaken;
projects completed and associated revenues raised; and the number of property owner
appeals and their disposition. The report must be made electronically with paper copies
furnished only upon request.
new text end

Sec. 5. new text beginEXPIRATION.
new text end

new text begin The Transportation Improvement District Project Selection Council expires on
October 1, 2013, or upon the selection of up to ten projects under this pilot program,
whichever occurs first.
new text end

Sec. 6. new text beginEFFECTIVE DATE.
new text end

new text begin This act is effective the day following final enactment for fees payable in 2011
and thereafter.
new text end