HomeMy WebLinkAbout2012-01-09 PACKET 07.B.M • .• •
To: Parks, Recreation and Natural Resources Commission
Planning Commission
From: Zac Dockter, Parks and Recreation Director
CC: John Burbank, Senior Planner
John McCool, Senior Planner
Date: December 12, 2011
Subject: Park Dedication Fees
Introduction
To aid in the city's effort of providing public recreational facilities to the community, the city requires that
when land develops or is subdivided, land shall be dedicated to the City for public use, or in lieu of
dedicating land, cash shall be paid to the City for purposes of developing recreational facilities. The city
periodically reviews these park dedication requirements to assure they are fair to both the community
and potential development partners.
Background
As housing in Cottage Grove grew in both quantity and value over the past 30+ years, so has the park
dedication fee requirements. As of 2011, the city requires developers to dedicate the following
amounts:
1. Residential Subdivision and Development:
a. Land Dedication: As a general rule, land dedicated for public use shall be a minimum of ten
percent (10%) of the buildable land within the development. "Buildable land" means the gross
acreage of all property in the proposed plat or subdivision excluding public waters, state or
county rights of way, and wetlands designated by federal or state agencies and classified by the
wetland conservation act.
b. Cash For Recreation Facilities: If land required by subsection C1 a of this section is dedicated,
a cash amount in addition to the dedicated land will be dedicated for recreation facilities as
established by city council ordinance.
c. Cash Amounts In Lieu Of Park Land: At the option of the city, the developer or subdivider
shall be required to contribute cash in lieu of land dedication according to the following
schedule:
- - -- - - -- __ _
Single- family detached dwellings x$4,200 per unit
All other dwe llings 4,200per unit
2. Industrial And Commercial Subdivisions: In those instances where the city council deems it in the
public interest to require park dedication from commercial or industrial subdivisions, as a general rule, it
may require dedication of ten percent (10 %) of the undeveloped land proposed to be subdivided or
developed. Equivalent cash amounts in lieu of land shall not exceed four percent (4 9 1 o) of the fair market
value of the land at the time the subdivision is approved by the city council. No recreation facility charge
will be required for industrial or commercial subdivisions unless a park facility is constructed within the
commercial /industrial subdivision. (Ord. 627, 5 -1 -1996)
In identifying dedication fees for residential units, the city has historically used the following formula:
Park Dedication Fee = $Land Value /acre / 2.5 units per acre x 10%
When the fee was last reviewed in 2007, land value for residential development was estimated at
$105,000 /acre resulting in a $4,200 per unit park dedication fee. Since then, the pace and value of
residential development land value decreased significantly across the metro. Using an estimate of
$80,000 /acre for 2012, a park dedication of $3,200 would be realized.
To assure quality discussion on fair value of the dedication fees, a survey of comparable communities
is below including both Cottage Grove's existing rate and proposed rate based on formula:
October 21, 2011
*City
Residential Commercial
Plymouth
$6,500 /unit
$8,000
/acre
Eden Prairie
$6,500 /unit
$11,500
/acre
Bloomington
$6,000 /unit
$647
/1,000s.f.
Shakopee
$5,340 /unit
$6,930
/acre
Maple Grove
$4,875 /unit
$11,000
/acre
Cottage Grove (current)
$4,200 /unit
10%
FMV
Champlin
$4,284 /unit
$8,160
/acre
Inver Grove Heights
$4,011 /unit
$6,000
/acre
Woodbury
$3,500 /unit
$6,000
/acre
Ea an
$3,308 /unit
$869
/1,000s.f.
Cottage Grove (proposed)
$3,200 /unit
10%
FMV
Ham Lake
$3,000 /unit
None
n/a
Andover
$2,935 /unit
$8,956
/acre
Oakdale
$2,800 /unit
$491
/1,000s.f.
Blaine
$2,435 /unit
$7,163
/acre
Hastings
$2,200 /unit
$1,500
/acre
Average(not including
Cottage Grove #'s)
$4,121 /unit
Considering the currently depressed housing market values, staff believes a reduction in dedication
fees would be an appropriate action. A suggested fee of $3,200 would remain consistent with past
practice of aiming for 10% of fair market value.
Staff Recommendation
Recommend council amend city ordinance 10- 4- 3 -C -1 -c to require cash amounts in lieu of park land in
the amount of $3,200 per unit.