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Home My WebLink About4G - Park Dedication Fee CITY COUNCIL AGENDA REPORT November 4, 2002 ~ 4G Frank Boyles, City Manager AGENDA ITEM: CONSIDER APPROVAL OF A PROPOSAL TO UPDATE THE CITY'S PARK DEDICATION FEE. DISCUSSION: History: In 2000, the City contracted with Ingraham and Associates to conduct a park dedication fee study. The purpose of the study was to thoroughly project the expenditures the City will be making to acquire and develop park property from the present to build out. Once the total costs were calculated, the study allocated the costs based upon projections of commercial and residential development resulting in costs per dwelling unit and per acre. Current Circumstances: Since 2000, the value of property in Prior Lake has escalated dramatically. Annual valuation increases of 8% - 20% per year apply to commercial property and to residential property with lakeshore lots at the high end. The City still needs to acquire land for at least one community park. There are also expenditures contemplated in the parks which were not contemplated at the time of this study (the neighborhood park signs for example). Conclusion: Given the increase in property values and infrastructure additions, it is appropriate to re-examine our fees to assure they are accurate. ISSUES: Attached is a newspaper article which discusses park dedication fees in Rosemont, Farmington and Apple Valley. On one hand, we want to be comparable to other communities, but even more important, we want the fees to be sufficient to finance the park system envisioned in our 2020 Vision and Strategic Plan. Updating our park dedication fees is consistent with the 2020 Vision Elements. We hope to have the new figures in time to include them into the 2003 fee schedule considered by the Council during the first meeting in January. FISCAL IMPACT: The original study quote was $14,305. The actual charges were $10,143. The quote to update the study is $5875 plus $150 for printing and mileage. The quotes are "not to exceed" amounts. I expect the actual costs to be somewhat less. Funds for this purpose will be drawn form the Capital Park Fund. ALTERNATIVES: (1) Motion and Second as part of the Consent Agenda to authorize an update of the Park Dedication Fee Study from the Capital Park Fund in an amount not to exceed $6025 including the $150 mileage and printing expenses. (2) Take no action. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 1:\CQUNCIL\AGNRPTS\2002\PARK DEDICA TAP~.QC0pPORTUNITY EMPLOYER ..~._"- ...---...., -r' i OCT-16-2002 04:56P FROM:INGRRHAM & RSSOCIRTE 612 377 2500 TO: 9524474245 P:2/3 ASSO"CIATES October 14,2002 Wr Plo.nlng Frank Boyles, City Manager City of Prior Lake 16200 Eagle Creek Ave. SE Prior Lake, MN 55372-1714 londuopo A,cbUte'.II fUli flunning & OeJ'gn lrad Use flu..lng Re: Proposal for Park and Trail Fee Study Update Dear Mr. Boyles: On behalf of Ingraham & Associates lnc., I am pleased to submit this proposal to update the 2000-200\ Prior Lake Park and Trail Study. Land and park construction cost J'lave increased in the last two years and the City wants to assure that the park and trail dedication fees. reflect these rising costs. We will base our work on the existing study and Prior Lake Park and Trail Plan. We do not see a needto update the park and trail plan, except to gather information from city staff about park improvements and changes since year 2000. Scope of Work Ingraham & Associates will perform the following tasks to update the Prior Lake Park and Trail Fee_Study: . 1. Review park and trail system changes (since 2000) with City staff. (Staf'freview mtg. #1) 2. Update housing count and growth forecasts with city staff assistance. (Staff review mtg. #1) 3. Update park system needs and anticipated construction costs. 4. Research current land costs by land use type based on information from area realtors. Web MLS listings and a meeting with the County assessor. 5. Prepare a draft report, fee calculation spreadsheet and park dedication fee recommendations for staff review. 