Agenda - Council Work Session - 08/31/2010

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p 0 j , CITY COUNCIL WORK SESSION Topic Report: Consideration of New Park and Recreation Fee Structure for Residential Properties By: Amber G. Miller, Planning Manager, Jessica Hendricks, Management Intern Background: Planning Staff has been directed to research the cost associated with development specifically of residential properties within the City of Ramsey to answer questions raised by a private developer. The developer suggested that the amount of development fees were too high in comparison with other areas and offered no flexibility with regard to the type of residential development. Staff was directed to investigate these claims and to put together an analysis that would show how Ramsey compares to other cities in this region and look and our current fee structure to see if there is room for improvement. Observations: Staff conducted interviews with some area cities and researched websites to compile the information needed to estimate development fees for a number of active cities in the Northwest quadrant of the metro area. The proposed project consisted of 120 residential units, the SAC is discounted to 99 units (based on density) and the acreage is two acres. Attached for your review is a schedule of the communities and the park dedication and trail fees. Ramsey's fee is $2,475. The highest fee is $5,455 in Maple Grove. The lowest is $1,360 in Coon Rapids. It appears that Ramsey's fee is in line with other communities in the North Metro area. However, only two other communities on the list also charged a trail fee, Andover and Rogers. The lack of flexibility regarding development type, Staff believes should be addressed first. For example, a 120 unit apartment building is assessed a per unit fee regardless of what type of development it is. Staff recommends considering a different fee structure for assisted living facilities. The residents typically have a much reduced demand for park and recreation facilities and some other communities have charged them on a commercial (per acreage as opposed to per unit) basis. Staff would recommend making this change to the City fee schedule for assisted living facilities. Additionally, in higher density developments, either 12 units an acre or higher or 20 units an acre or higher Staff would recommend having some kind of discount similar to how the Metropolitan Council handles SAC. There is a discount for higher densities. Especially in the 20 units or more an acre, many of these units are smaller and Staff would argue should be considered for a discount. For instance, if the development accommodates 12+ units an acre they would receive a 7.5% discount. If the development accommodates 20+ units an acre they would receive a 15% discount. At these densities, the types of developments would likely be apartment buildings, not townhouse developments. So based on the example above the fees would look as follows: