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HomeMy WebLinkAbout11A - Sewer & Park Fees 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 STAFF AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: JANUARY 18, 2005 11A RALPH TESCHNER, FINANCE DIRECTOR, BUD OSMUNDSON, PUBLIC WORKS DIRECTOR STEVE ALBRECHT, CITY ENGINEER CONSIDER APPROVAL OF A) A RESOLUTION APPROVING DEVELOPMENT RELATED TRUNK SANITARY SEWER, STORM WATER AND STREET OVERSIZING FEES AND B) A RESOLUTION APPROVING PARK DEDICATION FEES AGENDA ITEM: DISCUSSION: Introduction In order for the City to complete the necessary trunk sanitary sewer, stormwater and street oversizing improvements to serve Prior Lake at community build-out it is essential that the City's trunk and oversizing fees be sufficient to recover costs of the sanitary sewer, storm water and street system that are the result of or are needed to serve new development. These improvements include lift stations, trunk sanitary sewers, trunk storm sewers, regional stormwater ponds, street oversizing and intersection improvements related to new development. The City must also have park dedication fees sufficient to provide for the acquisition and development of park facilities to meet the needs of new development. The City's park dedication fee is accepted at the City's option in lieu of land from the developers to recover costs of land acquisition, equipment and park facility improvements. The purpose for this agenda item is to consider the approval of the fee studies performed as part of the comprehensive plan updates that would provide the rational nexus for an increase in the City's trunk sanitary sewer acreage charge, sewer connection charge, stormwater trunk acreage charge, street oversizing acreage charge and park dedication fee. Current Circumstances The City Council authorized Bonestroo, Rosene, Anderlik & Associates (BRAA) to provide engineering services for the update of the comprehensive sanitary sewer and storm water system plans. SRF Consulting Group and Ingraham Associates were authorized to provide planning and engineering services for the updates of the comprehensive transportation and parks plan respectively. A critical G:\Agenda\AgendaOS\Agenda trunk increase 200S.doc www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 component of these studies are a trunk facility analysis that establishes fees associated with new development. Additionally an evaluation of park and trail needs was completed establishing a park dedication fee required to provide necessary park infrastructure for new development. For the purposes of each study a community build-out assumption of 20 years was used. The complete studies are included in the Comprehensive plan update, however the pertinent sections relating to the proposed fee adjustments has been attached to this report for your review. A) Trunk Sanitary Sewer, Stormwater and Street Oversizing Fees Trunk Sanitary Sewer System Trunk Sanitary Sewer system expenditures that are identified within the report include the following types of infrastructure: 1.) Trunk sanitary sewer lines 2.) Additional lift stations The projected costs of needed trunk sanitary sewer system improvements over the next 20 years is $15,150,000. To pay for these future system costs, the report recommends that the following development related fees be adjusted. LE~~:::~~~~~fp.!~:~~:::::::::::::::::::::::::::I:~~~~~~(9:6:~:r.g~::::::I::~~~p.~~~~::~6.