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Home My WebLink About2012-02-01 PACKET 08.B.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 2/1/12 C7 0 460 PREPARED BY Public Works Zac Dockter ORIGINATING DEPARTMENT STAFF AUTHOR COUNCIL ACTION REQUEST 1. Consider approving an amendment to City Code Title 10 -4 -3C, Schedule of Park Dedication Requirements, to decrease the cash amount required to be paid in lieu of a land dedication for subdivision of residential land from $4,200 to $3,200. 2. Consider authorizing the publication of the ordinance amendment relative to park dedication fees by title and summary. STAFF RECOMMENDATION 1. Adopt the ordinance amendment decreasing the park dedication fee from $4,200 to $3,200. 2. Adopt the resolution authorizing publication of the ordinance amendment by title and summary. BUDGET IMPLICATION $N /A $N /A NIA BUDGETED AMOUNT ACTUAL AMOUNTFUNDING SOURCE ADVISORY COMMISSION ACTION SUPPORTING DOCUMENTS ® MEMO /LETTER: Memo from Zac Dockter dated Memo from John McCool dated 1/25/12 ® RESOLUTION: Draft ® ORDINANCE: Draft ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ® OTHER: Excerpt from unapproved minutes from 1/23/12 Planning Commission meeting ADMINISTRATOR'S COMMENTS r r i y Administrator Date COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER DATE REVIEWED APPROVED DENIED ® PLANNING 1/23/12 ❑ ® ❑ ❑ PUBLIC SAFETY El El 1:1 ❑ PUBLIC WORKS ❑ ❑ ❑ ® PARKS AND RECREATION 1/9/12 ❑ ® ❑ ❑ HUMAN SERVICES /RIGHTS ❑ ❑ ❑ ❑ ECONOMIC DEV. AUTHORITY ❑❑ ❑❑ ❑ 0 SUPPORTING DOCUMENTS ® MEMO /LETTER: Memo from Zac Dockter dated Memo from John McCool dated 1/25/12 ® RESOLUTION: Draft ® ORDINANCE: Draft ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ® OTHER: Excerpt from unapproved minutes from 1/23/12 Planning Commission meeting ADMINISTRATOR'S COMMENTS r r i y Administrator Date COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER City of ( Cotta Grove Minnesota To: Honorable Mayor and City Council From: Zac Dockter, Parks and Recreation Director CC: Ryan Schroeder, City Administrator Robin Roland, Finance Director 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 requirement. 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 C1a 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 Single- family detached dw $4 ,200 pe r unit All other dwellings 4,200 per unit 2. Industrial And Commercial Subdivisions: In those instances where the city council deems it in the public interest to require park dedication from commercial or industrial subdivisions, as a general rule, it may require dedication of ten percent (10%) of the undeveloped land proposed to be subdivided or developed. Equivalent cash amounts in lieu of land shall not exceed four percent (4%) of the fair market value of the land at the time the subdivision is approved by the city council. No recreation facility charge will be required for industrial or commercial subdivisions unless a park facility is constructed within the commercial /industrial subdivision. (Ord. 627, 5 -1 -1996) In identifying dedication fees for residential units, the city has historically used the following formula: Park Dedication Fee =$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 Eagan $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 Cottag Grove #'s) $4,121 /unif 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 and has been recommended to council by both the Parks Commission (1/9/12) and Planning Commission (1/23112) through public process. Staff Recommendation Recommend amending 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. ITY OF i " RO X MINNESOT u �Y TO: Zac Dockter, Parks Director FROM: John McCool DATE: January 25, 2012 RE: Park Fee in Lieu of Land Dedication — Ordinance Amendment Proposal It is requested that the City Council approve an amendment to the Subdivision Ordinance that decreases the park fee in lieu of land dedication from $4,200 to $3,200 per residential unit. This update is proposed to reflect the decrease in land prices and for Cottage Grove to con- tinue to be a progressive growing community that attracts new development. Advisory Commission Review The Planning Commission held a public hearing on January 23,20112, with regards to the proposed amendment and unanimously (6 -0 vote) recommended approval to reduce the pro- posed park fee in lieu of land dedication. No public testimony (verbal or written) was received at this public hearing. The Planning Commission did briefly discuss the merits of reducing the park fee in lieu of land dedication during this economic and new development downturn, and they believed the park fee summary from other cities shows Cottage Grove's proposed park fee to be reasonable at this time. The proposed text amendment was supported by the Planning Commission based on the following facts: A. Land values have decreased in recent years. B. The formula used in calculating the park fee per residential unit is based on an $80,000 per acre land value for undeveloped land within the urban service area. This base land value is reasonable as compared to land sales reported by the Washington County Assessor's office. Conclusion Attached is a copy of the proposed Subdivision Ordinance amendment and a resolution to authorize the ordinance amendment, if approved, to be published in summary form. 1. That the City Council amend Title 10, Chapter 4, Subdivision 3; Public Sites and Open Spaces; subsection C(1), Residential Subdivision and Development, of the City's Subdivi- sion Ordinance to decrease the park fee in lieu of land dedication from $4,200 to $3,200 as Zac Dockter, Parks Director Park Fee in Lieu of Land Dedication — Ordinance Amendment January 25, 2012 Page 2 of 2 recommended by the Planning Commission and Parks, Recreation and Natural Resources Commission. 