Building Permit - Frequently Asked Questions

Building Permit - Frequently Asked Questions

DO I NEED A BUILDING PERMIT?
Permits are required to “construct, enlarge, alter, repair, move, demolish, or change the occupancy of a building or structure, or to erect, install, enlarge, alter, repair, remove, convert, or replace any gas, mechanical, electrical, plumbing system, or other equipment”…  Source: Minnesota Rules, 1300.0120

IS ANY WORK EXEMPTED FROM NEEDING A PERMIT?
Yes, certain exemptions exist within the building code; common exemptions include the following: garden sheds and playhouses not exceeding 200 square feet, fences not over 7 feet, retaining walls not over 4 feet, decks not more than 30 inches above grade and not attached to a structure with frost footings and which is not part of an accessible route, and playground equipment. Source: Minnesota Rules 1300.0120, Subp. 4. 

Please note that although building permits may not be required, the City requires zoning review and you should always check with the City prior to beginning any construction activity. 

WHY DO I NEED A PERMIT?
Building codes, permits and inspections “provide basic and uniform performance standards, establish reasonable safeguards for health, safety, welfare, comfort, and security of the residents of this state and provide for the use of modern methods, devices, materials, and techniques which will in part tend to lower construction costs.” Source: Minnesota Statues 326B.101

CAN I DO THE WORK MYSELF?
In Minnesota, a homeowner is allowed to work on their own home, as long as it is not being worked on with the intention to speculate on real estate.  According to MN Statute, speculation is evaluated using the following language: “An owner of residential real estate will be presumed to be building or improving for purposes of speculation if the owner constructs or improves more than one property within any 24-month period.”  The City requires a waiver form in this situation. Source: Minnesota Statute 326B.805, Subp. 6

HOW MUCH WILL IT COST?
The cost of a building permit is based on the construction value.  This is also known as the project cost, but does not include land costs. “Permit valuations shall include total value of all construction work, including materials and labor, for which the permit is being issued, such as electrical, gas, mechanical, plumbing equipment, and permanent systems. Building permit valuation shall be set by the building official.” Source: MN Administrative Rules 1300.0160

The cost of a permit is comprised of the sum of three fees: permit fee, plan review, and the state surcharge.

1) Permit Fee ( From Lake City’s 2024 Fee Schedule)

 

Value up to (and including):	Base Amount:	For the first:	Plus:	For each additional:
$4000.00	$63.00
$25,000.00	$63.00	$4000.00	$9.00	$1,000 or fraction thereof
$50,000.00	$252.00	$25,000.00	$6.50	$1,000 or fraction thereof
$100,000.00	$414.50	$50,000.00	$4.50	$1,000 or fraction thereof
$500,000.00	$639.50	$100,000.00	$3.50	$1,000 or fraction thereof
$1,000,000.00	$2039.50	$500,000.00	$3.00	$1,000 or fraction thereof
Over $1,000,000.00	$3539.50	$1,000,000.00	$2.75	$1,000 or fraction thereof

 

2) Plan Review - 65% of the Permit Fee

3) State Surcharge - Minnesota Statue 326B.148 Surcharge.

If the valuation of the structure, addition, or alteration is $1,000,000 or less, the surcharge is equivalent to one-half mill (.0005) of the valuation of the structure, addition, or alteration;

If the valuation is greater than $1,000,000, the surcharge is $500 plus two-fifths mill (.0004) of the value between $1,000,000 and $2,000,000;

If the valuation is greater than $2,000,000, the surcharge is $900 plus three-tenths mill (.0003) of the value between $2,000,000 and $3,000,000;

If the valuation is greater than $3,000,000, the surcharge is $1,200 plus one-fifth mill (.0002) of the value between $3,000,000 and $4,000,000 

If the valuation is greater than $4,000,000, the surcharge is $1,400 plus one-tenth mill (.0001) of the value between $4,000,000 and $5,000,000; and

If the valuation exceeds $5,000,000, the surcharge is $1,500 plus one-twentieth mill (.00005) of the value that exceeds $5,000,000.

Example: 
Construction Value on a new residential garage = $28,000

Permit Fee                         $252.00 + [3 x $6.50]     = $271.50

Plan Review                      [$271.50 x .65]                 = $176.48

Surcharge                          [$28,000 x .0005]            = $   14

Total Permit cost       $271.50 + $176.48 +$14= $461.98

(Depending on the permit type, a $5 license lookup fee and/or $5 lead certification verification fee may also apply.)

WHAT IS REQUIRED WITH THE APPLICATION?
The application form, plus a set of structural plans (pdf preferred) showing the work to be completed. This can be a cross-section view and generally needs to detail the work that will occur.  If the work involves alterations to the exterior of the structure, including the footprint, a site plan will also be required.

HOW LONG WILL IT TAKE?
Two reviews take place after a permit is submitted.  The first level of review occurs at the City level, where City Staff reviews the permit to first ensure the application is complete, and then for compliance with the City’s Ordinances.  This can usually be completed within the first 24hours of submittal.   The second level of review is for compliance with the State building code.  The City contracts with a licensed a building official to provide service to the City and enforce the State Building Code.  A building official may need 2- to 3-weeks for plan review and permit processing; however, it may be shorter for simple projects.  Several types of permits are issued “in house” by the City, which can be issued with same day service, provided the application is complete and accurate. 

WHAT ABOUT SIMPLE PERMITS THAT DON’T REQUIRE PLAN REVIEW?
The City has adopted a fixed rate for certain permits that are commonly issued and require no plan review.  A fixed rate permit fee is $63 and generally applies to the following projects: re-roof, re-side, or replacement of a single plumbing fixture such as water heaters or water softeners.  Permit fees for new plumbing fixtures are $10 per fixture with a minimum fee of $80.  Mechanical fixed fee permits are $37.50 per appliance, with a minimum fee of $75.  Installation of a new gas line in combination with an appliance or heating unit installation requires an additional fee of $20 per gas line with a $40 minimum. All fixed-fee permits also require a $1 State surcharge; depending on the permit type, a $5 license lookup fee and/or $5 lead certification verification fee may also apply.

These permits are typically issued the same day on which they are applied for, provided the permit is also paid for at that time.  Bottom of Form