~~g:~:] ! Trunk sewer acreage fee! $4,913.00Iac. I $3,040.00Iac. i [~AQ::p.:~:~~Iff~~:::::::::::..:::::::::::::::::::I::::::::::::::::~~:9.:9.:~9.Q:::::::::::::::::I:::::::::::::::::~~9.:9.:;9.Q:::::::::::::::::] The trunk sewer acreage fee is a charge that is paid by developers and collected in the context of the developer's agreement when a final plat receives approval. The city SAC (sewer availability charge) fee is collected on the building permit and paid for by builders and homeowners at time of new construction. Both of these fees are dedicated and used to pay for trunk oversizing of sanitary sewer and new lift stations. Trunk Storm water System Trunk Stormwater system expenditures that are identified within the report include the following types of infrastructure: 1) Trunk storm sewer lines 2) Regional stormwater ponds It is projected that the cost of trunk stormwater system improvements over the next 20 years is $10,900,000. To pay for these future G:\Agenda\Agenda05\Agenda trunk increase 200S.doc system costs, the report recommends that the following development related fees be adjusted. f........Ac.rea.g.e...ch~i'rge....Fee.......T..cu.rre.ni.charg.e....T..ProposecfCharge.....! ! Descrintion! ! I [~9.~:::g~~:~I!Y.::~~~I~~~~j:~:C:::::::r:::::::~?;:~~:~:~QQ1.~:~:::::::::r::::::::::::$.:?:~!.~Q;:9.:9.i.~9::::::::::] L~.!g.b...!?~.~~.!!y....B~~.!~.~~.!!~!.........l.........~~.!.~.?..~.:QQ!.~.~.........L...........~~.!.~Q9..:.9..Q!.~9.............1 ! Commercial/Industrial ! $6,092.00Iac ! $5,780.00Iac ! . . . . '..................................................................................................................................................................................................................... The stormwater trunk acreage fee is a charge that is paid by developers and collected in the context of the developer's agreement when a final plat receives approval. This fee is dedicated and used to pay for the oversizing of storm sewer and ponds. Street Oversizina Transportation system street overslzJng expenditures that are identified within the report include the following types of infrastructure: 1) Street oversizing due to new development 2) County Road and State Highway improvements due to new development. 3) Intersection upgrades due to new development. It is projected that the cost of street oversizing improvements over the next 20 years is $26,850,000. Because the new street oversizing improvements will generate municipal state aid funds, the City has allocated $3,300,000 in state aid to pay for new street oversizing infrastructure. After factoring in state aid the City still needs to recover $17,300,000 for street oversizing improvements due to new development. To pay for these future system costs, the report recommends that the following development related fees be adjusted. r:::::::::::::::::f.~~::~:~~~dp.!!~:~:::::::::::::::::r:~~:f.~~:~I:~h~~\i~::::I:~!~p.~~~~::~h~!9~:] i Collector Street Acreage I $1,500.00Iac i $4,920.00Iac i L.g.~.9.E.9~.............................................................I..........................................................1.................................................................1 The street oversizing acreage fee is a charge that is paid by developers and collected in the context of the developer's agreement when a final plat receives approval. This fee is dedicated and used to pay for the oversizing of streets, construction of collector streets and intersection improvements. B) Park System Park system expenditures that are identified within the report include the following types of infrastructure: G:\Agenda\Agenda05\Agenda trunk increase 200S.doc FINANCIAL IMPACT: 1) Acquisition of parkland 2) Construction of park facilities 3) Installation of park equipment It is projected that the cost of park system improvements over the next 20 years is $38,000,000. To pay for these future system costs, . the report recommends that the following development related fees be adjusted. [::::::::::::::f.~~::~:~~~~~:P.~~~:~::::::::::::::::I::~~:f.~~:~:f9h~r.g:~:::]:::~i.~p.~~~~::~6.~~9~::J L.R~.~!.~~~.~!.~!..................................................l........~?!.~.?.9..:QQ!.~.~.!L....L.........~.~.!'?'?Q:.9..9.!..~.~.!.L........l l...gg.~~.~E~.i.~.!!..I.~.~.~.~~~!.~.I..................l......~?!.9..9..Q.:QQ!.~.~~~......I.........l~AQ9..:.9..Q!.