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HomeMy WebLinkAbout6.n. Text Amendment to Subdivision Ordinance Modifying Park Dedication Fees Calculation EXECUTIVE SUMMARY City Council Meeting Date: June 20, 2017 AGENDA ITEM: Case 17-22-TA Text Amendment to Subdivision Ordinance Modifying Park Dedication Fees Calculation AGENDA SECTION: Consent PREPARED BY: Kim Lindquist, Community Development Director AGENDA NO. 6.n. ATTACHMENTS: Ordinance, Memorandum from Dan Schultz, Parks and Recreation Director, Planning Commission Minutes May 23, 2017 APPROVED BY: LJM RECOMMENDED ACTION: Motion to Approve the Ordinance Amending City Code 12-3- 6 Park Dedication SUMMARY Staff has been discussing for some time the idea of modifying the park dedication fee calculations so there is a more stratified outcome depending upon the type of residential development. In other words, the present ordinance treats every dwelling unit the same, regardless of whether the unit is a single family house, a townhouse unit, or an apartment. The Parks and Recreation Director brought this item to the City Council and Parks Commission at several meetings in 2016-17. Because the Subdivision Ordinance is the prevue of the Planning Commission, this item is being processed similar to other text amendments found in the zoning ordinance, with a public hearing at the Planning Commission meeting and final approval scheduled at the Council. PLANNING COMMISSION At the Planning Commission in May, the Commission discussed the financial impact associated with the change as compared to the existing rates. Parks and Recreation Director Schultz reported that the background research indicates that the proposed changes for medium and high density residential make sense and the resulting change is consistent with other communities surveyed. He noted the ordinance amendment modifies the amount of payment per unit; however, the total payment is also a function of the cost of land for each of the residential densities. He believes that future cash payments will be meet the needs for new residential development. BACKGROUND The Parks and Recreation Director’s memo provides a review of the proposed change and also discusses State Statute and the need to have reasonable regulations in this matter. Additionally, the city should find a nexus between the fees or land dedication proposed and the municipal purpose. Per State Statute, “the fee or dedication must bear a rough proportionality to the need created by the proposed subdivision or development.” These requirements lead staff to move from a per dwelling unit fee or dedication, to one based upon the estimated number of residents per unit. The following is the proposed calculation method for land dedication. The payment in lieu of land dedication is based upon the same information below, but 2 the actual fees are housed in the annual fee schedule adopted by the City Council. The ordinance amendment documents the basis for the land dedication and fee: Density units/acre Dedication per unit Low density 1 to 5 units/acre .04 acres per unit Med density 6 to 12 units/acre .03 acres per unit High density 12 to 30+ units/acre .02 acres per unit The proposed language will result in changes to 12-3-6 B as depicted in the attached draft ordinance. Legal Authority. Text amendments are considered legislative actions. In such cases, the City has a lot of discretion in its deliberations and application outcome. CONCLUSION & RECOMMENDATION Based upon previous discussions by the City Council, the Parks Commission, and Planning Commission, staff is recommending approval of the ordinance amendment as proposed. CITY OF ROSEMOUNT COUNTY OF DAKOTA STATE OF MINNESOTA ORDINANCE NO. B-263 ORDINANCE AMENDING ROSEMOUNT CITY CODE, SECTION 12-3-6; PARK DEDICATION THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA ORDAINS as follows: Section 1. Section 12-3-6.B of Ordinance B, adopted September 19, 1989, entitled “City of Rosemount Zoning Ordinance”, is amended as follows: 12‐3‐6: PARK DEDICATION   B. Dedication: In all subdivisions, the city shall require that a reasonable 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. 1. In all residential subdivisions it shall be presumed that a reasonable amount of land has been dedicated for parks and playgrounds if the subdivider dedicates at least one twenty- fifth (1/25) of an acre for each Low Density Residential dwelling unit of the proposed subdivision (acres to be dedicated = 0.04 x number of dwelling units), .03 of an acre for Medium Density Residential (acres to be dedicated = 0.03 x number of dwelling units) or .02 of an acre for High Density Residential(acres to be dedicated = 0.02 x number of dwelling units) . The Land Use Density determination will be based upon the approved Comprehensive Land Use Plan. The city shall determine whether a cash payment in lieu of land dedication is appropriate. The amount of cash dedication shall be determined by multiplying the number of dwelling units of the proposed subdivision times the designed fee per dwelling which may be set from time to time by resolution of the council. (Ord. B-91, 8-5-1997, eff. 8-11-1997) Section 2. This Ordinance shall be effective the day following its publication.   ENACTED AND ORDAINED into an Ordinance this 20th day of June, 2017 ____________________________________ William H. Droste, Mayor ATTEST: ___________________________ Clarissa Hadler, City Clerk Published in the Rosemount Town Pages the _____ day of ______________, 2017. MEMORANDUM To: Kim Lindquist, Community Development Director Kyle Klatt, Senior Planner From: Dan Schultz, Parks and Recreation Director Date: May 9, 2017 Subject: Parks Dedication – Subdivision Ordinance ISSUE The Parks and Recreation Commission recently reviewed the City Subdivision Ordinance and subsequently recommended that the City adjust our parks dedication collection methods. The review was done in part because of a complaint we received from a developer who was bringing forward a high density development project. The developer felt it was unfair to collect the same parks dedication for a one bedroom apartment and a four bedroom single family home. The topic of collecting parks dedication was discussed by the Commission at several meetings in 2016 and 2017. It was also discussed by the City Council at their work session meetings on October 10, 2016 and April 10, 2017. Staff reviewed our parks dedication methods, plus the methods of many other local communities (see attached spreadsheet) and recommended to the Parks and Recreation and City Council that we adjust our parks dedication collection methods to have different collection requirements for low, medium and high density developments. The dedication requirements would be tied to the type of density and how many people are expected to live in each unit based on housing information provided by the Metropolitan Council (see attached housing information for the Met Council). Listed below is the current method of collecting parks dedication and what is being proposed as the City’s new method of collecting parks dedication. Current Collection Method    density                   units/acre    dedication per unit         All densities           N/A               .04 acres per unit       Proposed Collection Methods     density           units/acre      dedication per unit          Low density           1 to 5 units/acre               .04 acres per unit   Med density          6 to 12 units/acre             .03 acres per unit      High density          12 to 30+ units/acre           .02 acres per unit    Listed below are scenarios that show what the parks dedication would be for a 60 unit development in all three of the density categories as proposed. 