HomeMy WebLinkAbout2015-04-01 PACKET 04.F. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM #
DATE 4/1/15 . ,
PREPARED BY Parks and Recreation Zac Dockter
ORIGINATING DEPARTMENT DEPARTMENT HEAD
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COUNCIL ACTION REQUEST
Consider amending city ordinance 10-4-3-C-1-c to require $3,400 per unit cash in lieu of park
land dedication.
STAFF RECOMMENDATION
Amend city ordinance 10-4-3-C-1-c to require $3,400 per unit cash in lieu of park land
dedication.
BUDGET IMPLICATION: $0 $0
BUDGETED AMOUNT ACTUAL AMOUNT
ADVISORY COMMISSION ACTION
DATE REVIEWED APPROVED DENIED
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� PARKS AND RECREATION 3/10/15 � ❑ ❑
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❑ ECONOMIC DEV. AUTHORITY ❑ ❑ ❑
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SUPPORTING DOCUMENTS
� MEMO/LETTER:
❑ RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
❑ OTHER:
ADMINISTRATORS COMMENTS
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City Administrator Date
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Dedication Fees 2015 Amendment.doc
Cottage
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To: Honorable Mayor and City Council
From: Zac Dockter, Parks and Recreation Director
CC:
Date: March 25, 2015
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
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 C 1a 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 $3,200 per unit
All other dwellings $3,200 per unit
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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)
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
Cit Residential 2014 Commercial 2014
Andover $2,810 er unit $8,426 er acre or 10% FMV which ever 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 sq.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 sq. foot
Eden Prairie $6,500 per unit $11,500 per acre
Falcon Hei hts FMV e ual to 8-10% Land Value FMV e ual to 10% Land Value
Forest Lake $2,000 per unit $2,000 per acre
Fridley $1,500 per lot $1,000 per acre
Golden Valley 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 sq. 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
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
Per Residential Unit Mean $3,647
Per Residential Unit Median $3,500
The last two neighborhoods parks developed were that of Cedarhurst Meadows Park in the Cayden
Glen (Newland Communities) and Eastridge Woods (DR Horton) developments. Relatively small land
dedication areas were required for park development due to the recreational use opportunity created in
partnership with the Watershed District on the adjacent property. All remaining park dedication
requirement was paid in cash in order to build the parks within their respective neighborhoods. The
projects were funded as detailed below. You'll note that the park dedication fees did not cover
construction costs of either park. However, it is important to note that some projects, particularly
commercial projects, contribute nearly all or all of their dedication requirements in cash with no related
park development costs. Those types of projects aid in sustaining the cash balance of the trust fund.
The scenario presented below is not out of the ordinary. Each park and neighborhood are reviewed on
a case by case basis in terms of their fit within the community, fit within the master plan and the ability
to meet resident recreational needs.
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.
Staff Recommendation
Consider amending city ordinance 10-4-3-C-1-c to require $3,400 per unit cash in lieu of park land
dedication.
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PLANNING COMMISSION MEETING ON MARCH 23, 2015
6.1 Park Dedication Fees — Case TA2015-007
The City of Cottage Grove has applied for 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.
Dockter summarized the staff report and recommended approval.
Johnson asked if this increase would not cover the deficit that has occurred as a result of the
decrease in 2012. Dockter responded that is correct for the two examples in the staff report.
For each development the City negotiates land dedication versus cash payment in lieu of
dedication. Johnson asked about the long-term plan. Dockter responded that typically park
dedication fees are looked at every year but may have to be reviewed more frequently. He
explained that the city wants to keep the fees down to get developers in. In some cases, a
developer will pay cash in lieu of land if the development is small and there will not be a park.
Also fees are collected for the park dedication fund when a commercial property is developed.
Johnson asked if the City prefers land for parks or park funds. Dockter responded that there
is master plan for parks, such as in the East Ravine which has four neighborhood parks and
one community park. When a development is being reviewed, it is decided whether there will
be a land dedication, fees in lieu of land, or a combination of both, following the park master
planning process.
Rostad asked about the park financing in the DR Horton project. Dockter explained that money
collected for park dedication is only used for one very specific purpose, which is park
development. That money can be used to buy land or to develop the park, but cannot be used
to maintain existing parks. Rostad asked if the money for park development is in a dedicated
fund and not from the general budget. Dockter stated that the money is placed in a Park Trust
Fund.
Graff asked how this increase would affect the developments that have already been in the
planning process. Dockter responded that the new fees would take effect when the City
Council adopts the ordinance amendment, and any agreements that are already in place
would be honored. Burbank stated that language in subdivision approvals states that the
amount paid for park dedication fees is at the rate in effect at the time of final plat approval.
Zopfi asked how much is in the reserve fund. Dockter responded that he does not know the
balance but all the money in the park dedication fund has been spoken for. The City has
Capital Improvements Plan which shows where all the dollars are allocated.
Rostad asked if the same funds are used for replacement of park equipment. Dockter
responded that the park dedication fund does not cover maintenance and replacement of park
equipment, but it would cover new additions to existing parks or a complete renovation.
Excerpt from Unapproved Planning Commission Minutes
Park Dedication Fees — Case TA2015-007
March 23, 2015
Page 2 of 2
Graf stated that the City of Cottage Grove is under the median and asked why the proposed
amendment would not increase to match the median for park fees. Dockter responded to be
competitive in the market; the City usually stays below the median for park dedication fees.
Brittain stated that it seems that the idea is not to recover 100 percent of the cost of park
construction from the residential developments because funds are also collected for
commercial and other developments.
Graff asked why this fee was reduced fairly significantly in 2012. Dockter explained that the
fee is figured using the equation on page 1 of the staff report, which takes into account current
property values.
Johnson asked how Cottage Grove compares to other cities on the amount of park fees
charged for commercial development. He also asked if the park dedication fee could impact
whether businesses locate in the City. Dockter responded that basing the fee on a percentage
allows adjustment based on the cost of the property, and the commercial amount can be
negotiated between the City Administrator and the developer.
Brittain opened the public hearing. No one spoke. Brittain c/osed the public hearing.
Fox made a motion to recommend approval of the text amendment. Graff seconded,
Motion passed unanimously (8-to-0 vote).
o��i�,�NC� n�o. 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 INCREASING 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 ........................... $�9&AA 3 400.00 per unit
All other dwellings ................................................... $��89:99 3 400.00 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 4. AMENDMENT SUMMARY `PU�LICA°fION. Pursuant to Minnesota
Statutes Section 412.191, in the case of a lengthy ordinance, a summary may be published.
While a copy of the entire ordinance is available without cost at the office of the City Clerk, the
following summary is approved by the City Council and shall be published in lieu of publishing
the entire ordinance: "Ordinance No. XXX amends City Code Title 10-4-3C(1), 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.
SECTION 3. 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 April 2015.
Myron Bailey, Mayor
Attest:
Caron M. Stransky, City Clerk
Published in the South Washington County Bulletin on