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Amendment to the 2006 Fee and Fees Policy - Parks DedicationAGENDA ITEM: Amendment to the 2006 Fee and Fees Policy Parks Dedication AGENDA SECTION: Consent PREPARED BY: Dan Schultz, Parks Recreation Director AGENDA NO. 6c ATTACHMENTS: Resolution and Current Collection Method APPROVED BY RECOMMENDED ACTION: Motion to approve a resolution to amend the 200 ees and Fee Policy to increase the Residential parks dedication fees to $85,000 per acre and to add a new category of Business Park at $85,000 per acre. 4 ROSEMOUNT City Council Regular Meeting: July 18, 2006 ISSUE The Parks and Recreation Commission recently reviewed what the City charges for Parks Dedication fees and has recommended increasing the amount that we collect in two areas This item was also discussed by the City Council on July 12 at the regular work session meeting BACKGROUND The last increase to the Parks Dedication fees was made in January of 2005 The Parks and Recreation Commission reviews the fees at least once per year to see that we are keeping fees m line with the fair market value of land The list below identifies the increases to the parks dedication fees that have taken place in the last six years: Past Parks Dedication fees Cost per acre or per unit Year Residential /Unit 2000 $25,000/$1,000 2001 $30,000/$1,200 2002 $45,000/11,800 2003 $45,000/$1,800 2004 $60,000/$2,400 2005 $75,000/$3,000 2006* $85,000/$3,400 *PROPOSED CITY COUNCIL Commercial $22,000 $28,000 $40,000 $90,000 $90,000 $90,000 $90,000 EXECUTIVE SUMMARY Industrial $22,000 $28,000 $40,000 $45,000 $45,000 $50,000 $50,000 Business Park NA NA NA NA NA NA $85,000 Also attached is an explanation of how the City of Rosemount calculates our parks dedication. Staff has also gathered information from cities neighboring Rosemount to compare the parks dedication fees and that information is hsted below: City Res acre /per Unit Comm /per acre Ind /per acre Apple Valley $150,000 $175,000/$4,584 $260,000 $100,000 $81,404 $142,535/$3,526 5,790 4,868 $85,000 $105,000 5,706 5,706 Eagan Farmington Hastings Lakeville Inver Grove Heights* Rosemount $2,220 $3,995 $2,750 $75,000/3,000 2005 New residential subdivision Commercial subdivision Industrial subdivision Proposed 2006 Fees New Residential subdivision Commercial subdivision Industrial subdivision Business Park subdivision 1,500 6,831 5,000 9,000 1,200 3,942 5,000 5,000 2005 rates and are considering an increase m 2007 based on appraisal paid for by the developer Farmington also collects a development fee The fee is $17,000 per acre for each acre they ate to dedicate 2005 Rates SUMMARY Due to the increasing price of land, discussion with the Parks and Recreation Comnussion and the discussions with the City Council, staff is presenting for the Council's consideration an increase to the parks dedication fees for residential development and adding a new category of business parks to the fees and fee policy. $75,000 /acre $3,000 per unit $90,000 /acre $9,000 per acre $50,000 /acre $5,000 per acre 85,000 /acre $3,400 per unit (Proposed Increase) 90,000 /acre $10,000 per acre (No Change) 50,000 /acre $5,000 per acre (No Change) 85,000 /acre $8,500 per acre (Proposed new category) 2 ATTEST: CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2006 AMENDING THE RATES AND FEES FOR 2006, RESOLUTION 2005 -135 WHEREAS, the City Council has reviewed the 2006 fee schedule and recognizes the need to amend certain rates and fees for 2006; and WHEREAS, the Park and Recreation Commission and staff have found the need to amend the Park Dedication Fees and recommends increases to the Residential dedication fees from S75,000 per acre to $85,000 per acre and the creation of a new category of dedication fees for Business Park development at $85,000; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Rosemount hereby approved the rates and fees for 2006 and further approves the amendment to the Park Dedication Fees. ADOPTED this 18th day of July, 2006. Amy Domeier, City Clerk William Droste, Mayor Motion: Second: Voted In Favor: Voted Against Members Absent: PARK DEDICATION FEES Park dedication fees are outlined in City Ordinance No. XVII.103 which states: In all new residential subdivisions, the City shall require that a sufficient portion of such land be set aside and dedicated to the public for parks, playgrounds or other public use exclusive of property dedicated for streets and other public ways. It shall be presumed that a sufficient amount of land has been dedicated for parks and playgrounds for the present and future residents of the subdivision, if the subdivider dedicates at least 1/25 (.04) of an acre per dwelling unit that can be constructed in the subdivision The City upon consideration of the particular type of development proposed in the subdivision may require larger or lesser amounts of land be dedicated if the City determines that the present and future residents of the subdivision would require greater or lesser amounts of land for such purposes. The City shall determine whether cash in lieu of land dedication is more appropnate. The amount of cash dedication shall be determined by multiplying the number of acres otherwise required to be dedicated by the average value of comparable undeveloped land set by resolution by the City Council. In all new commercial, industnal and other subdivisions, it shall be presumed that a sufficient amount of land has been dedicated to serve the needs of the resident and working population if the subdivider dedicates at least ten percent (10 of the land in the subdivision for parks, recreation and usable open space. The City upon consideration of the particular type of development proposed in the subdivision may require larger or lesser amounts of land to be dedicated if it determines that the present and future residents of the subdivision would require greater or lesser amounts of land for such purposes. The City shall determine whether cash in lieu of land dedication is appropriate The amount of cash dedication shall be determined by multiplying the number of acres otherwise required to be dedicated by the average value of comparable undeveloped land set by resolution of the City Council. Land values for the dedication of land and/or cash contnbution: New residential subdivision Commercial subdivision Industrial subdivision New residential subdivision Commercial subdivision Industnal subdivision Business Park 2005 $75,000 /acre $3,000 per unit $90,000 /acre $9,000 per acre $50,000 /acre $5,000 per acre Proposed 2006 $85,000 /acre $3,400 per unit $90,000 /acre $9,000 per acre $50,000 /acre $5,000 per acre $85,000 /acre $8,500 per acre