Minutes - Parks and Recreation Commission - 09/09/1999

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Chair Cook stated, within commercial fees, the City charges a percentage of the market value of the property. He inquired that if they were going to raise the rates per individual dwellings, would they wish to raise the percentage of market value on commercial property as well. Park/Utilities Supervisor Boos stated, at present, the percentage is computed at 5 percent of fair market value, or a minimum of $2.00 per square foot. He stated he would not recommend an increase in this area, as the City is currently expending a considerable amount of effort of money to promote commercial and industrial development, which contributes favorably to the tax base. Commissioner Johns stated that the per unit basis provides for a flat fee, and market value land prices can increase and fluctuate, therefore they would recoup a bit more regardless. Park/Utilities Supervisor Boos stated this was correct. He explained that they infrequently obtain or agree upon the market value, and that was why the $2.00 per square foot cost had been put in place. He noted that the determination of the market value of property had been a very controversial issue in the past. Chairperson Cook stated he heard developers express their concerns regarding the expense of developing residential properties, and that nothing is being done to increase the fees for the commercial lots that are sold within the City. Park/Utilities Supervisor Boos stated that generally, residential properties require more service in relation to the return in tax dollars, than commercial and industrial properties do. Boos stated there were presently three matters to be considered. The first item is the recommendation to increase park dedication and trail fees for each dwelling unit. He stated another issue, which has not been controversial at staff's level, is that there would no longer be a distinction between urban and rural rates. He explained this was based upon the recreational usage of urban and rural families, and that there is little difference related to lot size, and the fees they pay in park dedication. Written comment provided by absent Commissioner Rolfe: "Any increase in park dedication is long overdue. I think the new fee should be $1,500 per lot to parks and $400 per lot to trailways. Why should we have an average fee: Let's be towards the top. The new homes will still come and development must pick up most of the park expansion costs. After all, park expansion is needed because of development." "Modifications of the Recreation Districts is needed. There should be a community park in each district, and only as many districts as we have community parks. Also, developable land should be divided up evenly among the districts so they all benefit." Park/Utilities Supervisor Boos stated another issue is that some municipalities have a sliding scale, wherein apartments would have a smaller park dedication per unit than residential properties. He stated in some ways this was akin to the rural vs. urban question. He explained that this was based upon the Park and Recreation Commission/September 9, 1999 Page 6 of 14