HomeMy WebLinkAbout6.a. Parks Dedication and Dedication Fees �rRosEMo
PI4RK5 AND RECREATION COMMISSION E X E C U T I V E S U M M A R Y
Parks and Recreation Commission Meeting: March 20, 2017
AGENDA ITEM: Parks Dedication and Dedication Fees AGENDA SECTION:
Old Business
PREPARED BY: Dan Schultz, Parks and Recreation AGENDA NO.
Director 6 a.
ATTACHMENTS: Land Value Market Study Introduction
Letter/Summary and Survey of Parks APPROVED BY: dls
Dedication
RECOMMENDED ACTION: Motion to recommend that the parks dedication collection
method and dedication fees be adjusted as listed below.
density units/acre dedication per unit land value/acre cash ded./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
ISSUE
The topic of collecting parks dedication was discussed by the Commission in July and August of 2016 and
in February of 2017 with no formal recommendation being made to the City Council xegarding the topic.
One item that was discussed with regards to the parks dedication was to consider updating the la,nd values
study that was last done in 2010.A Land Value MaYket Study was recendy completed and was shared with
Cominission at our January regular meeting.
The Land Va1ue Maxket Study showed that there is a difference in land prices for varying types of density
levels.With that being said, sta,ff is recommending that the Parks and Recreation Commission look at
setting a per acre parks dedication fee foY low,mediuxn and high density developments.
Staff is also recommending that we adjust our parks dedication collection methods to have different
collection requirements foY low,medium and high density developments.'The dedication requirements are
tied to the type of density and how many people are expected to live in each unit based on housing
information provided by the Met Council.
Staff has discussed the parks dedication requirements with the City Attorney and the attorney confiYmed
that we cannot require developexs pay for developing the parks on top of what we require them to pay us
as cash in lieu of la,nd when recoxnmended.
Staff is recommending that the methods of collection and parks 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 fox a 60 unit development in all three
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,s Dectication Collection-
Minnesota State statutes provide municipalities the opportunity to collect a portion of a subdivision for
public purposes.Listed below is the state sta,tute language pextaining to the dedication of land in a
subdivision and also the langua.ge about the ne�cus of between the unpact of the development and the
required dedication.
Subd.2b.Dedicarion.
(a)T'he regulations may require that a reasonable portion of the buildable land,as defined by municipal
ordinance,of any proposed subdivision be dedicated to the public or preserved for public use as streets,
roads,sewers,electric,ga,s,and water facilities,storm water drainage and holding areas or ponds and similar
utilities and improvements,parks,recreational facilities as defined in section�71.191,playgrounds,trails,
wedands,or open space.The requirement must be imposed by ordinance or under the procedures
established in section-�62.353,subdivision 4a.
(b) If a municipality adopts the ordinance or proceeds under section-462.353,subdivision 4a,as required by
paragraph (a),the municipality must adopt a capital improvement budget and have a parks and open space
plan or have a parks,trails,and open space component in its comprehensive plan subject to the terms and
conditions in this paragraph and paragraphs (c) to (i).
(c)The municipaliry may choose to accept a cash fee as set by ordinance from the applicant for some or all
of the new lots created in the subdivision,based on the average fair market value of the unplatted land for
which park fees have not already been paid that is,no later than at the time of final approval or under the
city's adopted comprehensive plan,to be served by municipal sanitary sewer and water service or
community septic and private well as authorized by state law.For purposes of redevelopment on developed
land,the municipality may choose to accept a cash fee based on fair market value of the land no later than
the time of final approval. "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 municipality's calculation of
valuation is objected to by the applicant,then the value shall be as negotiated between the municipality and
the applicant,or based on the market value as determined by the municipality based on an independent
appraisal of land in a same or similar land use category.
(d) In establishing the portion to be dedicated or preserved or the cash fee,the regulations shall give due
consideration to the open space,recreational,or common areas and factilities open to the public that the
applicant proposes to reserve for the subdivision.
(e)The municipality must reasonably determine that it will need to acquire that portion of land for the
purposes stated in this subdivision as a result of approval of the subdivision.
(� Cash payments received must be placed by the municipaliry in a special fund to be used only for the
purposes for which the money was obtained.