6. Review the draft with city staff and make revisions as needed. (Staff review meeting #2) 7. Present the report and recommendations to the Park Commission and City Council This work includes rwo staff review meetings. a .Park Commission meeting and a City Council meeting. The end products will be a summary report of research, current conditions and findings. an updated fee calculation spreadsheet and park dedication fee recommendations. Fees and Schedule lngraham & Associates will complete the above scope of work and products for a not to-exceed consulting services fee of$5,875.00. Work in excess of the defined scope will be billed at hourly rates. Expenses for printing and mileage will be at cost and are estimated at $150.00. 1510 (omo Avenue S.E, Minneopoh~, MN 5 5~ 14 16121377-2500,.J.ph... (612) 377.1 01 0 I.",mil. www .Ingrohom-oHOtioll~ .tom r ~., "--,.'~,.~.,~-.,"~.'~,;."-,,-,,,,,"..,~~.....~_.. ~.'':;'''''''''''>-'", . 1.15 ~~J~i!:~~f~:~~.~~~:~~~ ~;~:::~~ ~~ ~ ::i~~:" ~'i,~ i~~'~"'~-'l ,~- "_.\'. ;-'""-,,'" - . ''1=eeSIFrorii 1A -"~ . Master Plan, the results of a review on the estimated cost for developing the park system indicated that at current collec- tion rates there. would not be enough money. Mter reviewing the metro- politan fee study, the.city~'s Parks and Recreation Conunission recommended raising the residential pllTh dedication fee from $30.000 per acre to $45,000 per aCIt~ Commercial waS raised from $28,000 to $40,000 per acre and industrial was raised froiji $28,000 to $40,000 per acre. l'he park dedication fees are part of a city ordinance that requires all new residential sub- divisions, commercial and industrial developments to set aside a sufficient portion of land See Fees, 18A or money that can be dedicated for public parks,' piay~ounds or . other . p~blic . use. The. increa.sesrepresent land values' c..-....:._:~.-...,i.._ ': .. - _'." ~'-::'.'.'. . :,0;;,. " .', fox; the'dedicatioIl.,cof-nioney lllstead or'i~a duri~g; a~~~i- ! ~ ,<:!pets p'Iafof the property; . : >"'R~sidenfiaJ. developers are requiTed to dedicate at least one quarter of an. acre per dwelling unit, or the equivalent cash value of that land. Commercial and industrial developers must dedicate at least 5 percent of the land for parks, recreation and usable ~!l_ sp~ce,_ or the equivalent cash value of that land. According, to a recent park dedication survey from October of 200 I that was included in the report to the' council, neighbor~ ing cities have been charging : i!m.,punts ; - -- sizn,ilar:, to R6s~fuount's recent' increase. Apple Valley requires a ded- ication from residential devel- opers of cash or land e ual to percent of the land's value at '$40,000 per acre. For commer: cial and industrl;l developers, r the city of Apple Valley -requITes a dedlcatlOn at cash or lana value equal to UP to 5 per- cent of the land. -Fannington requires a dedi- cation' from resfdential deve}- '_'~_ 9Rei~.6f~casn . or~ land eQ'ual t9 f2..5-:percent of landH vaIueof tixed rate per acre of land at ~.ooo. For commercial and industrial>developers, the city of Fannington requires a dedi- ca{!op. ()f c~sh or land equl!Uo 5 percent of the land value and/or afixed rate per acre of land at its appraised value. The City Council last approved a park d~dication fee increase in December' 2000. Schultz said at that time the fee for residential development was raised from $25,000 to $30,000 per acre and commercial/indus- trial was raised from $22,000 to $28,000 per acre. He said the Parks and Recreation Commission has decided to examine the fee twice a year noW in order to stay at current land values. rAI/ TN t)W~~'i (p- 8'"~o ~ Rosemount o_ty Council increases dedication fees by John Sucansky Staff Writer Developers will be forking over more money to the city of Rosemount in the form of park dedication fees after the City Council's June 4 regular meet- ing, The council approved. an increase on residential, com- mercial and industrial park ded- ication fees in order to keep up with the rising cost of land and park construction. according to Parks and Recreation Director Dan Schultz. The park dedication fees are used to pay for new park devel- )pment, purchase of land or for new park upgrades. According to Schultz' report to the council, with the completion of the 2002 Parks, Trails and Open Space