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Home My WebLink About6.b. Parks Dedication and Land Value Market Study � ROSEMO EXECUTIVE SUMMARY PARKS AND RECREATION COMMISSION Parks and Recreation Commission Regular Meeting: February 27, 2017 AGENDA ITEM: Parks Dedication and Land Value Market AGENDA SECTION: Study Old Business PREPARED BY: Dan Schultz, Parks and Recreation AGENDA NO. Director 6 b. ATTACHMENTS: Land Value Market Study Introduction Letter/Summary and Survey of Parks APPROVED BY: dls Dedication RECOMMENDED ACTION: To be discussed at the meeting. ISSUE T'he topic of collecting parks dedication was discussed by the Commission in July and August of 2016 and no formal xecommendation was made to the City Council Yegarding the topic. One item that was discussed with regards to the paxks dedication was to considex updating the land values studp that was last done in 2010. A Land Value Markey Study was recently completed and was shared with Commission at our January regular meeting. The Land Value Markey Study showed that there is a difference in land pxices for varying types of density levels. With that being said, staff is recommending that the Parks and Recxeation Commission look at setting a per acre parks dedication fee for low, medium and high density developments. Sta,ff is also recommending that we adjust ox parks dedication collection methods to have different collection requirements foY low, medium and high density developments. The dedication requixements are tied to the type if density and how many people are expected to live in each unit based on housing information provided by the Met Council. Staff is xecommending that the methods of collection and paxks dedication fees listed below be discussed. Current Density Units/acre dedication per unit land value per acre cash dedication/unit All densities N/A .04 acres per unit $85,000 $3,400 � Proposed Density Units/acre dedication per unit land value per acre cash dedication/unit Low density 1 to 5 units/acre .04 acres per unit $85,000 $3,400 Med density 6 to 12 units/acre .03 acres per unit $95,000 $2,850 High density 12 to 30 units/acre .02 acres per unit $125,000 $2,500 Listed below axe scenarios that show what the dedication would be for a 60 unit development in all thxee of the density categories. 60 Unit Development Scenarios Density Units per unit fee total cash dedication Land in-lieu of cash Est. new residents Low density 60 $3,400 $204,000 2.4 acres 180 Med density 60 $2,850 $171,000 1.8 acres 130 High density 60 $2,500 $150,000 1.2 acres 94 BACKGROUND Park.r Declication Collection- Minnesota.State statutes provide municipalities the opportunity to collect a portion of a subdivision fox public purposes.Listed below is the state sta,tute language pertaining to the dedication of land in a subdivision and also the la,nguage about the nexus of between the impact of the development and the required dedication. State statute 462.358 (a) Subdivision 2b. Dedication.The xegulations may Yequire that a reasonable portion of the buildable land, as defined by municipal ordinance, of any proposed subdivision be dedicated to the public ox preserved for public use as streets,xoads, sewexs, electric,gas, and water facilities, storxn water drainage and holding areas or ponds and similar utilities and improvements, parks,recxeational facilities as defined in section 471.191,playgrounds, trails,wetlands, or open space.The xequitement must be imposed by ordinance or under the pxocedures esta,blished in section 462.353, subdivision 4a. Subd. 2c.Nexus.There must be an essential nexus between the fees or dedication imposed under subdivision 2b and the municipal purpose sought to be achieved by the fee ox dedication.The fee or dedication must bear a rough pxoportionality to the need cxeated by the proposed subdivision ox development. The City of Rosemount's parks dedication requirement for residential development presumes that a reasonable amount of land has been dedicated for paYks if a sub-dividex dedicates one twenty-fifth 1/25 of an acre fox each dwelling unit of the proposed subdivision (acxes to be dedicated = 0.04 x numbex of dwelling units). If the City chooses to accept cash instead of land dedication to satisfy the paxks dedication requirements, .04 is multiplied by a per acre value set by the City Council. One issue with the cuxrent dedication requirement is that all xesidential units a.te dedicating the same amount of land/cash even though the residential unit might vary greatly in size and potential impact to the paxks system.An example might be a single family home with foux bedrooms is dedicating the same amount of land as a one bedxoom apartment. Sta,ff have reviewed the paxks dedication methods of several other cities and included some examples in a chart that is included in the packet.The examples that staff has provided show that some cities use a sliding scale of percentages for land to be dedicated based on density, some base the dedication on how many people will reside in a specific dwelling type and some such as Rosemount and Savage,have a flat method of collecting the dedication because it is the same no mattex the type of housing unit or density of the development. At the bottom of the spreadsheet,you will see a proposed adjustment to our current collection method of requixing.04 acres per unit. L.and Vitlue