60 Unit Development Scenarios    density            units              Land dedication                 Est. new residents   Low density     60    2.4 acres    180*  Med density    60         1.8 acres     130  High density    60         1.2 acres     94  *Same as current method BACKGROUND Parks Dedication Collection - Minnesota State statutes provide municipalities the opportunity to collect a portion of a subdivision for public purposes. Listed below is the state statute language pertaining to the dedication of land in a subdivision and also the language about the nexus of between the impact of the development and the required dedication. Subd. 2b.Dedication. (a) The 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, gas, and water facilities, storm water drainage and holding areas or ponds and similar utilities and improvements, parks, recreational facilities as defined in section 471.191, playgrounds, trails, wetlands, or open space. The requirement must be imposed by ordinance or under the procedures established in section 462.353, 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 municipality 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 facilities 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. (f) Cash payments received must be placed by the municipality in a special fund to be used only for the purposes for which the money was obtained. (g) 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 park systems plan. Cash payments must not be used for ongoing operation or maintenance of parks, recreational facilities, playgrounds, trails, wetlands, 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) Previously 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 park 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 between 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 462.361, 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 municipality. The City of Rosemount’s current parks 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 land dedication to satisfy the parks dedication requirements, .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 are dedicating the same amount of land/cash even though the residential unit might vary greatly 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 apartment. Staff have reviewed the parks dedication methods of several other cities and included some examples in a survey 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 matter the type of housing unit or density of the development. At the bottom of the survey, you will see a proposed adjustment to our current collection method. SUMMARY The Parks and Recreation Department is requesting that the Planning Commission hold a public hearing to discuss the proposed changes to the City’s Subdivision Ordinance relating to the collection of parks dedication.     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‐3B & R‐3D      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    5.c. Request by City of Rosemount for Text Amendment to Subdivision Ordinance Modifying Park Dedication Fees Calculation. (17-22-TA) Park and Recreation Director Schultz gave a brief summary of the staff report. Chair Kenninger questioned what the percentage meant on the chart that is included in their packet. Schultz stated that it is the total land area that is getting developed. Chair Kenninger inquired as to why with high-density developments would they have to pay less for park dedication when they are probably going to use the park more than with low-density. Schultz stated that it’s the opposite. They will end up paying more. The fee per unit is different for low, medium and high density. Senior Planner Klatt stated that when a high-density unit is being developed you are going to be dedicating less land vs. low-density developments. Commissioner Freeman inquired how the Park department feels toward getting less revenue. Schultz stated that has been discussed but that a market analysis has been completed and that the land values for residential units for high- density is actually higher than low-density. A majority of the developments are low or medium density. The Park Commission does not anticipate a significant loss. Chair Kenninger stated that as the Comprehensive Plan is looking to have more medium and high density areas have you looked at how that may be impacted. Schultz stated that the cash dedication that will be brought in it will match up to what the needs are of the new residents. Commissioner Mele stated that it makes us more competitive for potential future development. Schultz stated that it may spur more development and make it fair for all developers. Chair Kenninger clarified that if she would develop a high density development in Lakeville based off total land being developed she would have 17% of land dedicated to park space and 12% for low density. The high density development would cost more and in Rosemount the high density would cost less. Park and Recreation Director confirmed that is correct. Klatt stated that if a development for low density residential development you are using more land and with high density developments you are using less land. If you compare the cost per unit, the high density development is contributing less. The single family homes pay more since there is potential to have more people using the parks and more land is used for the development. Commissioner Mele stated that in Rosemount if the development is taking more land then we need to charge them more to create the parks within the city. Schultz clarified that with a per acre basis the land values will be greater with high density. But the high density developments will still be using less land compared to a low density development. The low density development will use more land. The public hearing opened at 7:59 pm. Public Comments: None. MOTION by Freeman to close the public hearing. Second by Mele. Ayes: 4. Nays: 0. Motion Passes. The public hearing closed at 7:59 pm. Additional Comments: None. MOTION by VanderWiel to recommend the City Council approve the Text Amendment Modifying the Park Dedication Fees Calculation. Second by Freeman. Ayes: 4. Nays: 0. Motion Passes.