~9E~..........I The park dedication fee is a fee that is paid by developers and collected in the context of the developer's agreement when a final plat receives approval. This fee is collected in lieu of land dedication. This fee is dedicated and used to pay for the acquisition of parkland and the development of new parks. The above listed fees and the rational nexus supporting these fees will be evaluated periodically. This will allow staff to monitor the costs of proposed improvements and make recommendations to the Council for adjustment of these fees upward or downward to ensure that at the end of the 20 year planning period the fund balance is virtually exhausted and that collected fees are fully utilized for the purposes for which they were collected. The underlying principle is for new development to pay its fair share as development occurs. The development community really is comprised of the builder and developer. Therefore the City has developed a cost sharing approach whereby the developer pays a trunk charge up front when utility improvements are installed and the builder pays a charge at time of new home construction based upon the rationale set forth above. The following table shows the proposed fee adjustments and total impact to a low-density residential development. FEE 2004 2005 Trunk Water* $2,217.00/ac. $5,500.00Iac. Trunk Sewer $4,913.00/ac. $3,040.00/ac. Stormwater Trunk $2,943.00/ac. $2,790.00/ac. Collector Street $1,500.00Iac. $4,920.00/ac. Total $11,573.00/ac $16,250.00/ac. *Approved by City Council at 1/3/05 Council Meeting. G:\Agenda\Agenda05\Agenda trunk increase 200S.doc ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: The proposed fee adjustments will increase existing fees by $4,677.00/ac. or 40%. The SAC fee to builders is proposed to remain at $600.00/unit. Adjustments to the park dedication fees will increase existing fees by $1 ,080.00/unit or 40%. It is important to note that at the end of the build-out time period (20 years) the balance of funds collected is virtually exhausted. This scenario is appropriate and intended, as area development will have ceased along with the developer related revenue stream. At that point in time the City of Prior Lake will have reached complete development from a housing and population perspective. Conclusion The fee studies completed as part of the Comprehensive plan which address trunk sanitary sewer, stormwater and street oversizing in addition to park dedication fees identify the impact of new development upon Prior Lake's municipal sanitary sewer, stormwater, street and park systems and document or emphirically justify the rational nexus between the infrastructure and fee. Therefore, Staff would recommend approval of the proposed development related trunk fee adjustments proposed in this report. The following alternatives are available with respect to the studies and their conclusions pending before the Council: 1. Consider approval of a Resolution Approving A) Development Related Trunk Sanitary Sewer, Stormwater and Street Oversizing Fees and B) Park Dedication Fees. 2. Amend the development Trunk Sanitary Sewer, Stormwater, Street Oversizing Fees and Park Dedication Fees to another amount based upon Council consensus. 3. Take no action at this time and direct the staff to provide additional information fi ! ; G:\Agenda\Agenda05\Agenda trunk increase 200S.doc 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION OS-XX RESOLUTION APPROVING DEVELOPMENT RELATED TRUNK SANITARY SEWER, STORMW ATER, STREET OVERSIZING AND PARK DEDICATION FEES WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, the City of Prior Lake has determined that it is essential to provide the financial resources to complete its municipal sanitary sewer, stormwater, street and park systems at community build-out; and the City has affirmed it is financially necessary to adjust the existing development trunk sanitary sewer, stormwater, street oversizing and park dedication fees to generate sufficient