Bill Text: MN SF270 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Local government interim ordinances and municipal development contracts provisions modifications
Sponsorship: Partisan Bill (Republican 2)
Status: (Introduced - Dead) 2012-04-02 - HF substituted on General Orders HF389 [SF270 Detail]
Download: Minnesota-2011-SF270-Engrossed.html
1.2relating to local government; providing for interim planning ordinances;
1.3providing for municipal development contracts;amending Minnesota Statutes
1.42010, sections 394.25, subdivision 7; 394.34; 462.355, subdivision 4; 462.358,
1.5subdivisions 2a, 2c, by adding a subdivision.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 394.25, subdivision 7, is amended to read:
1.8 Subd. 7. Specific controls; other subjects. (a) Specific controls pertaining to other
1.9subjects incorporated in the comprehensive plan or establishing standards and procedures
1.10to be employed in land development including, but not limited to, subdividing of land and
1.11the approval of land plats and the preservation and dedication of streets and land for other
1.12public purposes and the general design of physical improvement.
1.13(b) A county must approve a preliminary plat that meets the applicable standards
1.14and criteria contained in the county's zoning and subdivision regulations unless the
1.15county adopts written findings based on a record from the public proceedings why the
1.16application shall not be approved.
1.17(c) The controls may require that a portion of any proposed subdivision be dedicated
1.18to the public or preserved for public use as parks, recreational facilities, playgrounds,
1.19trails, wetlands, or open space. The requirement must be imposed by ordinance.
1.20(d) If a county adopts the ordinance required by paragraph (c), the county must
1.21adopt a capital improvement program and adopt a parks and open space plan or have a
1.22parks, trails, and open space component in its comprehensive plan subject to the terms and
1.23conditions in this paragraph and in paragraphs (e) through (p).
1.24(e) The county may choose to accept a per lot cash fee as set by ordinance from the
1.25applicant for some or all of the new lots created in the subdivision.
2.1(f) In establishing the portion to be dedicated or preserved or the per lot cash fee, the
2.2controls must consider the open space, park, recreational, or common areas and facilities
2.3that the applicant proposes to reserve for the subdivision.
2.4(g) The county must reasonably determine that it will need to acquire that portion of
2.5land for the purposes stated in this subdivision as a result of approval of the subdivision.
2.6(h) The fees or dedication must be fair, reasonable, and proportionate to the need
2.7created.
2.8(i) Any cash payments received must be placed by the county in a special fund to be
2.9used only for the purposes for which the money was obtained.
2.10(j) Any cash payments received must be used only for the acquisition and
2.11development or improvement of parks, recreational facilities, playgrounds, trails,
2.12wetlands, or open space. Cash payments must not be used for ongoing operation,
2.13maintenance, or redevelopment of parks, recreational facilities, playgrounds, trails,
2.14wetlands, or open space.
2.15(k) The county must not deny the approval of a subdivision based on an inadequate
2.16supply of parks, open spaces, trails, or recreational areas within the county.
2.17(l) The county must not condition the approval of any proposed subdivision or
2.18development on an agreement to waive the right to challenge the validity of a fee or
2.19dedication.
2.20(m) The county must use at least 75 percent of the funds collected under this
2.21subdivision according to the plan required in paragraph (d) in the township or city where
2.22the collection of funds occurs. However, the township board or city council may agree to
2.23allow the county to use these funds outside of the township or city in a manner consistent
2.24with the county parks, trails, and open space capital improvement plan or the county parks
2.25and open space component in its comprehensive plan. The remainder of the funds may be
2.26used by the county only for parks and trails connectivity and accessibility purposes. The
2.27county must annually report to cities and townships on where funds were collected and
2.28where funds were expended in the past year.
2.29(n) Previously subdivided property from which a park dedication has been received,
2.30being resubdivided with the same number of lots, is exempt from park dedication
2.31requirements. If, as a result of resubdividing the property, the number of lots is increased,
2.32then the park dedication or per lot cash fee must apply only to the net increase of lots.
2.33(o) A county must not require a dedication of a portion of a proposed subdivision or
2.34a payment in lieu of dedication in a town or city that has adopted a requirement to dedicate
2.35or a payment in place of dedication as a provision of the town or city's subdivision
2.36regulations under section462.358, subdivision subdivisions 2b and 2d , or chapter 366.
