Bill Text: MN HF321 | 2013-2014 | 88th Legislature | Engrossed


Bill Title: Minneapolis; fair market value defined for purposes of development fees, and Minneapolis and Minneapolis Park and Recreation Board joint dedication fee changed.

Spectrum: Partisan Bill (Democrat 10-0)

Status: (Engrossed - Dead) 2013-03-13 - Laid on table [HF321 Detail]

Download: Minnesota-2013-HF321-Engrossed.html

1.1A bill for an act
1.2relating to local government; defining fair market value for purposes of certain
1.3development fees; changing the city of Minneapolis and the Minneapolis Park
1.4and Recreation Board joint dedication fee;amending Minnesota Statutes 2012,
1.5section 462.358, subdivision 2b; Laws 2006, chapter 269, section 2, as amended.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7    Section 1. Minnesota Statutes 2012, section 462.358, subdivision 2b, is amended to read:
1.8    Subd. 2b. Dedication. (a) The regulations may require that a reasonable portion of
1.9the buildable land, as defined by municipal ordinance, of any proposed subdivision be
1.10dedicated to the public or preserved for public use as streets, roads, sewers, electric,
1.11gas, and water facilities, storm water drainage and holding areas or ponds and similar
1.12utilities and improvements, parks, recreational facilities as defined in section 471.191,
1.13playgrounds, trails, wetlands, or open space. The requirement must be imposed by
1.14ordinance or under the procedures established in section 462.353, subdivision 4a.
1.15(b) If a municipality adopts the ordinance or proceeds under section 462.353,
1.16subdivision 4a, as required by paragraph (a), the municipality must adopt a capital
1.17improvement budget and have a parks and open space plan or have a parks, trails, and
1.18open space component in its comprehensive plan subject to the terms and conditions in
1.19this paragraph and paragraphs (c) to (i).
1.20    (c) The municipality may choose to accept a cash fee as set by ordinance from the
1.21applicant for some or all of the new lots created in the subdivision, based on the average
1.22fair market value of the unplatted land for which park fees have not already been paid that
1.23is, no later than at the time of final approval or under the city's adopted comprehensive
1.24plan, to be served by municipal sanitary sewer and water service or community septic and
1.25private well as authorized by state law. For purposes of redevelopment on developed
2.1land, the municipality may choose to accept a cash fee based on fair market value of the
2.2land no later than the time of final approval. "Fair market value" means the value of the
2.3land as determined by the municipality annually based on tax valuation or other relevant
2.4data. If the municipality's calculation of valuation is objected to by the applicant, then
2.5the value shall be as negotiated between the municipality and the applicant, or based on
2.6the market value as determined by the municipality based on an independent appraisal of
2.7land in a same or similar land use category.
2.8(d) In establishing the portion to be dedicated or preserved or the cash fee, the
2.9regulations shall give due consideration to the open space, recreational, or common areas
2.10and facilities open to the public that the applicant proposes to reserve for the subdivision.
2.11(e) The municipality must reasonably determine that it will need to acquire that
2.12portion of land for the purposes stated in this subdivision as a result of approval of the
2.13subdivision.
2.14(f) Cash payments received must be placed by the municipality in a special fund to
2.15be used only for the purposes for which the money was obtained.
2.16(g) Cash payments received must be used only for the acquisition and development
2.17or improvement of parks, recreational facilities, playgrounds, trails, wetlands, or open
2.18space based on the approved park systems plan. Cash payments must not be used for
2.19ongoing operation or maintenance of parks, recreational facilities, playgrounds, trails,
2.20wetlands, or open space.
2.21(h) The municipality must not deny the approval of a subdivision based solely on
2.22an inadequate supply of parks, open spaces, trails, or recreational facilities within the
2.23municipality.
2.24(i) Previously subdivided property from which a park dedication has been received,
2.25being resubdivided with the same number of lots, is exempt from park dedication
2.26requirements. If, as a result of resubdividing the property, the number of lots is increased,
2.27then the park dedication or per-lot cash fee must apply only to the net increase of lots.

2.28    Sec. 2. Laws 2006, chapter 269, section 2, as amended by Laws 2008, chapter 331,
2.29section 11, and Laws 2008, chapter 366, article 17, section 5, is amended to read:
2.30    Sec. 2. DEDICATION FEE.
2.31    The Minneapolis Park and Recreation Board and the Minneapolis City Council may
2.32jointly exercise the powers conferred under Minnesota Statutes, section 462.358, with
2.33respect to requiring require that a reasonable portion of land be dedicated to the public or
2.34imposing impose a dedication fee on in conjunction with the construction permit required
2.35for new housing units and new commercial and industrial development in the city,
3.1wherever located, for public parks, playgrounds, recreational facilities, wetlands, trails, or
3.2open space. The dedication of land or dedication fee must be imposed by an ordinance
3.3jointly enacted by the park board and the city council. The cash fee may be set at a flat fee
3.4rate per net new residential unit. The ordinance may exclude senior housing and affordable
3.5housing from paying the fee or the dedication of land. The ordinance must exclude from
3.6paying the fee or making a dedication of land housing owned or constructed by a business
3.7eligible for designation as a targeted group business under Minnesota Statutes, section
3.816C.16, subdivision 5, or as a veteran-owned small business under Minnesota Statutes,
3.9section 16C.16, subdivision 6a. The provisions of Minnesota Statutes, section 462.358,
3.10subdivisions 2b
, paragraph (b), and 2c, apply to the imposition, application, and use of the
3.11dedication of land or the dedication fee. Park land acquired or developed with fees paid
3.12under this section must not be within 1500 feet of the residence of a person designated as a
3.13risk level III predatory offender under Minnesota Statutes, section 244.052, subdivision 3.
3.14EFFECTIVE DATE.This section is effective the day after the Minneapolis City
3.15Council and the Minneapolis Park and Recreation Board and their chief clerical officers
3.16timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions
3.172 and 3, and applies to joint dedication fee ordinances adopted or amended by the city of
3.18Minneapolis and the Minneapolis Park and Recreation Board before, on, or after that date.
feedback