revenues to offset the cost of future infrastructure associated with new development; and The City Council has authorized the firm of Bonestroo, Rosene, Anderlik Associates, SRF Consulting Group and Ingraham Associates to provide engineering and planning services for the update of the comprehensive sanitary sewer, stormwater, transportation and park system plans; and The City Council recognizes that studies the City undertakes to develop a fee structure to support comprehensive trunk rate analysis is an integral component of the overall sanitary sewer, stormwater, transportation and park system plans; and the City Council has determined that new development should pay its fair share of system construction or oversizing, and whereas, the development- related trunk sanitary sewer, stormwater, street oversizing, and park dedication fees shall be approved by reference to the Official City Fee Schedule. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, 1. The recitals set forth above are incorporated herein as if fully set forth. 2. The Trunk Rate studies relating to sanitary sewer, stormwater, street oversizing and park dedication prepared by Bonestroo, Rosene, Anderlik Associates, SRF Consulting Group and Ingraham Associates are hereby accepted and approved. 3. That the following development related fee amounts are hereby approved and incorporated into the Official City Fee Schedule: A) Trunk Sewer Acreage Charge - $3,040.00/acre B) SAC Permit Fee - $600.00Iunit C) Stormwater Trunk Acreage Charge 1) Low Density Residential (Rl,R2,R3) - $2,790.00 2) High Density Residential (R4) - $4,600.00 3) Commercial/Industrial- $5,780.00 A) Collector Street Acreage Charge - $4,920.00 B) Park Dedication Fee 1) Residential- $3,750.00Iunit 2) CommerciallIndustrial- $6,400.00/acre G:\Agenda\Agenda05\Agenda trunk increase 200S.doc www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 Passed and adopted this 18th day of January, 2005. Haugen Fleming LeMair Petersen Zieska {Seal} G:\Agenda\Agenda05\Agenda trunk increase 200S.doc YES Haugen Fleming LeMair Petersen Zieska NO City Manager City of Prior Lake i""'~~-'-'-'"""'" -...~~,-... '.."'.. ~ ..~<<," .,~..."",..~~"~,.o."_.._._.,._,"~..,~.,..,.~^...~.".........._~-..~---"-,,,,,,,",,,,,,",,,.~ Memo Jl1j Bonestroo -=- Rosene ~ Anderlik & 1 \j 1 Associates Engineers & Architects Project Name: Prior Lake CSSP Client: City of Prior Lake To: Steve Albrecht File No: 566-04-118 From: Earth Evans, Bob Barth Date: 1-12-05 Re: Area Charge Update This memo summarizes our update of the Prior Lake Comprehensive Sanitarv Sewer Plan Area Charge tables. The Cost Recovery through Area Charge table has been attached to this memo for the 20-year break even, with lateral benefit applied. The following table lists the area charge required. Scenario 20-year Break Even With Lateral Benefit Area Charge ($/ac) 4,300 A lateral benefit of $25 per lineal foot applied to 90% of the trunk footage has been included. The net developable acreage used for the calculations was equated as 70% of the gross acreage. Gross acreage has been reduced by wetland area. The 2002 Southwest Planning Area Study (SWP A) lists an area charge of $4,913/acre. Several reasons for the increase in area charges are as follows: · Reduction in developable area between studies - SWP A used 70% of the total acreage whereas the CSSP took 70% of the gross acreage (total acreage reduced by the NWI wetlands). · There was roughly a 7% increase in construction costs due to changes in the Engineering News Record Cost Index. · Additional infrastructure over what was shown in the SWP A. Bonestroo, Rosene, Ander/ik and Associates, Inc. www.bonestroo.com C St. Paul Office: 2335 West Highway 36 St. Paul, MN 55113 Phone: 651-636-4600 Fax: 651-636-1311 o Milwaukee Office: 1516 West Mequon Road Mequon. WI 53092 Phone: 262-241-4466 Fax: 262-241-4901 o Rochester Office: 112 ih Street NE Rochester, MN 55906 Phone: 507-282-2100 Fax: 