3.1(p) A county may negotiate an agreement with a town or city to share the revenue
3.2generated by dedicating a portion of a proposed subdivision or a payment in place of
3.3dedication.
3.4 Sec. 2. Minnesota Statutes 2010, section 394.34, is amended to read:
3.5394.34 INTERIM ZONING.
3.6(a) If a county is conducting or in good faith intends to conduct studies within a
3.7reasonable time, or has held or is holding a hearing for the purpose of considering a
3.8comprehensive plan or official controls or an amendment, extension, or addition to either,
3.9or in the event new territory for which no zoning may have been adopted, may be annexed
3.10to a municipality, the board, in order to protect the public health, safety, and general
3.11welfare, may adopt as an emergency measure, after public notice and hearing, a temporary
3.12interim zoning map or temporary interim zoning ordinance,. The purpose of which shall
3.13be the ordinance or map is to classify and regulate uses and related matters as constitutes
3.14the emergency.Such The interim resolution shall be ordinance or map is limited to one
3.15year from the date it becomes effectiveand to one year to renewal thereafter.
3.16(b) Before adopting an interim zoning ordinance or map, the county board must hold
3.17a public hearing. Notice of the public hearing must be published in the county's official
3.18newspaper at least ten days before the hearing.
3.19(c) An interim ordinance or map must not halt, delay, or impede consideration of a
3.20use, development, or subdivision for which a complete application under section 15.99
3.21is pending before the county as of the date that notice of the public hearing is published
3.22pursuant to paragraph (b). This paragraph does not apply to: (1) adult-use businesses or
3.23sexually oriented businesses, as defined by ordinance; (2) proposed uses deemed by the
3.24governing body to constitute a nuisance as defined by section 561.01; or (3) an application
3.25for which the governing body adopts an interim ordinance within 60 days following
3.26receipt of an application deemed complete.
3.27 Sec. 3. Minnesota Statutes 2010, section 462.355, subdivision 4, is amended to read:
3.28 Subd. 4. Interim ordinance. (a) If a municipality is conducting studies or has
3.29authorized a study to be conducted or has held or has scheduled a hearing for the purpose
3.30of considering adoption or amendment of a comprehensive plan or official controls
3.31as defined in section462.352, subdivision 15 , or if new territory for which plans or
3.32controls have not been adopted is annexed to a municipality, the governing body of the
3.33municipality may adopt an interim ordinance applicable to all or part of its jurisdiction for
3.34the purpose of protecting the planning process and the health, safety and welfare of its
4.1citizens. The interim ordinance may regulate, restrict, or prohibit any use, development, or
4.2subdivision within the jurisdiction or a portion thereof for a period not to exceed one year
4.3from the date it is effective except as otherwise provided by this subdivision.
4.4(b) An interim ordinance must not halt, delay, or impede consideration of a use,
4.5development, or subdivision for which a complete application under section 15.99 is
4.6pending before the municipality as of the date that notice of the public hearing is published
4.7pursuant to paragraph (c). This paragraph does not apply to: (1) adult-use businesses or
4.8sexually oriented businesses, as defined by ordinance; (2) proposed uses deemed by the
4.9governing body to constitute a nuisance as defined by section 561.01; or (3) an application
4.10for which the governing body adopts an interim ordinance within 60 days following
4.11receipt of an application deemed complete.
4.12(b) If a proposed interim ordinance purports to regulate, restrict, or prohibit activities
4.13relating to livestock production (c) For purposes of notice and public hearing required
4.14by this section, a public hearing must be held following a ten-day notice given by
4.15publication in a newspaper of general circulation in the municipality before the interim
4.16ordinance takes effect.
4.17(c) (d) The period of an interim ordinance applicable to an area that is affected by
4.18a city's master plan for a municipal airport may be extended for such additional periods
4.19as the municipality may deem appropriate, not exceeding a total additional period of 18
4.20months. In all other cases, no interim ordinance may halt, delay, or impede a subdivision
4.21that has been given preliminary approval, nor may any interim ordinance extend the
4.22time deadline for agency action set forth in section15.99 with respect to any application
4.23filed prior to the effective date of the interim ordinance. The governing body of the
4.24municipality may extend the interim ordinance after a public hearing and written findings
4.25have been adopted based upon one or more of the conditions in clause (1), (2), or (3).
