Housing First Minnesota, the state’s housing industry trade association, filed a lawsuit in Hennepin County District Court today against the City of Edina, challenging its Tree Replacement Ordinance and Vegetation Ordinance. The complaint alleges that the ordinances impose fees and escrow requirements not authorized under Minnesota law.
Housing First Minnesota CEO James Vagle issued the following statement:
“The law is clear: Cities can only charge fees that the Legislature has authorized, and no such authorization has been given. It’s a base expectation for homeowners across Minnesota that city policies follow state law.”
Background
Edina’s tree replacement ordinance requires property owners to submit tree protection plans and, when trees are removed for construction, either replant or pay fees based on tree size. Developers must deposit 110% of the city’s calculated replacement value into escrow, with funds only returned if new trees are planted and survive for up to one year after the certificate of occupancy is issued.
The city retains escrowed money permanently if trees are not replaced, and the ordinance does not require that retained funds be used for replanting. Edina’s vegetation ordinance separately requires a permit and fee for tree removal on undeveloped lots, calculated by the value of the work performed, rather than the type or condition of trees removed.
The complaint argues that state law only allows cities to require off-site improvements or cash fees when explicitly authorized by the Minnesota Legislature, and that no such authority exists for Edina’s ordinances. Housing First cites Minnesota Supreme Court precedents, including Country Joe v. City of Eagan (1997), which struck down a road unit connection charge imposed as a condition of building permit issuance as an unauthorized tax, and Harstad v. City of Woodbury (2018), which invalidated a municipal street impact fee imposed as a condition of subdivision approval.
In October 2024, Housing First sent the City of Edina a letter demanding that it amend its ordinances to comply with state law. The city did not modify the ordinances, leading to today’s filing. According to city records, Edina has collected and retained nearly $1 million under its tree escrow program in recent years and earns interest on those funds, which it keeps.
Download the complaint.
Representatives from Housing First Minnesota are available for interviews or technical background.