Market Studv- The City of Rosemount recently hixed Evergreen Land Services to conduct a Land Value Maxket Study to assist the City with setting our paxks dedication fees. At the City's request, Evergxeen has gathered land sales information within the City of Rosemount and surtounding communities and prepared a market study analysis.The market study is based on sales that axe considexed market qualified. Transactions that appeaxed to be between related parties, oldex contract for deeds that were finalized, or sales influenced by atypical ma,rket motivations were excluded from this study. SUMMARY Sta,ff is xecommending that the Paxks and Recreation considering making recommendations to the City Council regarding the method of collection of paxks dedication and parks dedication fees. � � 1 � Evergreen Land Services Company 4131 Old Sibley Memorial Highway, Suite 201 Eagan, MN 55122 �'� TeL• (651) 882-0200 ��` � � _ .� �� December 15, 2016 ��'��rgreen � LAND SFRVICES COMPANY City of Rosemount �� ` Attn: Mr. Dan Schultz 13885 South Robert Trail Rosemount, MN 55068 I RE: City of Rosemount Market Study , � � Dear Mr. Schultz � It is our understanding that Parks and Recreation Department is looking for land sales within the � City of Rosemount and surrounding communities for setting the parks dedication fees. The purpose of this report is to provide market sales to use for consideration as data for parcels experiencing acquisitions for the future dedication fees. At your request we have gathered land sales within the City of Rosemount and surrounding communities and prepared a market study analysis. The market study is based on sales that are considered market qualified. Several of the sales have not been verified by Evergreen Land Services at this time. Transactions that appeared to be between related parties, or older contract for deeds that were finalized, or sales influenced by atypical market motivations, were excluded from this study. A good portion of the study area is currently high density residential, commercial and agricultural ' land. The majority of the sales used already had city sewer and water in place. This was taken into consideration when determining values. Typically land will sell for much less without utilities in place, but will sell higher than areas where no future extension of city sewer and water is planned. With this being said, until a detailed appraisal is conducted on each individual property affected, the values could vary from the data provided. Our conclusions from our market study are as follows: +L� �'��°�T;�"��,;:�� 1..��'.J ,1L��4��..isl � � 2 � Land Values for Future Commercial Use in Studv Area '/Z to 5 acre parcels $6.00 to$10.00 per square foot 5 to 20 acre parcels $4.50 to$7.00 per square foot � � Land Values for Future Industrial Use in Studv Area ' 1 to 10 acre parcels $3.00 to$4.00 per square foot � 10 to 25 acre parcels $1.50 to$3.00 per square foot Land Values for Low, Medium and Hiah Densitv Residential Development Land Use � in Studv Area 5 to 20 acre parcels Low to Medium $50,000 to$85,000 per acre. � 1 to 20 acre parcels Medium to High $85,000 to$125,000 per acre 1 to 20 acre parcels High $125,00 to$250,000 per acre � No party, other than the client, may use or rely upon this report without the prior written � authorization. If you have any questions regarding the information contained in this report, please call or email � me. � Sincerely, � Matthew S. Storm SR/WA 651-882-0200 � Matthews@elsco.net � � � - --- -- - - --- - -- - -- -- - --- � ��'�'�E��'��'�'�,�1 Laiici �erl ices � Parks Dedication Requirements City Rosemount(current): 1/25 of an acre per unit (.04 acres of land per unit) Lakeville: Low density Less than 3.0 12% Med density 3.0 to 9.0 14% High density More than 9.0 17 % Farmington: 0- 2.5 units per acre 11 % 2.6-5.0 units per acre 12 % 5.1-7.5 units per acre 13 % 7.6- 10.0 units per acre 14% 10.1- 12.5 units per acre 15 % 12.6- 16.0 units per acre 16% For each 2.5 units over 16/acre add .25% Eagan 0-1.9 units per acre 8% 1.9—3.5 units per acre 10% 3.5—5.9 units per acre 12% 6.0- 10.0 units per acre 14% 10+ units per acre add.5%for each unit over 10 Eagan also has a separate trail dedication requirement inver Grove Heights Percentage based on type of development R-1 & R-2 10% R-3A, R-3 B & R-3 D 20% R-3C 30% Savage 10%of the net developable land Apple Valley 0.00955 acre per resident Detached SF 3.2 persons per dwelling unit Attached SF 2.1 persons per dwelling unit Multiple family 1.7 persons per dwelling unit Burnsville The dedication formula for residential land shall be based on the national standard of providing ten (10) acres of parks and open spaces per one thousand (1,000) population and residential subdivisions shall be computed on the proposed number of dwelling units in a project and the average population for dwelling unit type as established by the metropolitan council. Shakopee 1 acre of land for every 75 people Single family 3.0 people Duplex/twin 3.0 people Apt or townhouse 1.0 person per bedroom Chanhassen 1 acre of land for every 75 people Single family 3.5 people Two-family dwelling 3.0 people Apt or townhouse 1.0 person per bedroom Rosemount (proposed) Low density 1 to 5 units per acre .04 acres per unit Med density 6 to 12 units per acre .03 acres per unit High density 12 to 30 units per acre .02 acres per unit