4.26The public hearing must be held at least 15 days but not more than 30 days before the
4.27expiration of the interim ordinance, and notice of the hearing must be published at least
4.28ten days before the hearing. The interim ordinance may be extended for the following
4.29conditions and durations, but, except as provided in clause (3), an interim ordinance may
4.30not be extended more than an additional 18 months:
4.31(1) up to an additional 120 days following the receipt of the final approval or review
4.32by a federal, state, or metropolitan agency when the approval is required by law and the
4.33review or approval has not been completed and received by the municipality at least 30
4.34days before the expiration of the interim ordinance;
5.1(2) up to an additional 120 days following the completion of any other process
5.2required by a state statute, federal law, or court order, when the process is not completed at
5.3least 30 days before the expiration of the interim ordinance; or
5.4(3) up to an additional one year if the municipality has not adopted a comprehensive
5.5plan under this section at the time the interim ordinance is enacted.
5.6 Sec. 4. Minnesota Statutes 2010, section 462.358, subdivision 2a, is amended to read:
5.7 Subd. 2a. Terms of regulations. (a) The standards and requirements in the
5.8regulations may address without limitation: the size, location, grading, and improvement
5.9of lots, structures, public areas, streets, roads, trails, walkways, curbs and gutters,
5.10water supply, storm drainage, lighting, sewers, electricity, gas, and other utilities; the
5.11planning and design of sites; access to solar energy; and the protection and conservation
5.12of flood plains, shore lands, soils, water, vegetation, energy, air quality, and geologic
5.13and ecologic features. The regulations shall require that subdivisions be consistent with
5.14the municipality's official map if one exists and its zoning ordinance, and may require
5.15consistency with other official controls and the comprehensive plan. The regulations may
5.16prohibit certain classes or kinds of subdivisions in areas where prohibition is consistent
5.17with the comprehensive plan and the purposes of this section, particularly the preservation
5.18of agricultural lands. The regulations may prohibit, restrict or control development for
5.19the purpose of protecting and assuring access to direct sunlight for solar energy systems.
5.20The regulations may prohibit the issuance of permits or approvals for any tracts, lots, or
5.21parcels for which required subdivision approval has not been obtained.
5.22(b) The regulations may permit the municipality to condition its approval on
5.23the construction and installation of sewers, streets, electric, gas, drainage, and water
5.24facilities, and similar utilities and improvements or, in lieu thereof, on the receipt by the
5.25municipality of a cash deposit, certified check, irrevocable letter of credit, bond, or other
5.26financial security in an amount and with surety and conditions sufficient to assure the
5.27municipality that the utilities and improvements will be constructed or installed according
5.28to the specifications of the municipality. Sections471.345 and
574.26 do not apply to
5.29improvements made by a subdivider or a subdivider's contractor.
5.30(c) A municipality may require that an applicant establish an escrow account or
5.31other financial security for the purpose of reimbursing the municipality for direct costs
5.32relating to professional services provided during the review, approval and inspection of
5.33the project. A municipality may only charge the applicant a rate equal to the value of the
5.34service to the municipality. Services provided by municipal staff or contract professionals
5.35must be billed at an established rate.
6.1(d) When the applicant vouches, by certified letter to the municipality, that the
6.2conditions required by the municipality for approval under this subdivision have been
6.3satisfied, the municipality has 30 days to release and return to the applicant any and all
6.4financial securities tied to the requirements. If the municipality fails to release and return
6.5the letters of credit within the 30-day period, any interest accrued will be paid to the
6.6applicant. If the municipality determines that the conditions required for approval under
6.7this subdivision have not been satisfied, the municipality must send written notice within
6.8seven business days upon receipt of the certified letter indicating to the applicant which
6.9specific conditions have not been met. The municipality shall require a maintenance
6.10or performance bond from any subcontractor that has not yet completed all remaining
6.11requirements of the municipality.