507-282-3100 o Willmar Office: 205 5th Street SW Will mar, MN 56201 Phone: 320-214-9557 Fax: 320-214-9458 o St. Cloud Office: 3721 23rd Street S St. Cloud, MN 56301 Phone: 320-251-4553 Fax: 320-251-6252 o Grayslake Office: 888 East Belvidere Road Grayslake, IL 60030 Phone: 847-548-6774 Fax: 847-548-6979 Table 2a City of Prior Lake 2005 Cost Recovery Through Area Charges 20-Year Break Even Lateral Benefit Applied A B-1 B-2 B-3 C 0 Net Developable Net Developable Net Developable REVENUE Column 8-3 X EXPENDITURES Phase (Assessable) Acreage (Assessable) Acreage (Assessable) Acreage Area Charge of City Trunk Costs Added - Residential Added - Non-resIdential Added - TOTAL $4300/AC (yr) (ac) (acl (acl ($) ($) 2004-2009 1312 133 1445 6.213.500 5.285.397 2010-2014 1467 224 1691 7.271.300 9.864.821 2015-2019 243 10 253 1.087.900 0 2020-2024 135 0 135 580,500 0 Totals 3157 367 3.524 15.153.200 15.150.218 Notes: It was assumed that the developable area within the munICipal boundary would be phased In between 2004-2009 The capital costs for the 2004-2009 phase account tor an eXisting balance of $1.800,000. The total capital costs are $7.085,397, subtracting the eXisting balance the costs are $5.285.397, as reflected In the tab Overall Charoe: $4300/ac Area Component: $3040/ac ljonnectlon Component: $1260/ac -I (based on 2,1 units/net acre and $600/unit connection fee) .~.__._.t-~"'-~~~'""""--"'"""'---'-i~"'~'- Memo .11. Bonestroo e Rosene 'I\lI Anderlik & 1\1' Assodates Itnglneef J" A'lhUeCIJ Project Name: Prior Lake SWMP To: Steve Albrecht Client: City of Prior Lake File No: 566-03-114 From: Earth Evans, Bob Barth Date: 1-06-05 Re: Area Charge Update This memo summarizes our update of the Prior Lake Surface Water Mnnnfement Plan (SWMP) Are:! Chnt:fe Inbles, As requested. six tables have been attached to this memo showing the Cost Recovery through Area Charge for different scenarios. Tables 1-3 present cost recovery for a 20-year break even, Tables 4-6 for a lO-year break even period. The following list summarizes the area charges for each table. Scenario Area Charge ($/EQAc) 20-year Break Even Full Land Cost for Constructed Pond 3,800 Easement 20-year Break Even 50% Land Cost for Constructed Pond 2.788 Easement 20-year Break Even 10% Land Cost for Constructed Pond 1,985 Easement lO-year Break Even Full Land Cost for Constructed Pond 4,152 Easement lO-year Break Even 50% Land Cost for Constructed Pond 3,0.33 Easement 10-year Break Even 10% Land Cost for Constructed Pond 2,138 Easement The residential stormwater equivalent acres are based on the factors used for the Storm Water Utility from the 2001 Trunk Storm Sewer Fee Determination Study (Trunk Fee Study) . Low and Medium Density Residential = 1.0 Equivalent Acres/Acre . Commercial/Industrial = 2 07 Equivalent Acres/Acre The net developable acreage used for the calculations wus equl.lted us 70% of the gross acreage Gross acreage has been reduced by wetland area. The Trunk Fee Study lists an urea charge of$2,943/acre The $.3,033/EqAc area churge for 50% land cost at a 10-year break even roughly compares with the Trunk Fee Study area charge Several reasons for the increase in ,Irea charges are as follows: . Reduction in developl.lble mea between studies - Trunk Fee Study used 85% of the gross acreage whereas the SWMP took 70% of the gross acreage . There was roughly a 7% increase in construction costs due to changes in the Engineering News Record Cost Index Bonestroo, Rosene, Anderl/k and Associates, Inc. www.bonestroo.com SI. Paul Office: 2335 West Highway 36 St Paul. MN 55113 Phone: 651.636.4600 Fax: 651.636.1311 Milwaukee Office: 1516 West Mequon Road Mequon. WI 53092 Phone: 262.241.4466 Fax: 262-241-4901 Rochester Office: 112 it! Street NE Rochester, MN 55906 Phone: 507-282-2100 Fax: 507.282.3100 Wlllmsr Office: 205 5th Slreel SW Willmar. MN 56201 Phone: 320.214.9557 Fa,,: 320-214.9458 St. Cloud Office: 3721 23'" Streel S $1 Cloud. MN 56301 Phone: 