Capital Gains: Rethinking Developmental Fees in Ramsey, MN

Abstract

This project was completed as part of the 2017-2018 Resilient Communities Project (rcp.umn.edu) partnership with the City of Ramsey. Approximately every five years, the City updates its capital improvement plans and sources of funding, including development fees charged to builders for new developments. To remain competitive with peer communities, the City wanted to assess its current development fee schedule relative to fees charged in other communities. Students in Dr. Fernando Burga’s Land Use Planning class researched state regulations regarding development fees; calculated fees for several hypothetical developments in Ramsey and compared the costs to fees charged for similar developments in other communities; interviewed developers to assess how important development fees are as a factor in determining whether or not to develop in a particular community; and recommended changes to Ramsey's development fee structure, as well as other funding mechanisms the City could consider for paying for infrastructure improvements. The students’ final report is available.