6.12(e) The regulations may permit the municipality to condition its approval on
6.13compliance with other requirements reasonably related to the provisions of the regulations
6.14and to execute development contracts embodying the terms and conditions of approval.
6.15The municipality may not require land dedications or fees in the development contract that
6.16are not authorized by statute or mutually agreed upon by all parties to the development
6.17contract. In addition, the amount of financial security for work authorized under the
6.18development contract must have a rough proportionality to the work to be completed by
6.19either the municipality or the applicant. Unless otherwise agreed, at least three days before
6.20approval, the municipality must provide a copy of the complete development contract,
6.21including all exhibits, to the applicant. The municipality may enforce such agreements
6.22and conditions by appropriate legal and equitable remedies.
6.23 Sec. 5. Minnesota Statutes 2010, section 462.358, subdivision 2c, is amended to read:
6.24 Subd. 2c. Nexus. (a) There must be an essential nexus betweenthe any fees
6.25or dedicationimposed authorized under subdivision 2b this section and the municipal
6.26purpose sought to be achieved by the fee or dedication. The fee or dedication must bear a
6.27rough proportionality to the need created by the proposed subdivision or development.
6.28(b) If a municipality is given written notice of a dispute over a proposed feein lieu of
6.29dedication before the municipality's final decision on an application, a municipality must
6.30not condition the approval of any proposed subdivision or development on an agreement
6.31to waive the right to challenge the validity of a feein lieu of dedication.
6.32(c) An application may proceed as if the fee had been paid, pending a decision on the
6.33appeal of a dispute over a proposed feein lieu of dedication, if (1) the person aggrieved by
6.34the fee puts the municipality on written notice of a dispute over a proposed feein lieu of
6.35dedication, (2) prior to the municipality's final decision on the application, the fee in lieu
7.1of dedication is deposited in escrow, and (3) the person aggrieved by the fee appeals under
7.2section462.361 , within 60 days of the approval of the application. If such an appeal is not
7.3filed by the deadline, or if the person aggrieved by the fee does not prevail on the appeal,
7.4then the funds paid into escrow must be transferred to the municipality.
7.5 Sec. 6. Minnesota Statutes 2010, section 462.358, is amended by adding a subdivision
7.6to read:
7.7 Subd. 2d. Dedication. The regulations may require that a reasonable portion of
7.8the buildable land, as defined by municipal ordinance, of any proposed subdivision be
7.9dedicated to the public or preserved for public use as streets, roads, sewers, electric, gas,
7.10and water facilities, storm water drainage and hold areas or ponds, and similar utilities and
7.11improvements. The requirement must be imposed by ordinance or under the procedures
7.12established in section 462.353, subdivision 4a.
7.13 Sec. 7. EFFECTIVE DATE.
7.14Sections 1 to 6 are effective for ordinances adopted on or after August 1, 2012, and
7.15shall not affect interim ordinances adopted before that date.
1.3providing for municipal development contracts;amending Minnesota Statutes
1.42010, sections 394.25, subdivision 7; 394.34; 462.355, subdivision 4; 462.358,
1.5subdivisions 2a, 2c, by adding a subdivision.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 394.25, subdivision 7, is amended to read:
1.8 Subd. 7. Specific controls; other subjects. (a) Specific controls pertaining to other
1.9subjects incorporated in the comprehensive plan or establishing standards and procedures
1.10to be employed in land development including, but not limited to, subdividing of land and
1.11the approval of land plats and the preservation and dedication of streets and land for other
1.12public purposes and the general design of physical improvement.
1.13(b) A county must approve a preliminary plat that meets the applicable standards
1.14and criteria contained in the county's zoning and subdivision regulations unless the
1.15county adopts written findings based on a record from the public proceedings why the
1.16application shall not be approved.
1.17(c) The controls may require that a portion of any proposed subdivision be dedicated
1.18to the public or preserved for public use as parks, recreational facilities, playgrounds,
1.19trails, wetlands, or open space. The requirement must be imposed by ordinance.
1.20(d) If a county adopts the ordinance required by paragraph (c), the county must
1.21adopt a capital improvement program and adopt a parks and open space plan or have a
1.22parks, trails, and open space component in its comprehensive plan subject to the terms and
1.23conditions in this paragraph and in paragraphs (e) through (p).
