8.3. SR 03-02-2020City of
Qk*'
River
Request for Action
To
Item Number
Mayor and City Council
8.3
Agenda Section
Meeting Date
Prepared by
General Business
March 2, 2020
Zack Carlton, Planning Manager
Item Description
Reviewed by
Resolution Supporting Infrastructure Accountability
Cal Portner, City Administrator
Reviewed by
Justin Femrite, Public Works Director
Action Requested
Adopt, by motion, a resolution supporting legislation
Background/Discussion
In the fall of 2018, the Minnesota Supreme Court ruled on Haistad v. City of fFoodbury finding there was no
existing statutory authority to collect fees for future infrastructure improvements when approving residential
developments.
The League of Minnesota Cities is urging cities to pass a resolution supporting legislation that would
authorize cities to collect infrastructure development fees to fund municipal street improvements as a
necessary component of growth.
The goal of the legislation is to ensure that new development pays for new development and to limit the
possibility that existing taxpayers would be forced to pay for infrastructure needs resulting from a new
residential subdivision.
Financial Impact
None
Attachments
■ Infrastructure Fee Fact Sheet
■ Resolution
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional,` 01 e
service, and community engagement that encourages and inspires pi ospei ly INAWRE1
If not addressed, existing taxpayers
will foot the bill for streets that are
only needed because of proposed
residential development.
LHC®r LEAGUE
MINNESOTA
CITIES
PROBLEM:
When a new subdivision proposal is presented to
a city by a developer, city officals consider how
that development will connect with the rest of the
community through new city streets, or how the added
capacity will impact existing city streets.
Many cities plan street work years in advance, and new
development creates additional demand.
However, legal interpretation of current law does not
allow for cities to collect fees from developers to help
pay for these future investments.
LEAGUE -SUPPORTED SOLUTION:
The League supports HF2296 / SF2442 and HF2297
/ SF2443 (Rep. Brad Tabke, Sen. Eric Pratt), providing
the necessary statutory authority for cities to be able
to charge developers fees that cover the infrastructure
improvements that are needed because of the new
residential development.
BACKGROUND:
The Minnesota Supreme Court found in Harstad
u City of Woodbury that cities do not have the
statutory authority necessary to impose a fee
for future street improvements when approving
residential development. Cities need a clear and
lawful path forward to support development while
protecting the interests of current taxpayers.
For more information:
Irene Kao, Intergovernmental Relations Counsel
Phone: (651) 281-1260
Email: ikao@Imc.org
www.imc.org/builditright
J2020 League of Minnesota Cities. All Rights Reserved.
City of
Elk
River
City of Elk River
City Council
Resolution 20-
A Resolution of the City Council of the City of Elk River Supporting
Infrastructure Accountability
WHEREAS, the development and construction associated with that growth are driving the
need for road improvements, street oversizing, street redesign, and street reconstruction; and
WHEREAS, municipal statutory authority appropriately exists for fees to support added
need for parks, sewer, and water; and
WHEREAS, this municipal authority does not exist for infrastructure development fees;
and
WHEREAS, city streets are one of the four major types of infrastructure local government
is responsible to provide to protect public safety and health, and city streets represent a
separate but integral piece of the network of roads supporting movement of people and
goods; and
WHEREAS, existing funding mechanisms, such as Municipal State Aid (MSA), property
taxes, and special assessments have limited applications, leaving cities under -equipped to
address growing needs; and
WHEREAS, neighborhood streets are constructed according to city standards by
developers; and
WHEREAS, funding sources for larger streets and intersections to support new
developments have historically come from infrastructure development fees; and
WHEREAS, the Minnesota Supreme Court found in Haistad v. City of lroodbury that no
statutory authority existed for these infrastructure development fees; and
WHEREAS, cities should not be forced to make current residents and businesses pay for
costs of growth through local taxes but rather by those that are responsible for the growth;
and
WHEREAS, cities are finding it difficult to develop adequate funding systems to support
needed infrastructure development related to growth while complying with existing state
statutes; and
WHEREAS, cities need flexible policies and greater resources in order to meet growing
demands for street improvements.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, Minnesota, as follows: The Council supports legislation that would authorize cities to
collect infrastructure development fees to fund municipal street improvements as a necessary
component of growth.
Passed and adopted this 2nd day of March 2020.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
i