320.251-4553 Fax: 320-251.6252 Grayslake Office: B88 East Belvidere Road Grayslake. IL 60030 Phone: 847-548-6774 Fax: 847-548-6979 Memo ..11.. Bonestroo ~ Rosene a Anderllk & 1\11 Associates Engln.c... "'chllec.. . Increase in land costs between studies from $40,000/acre in 2001 to $lOO,OOO/acre in 2005. . Additional infrastructure over what was shown in the Trunk Fee Study Bonestroo, Rosene, Anderllk and Associates, Inc. www.bonestroo.com St. Paul Office: Milwaukee Office: Rochester Office: Wlllmar Office: Office: 2335 West Highway 36 1516 West Mequon Road 112 7~ Street NE 205 51h Street SW Road SI Paul, MN 55113 Mequon, WI 53092 Rochester, MN 55906 Wlllmar, MN 56201 Phone: 651-636-4600 Phone: 262-241-4466 Phone: 507-282-2100 Phone: 320-214-9557 6774 Fax: 651-636-1311 Fax: 262-241-4901 Fax; 507-282-3100 Fax: 320.214.9458 SL Cloud Office: Grayslake 3721 23'" Street S 888 East Belvidere St Cloud, MN 56301 Grayslake, IL 60030 Phone: 320-251-4553 Phone: 847.548- Fax: 320-251-6252 Fax: 847-548-6979 C a> en E a> a> C) en "'" co co W .r: 1.00 -g 8mffi~ ~<tij-g ~..c:.:.:- T""' co C) co g ~-:5~-= -aJQl:co~ I-ctl-n;8 - ~ ~ "'" o a> . 0 ~~~:: o~ ~ a: 0 "0 c: j Ci) o (,) "5 tL UJ "' C\I 0 0 to CO W.:: lX)0) T""CO a: en ......C\1 ......r--. =>8 ~-.i' N'cO !::.:.e ~~ ~~ Cc:E;u)m .; Z::J- T"" w"'" 0...... ><~ Wo ~ "'C ::J en Q) CD tL .:.: c: 2 I- r--. 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OEh .... w :::::>> z w > w 0:: ~ W " Q:: ~ ~ ~ ~ ?- M ~O...J It) ~ W~...J M Zl-~ N ...J(/)I- <(~Q:: I-LLO OZ~ ~ I-_(/) I- ~ W " W Q:: ~ ~ I- ~ en M D::...J M O...J ~ 1-<( It) OLL WI- ...JQ:: ...JO O~ ~ O(/) >.......""'".-..""'.....~,=...~~"...'--_....~~.,"~<,',""',~~--.,;,~_...,.,..."."'....o,_,.................,'_j.>_..""......_""'..0.;..~._"".....li.........".._..;_~~_.~.~.~....~,......."'""~"~.."...............~.______.....~_"""...._'" "'-'_.~"~.""'_''''"~.......v..._'.,'''_.."'..~,_,~,,_~~,,_,_"~.'~~._." 1,108 PER HH 2,992 PER 1,000 GSF 554 PER 1,000 GSF Prior lake Transportation Plan Development Infrastructure Fee Matrix Cost per Land Use Type - SRF Consulting Group COLLECTOR STREET MSAS COST SHORTFALL NEW TRIPS COST I NEW TRIP $ 5,334,174 156,547 $ 34.07 NEW HOUSEHOLD TRIPS NEW RETAIL TRIPS NEW NON-RETAIL TRIPS COST PER TYPE 124,250 $ 4,233,690 9,557 $ 325,642 22,740 $ 774,842 COUNTY COUNTY COST CITY SHARE NEW TRIPS COST I NEW TRIP $ 13,000,000 156,547 $ 83.04 NEW HOUSEHOLD TRIPS NEW RETAIL TRIPS NEW NON-RETAIL TRIPS COST PER TYPE 124,250 $ 6,809,875 9,557 $ 523,794 22,740 $ 1 ,246,330 MN I DOT MN I DOT COST CITY SHARE NEW TRIPS $ 5,200,000 COST I NEW TRIP 156,54 7 $ 33.22 NEW HOUSEHOLD TRIPS NEW RETAIL TRIPS NEW NON-RETAIL TRIPS COST PER TYPE 124,250 $ 2,723,950 9,557 $ 209,518 22,740 $ 498,532 TOTAL INFRASTRUCTURE FEE BY UNIT TYPE HOUSEHOLDS RETAIL NON-RETAIL TOTAL TOTAL BUILD-OUT ACRES COST PER ACRE $ 13,767,515 $ 1,058,954 $ 2,519,705 $ 17,346,174 COST PER UNIT $ $ $ ( -~,,,,,,--,,--~,",,,'-""",,~,,,,,,,,"""-~,,,,,,,",",,,,"""'^'"'-"~<~<'~-"'- ,.,....-<_.,..,. ... 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(j)(j) C>C> 00 . 00 ~oo 0"":"": t: z ~ ~~~- ....."1 Z <C ~ a .1.. ..... - o (W')en ~c .., :::! - ..J c( W 0 .... 0:: ffi ..J W -I ~~~~~ ~otioo LL :J: 0:: Z I- mcocoU) -I~~~U) <cOOOo .... o .... o I- ~ W z fI!. 0....... 0 t- 1.0 1.0 ..q ~ ><( C\I_ Lll ......._ It) ~m~tD CT- It) 0:: ~ W D.. tJ) D.. Q2 .... -I <C .... o .... ~~~ 000 --- 0:: (j) (j) (j) o a. a. a. .... 