1.24(e) The county may choose to accept a per lot cash fee as set by ordinance from the
1.25applicant for some or all of the new lots created in the subdivision.
2.1(f) In establishing the portion to be dedicated or preserved or the per lot cash fee, the
2.2controls must consider the open space, park, recreational, or common areas and facilities
2.3that the applicant proposes to reserve for the subdivision.
2.4(g) The county must reasonably determine that it will need to acquire that portion of
2.5land for the purposes stated in this subdivision as a result of approval of the subdivision.
2.6(h) The fees or dedication must be fair, reasonable, and proportionate to the need
2.7created.
2.8(i) Any cash payments received must be placed by the county in a special fund to be
2.9used only for the purposes for which the money was obtained.
2.10(j) Any cash payments received must be used only for the acquisition and
2.11development or improvement of parks, recreational facilities, playgrounds, trails,
2.12wetlands, or open space. Cash payments must not be used for ongoing operation,
2.13maintenance, or redevelopment of parks, recreational facilities, playgrounds, trails,
2.14wetlands, or open space.
2.15(k) The county must not deny the approval of a subdivision based on an inadequate
2.16supply of parks, open spaces, trails, or recreational areas within the county.
2.17(l) The county must not condition the approval of any proposed subdivision or
2.18development on an agreement to waive the right to challenge the validity of a fee or
2.19dedication.
2.20(m) The county must use at least 75 percent of the funds collected under this
2.21subdivision according to the plan required in paragraph (d) in the township or city where
2.22the collection of funds occurs. However, the township board or city council may agree to
2.23allow the county to use these funds outside of the township or city in a manner consistent
2.24with the county parks, trails, and open space capital improvement plan or the county parks
2.25and open space component in its comprehensive plan. The remainder of the funds may be
2.26used by the county only for parks and trails connectivity and accessibility purposes. The
2.27county must annually report to cities and townships on where funds were collected and
2.28where funds were expended in the past year.
2.29(n) Previously subdivided property from which a park dedication has been received,
2.30being resubdivided with the same number of lots, is exempt from park dedication
2.31requirements. If, as a result of resubdividing the property, the number of lots is increased,
2.32then the park dedication or per lot cash fee must apply only to the net increase of lots.
2.33(o) A county must not require a dedication of a portion of a proposed subdivision or
2.34a payment in lieu of dedication in a town or city that has adopted a requirement to dedicate
2.35or a payment in place of dedication as a provision of the town or city's subdivision
2.36regulations under section
3.1(p) A county may negotiate an agreement with a town or city to share the revenue
3.2generated by dedicating a portion of a proposed subdivision or a payment in place of
3.3dedication.
3.4 Sec. 2. Minnesota Statutes 2010, section 394.34, is amended to read:
3.5394.34 INTERIM ZONING.
3.6(a) If a county is conducting or in good faith intends to conduct studies within a
3.7reasonable time, or has held or is holding a hearing for the purpose of considering a
3.8comprehensive plan or official controls or an amendment, extension, or addition to either,
3.9or in the event new territory for which no zoning may have been adopted, may be annexed
3.10to a municipality, the board, in order to protect the public health, safety, and general
3.11welfare, may adopt as an emergency measure, after public notice and hearing, a temporary
3.12interim zoning map or temporary interim zoning ordinance
3.13
3.14the emergency.
3.15year from the date it becomes effective
3.16(b) Before adopting an interim zoning ordinance or map, the county board must hold
3.17a public hearing. Notice of the public hearing must be published in the county's official
3.18newspaper at least ten days before the hearing.
3.19(c) An interim ordinance or map must not halt, delay, or impede consideration of a
3.20use, development, or subdivision for which a complete application under section 15.99
3.21is pending before the county as of the date that notice of the public hearing is published
3.22pursuant to paragraph (b). This paragraph does not apply to: (1) adult-use businesses or
3.23sexually oriented businesses, as defined by ordinance; (2) proposed uses deemed by the
3.24governing body to constitute a nuisance as defined by section 561.01; or (3) an application
3.25for which the governing body adopts an interim ordinance within 60 days following
3.26receipt of an application deemed complete.