2. Adopt a resolution authorizing the publication of this Subdivision Ordinance amendment by title and summary. EXCERPT FROM UNAPPROVED MINUTES OF THE PLANNING COMMISSION MEETING ON JANUARY 23, 2012 6.3 Park Dedication Fees — Case TAl2 -003 The City of Cottage Grove has applied for an amendment to the City's Subdivision Ordinance, City Code Title 10 -4 -3C, Schedule of Park Dedication Requirements, to de- crease the cash amount required to be paid in lieu of a land dedication for subdivision of residential land. McCool summarized the staff report and recommended approval of the text amendment reducing the park dedication fee in lieu of land dedication from $4,200 to $3,200. Messick opened the public hearing. No one spoke. Messick closed the public hearing. Ventura made a motion approve the text amendment. Pearson seconded. Motion passed unanimously (6 -to -0 vote). Burbank commented that this is one of the first steps in the City's process of looking at de- velopment fees related to growth within the community to see if there are ways to make it easier for developers to build in Cottage Grove. Messick stated that he believes that this change represents a good balance between ensuring that there is funding to establish green space and being open to those who want to build in Cottage Grove. RESOLUTION NO. 2012 -XXX RESOLUTION AUTHORIZING PUBLICATION OF ORDINANCE NO. XXX BY TITLE AND SUMMARY WHEREAS, the City Council of the City of Cottage Grove adopted Ordinance No. XXX, which amends City Code Title 10 -4 -3C, Schedule of Park Dedication Requirements; and WHEREAS, Minnesota Statutes, Section 412.191, subd. 4 allows publication by title and summary in the case of lengthy ordinances; and WHEREAS, the City Council believes that the following summary would clearly inform the public of the intent and effect of the ordinance. NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Cottage Grove, County of Washington, State of Minnesota, that the City Clerk shall cause the following summary of Ordinance No. XXX to be published in the official newspaper in lieu of the entire ordinance: Public Notice The City Council of the City of Cottage Grove has adopted Ordinance No. XXX. The ordinance amends City Code Title 10 -4 -3C, Schedule of Park Dedication Requirements, to decrease the cash amount required to be paid in lieu of a land dedication for subdivision of residential land from $4,200 to $3,200. The entire text of Ordinance No. XXX is available for inspection at Cottage Grove City Hall during regular business hours and is posted at the Washington County Park Grove Library. BE IT FURTHER RESOLVED that a complete copy of the ordinance is kept in the City Clerk's office at City Hall for public inspection and a copy of the ordinance will be posted on the Public Notice Bulletin Board at City Hall, 7516 — 80th Street South. Passed this 1 st day of February 2012. Myron Bailey, Mayor Attest: Caron M. Stransky, City Clerk ORDINANCE NO. XXX AN ORDINANCE FOR THE CITY OF COTTAGE GROVE, MINNESOTA, AMENDING TITLE 10, SUBDIVISION ORDINANCE; CHAPTER 4, GENERAL SUBDIVISION STANDARDS; SECTION 10 -4 -3, PUBLIC SITES AND OPEN SPACES; SUB - SECTION C-1, SCHEDULE OF PARK DEDICATION REQUIREMENTS, OF THE COTTAGE GROVE CITY CODES RELATING TO DECREASING THE PARK FEE IN LIEU OF LAND DEDICATION The City Council of the City of Cottage Grove, Washington County, Minnesota, does hereby ordain as follows: SECTION 1. AMENDMENT "The Code of the City of Cottage Grove, County of Washington, State of Minnesota," shall be amended by amending Title 10- 4- 3C(1), Schedule of Park Dedication Requirements, to read as follows: 10 -4 -3: PUBLIC SITES AND OPEN SPACES: C. Schedule Of Dedication Requirements: 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 right -of -ways, 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 C1a 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 ..... .......................$4 00.00 $3,200.00 per unit All other dwellings .............................. .....................$4 $3,200.00 per unit In the event there is land dedication of less than ten percent (10 %), cash payments required by this subsection shall be paid on a proportional basis. Therefore, if one - fourth (1/4) of the land required by subsection A of this section is dedicated, a recreational facility fee will be paid for one - fourth (1/4) of the lots, and the remaining three - fourths (3/4) of the lots will pay a cash dedication required by this subsection. Ordinance No. XXX Page 2 of 2 SECTION 2. EFFECTIVE DATE This ordinance shall be in full force and effect from and after its passage and publication according to law. Passed this 1 st day of February 2012. Myron Bailey, Mayor Attest: Caron M. Stransky, City Clerk Published in the South Washington County Bulletin on