0= 0= 0= 01-1-1- <C0.......1.O LL T- C\I LL.LL. (j)(j) c>c> t: 00 Z :Jgg ~ 0 ,...: ,...: I.O..qClO >- ~~~ :: ~ ..f Z <C ~ a tJ)en D.. 9 ..J ~ 0 ~ .... ffi ..J W -I 3:enC(q:~ W~....zo owO Z :J: 0:: Z I- To: Bud Osmundson, Public Works Director From: Greg Ingraham, Park Planning Consultant Ingraham & Associates Inc. Date: January 11, 2005 Re: Park Dedication Fee Analysis You asked me to update the 2003 Park Dedication Fee Study based on the new Prior Lake Park and Trail Plan we are preparing as part of the Prior Lake Comprehensive Plan update. The Park and Trail Plan includes the annexation area and is based on a build-out forecast of 42,400 people and 16,000 households in the city. The plan identifies the need for 19 new neighborhood parks, two new community parks, open space, conservation areas and 18 new miles of local trails. The cost to acquire park, trail and open space land and to construct park facilities to meet new growth needs is approximately $38 million. Based on the Draft Park and Trail Plan, city growth forecast and current land and construction valuations the following park dedication fees are recommended: 2005 Park Dedication Current Park Fee Recommendations Dedication Fees Residential $3,750/new unit $2,670/new unit tI Commercial- $6,400/new acre $5,OOO/newacre t" Industrial These fees would be collected from new subdivisions in cases where cash park dedications are required in lieu of park land dedication. A spreadsheet summary of the analysis is attached. i i i ! I ~ Prior lake Park and Trail Fee Study - Update I 11..Jan-oS i I Park and Trail Fee Spreadsheet I Assumptions: i Park and trail needs based on 2005 Draft Prior Lake Park and Trail Plar ! I New growth of 9,200 dwelling units. Approx. 6,800 existinQ units. i i I 600 acres of new commercial-industrial growth forecast ! i ] i 17 new neighborhood parks at 7.5 acres each + Jeffers and Vierlina Par ! I Two community parks of approximatelv 40 acres each I Park land Needs (by Comprehensive land Use Catego y) Open space and conservation area = aporox, 115 acres I I Jeffers Park approx. 25 acres upland and 45 acres open space i I A 15 acre park on the Vierling site. I Total acres i I I i I I LD & MD : 17.0 I allocate 50% of Jeffers to new development (1/2 of a 25 acre site) I I HD I I 15 ! i I i i LDL (Lakeshore) i 15 I allocate 50% of Vierling site to new development (1/2 of a 15 acre site) i Business Park i i 7.5 i I I I Park/Open Space 40 Community adult athletic park allocate 100% to existing development I i ! 247.5 ! New park acres; I I i Other Open space I 115 i plus open space area Misc Comp Plan categories - open space at $30,OOO/acre 362.5 Total new park and open space acres I : i I I Trail land Needs 37 miles of new trail less 4 miles in trust land and 18 miles of collector trails I Trust and : I : I Collector I Local trail Total local trail i I Total Miles iMiles miles area acres 150% of area i 50% of all new trail land - 20 foot wide row req'd ! 40 I 22 18 43.6 I 21.8 acres ! Allocate 50% of new trail cost to new development I Average trail right of way cost = $125,OOO/acre I ! Estimated land Value (by Comprehensive Land Use Category) I I I : ! I Value/acre ! 1 I i I i 1 LD & MD $ 125,000 i I i ! HD $ 150,000 I I i LDL (Lakeshore) $ 300,000 ; i i Business Park i $ 250,000 : I i I open space I $ 30,000 miscellaneous Comp Plan categories (land not suitable for active park use) I ! I : I I i Park and Trail Construction Costs I I # Cost Estimate I I Neighborhood Parks 17 $ 250,000 I per park 1 I allocate 50% of Jeffers and Vierlina to new development Community Parks 2 $ 2,500,000 1 per park I i allocate 50% of new community park construction to new de Trails 18 $ 100,000 I per mile I allocate 50% of trail cost to new development I i i : I New Development Forecast I : I I Dwelling Units Acres I Estimated proportion of park and trail use Residential 9,200 na 90%: I Commercial-Industrial na I 600 I 10%: I I i I Park and Trail System Cost for New Growth I i I ! ! Land acquisition cost + park and trail constuction cost = park system cost I I i I I i $ 38,276,136 Total Park and Trail System Cost for New Development ! I T Recommended Park and Trail Dedication Fees I I I Park and trail system cost / new Qrowth (in units) = cost per new growth unit I I I $ 3,744.40 Residential per unit fee I Round to $3,750/new unit I i I $ 6,379.36 Commercial-Industrial per acre fee Round to $6,400/new acre i ! I I I I I I ! I I I I I i 01 _ I ,. t' /" r -