3.27 Sec. 3. Minnesota Statutes 2010, section 462.355, subdivision 4, is amended to read:
3.28 Subd. 4. Interim ordinance. (a) If a municipality is conducting studies or has
3.29authorized a study to be conducted or has held or has scheduled a hearing for the purpose
3.30of considering adoption or amendment of a comprehensive plan or official controls
3.31as defined in section
3.32controls have not been adopted is annexed to a municipality, the governing body of the
3.33municipality may adopt an interim ordinance applicable to all or part of its jurisdiction for
3.34the purpose of protecting the planning process and the health, safety and welfare of its
4.1citizens. The interim ordinance may regulate, restrict, or prohibit any use, development, or
4.2subdivision within the jurisdiction or a portion thereof for a period not to exceed one year
4.3from the date it is effective except as otherwise provided by this subdivision.
4.4(b) An interim ordinance must not halt, delay, or impede consideration of a use,
4.5development, or subdivision for which a complete application under section 15.99 is
4.6pending before the municipality as of the date that notice of the public hearing is published
4.7pursuant to paragraph (c). This paragraph does not apply to: (1) adult-use businesses or
4.8sexually oriented businesses, as defined by ordinance; (2) proposed uses deemed by the
4.9governing body to constitute a nuisance as defined by section 561.01; or (3) an application
4.10for which the governing body adopts an interim ordinance within 60 days following
4.11receipt of an application deemed complete.
4.12
4.13
4.14by this section, a public hearing must be held following a ten-day notice given by
4.15publication in a newspaper of general circulation in the municipality before the interim
4.16ordinance takes effect.
4.17
4.18a city's master plan for a municipal airport may be extended for such additional periods
4.19as the municipality may deem appropriate, not exceeding a total additional period of 18
4.20months. In all other cases, no interim ordinance may halt, delay, or impede a subdivision
4.21that has been given preliminary approval, nor may any interim ordinance extend the
4.22time deadline for agency action set forth in section
4.23filed prior to the effective date of the interim ordinance. The governing body of the
4.24municipality may extend the interim ordinance after a public hearing and written findings
4.25have been adopted based upon one or more of the conditions in clause (1), (2), or (3).
4.26The public hearing must be held at least 15 days but not more than 30 days before the
4.27expiration of the interim ordinance, and notice of the hearing must be published at least
4.28ten days before the hearing. The interim ordinance may be extended for the following
4.29conditions and durations, but, except as provided in clause (3), an interim ordinance may
4.30not be extended more than an additional 18 months:
4.31(1) up to an additional 120 days following the receipt of the final approval or review
4.32by a federal, state, or metropolitan agency when the approval is required by law and the
4.33review or approval has not been completed and received by the municipality at least 30
4.34days before the expiration of the interim ordinance;
5.1(2) up to an additional 120 days following the completion of any other process
5.2required by a state statute, federal law, or court order, when the process is not completed at
5.3least 30 days before the expiration of the interim ordinance; or
5.4(3) up to an additional one year if the municipality has not adopted a comprehensive
5.5plan under this section at the time the interim ordinance is enacted.
5.6 Sec. 4. Minnesota Statutes 2010, section 462.358, subdivision 2a, is amended to read:
5.7 Subd. 2a. Terms of regulations. (a) The standards and requirements in the
5.8regulations may address without limitation: the size, location, grading, and improvement
5.9of lots, structures, public areas, streets, roads, trails, walkways, curbs and gutters,
5.10water supply, storm drainage, lighting, sewers, electricity, gas, and other utilities; the
5.11planning and design of sites; access to solar energy; and the protection and conservation
5.12of flood plains, shore lands, soils, water, vegetation, energy, air quality, and geologic
5.13and ecologic features. The regulations shall require that subdivisions be consistent with
5.14the municipality's official map if one exists and its zoning ordinance, and may require
5.15consistency with other official controls and the comprehensive plan. The regulations may
5.16prohibit certain classes or kinds of subdivisions in areas where prohibition is consistent
5.17with the comprehensive plan and the purposes of this section, particularly the preservation
5.18of agricultural lands. The regulations may prohibit, restrict or control development for
5.19the purpose of protecting and assuring access to direct sunlight for solar energy systems.
