Agenda - Parks and Recreation Commission - 01/08/2004

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File 2001004 $7,000 per unit in apartment projects with the highest land values. Examples for commercial/industrial development sb. ow that for an office/manufacturing property, the new calculation method results in a fee comparable to the current park dedication rate ($6,100 per acre). In the office building examples, with more employees per 1,000 sq. fl, the fee would be about $9,500 per acre. It is highly unlikely, unless Iand values fall substahtially, that the proportionate share would ever be less than the current per unit fee. The draft ordinance allows the City to collect a smaller cash in lieu fee than the.proportionate share. The City may consider other factors such as the fees charged by other municipalities. The calculation of the proportionate share fee becomes somewhat of a paper exercise. However, it does provide the City with excellent justification that its fee is reasonable and a defense for collecting the fee should it be challenged. Beginning in 2002, cities will be required by law to account for and justify all fees charged for new development. The new ordinance will put the City on firmer footing with respect to park fees. The draft ordinance also includes a clause allowing a developer to request a deviation from the dedication requirement based on the proportional share of the park system at the time of final plat approval. Tl'fis allows for negotiation between the City and the developer in circumstances where the development has less impact on the park system than anticipated, or if facilities provided within the development would meet the park and open space needs without impact on the City's. facilities. How high should the City set the maximum cash-in-lieu of land fee? As shown by the examples, the new approach to calculating a residential development's share results in a fee much higher than the 2001 per trait fee of $2,000. How much of the proportionate share should the City collect for residential or C/I subdivisions? Should the fee be set kigher than the current "market" (what other similar cities are charging)? What are the risks of charging a higher fee than other cities or increasing the fee by a large dollar amount at one time? These are questions that will need to be considered by the Council when setting the fee. Historically the City has paid for a substantial portion, but not ail, of the cost of the park system from park dedication fees. Grants, other City funds, other levels of government (regional or 'stare) or voter referenda have provided land and money for portions of the park and open space system. The draft ordinance as attached to this report reflects the recommended 2002 cash in lieu of land fee of $2,300 per dwelling unit and $6,400 per acre for commercial/industrial development or schools. This represents a $300 per unit (I 5%) increase from the 2001 residential fee of $2,000 and a $300 per acre (5%) increase from the 2001 non-residential fee. Parks Department staff have conducted their annual survey of park dedication fees (attached), and found that many cities that Plymouth compares itself with have not yet set their 2002 fees. One exception is Eden Prairie, which has set a $2,300 per unit fee for.resi.dential development and a $6,600 per acre fee for commercial and industrial development. The recommended 2002 fees reflect a reasonable increase based on the escalating cost of land in Plymouth, especially residential land.