The fight over building permit fees in St. Cloud is back at City Hall tonight, as the City Council holds a second public hearing on a wide-ranging package of increases that builders and business groups say will jack up costs for homeowners and put the brakes on new construction. The proposal is the city’s first comprehensive overhaul of permit rates in more than 15 years. Earlier council amendments to the ordinance were significant enough to trigger an extra hearing under the city charter before any final vote.
Council will hear public comment tonight
The council meeting is set for 6 p.m. on Monday, May 18, in the council chambers at St. Cloud City Hall. The agenda and livestream are posted on the city calendar, according to the City of St. Cloud. Residents can show up in person or follow along online through the city stream.
Numbers: How big the increases are
City staff estimate the new fee schedule would bring in about $1.58 million a year, roughly $498,000 more than the current structure, and would push commercial building permit revenue from about $354,000 to nearly $580,000, KNSI reports. Commercial plan-review fees would climb from roughly $230,000 to about $377,000.
On the residential side, the draft plan would move roofing and siding permits from $60 to $100, combined roofing-and-siding permits from $75 to $200, plumbing fixture fees from $10.50 per fixture with a $30 minimum to $15 per fixture with a $50 minimum, and HVAC permits for furnaces, air handlers and ductwork from $40 per unit to $50 per unit.
Builders warn that higher costs will slow housing
The Central Minnesota Builders Association and other construction industry voices have urged the council to back off, arguing the higher fees could scare off projects at the exact moment the region is scrambling for more housing. CMBA Executive Director Wanda Schroeder and other business leaders have pushed for lower development costs and more incentives, according to reporting by St. Cloud LIVE.
Several letters to the council have called for a pause on the plan, targeted discounts for nonprofit housing projects, and a slower rollout so the extra costs do not simply land on the backs of homeowners and renters all at once.
Alternatives and local pilots
Greater St. Cloud business and civic leaders have urged the council to “pause and moderate” the increases and to pair any changes with incentives such as deferring some fees until certificates of occupancy are issued, indexing future adjustments, and carving out discounts for Habitat for Humanity and workforce housing.
KNSI notes that neighboring Sartell has rolled out a “Growing Sartell Together” pilot that waives certain water and sewer access charges and caps core permit and plan-review fees. The city says the program can save nearly $6,900 for some new homeowners through the end of 2026. Supporters of a staggered approach in St. Cloud say phasing in a new valuation table would give builders time to adjust budgets. Critics counter that even a phased plan would still raise costs significantly once it is fully in place.
State rules that shape fees
State law and agency guidance set the basic framework for how cities calculate permit and plan-review fees, so any local changes have to fit within that structure. For background on the formulas and limits that guide city fee schedules, see Minnesota Statutes.
What to expect tonight
Council members plan to take public testimony tonight before deciding what comes next. The city charter requires a separate published hearing when an ordinance is amended in a way that changes its substance, and that rule is what triggered this second round. For the details, see the charter in the City Charter.
After hearing from residents and industry groups, the council could opt for a phased schedule, send the proposal back for more work, or move it toward final adoption.
