Appeals Court Ruling Voids Funding Method For New Roads

ST. PAUL, Minn. (AP) — A Minnesota Court of Appeals ruling means growing communities may need to find new ways to pay for roads.

The court on Monday invalidated roadway fees charged by Woodbury. The Twin Cities suburb levied the fees against housing developers to improve the city’s road network outside new subdivisions.

Homebuilders say the fees raise the price of housing. Cities say they’re needed to pay for infrastructure that supports growth, like paving gravel roads that lead to the new neighborhoods.

The Star Tribune reports Woodbury is considering appealing to the Minnesota Supreme Court. Several other suburbs charge the fees.

Susan Naughton, an attorney for the League of Minnesota Cities, says the case has broader significance because it interprets statutes governing new subdivisions as not allowing mandatory fees for infrastructure outside a development.