Agenda - Planning Commission - 04/20/2015 - Joint with EPB

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RELEVANT LINKS: Minn. Stat. §462.358subd. 2b(c). Sample park dedication ordinance. Minn. Stat § 462.358 subd. 2b(d). Minn. Stat. § 462.358 subd. 2b(c). Minn. Stat. § 462.353 subd. 4a. See LMC informationmemo, NewspaperPublication. A. Cash payments in lieu of land dedication In lieu of land dedication for parks, recreational facilities, playgrounds, trails, wetlands, or open space, cities may require a developer to pay "cash fees" commonly referred to as "park dedication fees" and/or "trail fees" (cumulatively referred to as park dedication fees in the rest of this memo) Park dedication fees excuse a developer from a local land dedication for park and recreational purposes, but still allow the city to purchase and acquire new off-site facilities to serve needs created by the subdivision. When a city establishes and imposes a park dedication fee, in lieu of land dedications, it must still comply with all of the requirements discussed above for land dedications related to procedure, nexus, and proportionality. In collecting park dedication fees, the city must give due consideration the park and recreational facilities that the applicant already proposes to incorporate into the development for public use. For example, if the proposed development already includes park and trail facilities for residents, it may be more difficult to justify an additional cash fee. 1. Setting park dedication fees Park dedication fees must be established by ordinance or a fee schedule that meets the requirements of state statute discussed in Section VII -A-2. Fees must be set based upon the average fair market value of land within the area: • That is unplatted. • For which park fees have not been paid. • That is to be served at the time of final approval or will be served under the city's comprehensive plan by city sanitary sewer and water. "Fair market value" means the value of the land as determined by the municipality annually based on tax valuation or other relevant data. If the applicant objects to the city's calculation of valuation, then the value must be as negotiated between the city and the applicant, or based on the market value as determined by the city based on an independent appraisal of land in a same or similar land use category. Cities may wish to retain the services of a land appraiser or some other professional to help them determine the appropriate rate for their park dedication fees. 2. Fee schedules Park dedication fees may generally be imposed only by ordinance However, cities that collect less than $5,000 per year in land use and development fees (this includes all subdivision and zoning fees) may use a fee schedule adopted by city resolution. League of Minnesota Cities Information Memo: 4/15/2014 Subdivision Guide for aties Page 28