Housing First Minnesota has filed a civil lawsuit in Hennepin County over the City of Edina’s tree fees. The suit follows staff engagement and a October 2024 demand letter. The lawsuit alleges that the city has no statutory power to charge these fees relating to tree removal and replacement.
The City of Edina requires that homebuilders and developers include a “tree protection plan” and must pay into escrow 110% of the value the city places upon the tree replacement, which the city can keep permanently if trees are not replaced without any obligation to use this money for tree replacement—essentially making this escrow a fee. The lawsuit alleges that the city has no authority to impose this penalty.
Over the course of three years, the city has amassed nearly one million dollars in the tree fees escrow account, none of which is required to be used to plant replacement trees.
In addition to the tree fees, the city also has a “vegetation” ordinance, which imposes a fee upon landowners/developers corresponding to the “total valuation of work being performed” when living trees are removed. This fee does not correspond to tree replacement and is not security for the completion of work.
Under the Harstad v. Woodbury and Country Joe v. Eagan court precedents, cities can only charge fees for which the legislature have given them the power to collect.
Housing First Minnesota says in the lawsuit that both the tree fee and vegetation ordinances are without statutory basis and conflict with Minnesota law and asks that the ordinances be held invalid, null and void, and unenforceable.
Housing First Minnesota will continue to update its members on this lawsuit.
Members with questions should contact Nick Erickson, senior director of housing policy.
