Agenda - Parks and Recreation Commission - 08/12/2010

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CAS1; #1 CONSIDER NEW FEE STRUCTURE FOR RESIDENTIAL. PROPERTIES By: Amber G. Miller, Planning Manager 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 azid offered no flexibility with regard to the type of residential development. Staff was directed to investigate these clahns and to put together an analysis that would show how Ramsey compares to other cities ui 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 urd 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, Ratnsey's fee is $2,475, The highest fee is $5,455 in Maple Grove. The lowest is $1,360 iu Coon Rapids. It appears that Ramsey's fee is in line with other connnunities in the • North Metro area. However, only two other comtunities on the list also charged.a trail fee, Andover and Rodgers. The lack of flexibility regarding development type, Staff believes should be addressed first. Por 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 mach 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 reconvnend malting this change to the City fee schedule for assisted living facilities. Additionally, in higher density developments, either 12 units an acre or higlier 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 azr acre, many of these units are smaller and Staff would argue should be considered for a discount, For instance, if the development accommodates ] 2+ units an acre they would receive a 7.5% discount. If the development accommodates 20+ mots an acre they would receive a 15% discount. At these densities, the types of developments would likely Ue apartment buildings, not townhouse developments. So based on the example above the fees would look as follows: Current Shucture 120 units $245,025 12+ units an acre 12b units $226,648 20+ units atracre 120 ttnits $208,271 Assisted Living 120 units/2 acres $9,476 • Developers still have the option to dedicate property. Current Council directive has been to not develop additional park properties but to concentrate on improving existing parks. This would seem to support collection of a fee as opposed to dedication of property.