Land Use & Zoning

An impact fee in Minnesota is charged to developers to:

AFund the developer's marketing costs
BPay for infrastructure improvements needed to serve new development, such as roads, parks, and utilities✓ Correct
CCompensate neighboring property owners
DFund the local planning department's operating budget

Explanation

Impact fees are charges levied on new development to fund the costs of infrastructure improvements required to serve that development. In Minnesota, they may cover parks, roads, water and sewer capacity, and other public facilities. Impact fees must be proportional to the development's impacts.

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