(� Cash payments received must be used only for the acquisition and development or improvement of
parks,recreational facilities,playgrounds,trails,wetlands,or open space based on the approved paYk
systems plan. Cash payments must not be used for ongoing operation or maintenance of parks,recreational
facilities,playgrounds,trails,weflands,or open space.
(h)The municipality must not deny the approval of a subdivision based solely on an inadequate supply of
parks,open spaces,trails,or recreational facilities within the municipality.
(i) Previouslp subdivided property from which a park dedication has been received,being resubdivided with
the same number of lots,is exempt from park dedication requirements. If,as a result of resubdividing the
property,the number of lots is increased,then the paxk dedication or per-lot cash fee must apply only to the
net increase of lots.
Subd.2c.Nexus.
(a)There must be an essential nexus betcveen the fees or dedication imposed under subdivision 2b and the
municipal purpose sought to be achieved by the fee or dedication.The fee or dedication must bear a rough
proportionality to the need created by the proposed subdivision or development.
(b) If a municipality is given written notice of a dispute over a proposed fee in lieu of dedication before the
municipality's final decision on an application,a municipality must not condition the approval of any
proposed subdivision or development on an agreement to waive the right to challenge the validity of a fee
in lieu of dedication.
(c)An application may proceed as if the fee had been paid,pending a decision on the appeal of a dispute
over a proposed fee in lieu of dedication,if(1) the person aggrieved by the fee puts the municipality on
written notice of a dispute over a proposed fee in lieu of dedication, (2)prior to the municipality's final
decision on the application,the fee in lieu of dedication is deposited in escrow,and(3) the person aggrieved
by the fee appeals under section�62.361,within 60 days of the approval of the application. If such an
appeal is not filed by the deadline,or if the person aggrieved by the fee does not prevail on the appeal,then
the funds paid into escrow must be transferred to the municipaliry.
The City of Rosemount's paxks dedication requirement for residential development presumes that a
reasonable amount of land has been dedicated for parks if a sub-divider dedicates one twenty-fifth 1/25 of
an acre for each dwelling unit of the proposed subdivision (acres to be dedicated = 0.04 x number of
dwelling units). If the City chooses to accept cash instead of la,nd dedication to satisfy the parks dedication
requixements, .04 is multiplied by a per acre value set by the City Council.
One issue with the current dedication requirement is that all residential units axe dedicating the same
amount of land/cash even though the residential unit might vary gready in size and potential impact to the
parks system.An example might be a single family home with four bedrooms is dedicating the same
amount of land as a one bedroom apaxtment.
Staff have reviewed the paxks dedication methods of several otheY cities and included some examples in a
chart that is included in the packet. The examples that staff has pYovided show that some cities use a
sliding scale of percenta.ges for la,nd 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 matter the type of housing unit or density of
the development.
At the bottom of the spreadsheet,you will see a proposed adjustment to our curtent collection method of
requiring.04 acres per unit.
Lcand Tlalue Market Studv-
The City of Rosemount recently hired Evergreen Land Services to conduct a Land Value Market Study to
assist the City with setting our parks dedication fees. At the City's request, EvergYeen has gathered land
sales information 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. Transactions that
appeared to be between related parries, older contract for deeds that were finalized, or sales influenced by
atppical market motivations were excluded fxom this study.
SUMMARY
Staff is recommending that the Parks and Recreation Commission considering making a recommendation
to the City Council xegarding the method of collection of parks dedication and parks dedication fees that
axe included in the packet.
�
� 1
� Evergreen Land Services Company
4131 Old Sibley(Vlemorial Highway, Suite 201
Eagan, MN 55122 ��°}�
Tel: (651) 882-0200 4�.��;
� ��...�°
December 15, 2016 ��r'��sgreen
( iarao
SFRVICES
COMPANY
� City of Rosemount Appnml,hoquYitloa
Attn: Mr. Dan Schultz '���°°'��''�`°
13885 South Robert Trail
Rosemount, MN 55068
�
►
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:
���, f'i°r'�'��b'�l
� il'.. `� I_. �
�
� 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 ZO 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 Hiqh 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
I me.
!
Sincerely,
���� � ,
Matthew S. Storm SR/WA
651-882-0200
Matthews@elsco.net
. , , �
Parks Dedication Requirements
c�ty
Rosemount (current):
1/25 of an acre per unit (.04 acres of land per unit)
Lakevilie:
Low density Less than 3.0 1Z %
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 S %
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 providingten (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