The URL can be used to link to this page

Home My WebLink About2015-03-23 PACKET 06.1.STAFF REPORT CASE: TA2015 -007 ITEM: 6.1 PUBLIC MEETING DATE: 3/23/15 TENTATIVE COUNCIL REVIEW DATE: 4115115 APPLICATION APPLICANT: City of Cottage Grove REQUEST: A text amendment to the City's Subdivision Ordinance, City Code Title 10 -4 -3C, Schedule of Park Dedication Requirements, to increase the cash amount required to be paid in lieu of a land dedication for subdivision of residential land from $3,200 to $3,400. SITE DATA LOCATION: N/A ZONING: N/A GUIDED LAND USE: N/A LAND USE OF ADJACENT PROPERTIES: CURRENT NORTH: EAST: SOUTH: N/A WEST: SIZE: N/A DENSITY: N/A GUIDED RECOMMENDATION Approval. Cottage Grove COTTAGE GROVE PLANNING DIVISION p- J , m Pride and Prozpedty Meet Staff Contact: Zac Dockter, Director of Parks & Recreation; 651 - 458 -8247; zdockter(.cottage- g rove. org Application Accepted:. N/A 60 -Day Review Deadline: N/A City of Cottage Grove Planning Division • 12800 Ravine Parkway South • Cottage Grove, MN 55016 Planning Staff Report Park Dedication Fees Case TA2015 -007 March 23, 2015 Proposal To aid in the City's effort of providing public recreational facilities to the community, the City requires that when property 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 In 2012 when land values were decreasing and housing growth was minimal, the Parks Commission and City Council decreased the Park Dedication fees from $4,200 per unit to $3,200 per unit. This was deemed a fair charge based on comparable community fees and the formula below that the City has historically used: Park Dedication Fee = $Land Value /acre / 2.5 units per acre x 10% As of 2012, 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 schedule: Single - family detached dwellings rl$3,200perunit I 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 (49 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 commerciallYndustrial subdivision. (Ord. 627, 5 -1 -1996) Planning Staff Report Park Dedication Fees - Case TA2015 -007 March 23, 2015 Page 2 of 3 The Parks and Recreation Department monitors park dedication requirements annually. Staff compares existing rates to comparative communities as well as the actual costs associated with recent park developments. A recent survey of comparative communities is provided below: Comparative Park Dedication Data - October 2014 City Residential 2014 Commercial 2014 Andover $2,810 per unit $8,426 per acre or 10% FMV whichever is less Apple Valley $4584 per unit $1248 per 1,000 sq. foot Blaine $3,094 per unit $8,289 per acre Bloomington $5,700 per unit $573 per 1,000 s . foot Brooklyn Center None None Brooklyn Park $4,600 per unit $8,000 per acre Burnsville $2,574 per unit $16,000 per acre Chanhassen $5,800 per unit $12,500 per acre Champlin $4,370 per unit $8,323 per acre Cottage Grove $3,200 per unit 4% FMV Eagan $3,308 per unit $869 per 1,000 s . foot Eden Prairie $6,500 per unit $11,500 per acre Falcon Heights FMV equal to 8 -10% Land Value FMV equal to 10% Land Value Forest Lake $2,000 per unit $2,000 per acre Fridley $1,500 per lot $1,000 per acre Golden Valle 2% of the Land Market Value 2% of the Land Market Value Hastings $2,200 per unit $1,200 /Industrial, $1,500 /Commercial Inver Grove Hts. $4,011 per unit $6,000 per acre Lake Elmo $3,600 per unit $4,500 per acre Lakeville $3,462 per lot $7,693 per acre Little Canada $2,600 per unit 10% Land or 5% FMV Maple Grove $3,873 per unit $11,000 per acre Maplewood $3,540 per unit 9% FMV Mounds View 10% FMV 10% FMV Oakdale $2,800 per unit $491 per 1,000 s . foot Plymouth $6,500 per unit $8,000 per acre Richfield None None Rosemount 1/25 acre per unit or value of 10% Land Value Roseville $3,500 per unit 7% FMV Shakopee $5,340 per unit $6,930 per acre Planning Staff Report Park Dedication Fees - Case TA2015 -007 March 23, 2015 Page 3 of 3 Shoreview 10% FMV 3% FMV Stillwater $2,000 per unit 7.5% of Land Value St. Louis Park $1,500 per unit 5% FMV Woodbury $3,500 per unit $6,000 per acre Fier Resioential unit mean $3,641 Per Residential Unit Median $3,500 The last two neighborhoods parks developed were Cedarhurst Meadows Park in the Cayden Glen (Newland Communities) and Eastridge Woods (DR Horton) developments. Relatively small land areas were accepted for park development. All remaining park dedication requirements were paid to the City in cash to build the parks in their respective neighborhoods. The projects were funded as detailed below. Note that the park dedication fees did not cover the construction costs of either park. DR Horton's Park Dedication Fees $285,000 City's Funding Responsibility $118,383 Newland Community's Park Dedication Fees $188,416 City's Funding Responsibility $33,030 For these reasons, staff is suggesting an increase in the park dedication fee for residential units to $3,400. Staff believes this increase gives the City more capacity to fund future projects while also remaining competitive with comparable communities. No recommended changes are proposed for commercial or industrial development. Recommendation Recommend that the City Council amend City Code Title 10- 4- 3C(1)(c) to require $3,400 per unit cash in lieu of park land dedication. Prepared by: Zac Dockter Parks and Recreation Director