Minneapolis, MN Accessory Structures: ADU Impact Fees (2026)

Minnesota is among the states that restrict municipal impact fees. Minn. Stat. §462.358 (Subdivision Regulation) allows park dedication fees on new subdivisions but does not provide general authority for residential development impact fees on individual ADUs added to existing parcels. The Minnesota Supreme Court in Country Joe, Inc. v. City of Eagan (560 N.W.2d 681, 1997) struck down a road improvement fee, reinforcing the limits on municipal impact-fee authority. As a result, Minneapolis ADU costs are limited to: (1) Construction Code Services building permit fees based on construction valuation per Code Ch. 91 fee schedule; (2) separate mechanical, plumbing, and electrical trade permits; (3) Sewer Availability Charge (SAC) imposed by the Metropolitan Council under Minn. Stat. §473.517 — as of 2025 this is approximately $2,485 per SAC unit, with ADUs typically charged 0.5 to 1.0 SAC depending on bedroom count and meter size; (4) Minneapolis Water/Sewer connection fees through Public Works if a new service is needed; (5) Park dedication fees do not apply to individual ADU additions (those are subdivision-only). Property taxes will be reassessed by the Hennepin County Assessor based on the value added by the ADU.