5.20The regulations may prohibit the issuance of permits or approvals for any tracts, lots, or
5.21parcels for which required subdivision approval has not been obtained.
5.22(b) The regulations may permit the municipality to condition its approval on
5.23the construction and installation of sewers, streets, electric, gas, drainage, and water
5.24facilities, and similar utilities and improvements or, in lieu thereof, on the receipt by the
5.25municipality of a cash deposit, certified check, irrevocable letter of credit, bond, or other
5.26financial security in an amount and with surety and conditions sufficient to assure the
5.27municipality that the utilities and improvements will be constructed or installed according
5.28to the specifications of the municipality. Sections
5.29improvements made by a subdivider or a subdivider's contractor.
5.30(c) A municipality may require that an applicant establish an escrow account or
5.31other financial security for the purpose of reimbursing the municipality for direct costs
5.32relating to professional services provided during the review, approval and inspection of
5.33the project. A municipality may only charge the applicant a rate equal to the value of the
5.34service to the municipality. Services provided by municipal staff or contract professionals
5.35must be billed at an established rate.
6.1(d) When the applicant vouches, by certified letter to the municipality, that the
6.2conditions required by the municipality for approval under this subdivision have been
6.3satisfied, the municipality has 30 days to release and return to the applicant any and all
6.4financial securities tied to the requirements. If the municipality fails to release and return
6.5the letters of credit within the 30-day period, any interest accrued will be paid to the
6.6applicant. If the municipality determines that the conditions required for approval under
6.7this subdivision have not been satisfied, the municipality must send written notice within
6.8seven business days upon receipt of the certified letter indicating to the applicant which
6.9specific conditions have not been met. The municipality shall require a maintenance
6.10or performance bond from any subcontractor that has not yet completed all remaining
6.11requirements of the municipality.
6.12(e) The regulations may permit the municipality to condition its approval on
6.13compliance with other requirements reasonably related to the provisions of the regulations
6.14and to execute development contracts embodying the terms and conditions of approval.
6.15The municipality may not require land dedications or fees in the development contract that
6.16are not authorized by statute or mutually agreed upon by all parties to the development
6.17contract. In addition, the amount of financial security for work authorized under the
6.18development contract must have a rough proportionality to the work to be completed by
6.19either the municipality or the applicant. Unless otherwise agreed, at least three days before
6.20approval, the municipality must provide a copy of the complete development contract,
6.21including all exhibits, to the applicant. The municipality may enforce such agreements
6.22and conditions by appropriate legal and equitable remedies.
6.23 Sec. 5. Minnesota Statutes 2010, section 462.358, subdivision 2c, is amended to read:
6.24 Subd. 2c. Nexus. (a) There must be an essential nexus between
6.25or dedication
6.26purpose sought to be achieved by the fee or dedication. The fee or dedication must bear a
6.27rough proportionality to the need created by the proposed subdivision or development.
6.28(b) If a municipality is given written notice of a dispute over a proposed fee
6.29
6.30not condition the approval of any proposed subdivision or development on an agreement
6.31to waive the right to challenge the validity of a fee
6.32(c) An application may proceed as if the fee had been paid, pending a decision on the
6.33appeal of a dispute over a proposed fee
6.34the fee puts the municipality on written notice of a dispute over a proposed fee
6.35
7.1
7.2section
7.3filed by the deadline, or if the person aggrieved by the fee does not prevail on the appeal,
7.4then the funds paid into escrow must be transferred to the municipality.
7.5 Sec. 6. Minnesota Statutes 2010, section 462.358, is amended by adding a subdivision
7.6to read:
7.7 Subd. 2d. Dedication. The regulations may require that a reasonable portion of
7.8the buildable land, as defined by municipal ordinance, of any proposed subdivision be
7.9dedicated to the public or preserved for public use as streets, roads, sewers, electric, gas,
7.10and water facilities, storm water drainage and hold areas or ponds, and similar utilities and
7.11improvements. The requirement must be imposed by ordinance or under the procedures
7.12established in section 462.353, subdivision 4a.
7.13 Sec. 7. EFFECTIVE DATE.
7.14Sections 1 to 6 are effective for ordinances adopted on or after August 1, 2012, and
7.15shall not affect interim ordinances adopted before that date.
