Agenda - Council - 12/14/1993 - Laserfiche WebLink

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CASE # 7 ADOPT 1994 PARK DEDICATION CASH CONTRIBUTION RATES By: Jessie L. Hart, Finance Officer Background: The City of Ramsey has expressed the importance of maintaining a competitive park dedicatiOn cash contribution. At the Councils direction on November 23, 1993, the attached survey of 23 rapidly growing suburbs in the metro area was conducted. Each City was asked to supply information on existing and/or proposed cash contributions for park dedication fees for all types of properties. Residential Classifications: The current rates for cash contribution for park dedication in the City of Ramsey for single family rural housing with densities less than or equal to one unit per 3.3 acres is $435 and all other dwelling units are $620 per dwelling unit. Staff is proposing a modest increase of approximately 4% which increases the cash contribution for park dedication for single family rural housing with densities less than or equal to one unit per 3.3 acres to $450 and all other dwelling units to $650 per dwelling unit When compared with the information on the survey, the proposed fees for 1994 remain competitive with other rapidly growing communities. CommerciaVIndusn'ial Classifications: While the City Code specifies the contribution of land for commemial and industrial properties, there is not currently a formal policy on cash in lieu of the land dedication. The practice that has been followed for a cash dedication on commercial and industrial properties is to collect 5% of the assessors market value for each parcel. This method results in a much lower park dedication fee in comparison to residential requirements. A number of cities in the survey utilize a standard fair market value (which most often is the going rate and is generally substantially higher than the assessed value) when computing cash dedications for commercial and industrial properties. The intent of imposing a park dedication fee is not to drive commercial and industrial development out of the City, but rather to provide park services to the community. The following is being proposed for the City of Ramsey for cash park dedications, in lieu of land, for commercial and industrial properties. Commercial Properties with City sewer & water without City sewer & water (** based on FMV of $50,000 per acre) 5% of FMV or minimum $1,500/acre** 5% of FMV or minimum $1,000/acre** Industrial Properties with City sewer & water without City sewer & water (** based on FMV of $15,000 per acre) 5% of FMV or minimum $1,050/acre** 5% of FMV or minimum $ 750/acre**